Qualifications Based Selection
for Professional Services
Tom Leslie, P.E.
Georgia Engineering Alliance
Georgia City County Managers
Association, Columbus, GA
November 3, 2005
Overview Agenda
 What is Qualifications Based Selection
(QBS)?
 Why use QBS?
 Legislative Basis for QBS
 Steps in QBS
 Resources
What is QBS?
Qualifications Based Selection
is a process for acquisition of
A/E Services that yields the
highest probability of a
successful project.
QBS Steps
 Advertise
 Review Qualifications from
Competing Firms
 Evaluate/Shortlist
 Interview/Rank
 Negotiate with No. 1
Definitions
 Bid – Final Selection is based on cost only
 Purchase of commodities or well defined services
 Request for Qualifications – Final Selection is
based on the perceived ability of the submitting
firms to best achieve the most desired outcome
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Used for selection of professional services, such as
architects, engineers, lawyers, doctors, etc.
Services not well defined and depend on the firm’s
ability to identify and appropriately address the
problem or issue.
 Request for Technical Proposal – This may be
part of a RFQ or it may be a subsequent step. It
is a more detailed discussion of how a particular
project will be executed.
Definitions continued
 “Project” – requires A/E design services
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Examples:
Roads
Water/Sewer
Landfills
Industrial Park
Court House Renovation
Schools
Fire Station
Legislative Basis for QBS
State Agencies (OCGA 50-22)
 Advertise – Georgia Procurement
Registry (may also do so in
newspaper)
 Firms Submit Qualifications
 Evaluate / Shortlist 3-5 / Interview/
Rank / Negotiate with No. 1
 If unsuccessful, terminate
negotiations with No. 1 and go to
No. 2
Legislative Basis for QBS continued
Exceptions
 Project must be > $1 million in
construction cost or > $75,000 in fee
 Emergencies
 Board of Regents
 Reuse of Plans by Same A/E
State Construction Manual
 Stirrings at GSFIC in late 1990s to
create uniform/rational design and
construction process
 Governor’s Commission for a New
Georgia in 2004
 Governor Perdue’s Executive Order
directing GSFIC/BOR complete by
end-2005
 Includes expansive A/E Procurement
Guidelines
Legislative Basis for QBS
Local Governments
 Nothing in State Law
 But, for Transportation:
“A county is prohibited from
negotiating a contract except…
(5) for engineering or other kinds of
professional or specialized services; …”
Check your local CODE!
 Require QBS?
 Allow QBS?
 Date last revised?
Why Qualifications Based Selection?
 You've carefully thought out all the
angles.
 You've done it a thousand times.
 It comes naturally to you.
 You know what you're doing, its what
you've been trained to do your whole life.
 Nothing could possibly go wrong, right ?
Think Again...
Why Qualifications Based Selection?
 Money - Can you afford not to?
 Headaches –
 Change orders
 Claims
 Project from h___
 Aspirin, tylenol, ibuprofen, loss of sleep
Two things to remember about QBS…
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Quality Brings Success
QBS is the First Step to Quality
Projects
Money –
Keep Life Cycle Costs in Mind
DESIGN COSTS - 1.5%
INITIAL CONSTRUCTION &
INDIRECT COSTS - 2.5%
INTEREST COST - 32%
LAND COST - 34%
MAINTENANCE & OPERATIONS - 32%
Analysis of Claims
 Technical
 Error and/or omission of a technical
nature which resulted in a loss
prevention file or claim
 Non-technical (involved in 8 out of 10)
 Breakdown in project or practice
management processes which
contribute to a claim
 Insurance industry analysis of 24,000
closed claims/files over a 13-year
period, worth over $1 billion in claim
payments
Top 4 Non-Technical Contributors
30%
27%
Percentage of Claims Affected
24%
25%
20%
15%
16%
13%
10%
5%
0%
Negotiation / Client Selection Project Team Communication
Contracts
Capabilities
Project Team Issues
Unqualified or
deficient on-site staff
assigned to project
4%
Unqualified or
deficient design
staff assigned to
project
46%
Design firm
inexperieced in
project type
2%
Territory of project
outside of firm's
"normal" territory
4%
Other
6%
Inexperienced or
deficient project
manager
34%
Insufficient number
of staff
4%
Communication Issues
Project issues &
disputes not
handled correctly
8%
Other
4%
Lack of procedures
to identify or
address conflicts,
omissions or errors
64%
Project staff not
aware of their
responsibilities
10%
Scope of services
were not clear
4%
Lack of
documentation of
scope changes
10%
Don’t Believe Me…
 “Hiring a professional service firm is
just like hiring a critical employee”
David Griscom
President APWA Georgia Chapter
Public Works Director, White County
Who Supports QBS?
 “EPD is a strong supporter of the QBS
process to retain the services of a
design professional. This is the
process we use and it works well for
us. We think it will work for other State
agencies and local governments also.”
David Word
Assistant Director
Environmental Protection Division
Who Supports QBS?
 “… the Department strongly endorses
QBS as the preferred method of
selecting qualified, competent, and
experienced professional engineering
firms. We have a long history with
QBS, and we are committed to its
continued use at GDOT.”
Harold E. Linnenkohl
Commissioner
Georgia Department of Transportation
Who Supports QBS?
 “We are fortunate in Georgia to have
progressive state law that supports QBS.
Georgia’s QBS policy provides a structured
tool for state agencies to use to select design
professionals fairly in an open, lawful
process. We fully appreciate that design
services are professional services that
should not be purchased as a commodity
based upon price, but should be selected
based upon provider qualifications.”
Gena L. Abraham
Director and Executive Secretary
Georgia State Financing &
Investment Commission
Who Supports QBS?
 “GDTAE uses QBS on all its facilities
projects. QBS provides the level of
professional expertise required for top level
architectural and engineering services. It
makes sense to base your A/E selection on
qualifications, not low fee.”
Tony Bruehl
Director-Facilities Management
Georgia Department of Technical and
Adult Education
Who Supports QBS?
 “The American Public Works Association
believe that the public interest is best served
when governmental agencies select
architects, engineers, and related
professional technical consultants for
projects and studies through Qualifications
Based Selection procedures. Basing
selection on qualifications and competence
(rather than price) fosters greater creativity
and flexibility, and minimizes the potential for
disputes and litigation. ”
National APWA Policy Statement
Who Supports QBS?
 “QBS is the process of selecting… an architect
(or) engineer… whereby competing firms are
evaluated on the basis of their qualification (and)
ranked in priority order. Contract terms, including
price, are negotiated with the top ranked firm on
the basis of a fully developed scope of work. If a
county… is unable to reach agreement with the
first firm, it terminates negotiations and begins
negotiations with the second ranked firm…
ACCG endorses the use of QBS for procurement
of design professional services as an effective
and efficient alternative to traditional low-bid
procedures.”
Association County Commissioners
of Georgia
2004-05 Platform
Who Supports QBS?
 “Experience has proven that selecting design
professionals on the basis of price alone can
often result in unmet project expectations and
higher overall project costs. QBS, on the other
hand, properly focuses the selection process on
factors most critical to a project’s success:
experience, competence and reliability. As
stewards of public resources, all local officials
should strive to provide the very best value to
their constituents, and that is really what QBS is
all about..”
Jim Higdon
Executive Director
Georgia Municipal Association
Who Supports QBS?
 “Sec. 902. The Congress hereby declares it
to be the policy of the Federal Government
to publicly announce all requirements for
architectural and engineering services on
the basis of demonstrated competence and
qualification for the type of professional
services required and at fair and reasonable
prices.”
Brooks Act (PL 92-582, 1972)
Mandatory QBS for all A/E Procurements
Who Supports QBS?
 41 states mandate QBS for state projects.
 22 states mandate QBS for local government
projects – including MS, TN, NC, SC, and FL.
Steps in QBS
 Information Required Prior to Advertisement
 Advertisement of Project /
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Prequalification Requirements
Request for Qualifications/Technical Proposals
Procurement Committee Appointment
Evaluation of Applying Firms
Development of Shortlist
Notification of Firms on the Shortlist
Oral Presentations
Rank in Priority Order
Negotiate
Information Required Prior to
Advertisement
 Project Description
 Expected Use and Users
 Schedule
 Funding Plan
 Special Performance Requirements
 Project Implementation Plan
Prepare the Project for Public
Advertising
 Project description and location
 Budgeted construction cost (if known)
 Specific disciplines sought – special requirements
 Contact person for technical questions (phone #,
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email, fax, hours)
Statement that QBS will be used
Submission date
Special contract terms
Description of qualification package
Rating criteria – list
Statement of Qualifications
Stipulate expectations, “such as”
 Length – number of pages – total/each section
 Project Descriptions – must be similar/completed
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in last 5 years/located in Georgia (or SE)
Personnel – name project manager/key
specialists and provide resume
No/limited marketing brochures
Expect response to each evaluation criteria
Prescribe outline/organization/table of contents/
other preferences
Evaluation Criteria
From State QBS law – “such as”
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Ability of professional personnel
Past performance
Willingness to meet time requirements
Project location
Office location
Current/Projected workload
Project approach
QC procedures
Involvement by MBE
Procurement Committee Appointment
 Determine committee early.
 Include at least three people.
 Include user agency representatives.
 Early agreement on evaluation criteria.
 Keep records of scoring and notes.
 Notify firms of the short list.
 Deliver recommendations to
Management and/or Board.
Evaluation of Applying Firms
 Each member evaluates all submissions
 Group should meet, compare scoring, and
try to reach consensus on top three to five
firms
 Assign 1 or 2 members to check
references of higher ranked firms
 Members should not discuss outcome with
submitting firms
 Debriefing of firms should be provided by
committee chair
Development of Shortlist
 How many should be included?
 Use standard reference checking form
 Skip interviews?
 Request technical proposals?
Firm Reference Checking
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INTERVIEWER:________________
FIRM:________________________
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Develop 4-6 standard questions to ask each reference.
Personally call and interview assigned references.
DATE:________________________
REFERENCE:__________________
 How would you rate XYZ’s overall performance on your
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project(s)?
Did XYZ in any way negatively impact the project schedule?
Did XYZ in any way negatively impact the project budget?
Was there continuity in XYZ’s team throughout the project?
Would you hire XYZ to do another project for you future?
Did XYZ meet bid package deadlines?
Did XYZ work collaboratively with the contractor on value
analysis?
Notification of Firms on the Shortlist
 Notifying firms – all or just short listed?
 In writing or by email or telephone?
Preparation for Oral Presentations
 Let firms know the arrangements and rules
 Provide agenda to firms
 Questions, content, participants
 Time limits and transitions
 Room set up
 Allow time for scoring and discussions
between and/or after interviews
 Allow time for breaks
Interview Format Recommendations
 Time - an hour is usually sufficient (…all you can take…)
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5 setup
30 presentation
15 questions and answers
5 knockdown.
Conduct all interviews the same day
Have same evaluation team at all interviews!
Complete evaluation before adjournment.
Media – provide guidelines on what you will allow
 Boards and/or computer/projector are commonly used
 Handouts – slides, food?
Presenters - Three to five usually sufficient (Principal,
Project Manager, key Project team members).
The Interview
 A/E presents “benefits” to the Owner versus
“features” in the Qualifications Package.
 A/E answers the question, “How can my
experience and approach benefit the Owner?”
 Owner answers the question, “Which firm is
the best fit for my project?”
 Subjective process but necessary to create a
ranking.
Interview Scoring
 Score sheets for each panel member
and one for the full panel as a group.
 Keep records
 Agree on weighting before interviews
 Discuss scoring between interviews
 Try for a consensus on a group score
sheet
 Consolidate notes for later debriefings
 “We the jury…”
Scope and Contract Negotiations with the
Recommended Firm
 May ask for scope tasks first
 Meet (communicate) so that there is a meeting
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of the minds.
Take notes
Discuss “ball park” costs and budgets
Discuss schedules and submittals
Discuss check lists, standards, reviews,
permits, etc.
Discuss contingencies and contract details
Discuss anything else that may affect price
The Price Proposal
 Sufficient detail to show level of effort
 Consider value pricing to share risks
and rewards
 Consider incentives for schedule
improvements and savings
 List possible costs of contingent
services
 How is risk allocated between Owner
and A/E
 Price depends on risk allocation
Negotiations
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Set schedule for negotiations
Involve the decision makers
Focus on scope, risks, and contingencies
Don’t forget contract terms
Allow for QA/QC and response to “Questions”
Identify third party players (contingencies)
Agree in pieces. Whole will follow.
Is the construction budget realistic?
Remember: schedule-price-quality…pick two.
Don’t negotiate by ultimatum and remember the
relativity of design cost to life cycle costs.
What If We Can’t Agree?
 Termination of
negotiations is formal.
 You can’t go back.
 The price from the 2nd
ranked firm may be
more.
 Notify and debrief
unsuccessful firms
Resources
 Requests for Qualifications from real owners
that use QBS
 Simple checklist and reference table
 Generic advertisement (use w/detailed RFQ)
 Ad with project specific requirements
 Project specific Request For Qualifications
All documents available in Word or PDF
format from www.QBSGeorgia.org
Resources
 www.QBSGeorgia.org
Facilitator Program
 APWA Redbook – “Selection and Use
of Engineers, Architects and
Professional Consultants,
Guidelines for Public Agencies”
 GSFIC A/E Procurement Guidelines
Qualifications Based Selection
for Professional Services
Tom Leslie, P.E.
Georgia Engineering Alliance
Georgia City County Managers
Association, Columbus, GA
November 3, 2005