This document discusses different approaches to design-build procurement, including qualifications-based selection, price-based selection, and best value selection. It outlines the advantages and disadvantages of each approach. Qualifications-based selection focuses on contractor qualifications, price-based selection focuses on price alone, and best value selection evaluates both qualifications and price. The document also discusses progressive design-build, where the design-builder is selected based on qualifications and works collaboratively with the owner to advance the design.

1. DESIGN-BUILD PROCUREMENT
APPROACHES John D. Doller, P.E.
Carollo Engineers, Inc.

2. Agenda
• Procurement Goals
• Evaluation Options
• Types of Procurement
• Considerations for Selection of Procurement
Type

3. Procurement Goals
• Attract the best competition from the
qualified DB teams
• Obtain an acceptable market price for DB
services
• Obtain acceptable contract terms to meet
Owner’s project objectives with acceptable
risk allocation

4. Evaluation Options
Qualifications Cost

5. Evaluation Options
Qualifications Cost
Qualifications Based Selection
Price Based Selection
Best Value Selection

6. Design-Build Procurement Approaches
Design-Builder is selected
based on Qualifications
alone.
RFQ
A price for the project is developed
at a specified level of design and
could be GMP or Lump Sum
Qualifications Based Selection

7. Design-Build Procurement Approaches
Design-Builder is selected
based on price alone
(i.e. lowest responsive price)
RFP
(requires some level of design)
Qualifications Based Selection
Price Based Selection

8. Design-Build Procurement Approaches
Design-Builder is
selected based on a
combination of
qualifications and
price
RFPor RFQ&RFP
Qualifications Based Selection
Price Based Selection
Best Value Selection

9. Qualifications Based Selection
ADVANTAGES
• Reduces procurement time and cost
• Most qualified Design-Builder is selected
• High degree of Owner control
• Owner defines/negotiates scope, quality, price and
schedule
Project
Definition
Predesign
Final
Design
Construction Startup

10. Qualifications Based Selection
DISADVANTAGES
• May not be legally permissible
• Is counter to “public low bid” psyche
• Could be “tough sell”
• May need to engage a procurement advisor
Project
Definition
Predesign
Final
Design
Construction Startup

11. Qualifications Based Selection
QUALITATIVE CONSIDERATIONS
* Qualifications * Experience
* Technical Approach * Management Approach
* Risk Allocation * Key Personnel
* Team Organization * Schedule Control
* QA/QC Approach * Insurance / Bonding
Project
Definition
Predesign
Final
Design
Construction Startup

12. Price Based Selection
ADVANTAGES
• Price certainty at time of proposal submission
• Detailed technical information provided
Project
Definition
Predesign
Final
Design
Construction Startup

13. Price Based Selection
DISADVANTAGES
• Large time investment in procurement
• Greater effort to review proposals
• Owner input only during procurement development
• Life-cycle cost considerations limited
Project
Definition
Predesign
Final
Design
Construction Startup

14. Price Based Selection
Predesign Final Design
Performance Based Prescriptive Based
INNOVATION CONTROL

15. Performance vs. Prescriptive
Predesign Final Design
Performance Based Prescriptive Based
INNOVATION CONTROL
Performance Based Prescriptive Based
• Maximum potential for cost
savings through innovation
• Maximum transfer of
design-related performance
risk
• Relatively low costs to
prepare RFP / Proposal
• Substantial control over
project design and O&M
costs
• Proposal selection can
emphasize project design
build costs
• High level of project
definition at time contract is
signed
ADVANTAGES

16. Performance vs. Prescriptive
Predesign Final Design
Performance Based Prescriptive Based
INNOVATION CONTROL
Performance Based Prescriptive Based
• May result in higher O&M
costs
• Proposal evaluation and
selection is more complex
• Potential for decreased
participation due to higher
preparation costs
• Limited Owner input into
design after proposal is
accepted
• Procurement duration is
longer
• RFP preparation is more
costly due to high level of
design
• Design risk not clearly
assumed by the Design-
Builder
DISADVANTAGES

17. Best Value Selection
CostQualifications
ADVANTAGES
• Price certainty at time of proposal submission (maybe)
• Detailed technical/qualifications information provided
• Depending upon cost component – collaboration can still exist
Best Value Selection

18. Best Value Selection
CostQualifications
DISADVANTAGES
• Large time investment in procurement
• Greater effort to review proposals
• Life-cycle cost considerations limited
Best Value Selection

19. Weighting Costs and Quals
Progressive D-B

20. Progressive Design-Build
In a progressive design-build
procurement, the design-builder
is selected primarily based on
qualifications before substantial
design is completed. Together,
the owner and the design-build
team advance the design,
incorporating the details desired
by the owner and providing the
owner with cost input regarding
options the owner is considering.
This open-book approach
enables the owner to make well-
informed decisions on the
overall quality of the project.
(Chapter 3, page 25)

21. Progressive Design-Build
Design/Builder
Design Development and ConstructionDesign
Definition
Owner
PM/OA
100%
Guaranteed maximum price
established at the right time:
Risk and contingency reduced,
schedule needs met
Construction estimating can
start very early in design,
allowing comparison of specific
technical solutions
First fully detailed estimate
can be used to establish a
scope baseline. Estimating
process is “open book”
“Progressive” estimates keep
owners informed and support-
informed scope adjustment
decisions
Owners can use third-parties to
verify cost . . .
. . . and go to the hard-bid market
if needed (the “off-ramp”)

22. Progressive Design-Build
Design/Builder
Design Development and ConstructionDesign
Definition
Owner
PM/OA
100%
• Investment in projects, not procurements
• Offers owners maximum flexibility/opportunity to collaborate on
design/permitting
• Minimizes overall schedule
• Owners have an “off-ramp” in case of permitting issues or if GMP
can’t be negotiated
• Very successful evolving model

23. Considerations for Selecting
Procurement Approach
• Project Goals and Objectives
• Legal Feasibility
• Level of Design Definition

24. www.waterdesignbuild.org www.awwa.org