Design-Build Procurement Approaches - Design-Build for Water and Wastewater Projects - page 68

Table 7-2. Examples of qualitative considerations for best-value selection
Qualifications Experience

Technical approach Management approach

Risk allocation Key personnel

Project organization Schedule

Quality assurance/quality control (QA/QC) Financial wherewithal

Insurance Bonding

considerations that are identified by the owner. The DBIA Position Statement, “Best Value
Selection”further describes the rationale for a best-value selection (DBIA 2010b). Exam-
ples of qualitative considerations are listed in Table 7-2. Further qualitative considerations
are fully described in Appendix B (qualifications based procurements) and Appendix E
(best value procurements) of the DBIA Manual of Practice (2010c). Owners should select
these qualitative considerations based on what is most important in the selection of the
best-value proposal from the proposers. An evaluation and scoring system is developed to
identify the selection criteria and their relative importance or weight in the selection pro-
cess (see also chapter 17). Price (or cost proposal) is often a major selection consideration
for BVS procurement.
Although some owners will set the cost as the sole criterion for selection (i.e., price-
based selection), most include qualitative criteria to verify the validity, strength, and expe-
rience of the DB team. Again, it is advisable to check state procurement laws to determine
how price is used in procurement.
With the BVS method, there are two basic procurement approaches: a one-step RFP
approach and a two-step RFQ and RFP approach.
One-step RFP approach. In the one-step approach, an RFP that includes both
qualification information and proposal requirements is issued. The owner then receives
and evaluates the proposals, makes the selection, and begins negotiations with the design-
builder that offered the best value.
Two-step RFQ and RFP approach. In a two-step approach, the owner issues an
RFQ and then receives and evaluates the SOQs, which typically showcase the design-
builders' qualifications, experience with similar projects, and financial strength. Typically,
the owner then short-lists three to five of the most qualified design-builders. It is most
common to short-list three DB teams. This keeps the level of review and evaluation of
RFPs manageable, and still provides at least two competitive bids even if one fails to
submit or qualify. The short-listed design-builders are then issued the RFP, which
requests information about the approach, schedule, personnel, and sometimes technical
information. Subsequently, the owner receives the proposals, evaluates them, and selects
the design-builder that has offered the best-value proposal.
One- versus two-step best-value selection. If BVS procurement is used, there are a
few pitfalls that owners should try to avoid in the one- and two-step approaches. With BVS
procurement, there will be pressure to select the team that offered the lowest price. Public
owners could be influenced by their past experiences of selecting the lowest responsible
bidder. If there is no legal requirement to choose the design-builder with the lowest price,