ODOT’STwo Step – Least CostDESIGN BUILD PROCESS

HAM-71-3.81 (PID 77628)

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What is Design-Build?

Design-Build is a project delivery process in which the design and construction phases of a project are combined in a single contract.

The consultant designer and construction contractor function as a Design-Build Team, working concurrently on the design and construction phases of a project. 2

How does Design-Build differ from Design-Bid-Build?

In the Design-Bid-Build (DBB) process, a designer, hired by ODOT or ODOT, prepares project plans. ODOT then uses these plans to solicit bids for a separate construction contract.

In the Design-Build (DB) process, ODOT hires a Design-Build Team (DBT) to complete both the design and construction elements of a project as part of a single contract.

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Why Design-Build?

Perceived Downfalls Checks and Balances on design Owner losses ultimate design control▪ Scope Compliance▪ Stated Minimums are the standard

Why Design-Build?

Benefits of Design-Bid-Build Unit Cost: 6% Cheaper*

Construction Speed: 12% Faster*

Project Delivery Speed: 33% Faster*

Cost Growth: 5.2% Less*

Schedule Growth: 11.4% Less*

One point of responsibility Design Risk Transfer

*Source: Konchar and Savindo (1999)

Legislative Authority5517.011 Combining design and construction elements of highway or bridge project into single contract.“…the director of transportation may establish a program to expedite the sale and construction of special projects by combining the design and construction elements of a highway or bridge project into a single contract. The director shall prepare and distribute a scope of work document upon which the bidders shall base their bids. “

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Design Build

ODOT has the authority to do $1 Billion per fiscal year.

Have constructed +200projects to date – total $1.5 Billion: Ave project size = $5.7million

Majority of DB projects in Ohio (+200) using Low Bid DB

Average: 1.9% by # of projects Averaging 11.3% by $

Legislative Authority (Continued) An amendment to the ORC 5517.011 (6/29/2011)

…” Notwithstanding any provision of Chapter 5525. of the Revised Code, the director may use a value-based selection process, combining technical qualifications and competitive bidding elements, including consideration for minority or disadvantaged businesses that may include joint ventures, when letting special projects that contain both design and construction elements of a transportation project into a single contract.

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Quality Based Design Build

ODOT allowed to combine technical qualifications and competitive bidding elements

“Value-Based” DB CUY-90: Cleveland Innerbelt Bridge –

CCG1 Fra-71/670: Columbus Crossroads –

Project 1

Full VB DB Previous Value-Based Design-Build

CUY-90: Cleveland Innerbelt Bridge – CCG1 ($360 mill)

Fra-71/670: Columbus Crossroads – Project 1 ($240 mill)

Technical Proposal▪ Defines the amount of Details requested on actual design▪ Defines the requested detail on proposed solutions

Further definition of proposed team▪ Large SOQ (+50 pages) and Proposal required (+200

pages 11x17)

What is the difference between ODOT’s traditional DB process and the Two-Step Least-Cost?

Low DB process: Contract is awarded to the lowest bidder. The prequalified bidder must fulfill all conditions of DB scope.

Two-Step Least-Cost DB process: Only the most qualified Bidders allowed to bid. Contract awarded based cost from most qualified bidders. Price evaluated for responsiveness.

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Scope Development Scope of Services development

Project requirements must be established Risk items to be determined Contractual items need defined (removal of

preferences without damaging innovation and flexibility) ▪ Level of Innovation dependent upon the amount of

allowed flexibility Defined outcomes from the DBT must be

clearly stated Not Confidential

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Short Listing of Contractors Request for Qualifications

Defines what and how the proposers are to give ODOT to be shortlisted

Typically request Team, demonstrated Capability, and Project approach

Requested information dependent upon how much information available at RFQ

Only opportunity to define what the important team selection items are to be.

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Short Listing Selection Process

1. ODOT publishes a Request for Qualifications (RFQ)

RFQ includes DRAFT Project Scope and Appendices.

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Short Listing Selection Process (Continued)2. Unlimited number of potential

bidders submit a CONFIDENTIAL Statement of Qualifications (SOQ) outlining their project understanding, qualifications and experience.All DBTs must be prequalified.

SOQ is evaluated by two groups: Technical-Level SOQ group.Executive-Level SOQ group.

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Short Listing Selection Process (Continued)3. ODOT short-lists Design Build Teams (DBTs)

based on their respective Statements of Qualifications. Typically, three DBTs are short-listed.

Request for Proposals (RFP) is released. RFP includes “final” Project Scope and Appendices.(FHWA must approval final RFP)

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Short Listing Selection Process (Continued)

4. Short-listed Bidders submit Price Proposals to ODOT.

5. Price verified for Responsiveness.

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SOQ Evaluation Criteria

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Topic Evaluation Criteria Maximum Points

Project Understanding and Approach

How well does the DBT demonstrate a preliminary understanding of the design and construction requirements of the project?

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Design Build Project Team How well do the DBT’s qualifications, experience and time availability relate to the requirements of the project?

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DBT Capabilities How well does the DBT’s SOQ communicate and domonstrate their design, construction and project management experience for this project?

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Total 100

SOQ Evaluator Guidelines

Evaluators selected on the basis of professional expertise and knowledge of the project.

Must agree to sign Confidentiality Agreement

Use expertise to independently assess how each submittal has demonstrated the involved DBT’s ability to achieve project objectives as outlined in the bid documents. 19

Evaluator Guidelines (Continued) Evaluators must review all pertinent

bid documents (e.g., RFQ, draft Project Scope, Appendices, Addenda, etc.). Ensure that current documents are used.

Evaluation group should attempt to reach consensus. If consensus cannot be reached, a vote may be taken.

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Evaluator Guidelines (Continued) Designated review areas will be

established. Documents and notes must be

strictly controlled. A numbered copy of the involved

document will be assigned. Discussions concerning confidential

items only with those agree to confidentiality

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Evaluation Process

Individual Review

Reference Verifications

Scoring and Documentation

Evaluation Process

Teams Evaluated Against each other Highest evaluated team receives

maximum points for evaluation criteria Lesser teams receive scores in relation

to the highest ranked team Consensus Scoring preferredLimited Number of pages: 8 ½”X11”Approximately 9 week process – RFQ to Announcement (6week prep / 3week evaluation)

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Alternative Technical Concepts Change which provides a solution

that is equal to or better than what is required by the scope as determined by the Department.

Shortlisted potential DBTs only. Allows for innovation, increased

flexibility, time reductions and cost savings to ultimately obtain the best value for the public.

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ATCs Continued

Not intended to replace prebid questions

No new Design Exceptions No additional R/W acquisition No modifications to the IMS No NEPA Impacts

Pre-ATC meetings If held, non-binding and for information

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ATCs Continued

Core group of ATC evaluators assisted by any number of technical specialists.

Responses: Approve Approve with conditions Reject Reject, may resubmit Not an ATC (should be a prebid)

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ATCs Continued

If, during evaluation of an ATC proposal, the Department becomes aware of a deficiency in the Project Scope that would have an impact on the ability of the DBTs to make a best offer, the Department may, at its discretion, issue an addenda to correct this deficiency. For example - conflicts between sections

in the scope. 27

ATCs Continued

Ultimate Result: Contractor Specific final Scope of Services Inclusion within the Price

Potential for winning bidder to incorporate via change order

Approximately 10weeks from Shortlist to Final ATC response. Price approx 5weeks later.

15Weeks from Shortlist to Sale

Post Award

After award, all information (with the exception of true trade secrets) will be made public.

This includes: SOQs ATCs Scoring and Evaluation Information,

include evaluators comments

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Stipend

Payment for Preparation of Responsive Preliminary Design Concept

Controlling Board Approval Allows ODOT to use DBTs ideas DBT does not have to accept

Size of Stipend should equal the amount of effort requested (Policy: 1/4% - 1% of estimate) 30

Questions

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