Hennepin County - Performance Based Studies Research Group

4/5/2012
Hennepin County
Community Corrections Preservation
Home School Fire Services Water Main
Christine Longwell
Project Manager
Hennepin County
1

This presentation is for
educational purposes only.
Please refer to the RFP for
specific instructions
2

Schedule
Date
Activity
03‐28‐12 RFP Released
04‐04‐12 Pre‐Proposal Mtg – Best Value Training – 9:00am – 9:30am
04‐04‐12 Pre‐Proposal Mtg – Site Walkthrough – 9:30am (RECOMMENDED)
04‐11‐12 Last Day For Questions
04‐18‐12 Proposals Due (2:00 PM Minnesota Time)
05‐02‐12 Interviews
05‐07‐12 Identification of Potential Best‐Value
05‐14‐12 Pre‐Award Kick Off Meeting
05‐29‐12 Final Pre‐Award Meeting
06‐14‐12 Project Award
12‐07‐12 Substantial Completion Date
3

Small Business Enterprise Program (SBE)
• Hennepin County adopted the SBE Program to break
down barriers in the marketplace and encourage
increased competition.
• A SBE Participation Goal of up to 25% can be set on any
construction opportunity.
• This goal must be met by attainment or documentation
of Good-Faith Efforts.
• Good-Faith Effort Guidelines are included in the
Specifications.
4

Small Business Enterprise Program (SBE)
While firms do not have to be certified to do business with
Hennepin County, only those certified as SBE’s with our CERT
Program count toward the SBE Goal Attainment. Participation
approval is necessary prior to contract award.
CERT Program directories are no longer posted online. If you
already have a B2Gnow login, you will be able to access the
directory by logging in and selecting “Search”…If you do not
have a login ID, send an email to cert@ci.stpaul.mn.us with the
project name and due date, the government agency bidding out
the project. Include your contact name, company, phone & fax
number, and email address. Allow 24 hours for someone to
respond to your request.
5

Small Business Enterprise Program (SBE)
When submitting documentation, include all of your Bid
Solicitation information: Telephone Logs used to solicit
subcontractors, with contact person and telephone
number; copy of letter/fax notification used to contact
contractors requesting their participation; detail of
responses: No Response/No Bid/if bidding, amount bid.
Contact: Angie Kirkpatrick, 612.348.2528 for questions
regarding SBE.
6

Best Value Objectives
• Transfer risk to experts (not just transfer risk...but
minimize risk)
• Minimize risk of non-performance
– Complete to the expectations
– Customer satisfaction / No complaints
• Minimize client management, direction, and decision
making.
7

Best Value System: Three Phases
(alignment of expertise, minimization of effort)
Vendor is an Expert
Vendor is an Expert
PHASE 1
Identification
of Potential
Best-Value
PHASE 2
Pre Planning
and
Quality Control
PHASE 3
Award |
Measurement &
Documentation
Vendor is NOT an Expert
8

Submittals
Phase 1
Selection

Selection Steps
Phase 1
Selection
STEP 1
Risk, Project
Capability, Value
Add, Cost, Past
Performance,
Schedule Vendor
STEP 2
Interviews
Vendor
STEP 3
Prioritization
Vendor
STEP 4
Cost
Reasonableness
Vendor
10

Dominant ratings…
Phase 1
Selection
• Support claims with:
– verifiable performance metrics
– best value practices with performance measurements
11

Selection Criteria
Phase 1
Selection
• Paper Submittals:
– Risk that vendor does not control (Risk)
– Project Capability (PC)
– Value Added (VA)
• Interview
• Cost
• Past Performance Information (PPI)

Risk Plan
13

Risk Plan
Phase 1
Selection
• Prioritize major risk items on this project that the
submitter does NOT control
• Explain how proposer will mitigate, manage, and/or
minimize the risk from occurring
– Was the mitigation plan was used previously, how many times
– What was the impact on performance in terms of cost, schedule
and customer satisfaction

Risk Plan Template
Phase 1
Selection
15

Risk Plan Example
Phase 1
Selection
Risk Description:
Solution:
Unforeseen risk or conditions are discovered on the project.
Risk that is not identified by client professional, competing contractors, or expert contractor
will be identified and solved within 3 days maximum (unless longer time is justified and
requested). The contractor will resolve unforeseen risks in the following manner:
• Contractor shall immediately notify the designer and owner the same day as discovery
of potential cost and time impact
• Contractor shall find best possible options to minimize risk, with accompanying cost and
time
• All cost and time figures will be competed among the best performers
• Contractor shall propose the best solution with justification and present to client
representative
• If client representative approves, no action required, as contractor will create change
order for work, justification, pricing, and proposal within the specified time, and
proceed to accomplish the work
• If client objects, contractor will work around issue and document cost and time
deviation on a weekly basis
Documented
Performance:
Of our 15 most recently completed projects in similar scope to this project, less than 1% of
the deviations were unforeseen. Our average response time from identification of
unforeseen risk to issuance of RFI is 1 day (for these same 15 projects).
16

Project Capability Plan
17

Project Capability Plan
Phase 1
Selection
• Proposer’s opportunity to highlight capability to meet the
requirements of this project through the use of best
value practices and/or performance metrics
• Identify "vision” or “plan” for the alignment of expertise
over the duration of the project
– Alignment of Resources
– Cash flow
– Selection of critical sub-vendors

Project Capability Plan Template
Phase 1
Selection
ATTACHMENT D
Project Capability Plan
This template must be used. The Project Capability Plan should identify the Respondent’s capability to
meet the project’s requirements with a plan that meets time and cost goals. The capability claims
should be prioritized (list the most important claims first). The Respondent may add or delete Project
Capability Claim table templates, but do not exceed the 2-page limit. Do NOT include any identifying
information in your Plan. Information listed under the “Documented Performance” line may describe
where the Respondent has used the approach or solution previously, and what the results were in terms
of verifiable metrics.
Project Capability 1 Claim:
Documented Performance:
Project Capability 2 Claim:
Documented Performance:
Project Capability 3 Claim:
Documented Performance:
Project Capability 4 Claim:
Documented Performance:
19

Project Capability Plan Example
Phase 1
Selection
Submittal with historical performance information
Capability
Claim:
Our roofing subcontractor has proven long‐term performance to
eliminate leaks caused by the roofing system, at a very high level
of customer satisfaction.
Documented
Performance:
The roofing contractor has completed 25 roofing projects (similar
size and scope to this project) with an average age of 12 years.
99% of the projects were completed on‐time, 95% of the roofs
have never leaked, and 100% of the roofs do not currently leak.
The average overall customer satisfaction rating is 9.5 out of 10.

Value Added Plan
21

Value Added Plan
Phase 1
Selection
• Opportunity to identify any value added options or ideas that
may benefit the County
• Respondent should identify:
– What the Owner may have excluded or omitted from its
scope
– How these options or ideas have been successful through
verifiable performance information and/or best value
practices
• MUST have a cost impact (and possibly schedule impact)

Value Added Plan Template
Phase 1
Selection
23

Value Added Example
Phase 1
Selection
Item 1 Claim:
How will this add value
There are 14 issues with the design that, if left
unchanged, will result in a finished project that does
not meet the Owner’s intent.
Resolving the issues before they arise will save
approximately 20% cost, and 5% in time.
Documented performance: On 5 similar projects to this one, we identified and
resolved an average of 12 issues per project prior to
award. These projects resulted in less than 2% designrelated
cost change orders, and no schedule delays.
Cost Impact (%): 3.5%
Schedule Impact (%): 0%

Milestone Schedule
25

Milestone Schedule
Phase 1
Selection
• Identify major items that affect final completion of
project
• Identify where client actions and decisions are needed
• Risk is anything that causes deviation to the plan
26

Things to Avoid
Phase 1
Selection
• Transferring risk back to client:
– We will work with the owner to resolve issues
– We will have team meetings / partnering meeting with the owner
• General risks and/or general solutions:
– We will plan ahead to coordinate activities
– We will plan ahead to get classes scheduled and created
27

Submittal Requirements
Phase 1
Selection
Submittal Document
Risk Plan
Project Capability Plan
Value Add Plan
Maximum Page Length
Two (2) pages
Two (2) pages
Two (2) pages
• Must not contain ANY identifying information (names, company
names, project names, product names, etc.)
• Vendors are NOT allowed to re-create, re-format, or modify the
template (cannot alter font size, font type, font color; add colors,
pictures, tables, diagrams, etc)
• Must use template provided on website – www.pbsrg.com
28

Past Performance Information Submittal
Phase 1
Selection
VENDOR Vendor
Step 1
Step 2
Step 3
Step 4
Step 5
Prepare Reference List
Prepare and Send Survey Questionnaires to Past Clients
Collect/Receive Completed Surveys
Enter data into Reference List
Package all material (Reference List and Surveys) and Submit

Step 1: Prepare Reference List
Phase 1
Selection
Profile sheet
SURVEY
CODE
FIRST
NAME
LAST NAME PHONE FAX
CLIENT
NAME
PROJECT NAME
DATE
COMPLETED
COST OF
PROJECT
PROJECT
TYPE
Past Project Info sheet
30

Step 2: Prepare & Send Surveys
Phase 1
Selection
Past Project
Info
Profile
Send
Client
31

Step 3: Survey Form
Phase 1
Selection
NO CRITERIA UNIT RATING
1 Ability to manage the project cost (minimize change orders) (1-10)
2 Ability to maintain project schedule (complete on-time or early) (1-10)
3 Quality of workmanship (1-10)
4 Professionalism and ability to manage (1-10)
5 Close out process (1-10)
6 Communication, explanation of risk, and documentation (1-10)
7 Ability to follow the users rules, regulations, and requirements (1-10)
8 Overall customer satisfaction and comfort level hiring again (1-10)
32

Step 4: Sign & Fax
Phase 1
Selection
33

Step 5: Collect & Receive Surveys
Phase 1
Selection
Past Client
Fax, Email, Mail
Contractor
34

Step 6: Fill Out Reference List
Phase 1
Selection
35

Step 7: Scan Surveys & Burn CD
Phase 1
Selection
Reference Lists
Returned Surveys
Excel (XLS) file
scanned to PDF
CD‐ROM
36

I already have PPI…
Phase 1
Selection
37

Summary of PPI Requirements
Phase 1
Selection
• Maximum number of surveys that can be evaluated for each
critical team component is 5 for a company and 3 for an
individual
• Projects must be 100% complete (final payment received)
• Project list must contain different projects
• The survey must be signed
• Turn in electronic copies of surveys (PDF) and Reference Lists
(XLS)
• Projects do not need to be similar
38

Comments / Questions on PPI Submittal
Jake.Smithwick@asu.edu
www.pbsrg.com
39

Submittal Process
40

How The Submittal Process Works
Phase 1
Selection
Average
Score
Submittal
Contracting
Officer
Proposal Form, $, &
Proposal Form
Other Documentation
(1 page)
Risk, Project Capability,
Proposal Form
Value Added (1 page) Plans
Evaluation Members
41

Selection Steps
Phase 1
Selection
STEP 1
STEP 2
STEP 3
STEP 4
Risk Assessment,
Value Add, Cost,
Vendor PPI
Interviews
Vendor
Prioritization
Vendor
Cost
Reasonableness
Vendor
42

Looking for the expert
Phase 1
Selection
Project
Risk Risk Risk
43

Interview Format
Phase 1
Selection
• The client will actually “interview” each critical individual. This is not a
“presentation”:
– Project Manager
– Site Superintendent
• All individuals will be interviewed separately. The client will not allow group
interviews with the vendor’s team. The client will not allow any other
individuals to be present during interviews
• Generally, interview times will last about 15-20 minutes per individual
• A standard set of questions will be generated and asked to each individual.
• The client has the option to clarify any answers (or ask additional questions
to clarify an answer).
• No substitutions will be allowed. Individuals listed on Proposal Form must
be present. If a team member is not present for the interview, they will
jeopardize the teams competitiveness.
44

Selection Steps
Phase 1
Selection
STEP 1
STEP 2
STEP 3
STEP 4
Risk Assessment,
Value Add, Cost,
PPI, Vendor Schedule
Interviews
Vendor
Prioritization
Vendor
Cost
Reasonableness
Vendor
45

Cost Reasonableness
Phase 1
Selection
Best Value
Prioritization
Dominance Check Also
Best-Value is within budget
Best-Value is the lowest price
Best-Value is within 5% of
next highest ranked firm
Best-Value can be justified
based on other factors
Yes
Yes
Yes
No Yes
No Yes
Yes
No Yes
Proceed to highest ranked
proposal within budget
No Yes
Proceed to
Pre-Award
Go with Alternate
Proposal or Cancel
46

Summary of Evaluation Factors
Phase 1
Selection
Rank Evaluation Factor Weighted Rated
1 Interview X X
2 Cost X
3 Risk Assessment X X
4 Technical Capability X X
5 Value Add X X
6 Past Performance Information X
N/A
Milestone Schedule
47

Pre-Award/Clarification
48

PIPS Process
PHASE 1
Identification
of Potential
Best-Value
PHASE 2
Pre Planning
and
Quality Control
PHASE 3
Award |
Measurement &
Documentation
49

Pre-Award/Clarification Schedule
Phase 2
Pre-Award
1. Notification of Potential Best Value (1 week prior to Kick-off
meeting)
2. Kick-off Meeting with Proposer and County Project Team
3. Clarification Phase (2 weeks)
– Determine acceptance of Value Added items
– Answer outstanding questions from Kick-off meeting
– Prepare Revision Document to document all changes
4. Close-out Meeting
5. Contract Finalization
6. Notice to Proceed
50

Pre-Award/Clarification Kickoff Meeting
Phase 2
Pre-Award
• Attendees include designer, user, client, critical
subcontractors, and critical personnel
• Contractor presents technical scope and Risk
Management Plan (RMP)
• Client, user, and technical experts quiz vendor on both
technical and non-technical concerns
• Input from kickoff meeting is put into technical
specifications and Weekly Risk Report/RMP
51

Pre-Award/Clarification Phase
Phase 2
Pre-Award
• Preplan the delivery of the project
• Clarify that the proposal is accurate (get details)
• Identify the risks/issues that could cause the plan to deviate
• Identify your assumptions and what you do no know
– Set plans to minimize those risks from occurring
– Address all the concerns and risks of the client
• Identify what is needed from the County and the a plan for
getting it
• Align expectations between all parties so everyone knows
what is going to transpire and what they are supposed to do
52

Pre-Award/Clarification Closeout Meeting
Phase 2
Pre-Award
• Closeout meeting is to summarize all of the coordination
that has been complete and walk through the Pre-Award
Document
– All issues resolved
– All coordination complete
– All risks that are not in vendors control have been identified
– All value added options have been addressed
• Upon successful completion of the Closeout Meeting, the
client will make the award
53 53

Summary
Phase 2
Pre-Award
• The PA Phase is the most important step in the best-value process
• It is a period of time that is used to preplan the entire project in
detail (minimize surprises / identify all risks the vendor does not
control)
• The vendor is in control of this phase, but the client should facilitate
• The PA Document must contain
– Base Cost + Value Added Items = Final Cost
– Documentation of decisions during PA
– Schedule
– Risk Management Plan
– Uncontrollable risks

PIPS Process
PHASE 1
Identification
of Potential
Best-Value
PHASE 2
Pre Planning
and
Quality Control
PHASE 3
Award |
Measurement &
Documentation
55

Weekly Reporting System (WRS)
• Excel Spreadsheet that tracks only unforeseen risks on a
project
• Client will setup and send to vendor once Award/Notice to
Proceed issued
• Vendor must submit the report every week (Friday).
• The final project rating will be impacted by the accuracy and
timely submittal of the WRS
56

www.pbsrg.com/pips

More Education

NEW! PIPS WEB UPDATES
• Want to stay updated on PIPS Projects
• Get an email when a project is added or updated
• Choose the PIPS Users you want to follow
• You can sign up at…
www.PBSRG.com/PIPS
59

Comments / Questions
Christine.A.Longwell@co.hennepin.mn.us
www.pbsrg.com
60

Schedule
Date
Activity
03‐28‐12 RFP Released
04‐04‐12 Pre‐Proposal Mtg – Best Value Training – 9:00am – 9:30am
04‐04‐12 Pre‐Proposal Mtg – Site Walkthrough – 9:30am (RECOMMENDED)
04‐11‐12 Last Day For Questions
04‐18‐12 Proposals Due (2:00 PM Minnesota Time)
05‐02‐12 Interviews
05‐07‐12 Identification of Potential Best‐Value
05‐14‐12 Pre‐Award Kick Off Meeting
05‐29‐12 Final Pre‐Award Meeting
06‐14‐12 Project Award
12‐07‐12 Substantial Completion Date
61