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Pre Award PhaseJohn SavickyArizona State UniversityMay 2013

2PIPS Best-Value ProcessIdentification of PotentialBest-ValuePHASE 1Pre Planningand Quality ControlPHASE 2Award | Measurement &DocumentationPHASE 32It Is More Important For The Proposer To Know What To Do Than It Is For Client To Know What The Proposer Should Do.3But We Must Make Sure That The Proposer Has Laid Out Their Plan!!!4

5Note: Phase 2 is Most CriticalIdentification of PotentialBest-ValuePHASE 1Pre Planningand Quality ControlPHASE 2Award | Measurement &DocumentationPHASE 3

Proposers Are ExpertsVerify EVERYTHING!!!56PIPS Best-Value ProcessIdentification of PotentialBest-ValuePHASE 1Pre Planningand Quality ControlPHASE 2Award | Measurement &DocumentationPHASE 3AWARD6What is the Pre Award Period? (Proactive vs Reactive)

Minimize All Surprises!!!What Could Cause a SurpriseDelivering something that doesnt work

Delivering something that isnt what the client needed or expected

Requiring the client to do something (that they did not know they had to do)

Requiring things from the client that they cannot provide

Expecting that something will happen as planned

Assuming that things are clear and understandable

Assuming that things will be done as planned

Changes that add more cost

Changes that add more time

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How Can We Minimize SurprisesCarefully preplan the project in detailCoordinate the project/service with all critical partiesPrepare a detailed project plan (work plan, staffing, implementation, etc) Revisit the sites to do any additional investigatingPrepare a detailed project schedule identifying critical milestones

Cost VerificationDetailed cost breakdownIdentify why the cost proposal may be significantly different from competitorsReview big-ticket itemsValue added options

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How Can We Minimize SurprisesAlign expectationsIdentify any potential deal breakersClearly identify what is included and excluded in the proposalReview selected functional and technical requirements with ClientReview interview statementsClient roles and responsibilitiesAny contract terms and conditions

Identify and Mitigate All RisksClient concerns/risks Other proposers risksPrevious project risks

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How Can We Minimize SurprisesIdentify all assumptionsPrepare a list of all proposal assumptions (with associated impacts)

Identify all uncontrollable risksPrepare a list of risks that the Proposer does not control

Identify how the vendor will track and document their performancePerformance metricsWeekly risk reports

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Experts vs Non-Experts12TimeStartEndTimeStartEnd

13Guide Us / Help Us See & UnderstandIf the proposer Cant or Has a Difficult Time

Words of Visdom15If you can't explain it simply, you don't understand it well enough!Simple can be harder to achieve than complex!

Pre Award Document16Financial Summary (financial details, how funding will work, etc)

Complete Project Schedule (a coordinated schedule showing major milestones, risky activities, client actions, client action item list, etc)

Project Risks/Concerns (all controllable risks/concerns, all non-controllable risks, and solutions)

Assumptions (all project assumptions with associated impacts, identify what you need from the client and have a plan for obtaining it, roles and responsibilities of the client, etc )

Performance Metrics (how the vendor will monitor performance, document success, metrics used, frequency, baseline for comparison, how will it assist the client, etc)

Scope of Work (plan of action, detailed work plan, how technical requirements will be met, baseline expectations, implementation plan, transitional plan, data migration plan, staffing plan, communication plan, training plan, organization change plan, whats included, excluded, etc)

Contract (language, terms and conditions, etc)

17Must Prepare & Preplan Before You Propose!!!Identification of PotentialBest-ValuePHASE 1Pre Planningand Quality ControlPHASE 2Award | Measurement &DocumentationPHASE 31718PIPS Best-Value ProcessIdentification of PotentialBest-ValuePHASE 1Pre Planningand Quality ControlPHASE 2Award | Measurement &DocumentationPHASE 3AWARD18How This Works19First StepReview the data and identify if there are any issues/concerns that must be addressed ASAP

Review your notes (RA Plan, VA Plan, Proposal, Demo, Interview). Identify any major risks/concerns. Identify any significant/dominant statements that must be clarified

Use common sense / be logical 20If There Are No Deal BreakersStartVery High LevelClarify ProposalMajor Client Risks/ConcernsBig Ticket Items/Deal BreakersVerify Cost / Financial InfoIncluded in ProposalExcluded from ProposalAssumptionsCost/Schedule AnalysisPre Award ScheduleHigh LevelClient Risks/ConcernsUncontrollable RisksResponse to All Risks/ConcernsRoles and ResponsibilitiesValue Added IdeasCoordination / Pre PlanReview Tech requirementsAlign ExpectationsRevisit the siteCompensation ModelBenefits ProjectionsMid LevelDetailed DemosEnd Client Site VisitsTechnical DetailsPerformance Reports/DocumentationProject Documents / DeliverablesFully Resource Loaded Work PlanReview Interview StatementsProject Plan (staffing, communication, training, Implementation, organization change, business requirements) Project ScheduleContractFinish21If There Are Deal BreakersStartVery High LevelClarify ProposalMajor Client Risks/ConcernsBig Ticket Items/Deal BreakersVerify Cost / Financial InfoIncluded in ProposalExcluded from ProposalAssumptionsCost/Schedule AnalysisPre Award ScheduleHigh LevelClient Risks/ConcernsUncontrollable RisksResponse to All Risks/ConcernsRoles and ResponsibilitiesValue Added IdeasCoordination / Pre PlanReview Tech requirementsAlign ExpectationsRevisit the siteCompensation ModelBenefits ProjectionsMid LevelDetailed DemosEnd Client Site VisitsTechnical DetailsPerformance Reports/DocumentationProject Documents / DeliverablesFully Resource Loaded Work PlanReview Interview StatementsProject Plan (staffing, communication, training, Implementation, organization change, business requirements) Project ScheduleContractFinishSTOP22Focus On The Major Things FirstPurchasing a new SUVHow many full-size people can fit?The MPG or capacity of the gas tank?The type of safety equipment?The type of headlights we getting?Darkness of the tint?

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Purchasing Uniforms for TroopsDurability - How long the material will last?Location of where material is made?How many pockets the uniform has?The ability of the uniform to be warm/cold?

Example 1 Restroom Renovation

25Example 2 Building Renovation

Average Bid Cost (8 firms) = $540,000Average Project Duration (8 firms) = 115 days

Example 3 Hospital Roof

Example 4 Software Project

What Is Clients Role During Pre-Award???28To Enforce the Best-Value Structure and Facilitate the Proposer29Must Enforce BV StructureProposer is accustom to traditional thinking Customer is always rightMake them realize that this is not a traditional procurement Dont tell them what to doDont tell them what you think the best option isMinimize your decisionsRequire the proposer to tell you the best option and whyProvide the proposer with your needs, concerns, and risksRequire the proposer to be very simple and logical with their solutions and recommendationsRequire the proposer to make all the decisionsMake them understand that they are responsible and accountableYou are the facilitators

30What Should You Expect?Do they have a plan?Does their plan address cost, time, and deliverablesIs it logical / Does it make sense? (VA Plan example)Is it simple and understandable? Do they know how they will measure their success?Are they being accountable (are you being accountable)?

31Impact of Pre-Award (General Services Administration)32NoCRITERIATraditional RFPASU-BV1Number of projects analyzed11102Total awarded cost$14,244,385 $9,994,887 3Total awarded schedule1,8221,3734Percent awarded cost below budget4.4%6.0%5Average time RFP Release to Contract68 days78 days6Average BV-PA duration (days)077Average Overall Change Order Rate50% Decrease8Average Overall Project Delay Rate38% Decrease9GSA Satisfaction Rating of Contractor/Job34% IncreaseFor within BV projects, also tested 1 week PALonger PA had 33% lower change order rate (73% reduce overall)Longer PA had 69% lower delay rate (73% reduce overall)32Lessons LearnedPre Award period takes additional time during procurement (typically takes 2-4 weeks on small projects | 4-6 weeks on complex projects)

Most clients are in a rush to make the award ASAPDont allow adequate timeDont get all the critical informationAllow proposer to provide information after award

Proposer sees the pre-award as just another step before they get the award (they are still focused on trying to get the award instead of laying out their plan).

Pre Award Period is not easy for IT proposers to perform

Pre Award maybe the first time the proposer is actually looking at your project in detail

33Lessons LearnedProposers are more concerned with telling you what you want to hear (customer is always right) rather than being honest.

Proposers have a difficult time describing things in a simple/dominant manner

It is very easy to revert back to the traditional thinking/relationship. The client must enforce the structure so that the proposer acts as a true expert.

Research has shown that the more time you invest during the Pre Award, cost increases and schedule delays are both reduced significantly

LL Take your time. This will payoff in the end

3435Comments / Questions

W W W . P B S R G . C O M 3535Sheet14344953938NOCRITERIAFIRM AFIRM BFIRM CFIRM DFIRM E1Total Cost ($)$106,600$99,818$114,227$115,533$126,6212Proposed Duration (Days)28355040403Interview Rating7.87.18.62.55.84RAVA Plan Rating4.44.06.45.85.85General Contractor (1-10)9.69.49.49.49.36General Contractor (#)2062012147Project Manager (1-10)9.79.49.39.59.58Project Manager (#)10310859Site Superintendent (1-10)9.79.59.69.79.210Site Superintendent (#)103108811Plumbing Sub (1-10)10.09.79.59.69.512Plumbing Sub (#)111455513Electrical Sub (1-10)9.85.010.09.69.414Electrical Sub (#)81512315Tile Sub (1-10)9.79.39.49.15.016Tile Sub (#)414251

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Sheet3

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