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From page 58... ... 57 If an agency's objective in using performance specifi cations is to enhance quality, promote innovation, and/or shift performance risk to the industry, traditional designbid-build (DBB) delivery with a fi xed-price, sealed-bid procurement process may not always offer the best approach to selecting a contractor and delivering a project. Read the entire page →
From page 59... ... 58 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS contract inherently exposes the contractor to more performance risk as the contractor assumes responsibility for design, construction, and the repair and rehabilitation measures required over the contract's maintenance period (usually one life cycle or longer) Read the entire page →
From page 60... ... 59 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS used to monitor and evaluate the contractor's performance in maintaining the asset over time would be comparable to those in the DBOM case. Another project delivery approach receiving considerable attention as of late is construction manager at risk (CMR) Read the entire page →
From page 61... ... 60 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS to similar effect, assuming that the agency provides sufficient latitude to the contractor with respect to the design and construction of the warranted project element(s) Read the entire page →
From page 62... ... 61 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS To the extent possible, the procurement process should be tailored to align with the performance specifications and delivery method selected for a project. In this sense, the performance specifications, delivery method, and procurement strategy can act as complementary components of an overall performance contracting system designed to achieve a project's goals (see Figure 1.2) Read the entire page →
From page 63... ... 62 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS Cost-Plus-Time Bidding Cost-plus-time (A + B) bidding uses a cost parameter (A) Read the entire page →
From page 64... ... 63 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS proposals may be used after contract award) Read the entire page →
From page 65... ... 64 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS Figure 6.3. Comparison of cost-based procurement options. Read the entire page →
From page 66... ... 65 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS The agency should begin to think about evaluation factors soon after identifying the project goals and preparing the performance specifications. Project goals typically fall into the categories of time, budget, and quality, and evaluation factors generally follow suit, falling into the categories of schedule, price, and technical criteria. Read the entire page →
From page 67... ... 66 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS The following discussion identifies the general steps involved in implementing a best-value procurement process. For further details, refer to NCHRP Report 561, Best-Value Procurement Methods for Highway Construction Projects (Scott et al. Read the entire page →
From page 68... ... 67 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS 5. Evaluate SOQs as described in the evaluation plan and determine which are fully responsive in meeting the qualifications criteria. Read the entire page →
From page 69... ... 68 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS 10. Roll up evaluation results and determine the total point score for each responsive proposal. Read the entire page →
From page 70... ... 69 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS The capital expenditures identified in the cash flow curve should align with expectations regarding the long-term performance of the proposer's technical approach as it relates to both the design and initial construction, as well as the maintenance and rehabilitation scheduled for the operations period. The likely differences in the technical approaches offered by different proposers will preclude a direct comparison of the corresponding payment curves. Read the entire page →
From page 71... ... 70 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS Quality-Related Pay Adjustment Factors If measurements indicate that the facility does not comply with the performance requirements, the specification should describe the reconstructive work or remedial action that the contractor must perform to meet the performance requirements. If, however, the nonconformance falls within an allowable tolerance, the specification may provide the contractor the option of forgoing the repairs in return for accepting reduced payment. Read the entire page →
From page 72... ... 71 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS DBB and DB DBB projects are generally bid and measured on a unit-price basis. That makes the application of pay factors, developed using either predictive models or statistically based acceptance procedures, relatively straightforward. Read the entire page →
From page 73... ... 72 STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS Perhaps the simplest way to account for performance deficiencies is to apply a straight monetary deduction to the contractor's periodic payment. Alternatively, agencies can use a two-step process in which the contractor incurs a specified number of penalty points for each failure, and the accrued points are translated into a monetary deduction. Read the entire page →

From page 58...

... 57 If an agency's objective in using performance specifi cations is to enhance quality, promote innovation, and/or shift performance risk to the industry, traditional designbid-build (DBB) delivery with a fi xed-price, sealed-bid procurement process may not always offer the best approach to selecting a contractor and delivering a project.