pre award phase

Performance Based Studies Research Group

Pre Award PhasePre Award Phase

W W W . P B S R G . C O M 2

Best Value System: Best Value System: PIPS & PIRMSPIPS & PIRMS

Identification of PotentialBest-Value

Pre Planningand

Risk Management

Measurement ofDeviation from the

Expectation

PHASE 1PHASE 1 PHASE 2PHASE 2 PHASE 3PHASE 3

2

PIPS PIRMSPerformance Information

Procurement SystemPerformance Information Risk Management System


Best Value ObjectivesBest Value Objectives Identify and outsource to an Expert who has a plan prior to contract signing

Transfer risk Transfer control

Minimize risk of non-performance Meet expectations No change orders or schedule delays High Customer satisfaction / No complaints No Finger pointing

Minimize client management, direction, and decision making.

Have a transparent and measured environment with known accountability and performance

In return, the vendors can maximize profit by being more efficient

W W W . P B S R G . C O M 44

Filter 1Past

PerformanceInformation

Filter 2Proposal & RAVA Plan

Filter 4Prioritization

(Identify Best Value)

Filter 5Pre-Planning

Phase

Filter 6Weekly

Report &Post-Rating

Time

Qua

lity

of V

endo

rs

Filter 3Interview

Key Personnel

Awar

d

High

Low

Best Value ProcessBest Value Process

W W W . P B S R G . C O M 55

Pre Award PeriodPre Award PeriodWhat is it / Why is it importantWhat is it / Why is it important

Period of time allotted to potential best value vendor (aka the Expert) to:

Think about and preplan the project

Set a plan for its delivery / clarify that your proposal is accurate

Identify the risks and issues that could cause the plan to deviate Identify what you don’t know and when you will know it and how the

plan could change based upon what you discover Set plans to minimize those risks from occurring Address all the concerns and risks of the client

W W W . P B S R G . C O M 66

Pre Award PeriodPre Award PeriodWhat is it / Why is it importantWhat is it / Why is it important

Period of time allotted to potential best value vendor (aka the Expert) to:

Know how they are being successful and adding value (measurement) What metrics you will use What is the current baseline condition we are comparing against

Identify what you need from the client and have a plan for getting it

Have completely aligned expectations between all parties so everyone knows what is going to transpire and what they are supposed to do


Pre Award Phase Pre Award Phase ComponentsComponents

PA Kickoff Meeting

PA Period

PA Final Meeting

PA Document

W W W . P B S R G . C O M

Path ForwardPath Forward Pre-education for Client and Vendor

Set pre-award period schedule

Vendor initiates and maintains Weekly Risk Report

Vendor prepares Risk Management Plan

Vendor Presents Project Plan/Risk Management Plan to client

Vendor identifies scope, financial info, risk, etc. in plan

Client and vendor work together and finalize plan

Baseline metrics/condition set (if applicable)

Hold pre-award summary meeting

Sign contract

8


Filter 1Past



Filter 4Prioritize (Identify

Best Value)

Filter 5Pre-Award

Phase (Pre-Plan)

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Non-Detailed vs. DetailedNon-Detailed vs. DetailedN

on

-Det

aile

d

No

n-D

etai

led

No

n-D

etai

led

No

n-D

etai

led

Det

aile

d


Initial conditions

Final conditions

Project Management Model

Time

Laws Laws

M1

C1 M2

C1: Client Expectations based decisions and various factors – may or may not be “realistic”

M1: Measured vendor plan that more accurately describe the initial conditions replaces C1 – converts to a predictive contract

M2: WRR/RMP measures deviation & performance to plan

M3: Final performance measurement

M3


V BC

Buyer Controls Vendor Through Contract

Traditional Risk Model


V BC

Vendor Manages/Minimizes Risk With Contract- Contract is predictive

Best Value Risk Model

W W W . P B S R G . C O M 13

Pre Award DocumentPre Award Document(Risk Management Plan)(Risk Management Plan)

1. Scope & Project/Effort Plan Clear and Detailed Project Scope (what is and what is not included) –

Set Baseline Expectation2. Cost/Fees agreed to and clarified3. Schedule (Milestone)4. Risk Minimization

Uncontrolled Risks List A list of Risks Proposer does not control with plans to minimize

Identified Risks List A list of all previously identified risks (by other bidders, user, and

client) with plans to minimize5. Client Action Item List6. Weekly Risk Report Set Up7. Performance Metrics8. Other: Agreed to Value Adding Options, Original RAVA Plan, Interview

Minutes, etc…

W W W . P B S R G . C O M 14

Note to Vendor and Client -Note to Vendor and Client -Do Not Work in a Vacuum!!!!! Do Not Work in a Vacuum!!!!!

The Pre Award period is a time for the client and Vendor to interact Maximize effort BEFORE the event begins

The Vendor should not work in a vacuum There should be regular meetings between vendor and client An Outcome of Today’s meeting: PA Period Meeting Schedule

Complete honesty

Optimize within client constraints

Vendor should be the leader/driver

All critical parties/groups should be coordinated with

W W W . P B S R G . C O M 15

1. Scope1. Scope Projects need to have clear scope at the start of the service

Everything within the expectation/budget Minimize/Eliminate Client/User Scope Changes

Detailed Scope Scope identifies what is included and what is not included For example, start with “Zero Risk” Scope and work backwards Conservative is best

If risks exists between scope and client intent they must be identified Resolve alignment and expectations before signing the contract Identify path to identifying unknowns during contract

W W W . P B S R G . C O M 16

2. Cost/Fees2. Cost/Fees Details of fees, payments, etc

Clear and simple movement of money identified

Cost can be adjusted based upon value adding options RAVA Plan Additional risk elimination actions

W W W . P B S R G . C O M 17

3. Milestone Schedule3. Milestone Schedule Project schedule that can be worked from

Simple to read Simple to use

Intent: Minimize Risk = Help All Parties be more efficient and accountable

Contents Major Activities, Deliverables, and Milestones (linked to metrics) Client Action Items clearly identified (e.g. red) Risky areas / decision points clearly identified (e.g. green)

W W W . P B S R G . C O M 18

4. Uncontrolled Risks List4. Uncontrolled Risks List List of Risk Vendor does not control

From RAVA and any place else

Example Format Risk #1: Description of risk (or why it is a risk)

Solution: Provide your solution. Because this document is not constrained by a page limit, it is acceptable to add more detail to your previous solution provided in your RAVA plan. Make sure it is identified at what point you have done everything reasonably possible. Identify the impact if the risk still exists after you have done everything reasonably possible.

Step 1: Step 2: Step 3: Step 4: Step 5: Etc.

Action If Risk Occurs: Similar to above, but a list of action items once risk occurs

Expected Impact if Risk Occurs: For example, “If we have done the above X steps and the risk still exists, there will be an impact to the …budget…schedule…of $XX.XX…XX days.”

W W W . P B S R G . C O M 19

4. Identified Risks Lists4. Identified Risks Lists List of Risks that have been previously identified

All other bidders’ risks All client technical concerns, risk, issues, and bugaboos All user concerns, risk, issues, etc.

Same format as for Uncontrolled Risks List Risk Solution/Plan to Minimize Action if Risk Occurs Impact is Risk Occurs

If a risk is not a risk, just say why it is not a risk…

W W W . P B S R G . C O M 2020

Uncontrollable Risk 1Uncontrollable Risk 1 The client has agreed to move storage boxes prior to the NTP. The

boxes are blocking the wall where we will install the new electrical equipment. If the material is not moved we will not be able to install the equipment. If material is not moved we will perform the following:

1. Immediately notify the client and track in our weekly report. We will mobilize and perform other functions. However, if material is not moved by 2nd week, this will cause delays.

2. If the client cannot get the material moved, we can move the material into another room (on the same floor) at no additional cost or time delay. The client will have to move the material back.

3. Or, we can rent a storage container for the duration of the project and move the material into storage and back into the room after completion. This will cost $1,500 and add 1 week to our schedule.

W W W . P B S R G . C O M 21

Uncontrollable Risk 2Uncontrollable Risk 2 One of the biggest risk on this service is falling debris from the roof deck onto

personnel or equipment below the deck. On this service, the personnel and equipment are protected since there is a dropped ceiling beneath the deck. The PM (client) has assured us that these tiles have been installed properly and we have randomly spot checked areas to determine that they will perform. However, if for some reason the ceiling tile fails, we will perform the following:

Immediately stop all work and determine the extent of damage Identify if work can proceed as is, or if additional protection is needed We can modify our schedule to work off-hours to protect falling debris

from hitting personnel, but this will not protect equipment. There will be no impact to cost or time if we have to work off-hours.

We can purchase large tarps (100’x100’) and place them beneath the ceiling tiles. This will protect both personnel and equipment. These special tarps will cost an additional $5K and will take an additional 2 weeks to setup and move.

Identify any actions required from the client

W W W . P B S R G . C O M 22

5. Client Action Item List5. Client Action Item List Client Action Item List

List of all actions/tasks that the vendor requires from the client Each Action Item will have a:

Activity Person Accountable in the Client organization Agreed to Due Date

W W W . P B S R G . C O M 23

6. Weekly Risk Reports6. Weekly Risk ReportsWhat is it / Why is it importantWhat is it / Why is it important

What is it: Excel Spreadsheet that tracks unforeseen risks on a service

Why is it important: Allows vendors to document unresolved client issues Allows vendors the ability to show they can manage a service through

risk minimization Allows vendors to document all client decisions Provides PM a weekly/monthly analysis of all services Will be used to monitor the progress and performance of the entire client

organization (this isn’t just for a specific contractor or a specific service...there is a bigger picture)

How much effort: Minimal (less than 5 minutes), unless contractor did not preplan, or client

making decisions

W W W . P B S R G . C O M 24

Weekly Reporting System (Sample)Weekly Reporting System (Sample)

Excel Spreadsheet that tracks unforeseen risks on a service

The client will setup and send to vendor once Award/NTP issued

Vendor must submit the report every week (Friday).

The final service rating will be impacted by the accuracy and timely submittal of the WRS

W W W . P B S R G . C O M 25

More on Weekly Risk More on Weekly Risk Report laterReport later

W W W . P B S R G . C O M 26

6. Weekly Risk Report6. Weekly Risk Report

We will be starting a weekly risk report for the pre-award period

Contents: Contact Info Pre-Award Schedule Risks/Issue Tracking

PBSRG will provide specific detailed education individually with the vendor

W W W . P B S R G . C O M 27

7. Performance Metrics 7. Performance Metrics (if necessary)(if necessary) Performance Metrics

Metrics established Baseline numbers (starting point) of current performance Reporting period

W W W . P B S R G . C O M28

Unforeseen Risks

PERFORMANCE SUMMARY• Vendor Performance• Client Performance• Individual Performance• Project Performance

RISK MANAGEMENT PLAN• Risk• Risk Minimization• Schedule

WEEKLY REPORT• Risk• Unforeseen Risks

Management by Risk Management by Risk MinimizationMinimization

METRICS• Time linked• Financial• Operational/Client Satisfac.• Environmental

W W W . P B S R G . C O M 29

8. Other8. Other All other items of importance

Including Value Adding Options agreed to Original RAVA Plan Interview Minutes Any specifications Any other pertinent information

W W W . P B S R G . C O M 3030

Pre Award Final MeetingPre Award Final Meeting Is not a “Q&A” meeting

All issues resolved All coordination complete All risks that are not in vendors control have been identified All value added options have been addressed

PA Meeting is to summarize all of the coordination that has been complete and walk through the PA Document/RMP

Upon successful completion of the PA Meeting, the client will make the award

W W W . P B S R G . C O M 3131

Filter 1Past



Filter 4Prioritize (Identify

Best Value)

Filter 5Pre-Award

Phase (Pre-Plan)

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

PIPS ProcessPIPS Process

W W W . P B S R G . C O M 3232

Filter 1Past



Filter 4Prioritization

(Identify Best Value)

Filter 5Pre-Planning

Phase

Filter 6Weekly

Report &Post-Rating

Time

Qua

lity

of V

endo

rs

Filter 3Interview

Key Personnel

Awar

d

High

Low

Final RatingFinal Rating

W W W . P B S R G . C O M 3333

Final RatingFinal Rating After the project is complete, the client will evaluate the project.

The Final Rating will be heavily impacted by: Performance (change orders, delays, etc) Owner surprises Complaints Ability to submit accurate and timely weekly reports

In Best-Value Procurement, the vendors goal is to get a high rating in order to stay competitive.

W W W . P B S R G . C O M 3434

50% Modification50% Modification

NO CRITERIA Ven 1 Ven 2 Ven 3 Ven 4

1 Ability to manage the project cost 9.4 9.8 9.4 9.52 Ability to maintain project schedule 9.6 9.8 9.7 9.83 Quality of workmanship 10.0 9.8 9.7 9.94 Professionalism 9.6 9.8 9.7 9.75 Close out process 9.3 9.7 9.5 9.56 Ability to communicate 9.4 9.8 9.4 9.57 Ability to follow the users rules 9.7 9.8 9.4 9.88 Overall customer satisfaction 9.9 9.8 9.7 9.89 Total number of different jobs 19 18 18 20

10 Total number of different customers 19 17 18 17

NO CRITERIA Ven 1 Ven 2 Ven 3 Ven 4

1 Ability to manage the project cost 9.4 7.4 9.4 9.52 Ability to maintain project schedule 9.6 7.4 9.7 9.83 Quality of workmanship 10.0 7.4 9.7 9.94 Professionalism 9.6 7.4 9.7 9.75 Close out process 9.3 7.4 9.5 9.56 Ability to communicate 9.4 7.4 9.4 9.57 Ability to follow the users rules 9.7 7.4 9.4 9.88 Overall customer satisfaction 9.9 7.4 9.7 9.89 Total number of different jobs 19 18 18 20

10 Total number of different customers 19 17 18 17

NO CRITERIA Ven 2

1 Ability to manage the project cost 9.82 Ability to maintain project schedule 9.83 Quality of workmanship 9.84 Professionalism 9.85 Close out process 9.76 Ability to communicate 9.87 Ability to follow the users rules 9.88 Overall customer satisfaction 9.89 Total number of different jobs 1810 Total number of different customers 17

NO CRITERIA Ven 2Current Project

1 Ability to manage the project cost 9.8 5.02 Ability to maintain project schedule 9.8 5.03 Quality of workmanship 9.8 5.04 Professionalism 9.8 5.05 Close out process 9.7 5.06 Ability to communicate 9.8 5.07 Ability to follow the users rules 9.8 5.08 Overall customer satisfaction 9.8 5.09 Total number of different jobs 18

10 Total number of different customers 17

NO CRITERIA Ven 2Current Project

Ven 2

1 Ability to manage the project cost 9.8 5.0 7.42 Ability to maintain project schedule 9.8 5.0 7.43 Quality of workmanship 9.8 5.0 7.44 Professionalism 9.8 5.0 7.45 Close out process 9.7 5.0 7.46 Ability to communicate 9.8 5.0 7.47 Ability to follow the users rules 9.8 5.0 7.48 Overall customer satisfaction 9.8 5.0 7.49 Total number of different jobs 18 18

10 Total number of different customers 17 17


ExampleExample

35

W W W . P B S R G . C O M 36

Immediate Action ItemsImmediate Action Items Pre-Award meeting schedule

Hold weekly phone calls Review schedule Review issues/risks This carries forward into the project

Risk Minimization Lists of risks/concerns/issues from the client, the other vendors, user,

etc. Lists given to vendor

Initiate Pre-Award Period Weekly Risk Reporting

Begin Pre-Award and RMP development – will become functional pieces of contract


Best Value Vendor CharacteristicsBest Value Vendor Characteristics

Preplans and Minimizes Risk on Each Initiative Has a plan and knows the risks to the plan Is transparent Communicates clearly Asks good questions, knows what they don’t know

Measures Performance and drives accountability

Uses Dominant Information to Differentiate themselves/show value added

Educates the Client and helps the client be a better client

Educates themselves and has a continually enhanced vision Holds themselves and the client accountable Their plan is aligned so that when they win, the client automatically wins

37


Best Value Client CharacteristicsBest Value Client Characteristics

Ensures their needs and concerns are known by the vendor Ensures the vendor has a plan that addresses each need/concern/risk Is a facilitator to the vendors development of the plan(s) Enforces the best value structure

Weekly risk reporting is being done Each risk is given a client satisfaction rating Measurements by vendor are being done Do not be pulled into making decisions you do not need to make

Educates themselves and the vendor Avoids reversion Transfers risk and control

Holds the vendor and themselves accountable Ensures the plan is aligned so they win and the vendor wins

38

W W W . P B S R G . C O M 39

Comments / QuestionsComments / Questions


pre award phase

Documents