The Importance of the
Qualifications Based Selection (QBS)
Process
Kodi Jean Church, P.E., Esq., F.NSPE
Vice President
National Society of Professional Engineers
What is Qualification-Based
Selection (QBS)?
• Process by which engineering and architectural firms
are selected based on their qualifications, rather than
price
• The procuring agency reviews the qualifications
submitted by interested individuals and firms, ranks
respondents, and then negotiates with the most
qualified firm for a mutually agreeable contract
• First established on a national level by 1972 Brooks
Act, which requires federal agencies to use a QBS
process when procuring design services
QBS Process
• Selection of most qualified firm
• Defined scope of services
• Fee and contract negotiations
How do you determine who is
most qualified?
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•
•
•
•
Training
Expertise
References
Experience
Availability
Why Use QBS
• If you needed an
organ transplant,
would you choose
the cheapest
doctor???
Why use QBS ?(cont.)
• QBS ensures that projects are designed in
a manner that is safe, innovative,
environmentally sound, and cost-effective
to construct and maintain over the life
cycle of the facility
Why use QBS? (cont.)
• QBS allows for life-cycle costs, such as
construction, operations, and maintenance
to be factored into project design
Why use QBS? (cont.)
• QBS projects are designed by the most
qualified firm versus the low bidder
• QBS interviews allow agencies meaningful
interaction with the design team
• QBS negotiations provide for mutual scope
definition
Why use QBS? (cont.)
• QBS allows for the quality the owner wants
at the price he is willing to pay
• QBS creates mutual understanding of the
services needed
Why use QBS? (cont.)
• QBS promotes communication and technical
innovation, as owners have the opportunity to
fully define the project during the selection and
negotiation process
• QBS process results in a project that is fully
thought-through, and fosters innovative, creative,
cost-saving and timesaving approaches
Why use QBS? (cont.)
• QBS increases the likelihood that the
procuring agency will select the most
qualified firm because respondents are
required to submit information on their
qualifications for the proposed project
Tangible Advantages for QBS
• American Council of Engineering Companies study
(see January 18, 2010 Engineering News Record):
– University conducted study of 41 projects
– Owner rated project success rates “high” or “very high”
in 93% of cases using QBS
– QBS projects lowered project change order rates from
10% to 3%
– QBS projects lowered schedule growth from 8.7% to
3%
QBS Beneficial in NM?
• You Bet!
• Applicable Law - Procurement for professional services
in New Mexico is guided by New Mexico Procurement
Code (Section 13-1-120). The Procurement Code
authorizes agencies to conduct multiple step
procurement for Request for Proposals (RFP)-based
procurements. This means that the agency can review
the proposals submitted and select finalist(s) based on
qualifications.
What is the law in NM?
•
In addition, pursuant to Chapter 81,
Laws of 2006, any prospective
contractor (engineer or architect)
seeking to enter into a contract with
any state agency or local public body
must file a Campaign Contribution
Disclosure Form with that state agency
or local public body. This form must be
filed by the prospective contractor with
their response to the request for
proposals. The prospective contractor
must disclose whether they, a family
member, or a representative of the
prospective contractor has made a
campaign contribution to an applicable
public official of the state or a local
public body during the two years prior
to the date on which the contractor
submits a proposal.
What is the law in NM? (cont.)
• The QBS Process
By utilizing QBS, professional service firms are weighed
first on competence, creativity, and performance and
second on negotiation of a fair and reasonable fee. The
process begins with the owner establishing evaluation
criteria and soliciting statements of qualifications from
professional service firms. The owner reviews these
statements on the basis of qualifications, experience,
reputation, current workload, and any other project
specific factors.
What is the law in NM? (cont.)
• The QBS Process
The owner then selects the three to five most qualified
firms to make brief presentations explaining their unique
approach to the project. On the basis of these
presentations, the owner ranks the most qualified firms
numerically in order of preference. The owner and the
top-ranked firm then negotiate a scope of services, which
specifies the full range of services the firm will provide,
the personnel it will commit to the project, and the
schedule describing when the work is to be completed.
What is the law in NM? (cont.)
• The QBS Process
When an agreement is reached on the scope of work, the
owner and professional proceed to negotiate a fee that is
fair and reasonable to both parties. If an agreement on
compensation is reached, a contract is consummated. If
an agreement cannot be reached, negotiations with the
top ranked firm are terminated, and the owner attempts to
negotiate a contract with the second ranked firm. The
process can be repeated as necessary until the contract
is negotiated.
What is the law in NM? (cont.)
Additional Benefits of Using QBS
• Saves the owner time and money through an organized approach that gets
the engineer on board early enough to improve project planning. By using
their expertise and professional knowledge, the engineer is better able serve
the owner to achieve project goals and to maximize budget dollars.
• Helps engineering firms respond better to the owner’s needs because they
know how to better prepare and plan for interviews based on a uniform set of
criteria and information shared with all firms.
• Encourages the development of a productive partnership and team effort
between the public owner and the selected engineer, thus fostering improved
communication.
• Promotes improved project quality by ensuring that both the client and
engineer clearly understand the scope of work required.
How do you determine who is
most qualified?
•
•
•
•
•
Training
Expertise
References
Experience
Availability
QBS is Used
• At the federal level
• By 47 states
Position of NSPE
• The National Society of Professional
Engineers (NSPE) Supports QBS Process
Position of NSPE (cont.)
• “NSPE believes qualified engineers, on the basis of
design ability, experience, and integrity should perform all
engineering services. NSPE supports the procurement
of design professional services on the basis of
qualifications and strongly supports Public Law 92-582
(the Brooks A/E Act of 1972) which requires federal
agencies to use qualifications based selection
procedures when obtaining design professional services.
Position of NSPE (cont.)
• NSPE also supports the adoption of “miniBrooks” laws at the state and local level.
NSPE coordinates its activities in support
of qualifications based selection with the
Council of Federal Procurement and
Architectural and Engineering Services, a
coalition of five professional organizations.”
Who Endorses QBS?
• The American Public Works Association
• The American Bar Association in their Model Procurement
Code
• The American Institute of Architects
• The National Society of Professional Engineers
• The American Council of Engineering Companies (ACEC)
• Numerous Engineering Technical Societies such as the
American Society of Civil Engineers
Typical QBS Process
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Short-list
Interview
Scope of Services
Contract negotiation
Questions?