construction contracting presenter name john moore
DESCRIPTION
TRANSCRIPT
US Army Corps of Engineers
BUILDING STRONG®
CONSTRUCTION CONTRACTING
Presenter Name John Moore
Chief Contracting Division
Savannah District
20 May 2010
BUILDING STRONG®
AGENDA
ACQUISITION PROCESS
► ACQUISITION PLANNING► ACQUISITION DECISIONS
BEST VALUE
► BEST VALUE CONTINUUM► TRADE OFFS► SOURCE SELECTION CRITERIA► SOURCE SELECTION DECISION
SOCIO-ECONOMIC CONSIDERATIONS
IDIQ CONTRACTS► MATOC COMPETITION PROCESS► BENEFIT OF MATOCS/SATOCS
BUILDING STRONG®
RFP Process
START Acquisition
Planning
Develop Evaluation
Criteria
Issue Solicitation
Proposals Submitted
Initial Evaluation
Competitive Range
FIN
ISH Award
Source Selection
Final ProposalRevisions
Discussions
BUILDING STRONG®
Considerations in Acquisition Planning
• Project Size and Budget
• Scope Complexity
• Urgency
• Customer/Politics
• Funding Stream
• Market Conditions
• Socio-Economic Programs
• Availability of Current Contract Vehicles
• In-House Staff Capacity/Capability
BUILDING STRONG®
Acquisition Decisions
• In-House vs. Contract• Solicitation – IFB or RFP• Contract Type – Fixed Price or Cost• Small Business or Unrestricted• Design-Bid-Build or Design-Build• Existing Contract or New Acquisition• Sole Source or Competitive
Acquisition Planning is Risk Management!
BUILDING STRONG®
The Best Value Continuum
CONTRACTORCONTRACTORLeast Control
AssumesGreatest Risk/
Control
AssumesGreatest Risk/Control
Invitation for Bid – Sealed Bid
Low Price Technically Acceptable
Price-Performance Trade-off
One Step Design-Build
Two Step Design-Build
GOVERNMENTGOVERNMENT
BUILDING STRONG®
THE BEST VALUE CONTINUUM
INVITATION FOR BID
PROs:
Relatively fast acquisition phase Less Resources needed during acquisition
CONs:
Government assumes most risks No quality control over Contractor selection No negotiations! Long lead time for design
BUILDING STRONG®
Request for Proposal
PROs:
Contractor selection based on pre-established evaluation criteria
Performance evaluated with price Ability to negotiate
CONs:
More resource intensive Acquisition Time is Longer
THE BEST VALUE CONTINUUM
BUILDING STRONG®
BEST VALUE TRADE-OFFS
PROJECT REQUIREMENTSPROJECT REQUIREMENTS•SIZESIZE•COMPLEXITYCOMPLEXITY•FUNDING STREAMFUNDING STREAM•RESTRICTIONSRESTRICTIONS
•COSTCOST•SCHEDULESCHEDULE
•QUALITY QUALITY •SCOPESCOPE•PAST PAST PERFORMANCEPERFORMANCE
RISKRISK
BUILDING STRONG®
SOURCE SELECTION CRITERIA
True discriminators have the following characteristics:
A reasonable expectation of variance among offerors
An assessable variance (quantitative or qualitative measurement)
The requirement(s) warrant a comparative evaluation of that Factor (worthy of a Price/Cost Premium)
Do Criteria Focus on Issues of Substance?
Is there time to evaluate the selected criteria?
ID of skilled evaluators to assess the criteria?
BUILDING STRONG®
THE SOURCE SELECTION DECISION
Represents the Source Selection Authority’s rational and independent judgment;
Is based on a comparative analysis of the proposals;
Must be consistent with solicitation evaluation factors and subfactors.
Must Reflect Why Discriminators among Offerors (e.g. Lower Risk, Better Past Performance, Strengths and Weaknesses) are:
Worth of any Price Premium, or
Not Worth of a Price Premium
BUILDING STRONG®
Socio-economic Considerations:
Unrestricted
Small Business
8(a)
SDVOSB
HubZone
BUILDING STRONG®
SOCIO-ECONOMIC TARGETS
Small Businesses 32.0%
Small Disadvantaged Businesses 18.0%
Women-Owned Small Businesses 5.8%
HUBZone Small Businesses 10.0%
Service Disabled Veteran-Owned Small Bus. 3.0%
HBCU/MI 13.0%
BUILDING STRONG®
IDIQ Contracts
Single Award (SATOC)
• One contractor
(no competition for task orders)
• Examples– 8(a) < $3 Million– A-E– O&M Construction
Multiple Award (MATOC)
• Multiple contractors
(compete for task orders)
• Examples– GSA– COS
etc
BUILDING STRONG®
MATOC COMPETITION PROCESS
• RFP Letter & SOW
• Evaluation Criteria Identified in RFP Letter
• Technical Board for Design Build T.O.s
• Importance of Price vs Technical
• Source Selection Decision
BUILDING STRONG®
THE BENEFIT OF MATOCS/SATOCS
• Time Advantage - No 30 day Synopsis
• Ability to manage workload/manpower
• Limited Number of Offerors
• Less Cost to Issue/Award a T.O.
• Can Involve Contractors During Design Development
• More Balanced use of MATOCs and Stand Alone Contracts as Workload Draws Down
BUILDING STRONG®
Questions?Questions?