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NCHRP Report 561: Best-Value Procurement Methods for Highway Construction Projects (2006)
National Cooperative Highway Research Program (NCHRP)

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Scott, Sidney, Smith, Nancy C, Gransberg, Douglas D, Molenaar, Keith R, Transportation Research Board. "3.3 Summary of Proposed Best-Value Procurement Framework." NCHRP Report 561: Best-Value Procurement Methods for Highway Construction Projects. Washington, DC: The National Academies Press, 2006.

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Front Matter (R1-R10)
Summary (1-12)
1.2 Best-Value Contracting Definitions (13-13)
1.4 Research Approach (14-15)
1.5 Results and Products (16-17)
2.2 Legislative and Regulatory Trends (18-19)
2.3 Best-Value Contracting Concepts (20-22)
2.4 Analysis of Best-Value Concepts (23-44)
2.5 National Transportation Agency Survey Results (45-46)
2.6 Baseline Project Performance Results (47-55)
2.7 Expert Interviews (56-57)
2.8 Summary of Findings (58-58)
3.1 Development of Best-Value Procurement Methods (59-60)
3.2 Proposed Best-Value Award Algorithms and Rating Systems (61-67)
3.3 Summary of Proposed Best-Value Procurement Framework (68-68)
3.4 Implementing the Proposed Best-Value Procurement Method (69-73)
3.5 Screening Criteria for Best-Value Procurement (74-77)
3.6 Implementation Strategies (78-84)
3.7 Model Best-Value Specification (85-88)
3.8 Summary (89-89)
4.2 Suggested Research (90-91)
Bibliography (92-93)
Appendix A - Literature Review (94-95)
Appendix B - List of State Laws Allowing Use of Best-Value by Departments of Transportation; Excerpts from the Model Procurement Code, FAR, and State Statutes (96-125)
Appendix C - Questionnaires (126-126)
Appendix D - Best-Value Case Studies (127-169)
Appendix E - Advisory Board Survey (170-170)
Appendix F - Best-Value Project Screening Decision Flowchart and Selection Tool (171-185)
Appendix G - Barriers and Solutions to Implementation of Best-Value Process (186-189)
Appendix H - Training Tool (190-202)
Abbreviations used without definitions in TRB publications (203-203)

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56 project's quality control engineer might carry a total possible score A detailed discussion of best-value evaluation rating systems of 5 points, whereas, the quality management plan may carry a for the other two award algorithms is found in Chapter 2. maximum total score of 45 points. If the maximum total score for The details of each evaluation rating system should ultimately all rated categories adds up to 1,000 points, then the weight be based on the requirements of the individual project assigned to each rated category is proportional to its individual under analysis. Those projects that are relatively straightforward maximum total score.Continuing with this hypothetical example, should have a simple rating system. On the other hand, those if this project's estimated cost is $20 million,the value of each point projects that are technically complex will need a more complex will be $20,000.Thus,the cost value of the engineer's qualifications rating system to be able to identify the best value. Additionally, will be $100,000 and the cost value of the quality management the owner must ensure that the rating system can be mapped plan feature of the design is $900,000. Thus, the overall evaluated back to the project screening system and ensure that those areas value of the two is $1.0 million or 5% of the project. The reader are thoroughly evaluated.Any weighting that is developed must must remember that these values are not absolute. However, if the be consistent with the project screening criteria as well and amount of money at risk if the project is not properly constructed ensure that those areas that have the greatest importance in the is estimated at $5.0 million, then these rated categories are under- procurement are the most heavily weighted. Finally, the owner weighted relative to the entire project value. Therefore, more should test the weighting with a small number of pilot projects weight should be given (i.e., more points assigned) to the quality to ensure that the system behaves as anticipated. management feature of the project in the evaluation plan. If, on the other hand,the quality management aspects of this project are 3.3 Summary of Proposed Best- a minor portion of the work, and the technical and performance Value Procurement Framework risk lies in other rated categories, then these two evaluation cate- gories may be over-weighted, and the points assigned to them Table 3.5 is a summary of the proposed best-value pro- should be reduced and moved to other more important categories. curement framework. It shows how the practical, objective Table 3.5. Summary of best-value procurement framework. Award Algorithm BV Meets Technical Cost-Technical Parameter and Criteria--Low Bid Tradeoff Evaluation Criteria (Cost) (Qualitative) Value Unit Price Price Price: A.0 X X X Time Schedule: B.0 X X X Cost Cost: C.0 X X Qualifications Prequalification: X P.0 Past Project Performance: P.1 X X Key Personnel Experience: P.2 X X Subcontractor Information: P.3 X X Project Management Plans: P.4 X X Safety Record/Plan: X X X P.5 Quality Quality Management: Q.0 X X X Design Alternates Design with Proposed Alternate: D.0 X X Technical Proposal Responsiveness: D.1 X Environmental Considerations: D.2 X X Rating System Adjectival or Modified Satisficing Direct Point Scoring Satisficing