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Best Practices for Design Build Procurement

Best Practices for Design Build Procurement. Presentation to 2010 FAA Worldwide Airport Technology Conference Atlantic City, NJ April 22, 2010. Jim Hall, PE, PhD. IPRF Project 01-G-002-06-1 Review Panel. Jim Lafrenz (IPRF) Craig Rutland (HQ AFCESA/CEOA) Gary Mitchell (ACPA)

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Best Practices for Design Build Procurement

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  1. Best Practices for Design Build Procurement Presentation to 2010 FAA Worldwide Airport Technology Conference Atlantic City, NJ April 22, 2010 Jim Hall, PE, PhD

  2. IPRF Project 01-G-002-06-1Review Panel Jim Lafrenz (IPRF) Craig Rutland (HQ AFCESA/CEOA) Gary Mitchell (ACPA) Carlton Lambiasi (FAA) Bob Benko (FAA) Susan Winslow (Delta Airport Consultants) Dean Rue (CH2M Hill) Mike Devoy (RW Armstrong)

  3. Project Team Jim Hall (ARA) Dave Hein (ARA) Chris Olidis (ARA) Justin Jones (PBSJ)

  4. Project Objectives Assess, document and compare merits and deficiencies between D/B and D/B/B Document myths and realities of D/B Develop a suitability template for D/B Develop a D/B best practices document

  5. Project Approach • IPRF identified list of airfield D/B projects • Each was contacted; completed questionnaire and personal interview

  6. D/B versus D/B/B

  7. Key Aspects of D/B D/B projects move from conception to commission much faster than D/B/B Design and construction integration/overlap allows compression of schedule critical path Projects with higher level of complexity better suited Allows innovation Promotes sense of ownership of final product Less cost creep than traditional D/B/B Not always least cost approach

  8. Role of Design Engineer The design engineer is contracted to the D/B Entity Does not have a direct relationship with the Owner Designer retained by D/B contractor not an issue in projects reviewed Some advantages to have contractor personnel be an integral part of the design team May work best when D/B is joint venture between design firm and contractor

  9. Project Development Owners should have a clear understanding of what they want and ask for it A risk allocation matrix helps identify the responsibilities of owner and contractor Owners preliminary design should allow a contractor to do preliminary estimating

  10. Risk Allocation Matrix

  11. Risk Allocation Matrix

  12. Minimum Information to be Provided to Prospective Bidders Performance specifications Geotechnical information Topographical survey Environmental Impact Statement (EIS) Record of Decision (ROD) Design parameters (traffic, design life, etc)

  13. Typical RFP Information

  14. Project Development 30 percent design sufficient to describe owner’s requirements Procurement evaluation criteria should include decision parameters and ratings Pre-qualify no more than three D/B teams

  15. Project Development Consider a suitable stipend to short-listed bidders commensurate with size and complexity of project A 3-year warranty was considered reasonable An arbitration procedure for dispute resolution should be included in the D/B contract

  16. Contract Management Partnering session to establish / understand all aspects of the project Regular meetings to review issues and contingency items, ensure no surprises Deal with any financial issues immediately Design submissions need to be largely complete and accurate and have contractor buy-in before being submitted to the owner for review

  17. Project Management Owners project team must be committed to the D/B process Owners should retain an independent firm to review the design submittals (unless Owner has in-house capabilities) Owner design reviewers to be highly experienced in the subject matter due to compressed schedule

  18. Quality Management D/B lead responsible for overall project QC and QA checks of the subcontractors’ QC QMP should include: organizational details quality procedures inspection and testing frequencies corrective action plans reporting requirements, etc ISO 9000 Guidelines good reference

  19. Quality Management Subcontractors responsible for QC of their own work Owner and/or owner’s representative should provide QA oversight QA/QC information and test results should be readily available to all parties

  20. Quality Plan Requirements

  21. Quality Plan Requirements

  22. Project Suitability for D/B Large airport projects may be up to 3 years in the planning and funding stages Legislation to allow D/B Procurement Primary Considerations Time constraints for project delivery Environmental impact complete Project complexity

  23. Project Suitability for D/B Secondary Considerations(partial list) Well defined scope - clear performance requirements Project size Owner experience and resources Contractual restraints (complexity) Allocation of risks

  24. Project Suitability for D/B Other Considerations(partial list) Operational constraints Budget Unforeseen subsurface conditions Roles and responsibilities Surety/bonding/insurance, etc

  25. Project Suitability Template Considers primary, secondary, and other factors Assigns appropriate weighting factors Weighting factors based on Owner’s needs and expectations Outcome can range from 0 to 100 > 65, suitable for D/B 50 to 65, can be considered < 50, not considered suitable

  26. Design/Build Flowchart Step 1 Determine Suitability • Evaluate fatal flaws • Complete suitability matrix

  27. Design/Build Flowchart Step 1 Determine Suitability Step 2 Procurement Plan • Project description • Assess risk • Develop schedule and planning budget

  28. Design/Build Flowchart Step 1 Determine Suitability Step 2 Procurement Plan Step 3 Develop RFQ • Pre-qualification requirements • Selection criteria and weighting • Shortlist qualified proposers

  29. Design/Build Flowchart Step 1 Determine Suitability Step 2 Procurement Plan Step 3 Develop RFQ Step 4 Develop RFP • Create knowledgeable selection panel • Establish design guidelines • Balanced contract language

  30. Design/Build Flowchart Step 1 Determine Suitability Step 2 Procurement Plan Step 3 Develop RFQ Step 4 Develop RFP Step 5 Evaluate and Award • Separate evaluation of technical and financial submission • Promptly award contract

  31. Design/Build Flowchart Step 1 Determine Suitability Step 2 Procurement Plan Step 3 Develop RFQ Step 4 Develop RFP Step 5 Evaluate and Award Step 6 Monitor Performance • Hold chartering sessions • Undertake auditing and monitoring • Final acceptance

  32. Technical Report and Best Practices IPRF website http://www.iprf.org/

  33. Draft ACC and UFC Documents

  34. QUESTIONS

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