Best-Value Procurement Methods for Highway Construction Projects (2006) / Chapter Skim
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Appendix H - Training Tool
Appendix H - Training Tool
Pages 190-202
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From page 190... ...
H-1 A P P E N D I X H Training Tool Overview Background and Industry Trends Methods Implementation Procurement Methods Fixed-Price Sealed Bidding Sole Source Selection • Historically Public Sector • Typically Fixed-Price • Open Bidding Price Considerations Historically Public Sector Typically Negotiated Prequalification Processes •••Qualification Considerations Best-Value Price and Other Key Considerations
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H-2 Best-Value Definition A procurement process where price and other key factors are considered in the evaluation and selection process to enhance the long-term performance and value of construction. Industry and Legislative Trends Private Sector Negotiated Procurements FAR Part 15 Contracting By Negotiation Revised ABA Model Procurement Code (MPC 2000)
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Postal Service • Veterans Administration • Federal Bureau of Prisons Use in Highway Industry 41 transportation agencies surveyed 27 had experience with best-value procurement 2 planning to use it
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H-4 Perceived Best-Value Advantages Reduction in cost growth Fewer life-cycle costs Time savings Innovation Quality Reduced procurement risk Best-Value Concepts Best-Value Evaluation CriteriaBest-ValueParameters Project Goals Evaluation Plan Best-Value Evaluation Rating Systems Best-Value Award Algorithms
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BV Parameter Evaluation Criteria
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• . Best-Value Award Algorithms Weighted Criteria Adjusted Bid Adjusted Score Meets Technical Criteria - Low Bid Quantitative Cost Qualitative Cost Technical Tradeoffs Fixed-Price Sealed Bidding Sole Source Selection Price Considerations Qualification Considerations Best-Value Price and Other Key Considerations Fixed Price - Best Proposal
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H-7 Best-Value Framework One-Step Best-Value Procurement No benefit to using competitive screening system Select parameters that align with project goals Associate parameters with evaluation criteria that add value to project Select rating (scoring) system/award algorithm
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H-8 Two-Step Best-Value Procurement Step 1 Evaluation of performance/qualification parameter Similar to current administrative prequalification processes but more detailed Step 2 Evaluation of alternates, quality, cost, and schedule Same process as One-Step Best-Value Best-Value Project Screening & Selection Select projects with characteristics that provide significant benefit from using an alternative form of procurement. Once identified, develop the evaluation plan to confirm that the benefits are real, the negative impacts are minimal, and the risks are manageable.
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Will procurement affect small or disadvantaged business? Is adequate staff available to perform evaluation?
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H-10 Implementation Examples of Selection Process Strategies to Implement Best-Value Procurement Example 1 Any selection process where the eventual award will be determined by the lowest priced, fully qualified and/or responsive bidder. Meets Technical Criteria - Low Bid
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Value Unit Price (Weighted Criteria) Example 3 Tradeoff analysis of price and technical or non-cost factors to arrive at best-value decision.
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H-12 Strategies to Implement Legislative Guidelines Model Specifications Agency Champion Industry Collaboration Pilot Projects Model Legislation Guide Spec Model Legislation ABA Model Procurement Code FAR Part 15-Contracting By Negotiation Flexibility in Procurement Approach • Acceptable to project conditions • Appropriate weighting of price and technical factors
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H-13 Model Specifications General Information, Definitions, and Terms Proposal Requirements and Conditions Award and Execution AASHTO Format:
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