Performance Based Studies Research Group
Pre Award Phase
Best Value System
PHASE 1
Identification
of Potential
Best-Value
PHASE 2
PHASE 3
Pre Planning
and
Risk Management
Measurement of
Deviation from the
Expectation
WWW.PBSRG.COM
2
Expectations of a
Best Value Contract
 All efforts are first planned, and then operations are executed. All efforts
are well documented with actual performance measured against the
original plan.
 Risk and control transferred to the vendor. Risk are planned for before
they occur, focusing on risk that is not controllable.
 A measured environment
 Accountable client and an accountable service provider
 Transparent, simple, and clear
 Minimum transactions
WWW.PBSRG.COM
3
Pre Award Period
What is it / Why is it important
 Period of time allotted to potential best value vendor (aka the Expert) to:
 Present their project plan
 Set a plan for its delivery / clarify that your proposal is accurate
 Identify the risks and issues that could cause the plan to deviate
 Identify what you don’t know and when you will know it and how
the plan could change based upon what you discover
 Set plans to minimize those risks from occurring
 Address all the concerns and risks of the client
WWW.PBSRG.COM
4
Pre Award Period
What is it / Why is it important
 Period of time allotted to potential best value vendor (aka the Expert) to:
 Know how they are being successful and adding value (measurement)
 Weekly Risk Report through project
 Identify what you need from the client and have a plan for getting it
 Identify what you need from other entities, agency, etc. and also
have a plan for getting what you need
 Have completely aligned expectations between all parties so everyone
knows what is going to transpire and what they are supposed to do
WWW.PBSRG.COM
5
Pre Award Period
What is it / Why is it important
 Period of time allotted to potential best value vendor (aka the Expert) to:
 Coordinate the schedule: client, sub-vendors, consultants, suppliers,
designer, etc. etc. etc.
 Set up and initiate using the Weekly Risk Report (WRR)
 Finalize and sign contract
WWW.PBSRG.COM
6
What Happens During the
Pre Award Phase
 Education (video, vendor and PBSRG)
 Vendor present Draft Plan at the Kickoff meeting (what you proposed based upon), and also
addresses any key client concerns, big ticket items, deal breakers, etc.
 Set Pre-Award Period Schedule
 Initiate the Weekly Risk Report IMMEDIATELY
 Work with client to finalize details and set expectations/responsibilities
 Coordinate the project / transition schedule, complete RMP, etc.
 Finalize the financials and contract
 Set the baseline / benchmark metrics / performance measurement reporting
 Hold the Final Summary Meeting
 Sign the contract
WWW.PBSRG.COM
BV Process
Filter 1
Filter 2
Past
Performance
Information
Current
Capability
Filter 3
Filter 4
Filter 5
Filter 6
Interview
Prioritization
Cost
PreKey Personnel
(Identify
Reasonableness Planning &
Risk Min
Best Value)
Low
Award
Detailed
Non-Detailed
Non-Detailed
Non-Detailed
Non-Detailed
Non-Detailed
Quality of Vendors
High
Measurement of Risk & Performance
During the Contract
Time
Clarification, but No Negotiation
WWW.PBSRG.COM
8
Traditional Risk Model
Vendor
Contract
Buyer
Buyer Controls Vendor Through Contract
WWW.PBSRG.COM
Best Value Risk Model
Vendor
Contract
Buyer
Vendor Manages/Minimizes Risk With Contract
- Contract is predictive
WWW.PBSRG.COM
End
Start
Pre Award Period
Very High Level
High Level
Mid Level
Cost Verification
Project Work Plan
Performance Reports / Metrics
Included in Proposal
Client Risks/Concerns
Additional Documentation
Excluded from
Proposal
PA Schedule
Technical Details
Uncontrollable Risks
Project Schedule
Response to all risks
High level demos
Roles and
Responsibilities
PA Document
Major Assumptions
Major Client
Risks/Concerns
Value Added Ideas
Coordination
Review Functionality
WWW.PBSRG.COM
Pre Award Document
(Risk Management Plan)
 The PA Document should contain the following:
1. Scope
 Clear and Detailed Project Scope (what is and what is not
included) – Set Baseline Expectation
2. Risks
 A list of Risks vendor does not control with plans to minimize
 Identified Risks List
 A list of all client/user risks with plans to minimize & all
vendor’s risks
3. Milestone schedule
4. Coordination
5. Client Action Item List
6. Weekly Risk Report
7. Cost
8. Other: Agreed to Value Adding Options, Original Plans, Interview
Minutes, etc…
WWW.PBSRG.COM
12
Note to Vendor and Client Do Not Work in a Vacuum!!!!!
 The Pre Award period is a time for the client and Vendor to interact
 Maximize effort BEFORE the event begins
 The Vendor should not work in a vacuum
 There should be regular meetings between vendor and client (weekly)
 An Outcome of first meeting: PA Period Meeting Schedule Agreed to
 Vendor should come prepared with a proposed schedule that will be
coordinated
 Complete honesty
 Optimize within client constraints
 Vendor should be the leader/driver
 All critical parties/groups should be coordinated with
WWW.PBSRG.COM
13
Scope
 Projects need to have clear scope at the start of the service
 Everything within the expectation/budget
 Minimize/Eliminate Client/User Scope Changes
 Detailed Scope
 Scope identifies what is included and what is not included to meet the
client’s intent
 Conservative is best
 If risks exists between scope and client intent they must be identified
 Resolve alignment and expectations before signing the contract
 Identify path to identifying unknowns during contract
WWW.PBSRG.COM
14
Cost Clarification
 Cost clarified if needed
 Clear and simple movement of money identified
 If need, linked to performance, expectations, or progress (set by vendor)
 Model can have “scenarios” for various outcomes
 Model can be adjusted based upon value adding options
 Risk Plans
 Additional risk elimination actions
WWW.PBSRG.COM
15
Identified Risks
 List of Risks that have been previously identified
 All vendor team risks
 All client technical concerns, risk, issues, and bugaboos
 All user concerns, risk, issues, etc.
 Simple format




Risk
Solution/Plan to Minimize
Action if Risk Occurs
Impact is Risk Occurs
 If a risk is not a risk, just say why it is not a risk…
WWW.PBSRG.COM
16
Risk Minimization Structure
 List of Risk Vendor
 From Project Capability plans
 Example Format
 Risk #1: Description of risk (or why it is a risk)
 Solution: Provide your solution. Because this document is not constrained by a page
limit, it is acceptable to add more detail to your previous solution provided in your RAVA
plan. Make sure it is identified at what point you have done everything reasonably
possible. Identify the impact if the risk still exists after you have done everything
reasonably possible.
 Step 1:
 Step 2:
 Step 3:
 Step 4:
 Step 5:
 Etc.
 Action If Risk Occurs: Similar to above, but a list of action items once risk occurs
 Expected Impact if Risk Occurs: For example, “If we have done the above X steps and the
risk still exists, there will be an impact to the …budget…schedule…of $XX.XX…XX days.”
WWW.PBSRG.COM
17
Milestone Schedule
 Project schedule that can be worked from
 Simple to read
 Simple to use
 Intent: Minimize Risk = Help All Parties be more efficient and accountable
 Contents
 Major Activities, Deliverables, and Milestones (linked to metrics)
 Client Action Items clearly identified (e.g. red)
 Risky areas / decision points clearly identified (e.g. green)
WWW.PBSRG.COM
18
Client Action Item List
 Client Action Item List


List of all actions/tasks that the vendor requires from the client
Each Action Item will have a:
 Activity
 Person Accountable in the Client organization
 Agreed to Due Date
WWW.PBSRG.COM
19
Example
WWW.PBSRG.COM
20
Weekly Risk Reports
What is it / Why is it important
 What is it:
 Excel Spreadsheet that tracks unforeseen risks on a service
 Why is it important:
 Allows vendors to document unresolved client issues
 Allows vendors the ability to show they can manage a service through
risk minimization
 Allows vendors to document all client decisions
 Provides PM a weekly/monthly analysis of all services
 Will be used to monitor the progress and performance of the entire
client organization (this isn’t just for a specific contractor or a specific
service...there is a bigger picture)
 How much effort:
 Minimal (less than 5-15 minutes), unless contractor did not preplan,
or client making decisions
WWW.PBSRG.COM
21
Weekly Reporting System (Sample)
 Excel Spreadsheet that tracks unforeseen risks on a service
 The client will setup and send to vendor once Award/NTP issued
 Vendor must submit the report every week (Friday).
 The final service rating will be impacted by the accuracy and timely
submittal of the WRS
WWW.PBSRG.COM
22
Weekly Risk Report
 We will be starting a weekly risk report for the pre-award period
 Contents:



Contact Info
Pre-Award Schedule
Risks/Issue Tracking
 PBSRG can provide specific detailed education individually with the
vendor
WWW.PBSRG.COM
23
Measurement of Deviation from the Expectation
Management by Risk Minimization
Unforeseen Risks
RISK MANAGEMENT PLAN
• Risk
• Risk Minimization
• Schedule
WEEKLY REPORT
• Risk
• Unforeseen Risks
PERFORMANCE SUMMARY
• Vendor Performance
• Client Performance
• Individual Performance
• Project Performance
WWW.PBSRG.COM
Other
 All other items of importance
 Including





Value Adding Options agreed to
Original Plans
Interview Minutes
Any specifications
Any other pertinent information
WWW.PBSRG.COM
25
Pre Award Final
Summary Meeting
 Is not a “Q&A” meeting




All issues resolved
All coordination complete
All risks that are not in vendors control have been identified
All value added options have been addressed
 PA Final Meeting is to summarize all of the coordination that has
been complete and walk through the PA Document/RMP
 Upon successful completion of the PA Final Meeting, the client will
make the award
WWW.PBSRG.COM
26
BV Process - Award
Filter 1
Filter 2
Past
Performance
Information
Current
Capability
Filter 3
Filter 4
Filter 5
Filter 6
Interview
Prioritization
Cost
PreKey Personnel
(Identify Reasonableness & Planning &
Best Value) Dominance Check Risk Min
Low
Award
Quality of Vendors
High
Measurement of Risk & Performance
During the Contract
Time
WWW.PBSRG.COM
27
Post Project Rating
Filter 1
Filter 2
Past
Performance
Information
Current
Capability
Filter 3
Filter 4
Filter 5
Filter 6
Interview
Prioritization
Cost
PreKey Personnel
(Identify Reasonableness & Planning &
Best Value) Dominance Check Risk Min
Low
Award
Quality of Vendors
High
Measurement of Risk & Performance
During the Contract
Time
Updating of PPI
WWW.PBSRG.COM
28
Final Rating
 After the project is complete, the client will evaluate the project.
 The Final Rating will be heavily impacted by:




Performance
Owner surprises
Complaints
Ability to submit accurate and timely weekly reports
 In Best-Value Procurement, the vendors goal is to get a high rating in
order to stay competitive.
WWW.PBSRG.COM
29
Immediate Action Items
 Prep for Kick Off Meeting & Conduct the Kickoff Meeting




Draft Plan (focus on differences from current service)
Address any Critical Client Concerns or clarification needs
Pre-Award meeting schedule
Initiate Pre-Award Period Weekly Risk Reporting
 Recommended to Hold a weekly phone call
 Review schedule
 Review issues/risks
 This carries forward into the project
 Risk Minimization - Lists of risks/concerns/issues from the client, users, etc.
 Begin Pre-Award and RMP development – will become functional pieces of
contract
WWW.PBSRG.COM
30
Best Value Vendor Characteristics
 Preplans and Minimizes Risk on Each Initiative




Has a plan and knows the risks to the plan
Is transparent
Communicates clearly
Asks good questions, knows what they don’t know
 Measures Performance and drives accountability
 Uses Dominant Information to Differentiate themselves/show value
added
 Educates the Client and helps the client be a better client
 Educates themselves and has a continually enhanced vision
 Holds themselves and the client accountable
 Their plan is aligned so that when they win, the client automatically wins
WWW.PBSRG.COM
31
Best Value Client Characteristics
 Ensures their needs and concerns are known by the vendor
 Ensures the vendor has a plan that addresses each need/concern/risk
 Is a facilitator to the vendors development of the plan(s)
 Enforces the best value structure
 Weekly risk reporting is being done
 Each risk is given a client satisfaction rating
 Measurements by vendor are being done
 Do not be pulled into making decisions you do not need to make
 Educates themselves and the vendor
 Avoids reversion to previous practices
 Transfers risk and control
 Holds the vendor and themselves accountable
 Ensures the plan is aligned so they win and the vendor wins
WWW.PBSRG.COM
32
Comments / Questions
WWW.PBSRG.COM
WWW.PBSRG.COM
33
Uncontrollable Risk 1
 The client has agreed to move storage boxes prior to the NTP. The
boxes are blocking the wall where we will install the new electrical
equipment. If the material is not moved we will not be able to
install the equipment. If material is not moved we will perform the
following:
1. Immediately notify the client and track in our weekly report. We will
mobilize and perform other functions. However, if material is not
moved by 2nd week, this will cause delays.
2. If the client cannot get the material moved, we can move the material
into another room (on the same floor) at no additional cost or time
delay. The client will have to move the material back.
3. Or, we can rent a storage container for the duration of the project and
move the material into storage and back into the room after
completion. This will cost $1,500 and add 1 week to our schedule.
WWW.PBSRG.COM
34
Uncontrollable Risk 2
 One of the biggest risk on this service is falling debris from the roof deck onto
personnel or equipment below the deck. On this service, the personnel and
equipment are protected since there is a dropped ceiling beneath the deck.
The PM (client) has assured us that these tiles have been installed properly
and we have randomly spot checked areas to determine that they will
perform. However, if for some reason the ceiling tile fails, we will perform the
following:
 Immediately stop all work and determine the extent of damage
 Identify if work can proceed as is, or if additional protection is needed
 We can modify our schedule to work off-hours to protect falling
debris from hitting personnel, but this will not protect equipment.
There will be no impact to cost or time if we have to work off-hours.
 We can purchase large tarps (100’x100’) and place them beneath the
ceiling tiles. This will protect both personnel and equipment. These
special tarps will cost an additional $5K and will take an additional 2
weeks to setup and move.
 Identify any actions required from the client
WWW.PBSRG.COM
35