Value, Benefits, and Limitations of Qualifications-Based Selection for Airport Project Delivery (2019)

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44 Advertise “To make a public announcement of the intention to purchase goods, services or construction with the intention of increasing the response and enlarging the competition. The announcement must conform to the legal requirements imposed by established laws, rules, policies and procedures to inform the public” (Shields 1998). Alternative Contracting Methods (ACM) ACMs are mainstreamed as viable delivery options for highway construction projects to accelerate project delivery, encourage the deployment of innovation, and minimize unforeseen delays and cost overruns. These options include design–build (DB), construc- tion manager-at-risk (CMR), public–private partnership (PPP), and other innovation techniques (Tran et al. 2017). Best-Value (BV) An award method that utilizes cost and other management and/or technical factors to select the winning bidders (e.g., cost-plus-time bidding, qualifications, design approach) to minimize impacts and enhance the long-term performance and value of construction (Kenig 2011, Tran et al. 2017). Construction Manager-at-Risk (CMR) A project delivery method in which a construction manager is selected to provide input during project design and then becomes at risk for the final cost and time of construction. Also commonly known as construction manager/general contractor (CMGC), as well as a number of other terms that are specific to a given agency (Gransberg and Shane 2010, Kenig 2011, FAA 2014). Construction Manager/ General Contractor IDIQ (CMGC-IDIQ) Indefinite delivery/indefinite quantity (IDIQ) contract where the contractor furnishes preconstruction services during design and construction services on each work order. Design–Bid–Build (DBB) The traditional project delivery method where the owner retains a design professional or uses internal design assets to produce a set of construction documents, which are then advertised for bids and typically awarded to the lowest responsive responsible contractor. Design–Bid–Build Best-Value (DBB-BV) A project delivery method where the owner retains a design profes- sional or uses internal design assets to produce a set of construc- tion documents. The contract is awarded using some combination of bid price and other factors such as qualifications or schedule. Glossary

Glossary 45 Design–Build (DB) A project delivery method that combines the design and construc- tion phases of project delivery under a single contract (AASHTO 2008, Kenig 2011, FAA 2014). Design–Build IDIQ (DB-IDIQ) IDIQ contract where the contractor furnishes both the design and construction services on each work order. Guaranteed Maximum Price (GMP) A sum of money that represents the cost of work, overhead, CMR’s fees (profit), and a contingency in a CMR project (Kwak and Bushey 2000). IDIQ Contract Scope The description of work to be done under an IDIQ contract. These contracts are most often used to procure services of a repetitive nature and their scope is quite narrow and clear, allowing greater control over pricing. For example, an IDIQ contract to complete an indefinite amount of pavement overlay is a typical scope limitation for a single-award IDIQ contract. Indefinite Delivery/ Indefinite Quantity (IDIQ) Contract A contract that provides for an indefinite quantity of supplies and/or services whose performance and delivery scheduling is determined by placing work orders with one or more contractors during a fixed period (GSA 2013, Gransberg et al. 2015). Integrated Project Delivery (IPD) A project delivery method that integrates people, systems, business structures, and practices into a process that emphasizes collabora- tion and integration through the use of multiparty, relational con- tracts based on jointly defined project objectives (Airports Council International–North America et al. 2012, American Institute of Architects 2014). Invitation for Bids (IFB) “A solicitation for offers under sealed bidding” (Shields 1998). Low-Bid (LB) An award method where the contractor with the lowest bid price is selected (Kenig 2011). Multiple Award IDIQ “A single contract is advertised, and a pool of qualified contractors is selected. Only those selected are subsequently allowed to bid on work orders. In most cases, the work orders are awarded to the lowest bidder among the contractors in the pool” (Rueda and Gransberg 2014). Procurement “The combined functions of purchasing, inventory control, traffic and transportation, receiving, inspection, storekeeping, and salvage and disposal operations” (Minnesota Department of Administra- tion 2007). “All stages involved in the process of acquiring supplies or services, beginning with the determination of a need for supplies or services and ending with contract completion or closeout” (Shields 1998). Progressive Design– Build (PDB) A variation of DB where the design–builder is selected using QBS and the costs of the project are negotiated after final selection (Loulakis 2013, State of Washington 2017).

46 Value, Benefits, and Limitations of Qualifications-Based Selection for Airport Project Delivery Public–Private Partnership (PPP) A public–private partnership is a contractual agreement formed between public- and private-sector organizations, which allows more private-sector participation in heretofore public endeavors. The agreements usually involve a government agency contracting with a private company to finance, renovate, construct, operate, maintain, and/or manage a facility or system (U.S. DOT 2004, Kenig 2011). Qualifications-Based Selection (QBS) An award method that focuses on qualitative criteria such as expertise, experience, and past performance as the bases for selection. Price is not considered as a part of the selection process (AASHTO 2008, Kenig 2011, FAA 2014). Request for Proposals (RFP) “A solicitation for offers under negotiation procedures” (Shields 1998). Request for Qualifications (RFQ) “The document issued by the Owner prior to the RFP that typically: describes the project in enough detail to let potential proposers determine if they wish to compete; and forms the basis for request- ing Qualifications Submissions in a ‘two-phase’ or prequalification process” (Design-Build Institute of America 2009). Single Award IDIQ “A single contract is advertised and awarded to a single contractor who then is awarded work orders based on the pricing furnished in the initial bid package” (Rueda and Gransberg 2014). Single Work Order IDIQ “A single contract is awarded to a single contractor. Once the need to issue the work arises, the contractor then performs the desired services or furnishes the requisite supplies [a single work order issued during the contract period]” (Rueda and Gransberg 2014). Solicitation “The process used to communicate procurement requirements and to request responses from interested vendors. A solicitation may be but is not limited to a request for bid and request for proposal” (Minnesota Department of Administration 2007). Work Order Every project to be executed within an IDIQ contract is developed under the issuance of a work order. A work order becomes the contract document that determines location, contract time, and scope of work. Moreover, a work order outlines all required pay items, quantities, and unit prices (Rueda and Gransberg 2014). Also termed Task, Job, or Service Order.