Design-Build Procurement Approaches - Design-Build for Water and Wastewater Projects - page 67

Table 7-1. Summary of DB procurement approaches
Type of Procurement

Description

1 Direct Negotiation No RFP or RFQ is used, and owners request service

from a design-builder with which they have a
successful relationship.

2 Qualifications-Based

Selection (QBS)

The design-builder is selected based on qualifications
alone. A price for the project is developed at a
specified level of design and could be a guaranteed
maximum price (GMP) or a lump-sum price.

3 Best-Value Selection (BVS) BVS - One-step RFP Approach: This BVS approach

uses only an RFP to receive proposals for price and
information on other qualitative attributes of the
design-builder. Selection is based on price and the
qualitative attributes.
BVS - Two-step RFQ and RFP Approach: Design-
builders first respond to an RFQ, and the owner
short-lists the most qualified teams and then issues
an RFP. The short-listed design-builders prepare
proposals for final selection, which is based on
price and qualitative attributes.

4 Progressive Design-Build The design-builder is selected based on qualifications

that may be accompanied with proposed rates for
the design phase or an overall conceptual/target
price. The cost for construction and startup is known
when the GMP is negotiated at 30 to 100 percent
design and the owner can choose to proceed or not.

5 Price-Based Design-Build An RFP is issued and the design-builder is selected

based on price alone (i.e., lowest responsive price).

will competitively bid out the construction work in an “open book” manner. The owner
can observe the bid tabulations (referred to as bid tabs ) to ensure that the vendors that
provide the best value are used. The amount of construction work that is competitively
bid depends on the amount of construction work the owner allows the design-builder to
self-perform. Self-perform, or direct-hire, would be any work that the general contractor
undertakes rather than work performed by a subcontractor (e.g., electrical or carpentry).
The amount of self-perform work the design-builder self performs is at the discretion of
the owner and subject to any state law. Some state laws require a minimum amount of work
to be self-performed or have requirements of how self-performed work is achieved in a the
DB project delivery method. The only construction work the design-builder provides is
the provision of the General Conditions for the project and any self-perform work it does.

Best-Value Selection

The BVS approach is based on selecting the design-builder that offers the best value for
the owner, and best value is assessed by a combination of price and some qualitative