Procuring and Managing Professional Services for Airports (2013)

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23 Procuring professional services begins with identifying the project needs; selecting people and processes to develop the scope, schedule, and cost; choosing the most effective delivery mechanism; developing the decision-making process; and managing internal resources to administer, docu- ment, and close-out the process (see Figure 3-1). Introduction to Procurement This section of the Handbook presents basic techniques as well as areas for further consideration in pre-solicitation, solicitation, selection, and notification of the selection. Based on the research, the following are recommended for a successful procurement process (see Figure 3-2). 1. Develop cooperative, communicative, and respectful relationships with PSPs and with external and internal stakeholders. 2. Establish selection procedures and methods for streamlining the process and refining the scope. 3. Establish contract language and mechanisms for controlling scope-schedule-cost as well as for addressing change, risk, and disputes. Prevailing Laws and Regulations Agencies have several sources of funding for projects (e.g., Airport Improvement Program [AIP] grants and TSA agreements, Passenger Facility Charges [PFC], state grants, and/or airport bond funds). Therefore, airports must research and understand resource constraints, opportu- nities, and regulations, especially the FAA’s selection requirements for the use of AIP funding in projects. FAA Advisory Circular (AC) 150/5100-14 and FAA Order 5100.38 provide guidance for airport sponsors in selecting and engaging PSPs. FAA AC 150/5100-14 requires that airport sponsors use a qualifications-based selection (QBS) process, and price must not be a factor in selection. In addition, an independent fee estimate (IFE) is required to be completed during the negotiation phase and the airport sponsor must include FAA Grant Assurances in the terms and conditions of the contracts (FAA AC 150/5100-14, FAA Order 5100.38, and the FAA Grant Assurances are available on the FAA website). Large-capacity projects receiving AIP discretionary grant funds in excess of $10.0 million are required to perform a Benefit-Cost Analysis (BCA) of the project prior to receiving the funds. The FAA can also require a BCA for less costly projects. Airport sponsors should be in contact with their local FAA office to determine any specific requirements early in the grant application process. Common issues that airport sponsors should consider when using AIP funding for projects are as follows: • The selection process is required to be qualifications based and price must not be a factor. Therefore, the solicitation cannot request a price estimate be submitted with the proposal or C H A P T E R 3 Procurement Process

24 Procuring and Managing Professional Services for Airports Figure 3-1. Critical path—procurement. Figure 3-2. Keys to a successful procurement and management process.

Procurement Process 25 any pricing information (e.g., estimate number of hours to accomplish the project, hourly rates, and overhead rates). • Bonus payments for early completion of work are non-allowable costs and will not be reimbursed under an AIP grant. • The consultant’s liability is limited to the scope or purpose of the contract. Expansion of the consultant’s liability beyond the scope or purpose of the contract is prohibited by the FAA. • Agencies must ensure that the method of compensation is allowable for each specific pro- curement. For example: Cost-Plus-a-Percentage-of-Cost is not an allowable compensation method under an AIP grant. • If an alternative delivery method (e.g., Contractor-at-Risk or Design-Build) is selected for an AIP-funded project, it is recommended that the airport sponsor contact the local FAA office to determine specific requirements. In the selection of a Design-Build contract under an AIP grant, the selection must meet the requirements for both a professional service contract (QBS without price being a factor) as well as the price competition for the construction portion of the project. Airport sponsors are reminded that FAA AC 150/5100-14 and FAA Order 5100.38 should be reviewed for specific requirements on the selection and contracting of PSPs prior to starting the solicitation process. The resources of procurement departments can be used by other departments to facilitate interaction and oversight during the process. Procurement departments are either central- ized (typically in city or state government) or decentralized (typically at quasi-government or authorities). PSPs should be informed of the organization and limitations of the agency’s procurement department so that PSPs can work within the local requirements. Smaller agencies should consider developing partnerships with other regional agencies to enable sharing of resources in the delivery of services and projects. Keep doors of communication open and make all information available to partners. Engage- ment and communications should be constant from inception through contracting for clear identification and agreement of goals and expectations. Provide information on needs (e.g., scope, schedule, and cost) to all interested PSPs to enable PSPs to be creative in their responses. Opportunities for Innovation A flexible procurement process enables agencies and PSPs to be innovative in the approach and delivery of projects. Open communication between the agency and potential PSPs during the planning of the project will help in determining the best delivery method to provide the required scope within the cost and schedule constraints while meeting any regulations. In addition, agencies should be open to streamlining the procurement process for routine projects. Streamlining processes can be effectively used to accelerate procurement; however, streamlining can create confusion and unnecessary expense to PSPs and to agencies if not done strategically. Removing steps when not necessary, such as interviews, from the selection process will enhance airport ability to perform services faster and save costs for both agencies and PSPs. Some airports have streamlined straightforward tasks by identifying the range of known needs and selecting a PSP on a qualifications basis only as a general engineering consultant (GEC) and then issuing task orders on a non-competitive and as-needed basis to fit the day-to-day requirements. Other airports have streamlined the process by pre-qualifying a pool of PSPs for certain tasks and then selecting from this pre-qualified list as necessary. These processes save money and time for both agencies and PSPs.

26 Procuring and Managing Professional Services for Airports Streamlining should be done cautiously when the project being procured is complex, unusual, or long term. Do the Research Research is often an overlooked element to a successful procurement process and is necessary for both the airport agency and the PSP. The research identified the following recommendations for airport agencies: • Research and develop an understanding of the rules and regulations associated with the selected funding sources for the projects. Some airports can fund large projects using multiple fund- ing sources with different allowable items for reimbursement. The airport agency needs to be aware of what tasks can be funded by the various funding sources (e.g., AIP grants, TSA agreements, PFCs, and bonds) and specific procurement requirements (e.g., qualitative vs. quantitative selection, DBE [Disadvantaged Business Enterprises] requirements, and allowable contract restrictions) to ensure compliant audits. • Understand both the advantages and limitations of alternate delivery systems for specific projects. Network with other airport agencies to discuss the successes and failures of the project delivery systems used on various airport projects and communicate with various PSPs prior to a specific solicitation to determine the familiarity of the local business community with alternate delivery systems. • Training is a requirement for internal airport agency staff so that they can possess the skills necessary to procure and manage projects. Agency staff must also be provided access to the necessary tools and resources. The research identified the following recommendations for PSPs: • Examine and learn about the airport agency and its strategic direction. This knowledge will confirm that the PSP understands the internal resources available to the agency and the PSP’s role in helping the agency achieve success. • Understand the expectations of the airport agency for each project. This understanding will allow the PSP to provide (1) the required resources and skills necessary for the successful completion of the project and (2) suggestions for the best delivery method. • Understand the various rules and regulations associated with each of the funding sources for a project. The PSP should develop a method to document the reimbursable items for potential audits. • Research potential partners (local and DBE firms) who will bring additional skills and resources so that the agency is provided with the best possible project. Partnering for Success As traditional funding sources decline, developing new partnerships is critical. Resistance to developing partnerships is often based in either not knowing who can be trusted or because of concerns with giving up control and authority. Partnerships should be formed with internal departments, stakeholders, and PSPs. Key relationships need to be identified, defined, and understood. Each party needs to learn each other’s goals, objectives, and needs as well as to set and agree to expectations around performance. Understanding the relationships that exist in each organization is especially important for sharing resources—people, finances, or technology. For example, agency relationships with their funding partners can make a difference in the flexibility they can bring to a process. Managers’ relationships with decisionmakers such as a CEO or a legislator can influence the flexibility in regulations and confidence in the organization to be innovative and be a good steward of funds.

Procurement Process 27 • Agency and Stakeholders. There needs to be mutual understanding of each other’s roles and responsibilities, constraints, and opportunities. There may be ways to share resources or modify approaches to fulfill needs but such sharing cannot be done in a vacuum and without regular interaction and conversation. Effective partnerships need to be established with internal stakeholders, especially with audit, legal, finance, and HR departments in the agency with the knowledge of essential tools and resources to support and deliver services as follows: – Finance: developing the best cost estimate through research on industry standards and collective agency experience. – Audit: defining a procurement method that meets needs and is accountable and transparent to all participants. – Legal: advising on language to use in contracts that is of common interest to both parties. – HR: identifying staffing resources and training to better support the process. • Agency and PSP. This relationship needs to be founded on a mutual understanding of purpose, role, and expected outcomes. There needs to be trust and good communication. The more complex an assignment (and especially for long-term assignments), the more critical the relationship between an airport and PSPs becomes. It is necessary to have clear rules, trans- parent processes, and accountable performance to meet established expectations, along with early, clear, and frequent communication. • Public and Agency/Airport. The public is demanding more transparency. The primary mission is to meet customer expectations, whether that is the traveling public or the airline or tenant. All have different needs and concerns. Understand what information is needed and provide it in a simple and easily accessible format. Misconception: Audits Result in More Stringent Regulations The research identified organizational disconnects where oversight by audit and legal created a reactive approach to both procurement and management of PSPs. Many respondents cited concern with meeting audit expectations and, therefore, created more stringent processes that reduced flexibility and communications between departments to avoid any conflicts. Some of the disconnects were either due to an organizational separation of departments or poor understanding of the benefits of better partnerships. Reality Agencies that developed strong partnerships between procurement/management and auditing/legal staff throughout the entire process extolled the value added by that participation, because it provided useful insight into ways to increase flexibility, accountability, and transparency. Partnerships developed with audit and legal aided procuring and managing departments in selecting the best project delivery methods, fair and equitable contracting terms and conditions, and clarity of the process to manage scope- schedule-cost. The research noted that those agencies that asked audit and legal department professionals to guide the use of regulations for procurement, have a seat at the negotiation table, and perform over-the-shoulder reviews during the management of PSPs experienced better communications; transparent and cleaner execution of contracts and management of services; fewer change orders; and decreased litigation. The Lee County Port Authority and Dallas-Fort Worth International

28 Procuring and Managing Professional Services for Airports Airport are examples of agencies that partnered with the audit and legal departments throughout the procurement and management of professional services processes. Both of these agencies reported that the inclusion of the audit and legal departments resulted in fewer amendments and disputes during projects. Know Your Core Business and Define Your Needs for PSPs Accordingly Many agencies are losing staff to retirements or downsizing, requiring a re-evaluation of what the agency can perform internally and where it needs support from PSPs to deliver services. The core functions selected to be performed internally should support the strategic direction of the airport agency. Some core functions that many airport agencies perform internally are facility maintenance, construction management, operations, HR, auditing, legal services, financial, IT, and design services. Once the agency determines the core functions that will be performed internally, the remaining functions can be supported by external sources, such as PSPs. The agency should notify the PSPs of these opportunities, so that they can provide the necessary support services for the airport agency to properly function and meet the needs of internal and external stakeholders. Fit Your Procurement Process to Your Defined Need The procurement process has to be flexible to meet the needs of the internal and external stake- holders as well as the project. The following areas should be considered and determined, based on the scope-schedule-cost of the project, the prevailing regulations, and the previous experiences of the agency: • Fee Type. The fee type should match the type of contract being procured. Lump-sum fee type lends itself to projects with well-defined scopes and schedules. By having a well-defined scope and schedule, the PSP can provide the airport with a cost that is reasonable and also well-defined. A cost-plus fixed fee type is appropriate for complex projects in which the scope and schedules are still being developed. This will allow the airport to better control the project costs until the scope is fully defined. Once the scope is fully defined, the PSP can provide the airport with a realistic cost and schedule for the project completion. • Contract Restrictions. The inclusion of contract restrictions (e.g., overhead, escalation, local business requirements, and overtime caps) is used more often for cost-plus fixed fee type contracts. Contract restrictions can (1) cause additional work for the airport in the review of monthly invoices for compliance, (2) reduce competition from firms that exceed the restric- tions, and (3) exclude some businesses outside the local area. Any contract restrictions should be clearly defined and included in the initial advertisement for the project. • Staffing Requirements. The identification of key staff positions and the specific requirements for the positions (e.g., years of experience, education, professional engineering license, and/or certifications) should be clearly defined and included in the initial advertisement for the project. The agency should also define expectations for key staff members (e.g., relocation to the project site and/or availability issues). In addition, the solicitation should request that each proposal address how the departure of the specific identified key staff members would be addressed by the PSP during the duration of the project. • Contract Incentives/Penalties. The decision to include incentives to complete the project early or penalties for missing deadlines should be made early in the process and included in the initial solicitation. Any contract incentives/penalties should be well defined and used only as necessary. • Disadvantaged Business Enterprises (DBE). Inclusion of DBE firms is required by the FAA as noted in AC 150/5100-14. The DBE goals will be set by the authority having jurisdiction and the PSP must show a good faith effort to meet these goals.

Procurement Process 29 • Interviews. The research indicated that some airports perform an interview for every procure- ment while other airports rarely interview. To be fair and cost-effective, interviews should only be conducted where there is a valid, productive reason for inclusion in the procurement process (e.g., the need for further information or because the assignment is complex). Misconception: One Size Fits All – The Recipe Approach As agencies face declining workforces and increased regulations and workload, they have tended to simplify the management of the process and delivery of services by using one system, method, or recipe for procurement and manage- ment of PSPs. Reality The problem with the “one-size-fits-all” approach is that all services are not the same. The selection of a procurement and project delivery method should fit the need and be adapted to the desired outcome and the type of PSP required. For example, one fee type will not fit all procurement processes. The research revealed a great deal of divergence regarding the use of fee types and contract restrictions for professional services. For example, various agencies applied the same rationale regarding auditing oversight to explain the decision for selecting fixed fee (lump sum) or cost-plus for similar services. Many tools are available, but each needs be used in the appropriate circumstances to get the best result. Adapt the procurement and contracting method to the need to obtain reliable results as well as innovation without adding undue burden, confusion, or costs to the process. Projects that are more complex, have many unknown conditions, or require cre- ativity to find innovative solutions will require a more sophisticated procurement process with terms and conditions that support those situations. Conversely, for routine and simple projects, procurement and terms and conditions should allow for streamlined, cost-effective selection and management. Engage the right partners to share the resources and work to develop the right approach, method, and tools to address the diversity of services needed. Some examples of fitting the procurement process to the defined needs follow: • Small procurement (less than $100,000) with a well-defined scope. The agency should consider a lump-sum fee type and reducing the procurement process by not requiring interviews. • Small procurement (less than $100,000) with no defined scope. The agency should consider a cost-plus fixed fee type and reducing the procurement process by not requiring interviews. • Large Design/Build procurement (in excess of $10.0 million). The agency should consider a procurement process that includes a review of the submitted proposals, a short list of several qualified proposers, an interview of the short-listed firms, and a final selection based on the original proposal and the interview. These are just a few examples of potential project approaches. Each agency’s staff should review the projects and ensure that the procurement process will be sufficient to select the right PSP for the project.

30 Procuring and Managing Professional Services for Airports Pre-Procurement Strategies Agencies should consider the following strategies prior to issuing the solicitation. Scope Development Project Definition The project definition should clearly define the service needs (e.g., planning and on-call) and must include a detailed project description that is agreed on by invested stakeholders. In addition, any agency-specific standards (e.g., drafting, software requirements, and submission requirements) should be included. The project definition should set budget and schedule expectations and provide enough detail so that potential PSPs clearly understand the project requirements and expectations. An example of a project definition form is included in Appendix D, Sample Forms. Develop Scope-Schedule-Cost As One Connected Item Scope, schedule, and cost are interrelated (a change to one affects the others) and should be managed as a single item. Decoupling of scope-schedule-cost will affect the reliability of PSP performance and delivery of services. Both comparative and historic project data, if available, should be used in preparing the scope-schedule-cost. Developing Cost Estimates and Budgets Use historical information and industry standards to identify the range of acceptable costs prior to development of scope. Identify available funding sources and the regulations associated with each source. The budgetary constraints established while developing the range of accept- able costs should be considered during further evaluation and refinement of the project scope. Examples of cost estimating templates are included in Appendix D, Sample Forms. Developing Schedules Schedules for procuring and managing projects are developed based on several factors, including • Legal mandates. The schedule can be driven by an imposed mandate/deadline for safety or operational improvements. • Stakeholder needs/requirements. The operational requirements of the airlines and the impact on the passengers should be considered. • Funding deadlines. Some funding sources (e.g., FAA AIP grants and TSA agreements) require that funds be expended within a certain timeframe. These factors along with project scope and budget should be considered in developing the schedule. Project Delivery Mechanisms The project delivery method should be established prior to solicitation. The selection of the delivery method should reflect the type of work to be performed and the advantages (cost and schedule) to be obtained by using an alternate delivery method (e.g., Design/Bid/Build [DBB], Design/Build [DB], or Construction Management at Risk [CM@R]). If the project delivery method is selected after the start of the procurement process, some of the benefits from the alternate delivery method may not be realized. Some alternate project delivery methods (e.g., DB and CM@R) may not be approved if the project is being funded by an AIP grant. Airport sponsors need to review the requirements of FAA Order 5100.38 and check with the

Procurement Process 31 local FAA office prior to solicitation to ensure the selected project delivery method is approved for AIP-funded projects. Checks and Balances During the pre-procurement process, the agency can check to safeguard that the procurement process is balanced and fair. For example, • The agency can provide the same information to all potential PSPs. • Once the solicitation is advertised, the agency can institute a cone of silence so a PSP is not given additional information or is deemed to have an unfair advantage. • The agency can provide a sample contract, including the standard terms and conditions for the contract, within the solicitation to be sure that all PSPs are fully informed prior to proposing. The standard terms and conditions should include any restrictions on overhead, profit, and/or fee, as well as insurance requirements. • The agency can match the scope of work to the budget and schedule for the project. • The agency can assess whether or not prevailing rules and regulations are being followed based on federal, state and local laws. By balancing the mission and goals of the agency with the needs of PSPs, a fair and successful procurement will result. Selection Process The overall goal of the procurement process is to select the most qualified PSP for the project being advertised. This is accomplished during the selection portion of the process and relies on having the proper people and partnerships in place to be successful. Agencies should consider the following tasks during the process. Define Pre-Selection Process and Schedule The pre-selection process is defined as the time between identification of the project to adver- tisement of the solicitation. The following tasks should be completed during the pre-selection process: • Identify a project that meets the strategic direction of the airport. • Notify internal and external stakeholders of the project. Guidance for requesting qualifications from PSPs can be found in the ACC Consultant Request for Qualifications Template, included in Appendix C, Model Documents. FAA Form SF 330 (Architect-Engineer Qualifications Template) for inclusion with PSP proposal submissions is available at the FAA website. • Set expectations for the project. • Develop a high-level cost estimate and project schedule. • Identify potential funding sources (e.g., AIP grants, PFC, State grants, TSA grants, and/or bonds). Determine the rules and regulations associated with the potential funding sources. • Determine the delivery method for the project (i.e., traditional DBB, DB, or CM@R). The overall schedule for the pre-selection process can vary—from a few weeks for small, routine projects, while large, complex projects with several funding sources could take months. Define Selection Process and Schedule The selection process is defined as the time from advertisement of the solicitation to final selection of the PSP. This period includes notification of the selection to the unsuccessful PSPs, as well as a debriefing to discuss the reasons for not being selected. The selection process should

32 Procuring and Managing Professional Services for Airports be tailored to the need and reflect the airport agency’s mission and goals for budget and schedule. The following tasks should be completed during the selection process: • A detailed project description, scope, and schedule should be included in the solicitation. This information is useful for the respondents to develop quality proposals to fulfill the required tasks and deliverables. • Selection criteria should be clearly defined and the level of importance or weight of each criterion noted. • Allow PSPs a reasonable amount of time to respond and be considerate of holidays. • Interviews may be required in the selection process for large, complex projects and should be used to elicit new information from the proposers. An interview is often not necessary for procurements of routine projects. • A level playing field should be maintained by the agencies for all potential firms. A cone of silence regarding the project should be instituted by the agencies from the time of advertise- ment through award in order to protect all involved parties. • All proposers should be provided with a post-selection debriefing. The debriefing should be an in-person meeting that provides a review of the proposal and useful feedback for future proposals. The schedule for the selection process should be reasonable in length for both the agency and the PSPs with discreet milestones for the completion of tasks. The overall selection schedule will depend on the type of project (complex or routine), the number of proposals received, the method of delivery, if an interview is necessary, and any requirements based on the funding sources. Develop Selection Criteria Selection criteria should be established in advance and shared with PSPs. The scoring matrix should be transparent and reflect the agency’s strategic approach and service needs without a bias to any one firm. Typical criteria may include understanding of the project and needs; key personnel, qualifications, and experience; firm’s qualifications and recent experience; and availability and ability to meet agency goals for schedule. An agency may also want to consider attention to quality control and project controls, depending on the complexity of the project and type of service needed; geographical location; DBE/local firm participation; and previous performance evaluations. Depending on the funding sources for the project, an agency can also use billable rates and/or pricing as a factor, if allowed. Establish Selection Committees The selection committee should have technical experience with the proposed work, and all members should be trained on how to review and evaluate proposals/submittals. There is value in having select members continue on post-selection during management as an oversight mechanism to guide future selection, contracting, and management processes. Selection com- mittee members must be free of conflict of interest and knowledgeable of the project’s technical requirements. The committee should have at least three members, and rules of conduct must be established in advance to provide guidance throughout the process. Develop Format and Method of Evaluation (Qualitative vs. Quantitative) The criteria and method of evaluation can include either qualitative (i.e., ranked as high/ medium/low or 1st/2nd/3rd) and/or quantitative criteria (i.e., numerical value assigned to each criteria and possible weight). Weighting the criteria is useful and requires an agreement of

Procurement Process 33 the committee to satisfy each stakeholder’s priorities and needs. The selection criteria should be clearly and concisely communicated to the PSPs as part of the solicitation. Notification of Selection After the agency has received the proposals, the next step is to evaluate the proposals and select the most qualified PSP (see Figure 3-3). Decision-Making Process Selection Process The selection process will depend on the size and complexity of the project being solicited. The complexity and cost of a project should be used to determine the need for an interview. Selections are often made by committees, which should be composed of individuals with spe- cific expertise relevant to the project as well as staff with training and experience in evaluating proposals. A committee scoring sheet can be used during deliberations to total scores for each individual proposer and results can then be shared with the PSP during the debriefing after selection. An example of a committee scoring sheet is included in Appendix D, Sample Forms. Evaluation of Proposals and Short List The scoring of the proposals is based on the selection criteria. Two examples of evaluator rating sheets are included in Appendix D, Sample Forms. After the proposals have been Figure 3-3. Decision-making process for selection.

34 Procuring and Managing Professional Services for Airports evaluated and ranked, the requirement for an interview should be determined. Interviews are necessary if there is a need for further information or on a complex assignment. There also may be a need to actually meet the project managers and team based on project demand or to further clarify an approach or solution. If it is determined that an interview is necessary, a short list of the top qualified firms should be developed. The short list for the interview should consist of only the top two or three ranked firms based on the proposal evaluation. Interviews are expensive for PSPs and so should be limited to firms with a realistic chance of being selected. Interviews and Final Selection The agency should provide clear direction on the purpose of the interview, if necessary, and the information sought and share the evaluation criteria with the PSPs, if possible, in advance of the interview. Adequate time needs to be allowed for each interview and the scoring of inter- views. The results of the interviews should be integrated into the evaluation. After the interviews, the proposals should be re-ranked, including the interview results, and the most qualified firm selected. Interviews should only be required if new or additional information is required by the agency to determine the most qualified firms for the project. Communication (Notification and Debriefing) Notification All PSPs that proposed should be notified in writing in a timely manner of the decision. Proposers should be provided with the scores for both their proposal and interviews, if necessary. Debriefing PSPs should be afforded an opportunity for individual debrief for both the interview and proposal. The individual debriefs should include a candid discussion of the strengths and weaknesses of the proposal and provide the PSP with constructive criticism to encourage better proposals in future. The entire selection process should be transparent to inspire public confidence and achieve buy-in and confidence among all of the participants. The Massachusetts Port Authority is an example of an agency that has successfully implemented a transparent selection process by holding selection meetings that are open to the public. By holding open selection meetings, the time necessary for the selection process has been reduced and the quality of the proposals received by the Massachusetts Port Authority has been enhanced. Tools and Technology Technology can save money and time through streamlined processes and improved efficiency. Although tools (e.g., documents, reports, and meetings) and technology (e.g., software and systems that enhance productivity, tracking, and communication) greatly facilitate procuring and managing professional services, technology is only as useful as the individuals who use it. Nothing replaces the need for human interaction and a shared understanding of expectations and outcomes. Although many state and local agencies use electronic tools for procurement, the principles for managing the process remain the same. The most fundamental element in improving any system is a thorough assessment of current practices, beginning with a high-level overview of the process, followed by a detailed review of each step and each person’s role, and then the creation of standardized comprehensive processes that are communicated clearly to all parties.

Procurement Process 35 Tools The most valuable tools in procurement are a solid knowledge of procurement policies, laws, regulations, funding sources, and project delivery methods; clear, consistent communication, including regular meetings and frequent contact with stakeholders, partners, and PSPs; properly prioritized needs; a strong understanding of each project; and a well-researched, thoughtfully developed scope-schedule-cost where the scope is clear and detailed, the cost estimate is accurately researched, and the schedule includes all key milestones. Whenever AIP funding is involved, strong comprehension of the requirements of the FAA is essential. Refer to FAA resources such as Order 5100.38 (which provides guidance and pro- cedures to be used in the administration of the AIP), Advisory Circular 150/5370-10 (which outlines standards for specifying construction of airports), Advisory Circular 150/5100-14 (which provides detailed guidance for selecting architectural, engineering, and planning con- sultants for airport grant projects), and FAA Program Guidance Letter 12-03 regarding cost analyses mandated to be performed by sponsors. Additional tools useful in the procurement process include a sample contract incorporated into each solicitation that outlines general contract provisions, overhead, profit and insurance requirements; agency organization charts and staff biographies for use in discerning the level of training, skills, and experience of available in-house personnel; change management plans that delineate the procedures to follow whenever changes inevitably arise from unknown conditions or external forces; and a comprehensive manual for PSPs that communicates all policies, processes, and expectations. Technology Technology can enhance transparency, efficiency, and tracking in the procurement process. Electronic procurement (eProcurement) software can improve vendor management and increase sourcing options. Electronic distribution of solicitation materials allows a wider range of potential proposers and provides a level playing field for all. Agencies can use websites to post solicita- tions and upcoming opportunities and to broadcast communications to all internal and external stakeholders. Electronic repositories can allow internal and external participants to share and archive procurement documents. Video chat and web conferencing systems permit agencies to meet face to face with discipline specialists located at a great distance from the airport. Electronic submission of proposals from PSPs provides an instantaneous receipt and better tracking for the agency. Some jurisdictions have laws that stipulate that proposals must be sub- mitted as hard copy documents, but these laws may eventually be re-evaluated by legislators as eProcurement evolves and expands. Additional technology used in the procurement process includes software for creating estimates, budgets, and schedules, as well as document sharing and collaboration systems. Software systems can also be used for tracking projects, grants, and expenditures. eProcurement Systems eProcurement systems automate, standardize, and streamline the procurement process and enhance both transparency and accountability. These systems provide a communication tool between buyers and vendors that can increase the pool of qualified vendors. eProcurement systems can decrease administrative costs and increase efficiency by speeding up business processes and reducing administration time. Many agencies are now using formal eProcurement technology. Some agencies have created custom eProcurement systems, but, depending on the level of complexity and local requirements, some agencies may find it more cost-effective to purchase a scalable off-the-shelf system and

36 Procuring and Managing Professional Services for Airports implement only the modules needed in a phased approach. Some challenges facing agencies in implementing new eProcurement technology include financial constraints, resistance to change, chaotic workflow, and lack of leadership. Typically eProcurement systems are web-based, thus no software installation is required, and information is accessible 24 hours a day from any computer with access to the internet. eProcurement is useful for ensuring a wide-ranging outreach and, therefore, broader diversity in PSPs. The vendor registration function allows for better management of opportunity notifi- cations, sourcing activities, and invitations to potential proposers via email and public posting. Typical components of eProcurement systems include purchasing, spend analysis, sourcing, vendor invoicing, and payment. Most eProcurement systems provide sophisticated security for protecting data and confidentiality. Procurement Websites Many agencies include a “Doing Business With . . .” section on their websites to post pro- curement information (e.g., solicitations and contract awards); however, award information posted on a website should be in addition to, not a substitute for, notifying proposers in writing of the status of their submissions. Interactive websites allow agencies to exchange real-time data to facilitate communication throughout the procurement process, as well as to provide vendors with a better understanding of the agency’s needs. Some agency websites also provide access to download important documents (e.g., procurement regulations, codes of ethics, diversity program information, design/engineering standards, and detailed consultant manuals) (see Figure 3-4 for an example). Web technology also provides the opportunity to present live or pre-recorded webinars to potential proposers and to host online question-and-answer meetings to ensure that the same information is available to all potential PSPs. The Metropolitan Washington Airports Authority (MWAA) uploads pre-proposal presentations on its website when available, furnishing potential PSPs with critical information about the specific solicitation as well as the procurement process in general. Resources Publications • ACRP Report 16: Guidebook for Managing Small Airports, TRB • ACRP Report 21: A Guidebook for Selecting Airport Capital Project Delivery Methods, TRB • ACRP Report 49: Collaborative Airport Capital Planning Handbook, TRB • Airport Owner’s Guide to Project Delivery Systems – 2nd Edition, ACI-NA, ACC, Associated General Contractors of America (AGC ) • Cost Estimating and Assessment Guide: Best Practices for Developing and Managing Capital Program Costs, Government Accountability Office (GAO) • Federal Acquisition Regulations (FAR) - Volumes 1 and 2 • FAA Advisory Circular (AC) 150/5370-10 Standards for Specifying Construction of Airports • FAA Advisory Circular (AC) 150/5100-14 Architectural, Engineering, and Planning Consul- tant Services for Airport Grant Projects • FAA Order 5100.38 Airport Improvement Program Handbook • FAA Program Guidance Letter 12-03 • Improving the Quality of Airport Projects: Best Practices, ACC/FAA • Seven Steps To Performance Based Acquisition, GSA • State and Local Government Procurement: A Practical Guide, National Association of State Procurement Officers (NASPO)

Procurement Process 37 Websites • FAA Airport Improvement Program (AIP) http://www.faa.gov/airports/aip/ • FAA Procurement and Contracting Under AIP http://www.faa.gov/airports/aip/procurement/ • Project Planning, Delivery and Controls. Whole Building Design Guide (WBDG), National Institute of Building Sciences (NIBS) http://www.wbdg.org/project Model Documents (Appendix C) • Consultant Selection Request for Qualifications Template, ACC Sample Forms (Appendix D) • Project Definition Form • Cost Estimating Templates • Committee Scoring Sheet • Evaluator Rating Sheet Figure 3-4. Sample procurement website.

38 Procuring and Managing Professional Services for Airports FAA Forms (Available at the FAA website) • FAA Advisory Circular (AC) 150/5100-14 Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects • FAA Order 5100.38 Airport Improvement Program Handbook • FAA Grant Assurances • FAA Architect-Engineer Qualifications Template (SF330)