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F-1 APPENDIX F Best-Value Project Screening Decision Flowchart and Selection Tool Figure F.1, Figure F.2, and the selection tool have been prepared to provide owners with a systematic approach to the screen- ing and selection of projects suitable for best-value procurement. The decision flowchart primarily addresses programmatic and project barriers to best-value procurement. Once the organizational and political obstacles to the use of best-value procurement are overcome, users may skip this first step and proceed directly to the project selection tool. This tool will generate a single score that rates the project's compatibility with the best-value procurement process. Note that an automated web-based version of this decision and project selection process, called the "Best-Value Selector," can be found on the University of Colorado's website at http://construction.colorado.edu/best-value.

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F-2 1) Is the agency's experience level No 2) Review and understand best adequate? practices for best-value procurement. Yes 3) Is the industry's 4) Establish cooperation and experience level No communication between agency, adequate? contractor, sureties, material Barriers to Best-Value Procurement suppliers, and other relevant parties. Part A - Asses Programmatic Yes 5) Process in place to measure best- No 6) Develop pilot project and program value program effectiveness measures. effectiveness? Yes 7) Is enabling legislation in No 8) Develop enabling legislation in a place? permanent or pilot fashion. Yes *1 Figure F.1. Part A: assess programmatic barriers to best-value procurement.

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F-3 1) Is the agency's experience level adequate? Do agency employees understand the challenges and advantages of best- value procurement and how it changes the standard procurement process? Is internal and external cultural resistance to shifting from low-bid award insurmountable? 2) Review and understand best practices for best-value procurement. Review this report. Review NCHRP Report 451. Review best-value policy documentation statistics, case studies from other federal and state agencies. Review FAR Part 15.1 Source Selection Process and Techniques. 3) Is the industry's experience level adequate? Will contractors have experience in responding to qualifications-based procurements? Will contractors be able to meet bonding and insurance requirements for the procurement? If the procurement requires any special relationships between contractors, designers, testing agencies, material suppliers, or other relevant parties, are they in place or can they be achieved by the industry? 4) Establish cooperation and communication between agency, contractor, sureties, material suppliers, and other relevant parties. Reference NCHRP Report 451. Identify and contact affected parties. Educate affected parties.

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F-4 Enter into partnering relationships with stakeholders to allow best-value procurement to be effectively implemented. 5) Process in place to measure best-value program effectiveness? Are funds and staffing available to develop and maintain measures of program effectiveness? Can existing project performance metrics be used with best value or will new metrics need to be developed? 6) Develop pilot project and program effectiveness measures. Reference NCHRP Report 451. Evaluate quality of final product, risk distribution, project cost, and any other motivating factors for selecting best-value. Solicit feedback from contractors, sureties, and other interested parties, as well as from state and FHWA personnel. 7) Is enabling legislation in place? Is best-value procurement allowed under current legislation, or is legislation in place for a pilot program? 8) Develop enabling legislation in a permanent or pilot fashion. Reference Section 3.6 of this report. Reference NCHRP Report 451.

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F-5 *1 Yes 9) Can measurable value be added to the project through Return to low-bid procurement. best-value procurement? No Yes Asses Project Barriers to Best-Value Procurement 10) Will best-value procurement affect small or Return to low-bid procurement. disadvantaged No business opportunities? Yes 11) Is adequate staff available to prepare the evaluation plan Return to low-bid procurement. and perform the No evaluation? Yes 12) Proceed with best-value procurement. Figure F.2. Part B: assess project barriers to best-value procurement.

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F-6 9) Can measurable value be added to the project through best-value procurement? Will measurable value be added to the project in one or more of the following areas? o Qualification Benefits o More experienced personnel. o Demonstrated record of contractor's successful past performance. o Improved safety experience and plan. o Improved subcontracting plan. o Small and disadvantaged business enterprise goals met or exceeded, or evidence of good faith efforts provided. o Improved project management plan. o Quality Enhancement Benefits o Higher quality in materials. o Higher quality in construction. o Higher quality in management. o Cost Savings Benefits o Lower life-cycle costs. o Lower first cost through contractor innovation. o Reduction in cost growth. o Schedule Savings Benefits o Shorter schedule through competition. o Shorter schedule through innovation. o Reduction in schedule growth.

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F-7 10) Will best-value procurement affect small or disadvantaged business opportunities? Will procurement adversely impact small or disadvantaged business competition? Is the pool of available small or disadvantaged businesses adequate to provide ample competition for this procurement? 11) Is adequate staff available to prepare the evaluation plan and perform the evaluation? Have agency employees previously written a best-value evaluation plan or received adequate training? If an evaluation team will be required, is experienced staff available to participate? This is particularly important if the procurement involves design proposals. Will consultants be needed to fill agency personnel gaps in specialized areas? 12) Proceed with best-value procurement. Reference Section 3.4 of this report. Best-Value Project Selection Tool The following project selection tool provides guidance when considering projects for best-value procurement. The tool produces a single score that rates its applicability to the best-value process. The tool can be used on a single project, but it is perhaps most useful when comparing multiple projects in a program. Step 1: Develop Pool of Candidate Best-Value Projects Gather a pool of projects that might be considered for best-value projects. Ideally, a procurement method selection should be made when projects are in the

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F-8 conceptual stages of planning. This will allow the evaluation plan to emphasize the overall project goal and allow for the most added value from the contractors during selection. However, this is not always practical. If a project is in the later stages of development, best-value procurement can be used, but only if measurable benefits can be achieved from the system. Step 2: Score Best-Value Project Candidates Answer the following questions by checking the appropriate box below each question and write the number of points associated with that answer next to the questions. Provide subtotal scores where required. 1) General Project Characteristics The following project characteristic questions relate to the general technical project characteristics including project development, technical complexity, schedule complexity and specialized components. 1a) Where is the project in the project development process? Score ______ (2 pts) The project is at the detailed or final engineering stage (30% or greater design) (4 pts) The project is at the preliminary engineering stage (5%-30% design) (6 pts) The project is at the conceptual engineering/environmental stage (1-5% design) (8 pts) The project is at the program and planning stage (1% design or less) 1b) What is the level of technical complexity on the project? Score ______ (2 pts) The project is relatively simple (4 pts) The project has some minor technically complex components (6 pts) The project has numerous technically complex components (8 pts) The project is extremely complex or requires new and previously untried technology and/or means and methods 1c) What is the level of schedule complexity on the project? Score ______ (2 pts) The project's schedule is relatively simple (4 pts) The project has some minor scheduling complexity (6 pts) The project has major complex scheduling components (8 pts) The project's schedule is extremely complex

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F-9 1d) Does the project require any highly specialized or proprietary components? Score ______ (1 pt) The project contains no specialized or proprietary components (2 pts) The project has some minor specialized or proprietary components (3 pts) The project has a majority of specialized or proprietary components (4 pts) The project comprises solely specialized or proprietary components Project Characteristics Subtotal (Total questions 1a-1d) Score ______ 2) Best-Value Risks The following questions relate to potential problems stemming from best-value procurement including limiting small or disadvantaged businesses and the potential for contractor protests to the procurement. 2a) Will best-value procurement limit competition among available small or Score ______ disadvantaged businesses on this project as compared with a typical design-bid- build procurement for the same project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical 2b) What is the potential for contractors to successfully protest a best-value selection on Score ______ this project as compared with a typical design-bid-build procurement for the same project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Best-Value Risk Subtotal (Sum questions 2a and 2b) Score ______ Note: If the answer to either question 2a or 2b is "much more than typical," the project should not be considered as a best-value candidate. 3) Best-Value Objectives The following questions relate to the objectives for implementing best-value including benefits to qualifications, quality enhancements, cost savings and schedule savings. While four possible objectives are listed, all four need not be present to make a good best-value candidate. It is possible that a project may be more appropriate for best-value procurement if it has just one objective that aligns well with the procurement system. Part 1 -- Assess Best-Value Objectives

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F-10 3a) Qualifications benefits--How important is selecting a contractor with a record for Score ______ high quality performance to the project's success? (0 pts) Not an objective for choosing best-value procurement (2 pts) No more than typical (4 pts) Somewhat more than typical (6 pts) Much more than typical (8 pts) Absolutely critical 3b) Quality enhancement benefits--How important are higher quality standards to the Score ______ project's success? (0 pts) Not an objective for choosing best-value procurement (2 pts) No more than typical (4 pts) Somewhat more than typical (6 pts) Much more than typical (8 pts) Absolutely critical 3c) Cost savings benefits--How important is reducing costs to the project's success? Score ______ (0 pts) Not an objective for choosing best-value procurement (2 pts) No more than typical (4 pts) Somewhat more than typical (6 pts) Much more than typical (8 pts) Absolutely critical 3d) Schedule benefits--How important is reducing the schedule to the project's success? Score ______ (0 pts) Not an objective for choosing best-value procurement (2 pts) No more than typical (4 pts) Somewhat more than typical (6 pts) Much more than typical (8 pts) Absolutely critical Note: If questions 3a through 3d are all answered "not an objective for using best-value procurement" or "no more than typical," the project should not be considered as a best-value candidate. Part 2 -- Weight Best-Value Objectives Count the number of objectives with a "0" score and use the following factors to calculate the final weight of the best-value objectives. 1 No scores of "0" assessed in questions 3a-3d 1.33 One score of "0" assessed in questions 3a-3d 2 Two scores of "0" assessed in questions 3a-3d 4 Three scores of "0" assessed in questions 3a-3d * Four scores of "0" assessed in questions 3a-3d * Do not consider for best-value procurement.

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F-11 Calculate the final weights and scores for the best-value objectives. Weight Question Score Adjustment Adjusted Total 3a) Adjusted Qualifications Score _______ x _______ = _______ Score 3a Weight Adj. from Table 3b) Adjusted Quality Enhancement Score _______ x _______ = _______ Score 3b Weight Adj. from Table 3c) Adjusted Cost Savings Score _______ x _______ = _______ Score 3c Weight Adj. from Table 3d) Adjusted Schedule Savings Score _______ x _______ = _______ Score 3d Weight Adj. from Table 4) Potential Benefits Resulting from Best-Value The following questions relate to the potential benefits of using best-value procurement. Separate sections are provided for benefits of qualification, quality enhancements, cost savings and time savings. Provide a subtotal at the end of each section. 4a) Qualification Benefits Will contractors have a wide variance in experience for this project? Score ______ (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Will there be opportunities for higher safety planning standards on this project? Score ______ (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Will the contractor have opportunities to add significant value to the team through Score ______ the selection of special subcontractors on this project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical

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F-12 Are there opportunities for the contractor to create innovative or exemplary Score ______ management plans on this project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Qualification Benefits Subtotal (sum all questions in 4a then divide by 4) Subtotal 4a _____ 4b) Quality Enhancement Benefits Will there be opportunities for contractors to provide higher quality materials than Score ______ normally specified by the state on this project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Could there be a significant variance in construction quality between contractors on Score ______ this project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Could there be a significant variance in construction management techniques Score ______ between contractors on this project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Quality Enhancements Benefits Subtotal (sum all questions in 4b then Subtotal 4b _____ divide by 3)

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F-13 4c) Cost Savings Benefits Will there be opportunities for contractors to provide products or designs with lower Score ______ lifecycle costs than specified by the state on this project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Will there be opportunities for contractors to provide products or designs with lower Score ______ initial construction costs than specified by the state on this project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Is this project susceptible to growth after award? Score ______ (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Cost Savings Benefits Subtotal (sum all questions in 4c then divide by 3) Subtotal 4c ______ 4d) Schedule Savings Benefits Will there be opportunities for a shorter schedule if the contractors bid an end Score ______ date for the project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical

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F-14 Will there be opportunities for contractors to reduce the project schedule through Score ______ innovative designs or construction sequencing on this project? (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Is this project susceptible to schedule growth after award? Score ______ (0 pts) Less than typical (2 pts) Typical (4 pts) More than typical (8 pts) Much more than typical Schedule Savings Benefits Subtotal (sum all questions in 4d then Subtotal 4d ______ divide by 3) 5) Total Project Score Complete the scoring sheet from the totals asked in questions 1 through 4. Question Score Weight Total Project Characteristic Score x 1 = Su btotal 1 Best-Value Risk Score x -1 = Subtotal 2 Qualifications Score x = Subtotal 4a Adj. Weight 3a Quality Enhancement Score x = Subtotal 4b Adj. Weight 3b Cost Savings Score x = Subtotal 4c Adj. Weight 3c Schedule Savings Score x = Subtotal 4d Adj. Weight 3d Total Score (sum right column)

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F-15 Step 3: Examine Projects Individually or as Group Based upon the project score, projects can be examined individually using the following table. Score Relative Rating Above 67 Excellent best-value project candidate 33 to 66 Good best-value project candidate Below 33 Marginal best-value project candidate If a project receives an excellent or good rating, the project should be procured using one of the best-value methods outlined in Section 3.4 of this report. As agencies first begin to employ best-value, projects with excellent ratings should be considered. A project receiving a marginal rating might still be considered a candidate, but attention must be paid to those areas in which the project received low scores. Given the subjective nature of the scoring system, it is perhaps best used when comparing multiple projects under consideration for best-value. Multiple projects within a group of candidates can be scored and those receiving the highest rating should be selected.