Performance Based Studies Research Group
Pre Award Phase
Best Value System:
PIPS & PIRMS
PHASE 1
Identification
of Potential
Best-Value
PIPS
Performance Information
Procurement System
PHASE 2
PHASE 3
Pre Planning
and
Risk Management
Measurement of
Deviation from the
Expectation
PIRMS
Performance Information
Risk Management System
2
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Best Value Objectives
 Identify and outsource to an Expert who has a plan prior to contract
signing
 Transfer risk
 Transfer control
 Minimize risk of non-performance




Meet expectations
No change orders or schedule delays
High Customer satisfaction / No complaints
No Finger pointing
 Minimize client management, direction, and decision making.
 Have a transparent and measured environment with known accountability
and performance
 In return, the vendors can maximize profit by being more efficient
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Best Value Process
Filter 1
Filter 2
Past
Performance
Information
Proposal &
RAVA Plan
Filter 3
Filter 4
Interview
Prioritization
Key Personnel
(Identify
Best Value)
Filter 5
Filter 6
Pre-Planning
Phase
Weekly
Report &
Post-Rating
Award
Quality of Vendors
High
Low
Time
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Pre Award Period
What is it / Why is it important
 Period of time allotted to potential best value vendor (aka the Expert) to:
 Think about and preplan the project
 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
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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)
 What metrics you will use
 What is the current baseline condition we are comparing against
 Identify what you need from the client and have a plan for getting it
 Have completely aligned expectations between all parties so everyone
knows what is going to transpire and what they are supposed to do
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Pre Award Phase
Components
PA Kickoff
Meeting
PA Period
PA Final
Meeting
PA Document
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Path Forward
 Pre-education for Client and Vendor
 Set pre-award period schedule
 Vendor initiates and maintains Weekly Risk Report
 Vendor prepares Risk Management Plan
 Vendor Presents Project Plan/Risk Management Plan to client
 Vendor identifies scope, financial info, risk, etc. in plan
 Client and vendor work together and finalize plan
 Baseline metrics/condition set (if applicable)
 Hold pre-award summary meeting
 Sign contract
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Filter 1
Past
Performance
Information
Filter 2
Proposal &
RAVA Plan
Filter 3
Interview
Filter 4
Prioritize
(Identify
Best Value)
Filter 5
Pre-Award
Phase
(Pre-Plan)
Non-Detailed
Non-Detailed
Non-Detailed
Non-Detailed
Detailed
Non-Detailed vs. Detailed
Filter 6
Weekly
Report &
Post-Rating
Award
Quality of Vendors
High
Low
Time
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Project Management Model
Initial
conditions
C1
Final
conditions
M3
M2
Laws
Laws
Time
 C1: Client Expectations based decisions and various factors –
may or may not be “realistic”
 M1: Measured vendor plan that more accurately describe the
M1
initial conditions replaces C1 – converts to a predictive
contract
 M2: WRR/RMP measures deviation & performance to plan
 M3: Final performance measurement
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Traditional Risk Model
V
C
B
Buyer Controls Vendor Through Contract
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Best Value Risk Model
V
C
B
Vendor Manages/Minimizes Risk With Contract
- Contract is predictive
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Pre Award Document
(Risk Management Plan)
1. Scope & Project/Effort Plan
 Clear and Detailed Project Scope (what is and what is not
included) – Set Baseline Expectation
2. Cost/Fees agreed to and clarified
3. Schedule (Milestone)
4. Risk Minimization
 Uncontrolled Risks List
 A list of Risks Proposer does not control with plans to
minimize
 Identified Risks List
 A list of all previously identified risks (by other bidders, user,
and client) with plans to minimize
5. Client Action Item List
6. Weekly Risk Report Set Up
7. Performance Metrics
8. Other: Agreed to Value Adding Options, Original RAVA Plan,
Interview Minutes, etc…
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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
 An Outcome of Today’s meeting: PA Period Meeting Schedule
 Complete honesty
 Optimize within client constraints
 Vendor should be the leader/driver
 All critical parties/groups should be coordinated with
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1. 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
 For example, start with “Zero Risk” Scope and work backwards
 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
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2. Cost/Fees
 Details of fees, payments, etc
 Clear and simple movement of money identified
 Cost can be adjusted based upon value adding options
 RAVA Plan
 Additional risk elimination actions
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3. 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)
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4. Uncontrolled Risks List
 List of Risk Vendor does not control
 From RAVA and any place else
 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.”
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4. Identified Risks Lists
 List of Risks that have been previously identified
 All other bidders’ risks
 All client technical concerns, risk, issues, and bugaboos
 All user concerns, risk, issues, etc.
 Same format as for Uncontrolled Risks List




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…
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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.
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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
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5. 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
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6. 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 minutes), unless contractor did not preplan, or
client making decisions
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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
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More on Weekly Risk
Report later
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6. 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 will provide specific detailed education individually with the
vendor
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7. Performance Metrics
(if necessary)
 Performance Metrics



Metrics established
Baseline numbers (starting point) of current performance
Reporting period
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Management by Risk
Minimization
Unforeseen Risks
RISK MANAGEMENT PLAN
• Risk
• Risk Minimization
• Schedule
METRICS
• Time linked
• Financial
• Operational/Client Satisfac.
• Environmental
WEEKLY REPORT
• Risk
• Unforeseen Risks
PERFORMANCE SUMMARY
• Vendor Performance
• Client Performance
• Individual Performance
• Project Performance
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8. Other
 All other items of importance
 Including





Value Adding Options agreed to
Original RAVA Plan
Interview Minutes
Any specifications
Any other pertinent information
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Pre Award Final 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 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 Meeting, the client will make
the award
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PIPS Process
Filter 1
Past
Performance
Information
Filter 2
Proposal &
RAVA Plan
Filter 3
Interview
Filter 4
Prioritize
(Identify
Best Value)
Filter 6
Weekly
Report &
Post-Rating
Filter 5
Pre-Award
Phase
(Pre-Plan)
Award
Quality of Vendors
High
Low
Time
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Final Rating
Filter 1
Filter 2
Past
Performance
Information
Proposal &
RAVA Plan
Filter 3
Filter 4
Interview
Prioritization
Key Personnel
(Identify
Best Value)
Filter 5
Filter 6
Pre-Planning
Phase
Weekly
Report &
Post-Rating
Award
Quality of Vendors
High
Low
Time
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Final Rating
 After the project is complete, the client will evaluate the project.
 The Final Rating will be heavily impacted by:




Performance (change orders, delays, etc)
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.
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50% Modification
NO
1
2
3
4
5
6
7
8
9
10
CRITERIA
Ven 2
Ability to manage the project cost
Ability to maintain project schedule
Quality of workmanship
Professionalism
Close out process
Ability to communicate
Ability to follow the users rules
Overall
customer
satisfaction
NO
CRITERIA
Ven 1
Total number of different jobs
1 Ability to manage the project cost
9.4
Total
number
of
different
customers
2 Ability to maintain project schedule
9.6
3
4
5
6
7
8
9
10
Quality of workmanship
Professionalism
Close out process
Ability to communicate
Ability to follow the users rules
Overall customer satisfaction
Total number of different jobs
Total number of different customers
10.0
9.6
9.3
9.4
9.7
9.9
19
19
9.8
9.8
9.8
9.8
9.7
9.8
9.8
9.8
Ven 2
18
7.4
9.8
179.8
7.4
7.4
9.8
7.4
9.8
7.4
9.7
7.4
9.8
7.4
9.8
7.4
9.8
18
17
Current
Ven 2
Project
5.0
7.4
5.0
7.4
5.0
7.4
5.0
7.4
5.0
7.4
5.0
7.4
5.0
7.4
5.0
7.4
Ven 3 Ven 4
18
9.4
9.5
9.7
9.8 17
9.7
9.7
9.5
9.4
9.4
9.7
18
18
9.9
9.7
9.5
9.5
9.8
9.8
20
17
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Example
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Immediate Action Items
 Pre-Award meeting schedule
 Hold weekly phone calls
 Review schedule
 Review issues/risks
 This carries forward into the project
 Risk Minimization
 Lists of risks/concerns/issues from the client, the other vendors, user,
etc.
 Lists given to vendor
 Initiate Pre-Award Period Weekly Risk Reporting
 Begin Pre-Award and RMP development – will become functional pieces
of contract
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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
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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
 Transfers risk and control
 Holds the vendor and themselves accountable
 Ensures the plan is aligned so they win and the vendor wins
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Comments / Questions
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