Design-Build Procurement Approaches - Design-Build for Water and Wastewater Projects - page 86

a conventional delivery approach. A breakdown of these savings is shown in the
following:

Estimated versus actual net present value savings in 2010 dollars

Difference
($M)
Construction 106.9 143.3 36.4
Operations 85.5 137.9 52.4
Totals $193.3 $281.2 $88.8
Note: Construction and operations values were calculated as a net pres-
ent value for the 20-year life cycle.

Actual NPV
($M)

Estimated
($M)

Cost Type

Lessons Learned

Subsequent to the receipt, review, and ranking of proposals by the selection com-
mittee, the City determined that it had several concerns with the original proposals.
The concerns were identified, and request for proposal (RFP) clarifications/changes
were issued in the form of an additional procurement step, which was referred to as
the Addendum and Request for Best and Final Offers (BAFOs). Further, the City
decided to separate the selection process in this additional procurement step into a
BAFO Business and Technical Proposal package and a BAFO Price Proposal pack-
age. The BAFO Price Proposal packages would not be opened until the selection
committee completed its review and ranking of the BAFO Business and Technical
proposals.
To assist the selection committee, the City used fact-finding teams to pre-
pare nonfinancial and financial assessments of the responses. The subject areas
for review by the fact-finding teams were nonfinancial criteria, including project
delivery, technical reliability, and viability operability; architecture, aesthetics, and
landscaping; technical qualifications; and proposer/guarantor financial qualifica-
tions. The fact-finding teams also evaluated the Business and Technical BAFOs for
cost-effectiveness.
Following an NPV evaluation of the BAFO Price Proposals, the offeror's sub-
mittals were scored and ranked according to a prescribed formula. The combined
scores from the BAFO Business and Technical Proposal and the BAFO Price Pro-
posals provided the ranking needed to make a recommendation to the mayor.
The BAFO Price Proposal evaluation consisted of preparing an NPV assess-
ment of the life-cycle costs of each BAFO at the average flow of 10 mgd (38 ML/d).
The net present value calculation was prepared based upon the proposers' submittals
of the proposed fixed DB price, annual service fee, guaranteed maximum electricity
utilization, annual capital maintenance charge, and annual membrane replacement
charge over an assumed 20-year operation period associated with constructing and
then operating the project.