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50 The management of professional services requires the administration of a complex set of pro- cesses (i.e., policy, procedures, plans and guidelines), teams of people (i.e., agency, stakeholders, and PSP), tasks, tools and techniques for managing risk and change (i.e., methods), and tangible results (i.e., outcomes). Developing a carefully structured and integrated framework of manage- ment practices to guide and monitor interactions, communications, documentation, regular evaluation and reporting will allow for more effective control of and confidence in the delivery of the services. Clearly delineated roles and responsibilities; transparent communications on pertinent infor- mation, expectations, and results; and accountability in documenting, reporting and close-out will increase trust and confidence and save time and money. The following best practices and strategies for managing PSPs focus on team organization (e.g., roles and responsibilities, point of contact, and chain of command); key procedures to effectively manage PSP performance; and recommended practices for defining, monitoring, and delivering tangible results (see Figure 5-1). Administration The first step in managing professional services is the administration of the contract, which includes invoicing, progress reports, and contract oversight. Invoicing The agency must establish a process and timeframe for invoice review and payment. The agency should communicate any invoicing requirements to the PSP, including acknowledgment of reimbursable expenses, documentation required for inclusion with invoice submittals, and any time requirements for invoice submittal (e.g., periodically, by deliverable or other milestone event). In addition, any specific requirements for tracking payments to subconsultants or DBE firms should be included in the invoicing instructions and procedures. A sample invoice summary form is provided in Appendix D, Sample Forms. Progress Reports Progress for each individual project can be reported in several ways to the agency based on the task, the requirements stipulated in the contract, and the administrative requirements and expectations of the stakeholders or governing entity. In every case, a narrative progress report should be prepared, usually in conjunction with invoices, to document the specific activities C H A P T E R 5 Managing Professional Services
Managing Professional Services 51 accomplished during the period, issues arising over the period, expected activities during the next reporting period, and statements regarding budget and schedule. A detailed schedule should be developed, either in a simple format (e.g. Microsoft Office) or a more complex platform (e.g., Primavera), in concert with the agency project manager to facilitate the daily administration of the project. At minimum, these reports should document schedule, actual versus planned progress, budget and manpower expenditures by project element and task order contracts, cost and manpower projections, decisions and/or resolutions, contract modification summaries and cost accounting records pertaining to any work performed, critical issues that must be addressed, review status, changes from the previous month, and a listing of meeting minutes. Progress reports should include the following: ⢠Submittal log listing a description of each submittal along with action dates and a schedule of responses due by each responsible party; ⢠Request for information (RFI) log; ⢠Correspondence log; ⢠Record of decision log, including sources, dates, and rationale of all decisions; Figure 5-1. Critical pathâmanaging PSP.
52 Procuring and Managing Professional Services for Airports ⢠Project schedule update, including milestones prepared with the baseline, actual progress, and critical path; ⢠Potential delays to scheduled activities along with potential methods to recover the original schedule; ⢠Activities performed during the month of the progress report; and ⢠Activities planned for the following month. Reports should include emerging trends. Early identification of issues and variances allows the maximum amount of time to mitigate or correct the variance. If required, weekly review meetings should be established to deal with potentially critical issues. In addition, monthly project review meetings should be held between the agency and PSP to review project tasks status, budget, schedule, critical issues, and upcoming deliverables. Minutes of the meetings should be prepared by the PSP project manager and submitted for review and comment. Beyond the formal report, other progress reporting methods can be used based on the nature of the project and stakeholders. For projects with external stakeholders (e.g., a project that will affect the community) one form of progress reporting would be a community/stakeholder meeting to discuss the current status and any upcoming work of the project every 6 months (or as appropriate). These community meetings could be supplemented with quarterly individual meetings with the agency to update the overall progress. For smaller projects with less stakeholder involvement, the agency could simply require a written monthly status report accompanying the invoice and a quarterly in-person meeting to review the progress. The research found that either of these approaches could work for an agency, but the agency has to be clear in communicating the requirements and consistent in administration with the PSP prior to starting the project. Meeting minutes should generally be prepared and provided to the agency project manager within 1 week. Contract Oversight The research indicated that contract oversight varied depending on the size of the agency and the size of the project. Several large-hub airports and several smaller airports with large programs used a third-party program manager to provide contractual oversight, while airports with smaller programs performed contractual oversight with internal staff. Either method can be successful, but the overall success depends on the proper training of staff in contract manage- ment and procurement requirements and regulations. The administration requirements for invoicing, progress reporting, and contract oversight along with the responsibility for these items should be formally communicated to the PSP prior to the start of the contract, so that any requirements can be factored into the cost estimate for the project. These requirements are part and parcel of the contract requirements enumerated in Chapter 4. Scope-Schedule-Cost Management Project Planning and Definition Scope, schedule, and cost must be clearly linked, well defined, and precisely understood by managers and stakeholders. Project planning and definition activities will set the expectations for the project and should be established early in the procurement process. As the project proceeds, the scope-schedule-cost should be regularly reviewed by the Project Manager to ensure that expectations are being met. Scope-schedule-cost must be constantly reviewed, evaluated, and verified during the process.
Managing Professional Services 53 Project Controls Project controls, an important tool for managers, are defined as a method for planning, monitoring, adjusting, and controlling a series of interrelated activities to achieve a defined objective, while dealing with budget and schedule constraints. Managers at both the agency and PSP should have a system to account for and manage the delivery of the contracted service. The general requirements of the PSP system should be included in the contract, such as the ability to integrate the selected system with the agencyâs current system or software and the requirements for updating the data (e.g., monthly and weekly). Effective project controls include accurate monitoring of project progress and implementa- tion of procedures for managing changes and risks to the project. Project controls ensure that all requirements and expectations are met and that the project is on time and within budget. In addition, project contracts are useful in identifying potential changes early in the project. By identifying changes early, delays and disputes can be mitigated and avoided. At a minimum, effective project controls should include the following: ⢠Project schedule, including milestones prepared with the baseline, actual progress, and critical path; ⢠RFI log and tracking; ⢠Meeting minutes log; ⢠Correspondence log; ⢠Project funding requirements such as current payments, current budget, and grant reimburse- ments (e.g., AIP, state, and TSA); ⢠Compliance with local and/or DBE requirements and/or goals; and ⢠Change order log. Effective project controls can also provide the basis for future project planning and estimating. In addition, project controls are useful in documenting and avoiding disputes during the project. For smaller agencies without internal resources to manage project controls, some PSPs are equipped to provide agencies with project controls on an as-needed basis. Memphis-Shelby County Airport Authority and Metropolitan Washington Airports Authority (MWAA) have had successful experience with use of third-party firms to provide independent project controls during the management of professional service contracts. Risk Assessment and Management Plan During a project, issues often arise that can impede the successful completion of the projectâs scope-schedule-cost and, therefore, delivery of service. These risk areas need to be managed and should be identified and placed on a risk questionnaire with any plans for mitigation or avoid- ance prior to the start of the project. The risks to the project will change and additional risks will become apparent throughout the duration of the project. The agency and PSP should review the risk questionnaire and identify any new risks while also ensuring that the current risks are being mitigated or avoided. A sample risk questionnaire is provided in Appendix D, Sample Forms. Change Management Plan Develop a clear and transparent process for managing change. Identify change early in the project and resolve any changes as soon as possible to avoid potential disputes. Figure 5-2 shows a typical change management process. The change management process should be tailored to local requirements, because the environment and policies at each agency are different. Ideally, the process should be formalized and communicated to internal and external stakeholders prior to the contractâs start date.
54 Procuring and Managing Professional Services for Airports Broward County Aviation Department has created a Change Review Committee to perform independent, rigorous review of all contract changes and close-outs for their Airport Expansion Program, which has precluded some disputes and has fostered an environment of transparency and communication. Quality Assurance and Quality Control (QA/QC) Depending on the size and capacity of the agency, the QA/QC process must, at minimum, include agency validation of the PSP services and deliverables. Agencies may decide to retain a third party to perform peer review or establish a set of procedures required of the PSP on submittals. Procedures and expectations (e.g., payment rules for revisions and resubmittals) must be clear so that both parties can agree and accept the consequences. Depending on the assignment, the PSP should be expected to prepare and submit a QA/QC plan for agency approval. The QA/QC process should be equivalent to the ISO 9000 quality standards, where all documents, graphics, and deliverables undergo a basic three-step quality process that includes documentation of dates and staff who performed Preparation, Check, and Back Check. The quality plan should be documented at the outset of the project. Quality audits and lessons learned should be part of internal and external quality procedures. The PSP should require that all subconsultants comply with the established QC program. An example of a quality assurance/ quality control review process is provided in Appendix D, Sample Forms. Performance Management The expectations of the PSP are developed early in the procurement process to demonstrate the performance requirements for both the PSP and the project. Agencies should manage the Figure 5-2. Change management process.
Managing Professional Services 55 PSP with these expectations as a baseline. At a minimum, expectations should be reviewed during face-to-face progress review meetings between the PSP and the agency, and the PSP should be notified of the current performance in meeting the expectations. The research showed that this process is helpful in ensuring that the PSP is aware of current performance and enables the PSP to improve prior to the completion of the project. Auditing Oversight Based on the funding sources used for the project, a financial audit may be required. Although the audit will not be required until completion of the project, ideally, the agency will partner with the audit team at the beginning of the project and have periodic reviews of the required information throughout the process. In addition, some funding sources have limitations on the items eligible for reimbursement. By handling the audit oversight during the project, the agency will be proactive in discovering potential issues and will allow sufficient time to correct any issues prior to the completion of the project. Several of the agencies interviewed for this research stated that they used a proactive method of handling auditing oversight during projects. Based on the successful results of these agencies, developing a partnership with PSPs and holding periodic audit reviews during projects is considered a best practice. Project Close-out and Evaluation Formalized Close-out Process Establish a formal procedure to financially close out a project on completion of project deliverables. The close-out should be accomplished within a reasonable amount of time after the acceptance of the final deliverable for the project. It was apparent during the research that several agencies did not close out contracts in case they needed other work performed at the facility. This practice should be avoided by agencies for several reasons, including that the current PSP may not be best qualified or experienced to perform the new work and the new work may not be eligible for reimbursement under the current funding (e.g., AIP grants and TSA agreements). If an agency foresees emergency tasks, it is recommended that the agency procure and contract with several firms to perform tasks on an as-needed or on-call basis. This will ensure that the PSP performing the work is experienced and qualified for the task requested. An example close-out checklist is provided in Appendix D, Sample Forms. This checklist shows a baseline of information necessary to be completed prior to close-out of the project in the agencyâs procurement system. The checklist can be expanded to satisfy the requirements of each individual agency. The FAAâs Contract Close-out Checklist is available at the FAA website. Evaluation Establish and formalize an evaluation process for the PSP. The evaluation process should allow for in-person reviews and the results should be discussed openly and freely between the agency and the PSP. In addition to a final performance evaluation at close-out, annual evaluations should also be conducted for extended-term contracts. The evaluation should be used to estab- lish lessons learned from the project which should be incorporated into future procurements. An excellent example of PSP evaluation is the Contractor Performance Evaluation form developed by the Metropolitan Washington Airports Authority (MWAA) included in Appendix C, Model Documents. Periodically, the agency should also evaluate the performance of internal staff and the process itself.
56 Procuring and Managing Professional Services for Airports Tools and Technology Tools In addition to regular meetings, progress reports, and reviews of scope-schedule-cost, tools for managing PSPs include project implementation manuals and written plans for managing change, risk, QA/QC, PSP performance, and project close-out. Tracking logs are useful for chronicling RFIs, change orders, meeting minutes, and correspondence. Technology Technology used in managing PSPs can range from simple spreadsheets for maintaining estimates, budgets, and schedules to comprehensive web-based project management systems; the specific tools required will depend on the complexity of the project and the needs of the user. Resources Publications ⢠Effectively Managing Professional Services Contracts: 12 Best Practices, GSA ⢠FAA Advisory Circular (AC) 150/5100-14 Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects ⢠FTA Best Practices Procurement Manual ⢠General Services Administration (GSA) Acquisition Manual ⢠Improving the Quality of Airport Projects: Best Practices, ACC/FAA ⢠ISO 9000-Quality Management, ANSI ⢠NCHRP 20-07: Best Practices in the Management of Design Errors and Omissions, TRB Model Documents (Appendix C) ⢠Contractor Performance Evaluation Form, Metropolitan Washington Airports Authority (MWAA) Sample Forms (Appendix D) ⢠Risk Questionnaire ⢠Quality Assurance/Quality Control Review Process ⢠Invoice Summary Form ⢠Close-out Checklist FAA Forms (Available at the FAA website) ⢠FAA Contract Close-out Checklist
