November 6, 2018 Project Manager Workshop€¦ · Hold scoping meeting with all involved NCDOT staff, the firm and their sub-consultants. Day 6 Firm submits scoping meeting minutes

Scoping, Estimating and Negotiations

Laura Sutton, PE, CPM

November 6, 2018 Project Manager Workshop

Notice to Proceed in 30-Days


Identify Project Needs

Develop Project Fact

Sheet

Select Firm from LSC

DOH / Unit Approves Firm

Notify Firm & Provide Fact

Sheet

NCDOTPre-Scopes

Tasks

FirmPre-Scopes

Tasks

Scope Tasks with Firm(May involve meeting / teleconference /

email exchange / questions / minutes)

NCDOT completes independentManday Cost Estimate

Firm completes independentManday Cost Estimate

Complete Cost Comparison

Verify rates

Check Sub-consultants

DAY –XNotify Firm and

Supporting Units

DAY 0Scope Contact

DAY 6Scope Response from Firm, Subs and Supporting Units

DAY 10Scope

Concurrence

DAY 17Unit Estimates

Due to PMSub Estimates Due to Prime

DAY 20Initial Estimate

Submitted

DAY 21 DAY 24Negotiations

Complete

Negotiate Mandays and Classifications

Submit Final NCDOT and PEF Manday

Cost Estimates

Complete AIR Form

Complete and Sign

Cost Comparison

Sheet

Firm begins Work

Gather Executed NTP Letter and

Signed RS-2 Forms

DAY 30Process

Complete

Attach forms to PO in SAP and email PSMU

DAY 28Forms

Returned

PO Approval in SAP Workflow

(PSMU, OIG, Fiscal)

Create PO in SAP

under LSC

DAY 25Notice to Proceed

Issue NTP Letter

• What information is available?

– STIP Description

– Feasibility Study or Project Scoping

Reports

– SPOT safety project

• Major Milestone Schedule

– Environmental Document

– Right-of-Way Plans

– Let Date

• What should be scoped?

– Scope to entire project or limit task

order to a specific phase

– Cost plus or lump sum

Identify Project Needs:


• Is specialized expertise needed?

– Innovative interchange or intersection

design

– Significant hydraulic or structure

design

– Railroad track design or detour

alignment

• Are there special considerations?

– Rail involvement

– Land management agency

involvement

– FERC conveyance or application

– Local municipality requests

– Maintenance of traffic concerns

Develop Project Fact Sheet:

• Include basic project

information such as

programmed R/W and

Let dates, funding

source and contract

type

• Identify services /

disciplines to be

included in contract

• List important

milestonesReference:

https://connect.ncdot.gov/business/cons

ultants/Pages/Guidelines-Forms.aspx


https://connect.ncdot.gov/business/consultants/Pages/Guidelines-Forms.aspx

Select Firm:

• Use available on-call

contracts or project

specific advertisements

• On-call (LSC and GESC)

contracts typically allow

for quicker on-boarding

• Utilization reports are

updated monthly and

show details such as

remaining contract

authorityReference:

https://connect.ncdot.gov/business/consult

ants/Pages/Guidelines-Forms.aspx

Contract Expiration

Date

Extension Option

Revised Expiration

Date

Estimated Advertisement

ScheduleNew Contract

2015 Eastern Divisions’ LSCs (1-4 & 6)

February 2019

ExtendAugust 2019

February 2019Will cover Divisions 1-7 and overlap current Central Divisions’ LSCs.

2016 Central Divisions’ LSCs (5 & 7-9)

October 2018

ExtendOctober

2019NO

READVERTISEMENT

Merged into Westernand Eastern Divisions’ LSCs

2016 Statewide Planning & Design LSCs

February 2020

ExtendAugust 2020

February 2020Centrally managed Planning & Design contracts

2017 On-call GESC for Division Managed Projects LSCs

March2019

ExtendMarch2020

NO READVERTISEMENT

Merged into Westernand Eastern Divisions’ LSCs

2018 Western Divisions’ Planning &Design and GESC LSCs

August 2020

Covers Divisions 8-14 and overlaps current Central Divisions’ LSCs.



NCDOT Pre-Scope Tasks:

• Check WBS funding (SAP transaction ZPSR01).

• If needed, request additional PE funds (EBS Portal – TIP Funding Request

tile).

• Develop preliminary scope of work including preliminary task list using the

NCDOT SCOPE AND MANDAY ESTIMATE FORM spreadsheet.

In an effort to minimize back and forth that often occurs, everyone should

come prepared to discuss their tasks with the goal of clarifying and/or

modifying tasks based during the scoping

meeting discussions.

• Establish NTP timetable, including initial

scope contact date (Day 0), and update

the project fact sheet.



Firm Pre-Scope Tasks:

• Based on data provided to

date, the firm pre-scopes

tasks and develops a

“blank” scope and manday

estimate form with

anticipated tasks for each

discipline.

• For costs to be calculated,

the consultant employees,

classifications, and rates

should be entered on the

PEF Classification Tab.


Firm Pre-Scope Tasks:

• If the firm would like NCDOT to

consider increasing the standard 9%

fee (profit margin) for a specific

project/task order based on schedule,

size/value, duration or complexity, the

firm is required to justify the higher fee

and submit the Fee Negotiation Form

for approval by PSMU, the Division

Engineer or the business unit head

prior to submitting their initial

estimate.

Reference:

January 24, 2018 Technical Services Memo


https://inside.ncdot.gov/TransportationServices/professional-services-management/Documents/180124 TS Neg and Fee Memo.pdf

Scope Tasks with Firm:

Day 0 Scope Contact

Hold scoping meeting with all involved

NCDOT staff, the firm and their

sub-consultants.

Day 6

Firm submits scoping meeting minutes for review and acceptance to the

project manager, project team and meeting invitees.

Firm submits proposed schedule in Microsoft Project Gantt Chart format.

Day 10 Scope Concurrence

Scopes and schedules are agreed upon. Project manager submits a

“blank” spreadsheet to team members in each discipline and requests

an initial manday cost estimate with a 1 week deadline.

Scope Tasks with Firm(May involve meeting / teleconference / email

exchange / questions / minutes)

DAY 0Scope Contact

DAY 6Scope Response from Firm, Subs

and Supporting Units

DAY 10Scope

Concurrence


Initial Estimate Review:

Day 21

Complete cost comparison spreadsheet, verify rates (salary,

classifications, overhead, fee, and cost of capital) on the

PEF Classification Sheet tab. In addition, check for appropriate

usage of sub-consultants for consistency with the original LSC outline

agreement documentation. Responsibility for this task generally falls to a

PSMU liaison but may vary across your division or business unit.

When the cost comparison indicates that the initial manday

cost estimates differ by more than 5% by discipline, then

negotiations are required. The project manager will submit

both the cost comparison and the firm’s initial estimate to

the required team member(s) to negotiate with the firm.


Verify rates


DAY 21


Negotiations:

Day 24

Negotiations for each discipline should be completed within

three days and the final estimate for each discipline returned to

the project manager.

Since NCDOT now uses the firm’s salary rates (with a few exceptions),

it is important to negotiate not only the mandays but also the

classifications and direct costs, if necessary.

Project Manager compiles/merges the final (i.e., negotiated) in-house

manday cost estimate for all disciplines.

Firm compiles/merges the estimates for each sub-consultant and

submits their final negotiated PEF manday cost estimate.

DAY 24Negotiations

Complete


Submit Final NCDOT and PEF

Manday Cost Estimates


Final Estimate/AIR Form:

Day 25

Project manager completes the Account Initiation Request

(AIR) form. This includes populating all selected disciplines

and assigning the WBS, Cost Centers and Function Codes.

Please note that some disciplines (i.e., Roadway and Hydraulics) may

have more than one line item due to multiple function codes (3PEF or

4PEF).

Project manager submits the final in-house manday cost estimate.

Re-negotiations will be required if mandays differ by more than 5% after

the final cost comparison is completed.

Complete AIR Form

Complete and Sign Cost

Comparison Sheet


https://inside.ncdot.gov/TransportationServices/professional-services-management/Documents/Forms/AllItems.aspx

Notice to Proceed in 30-Days


Identify Project Needs

Develop Project Fact

Sheet

Select Firm from LSC

DOH / Unit Approves Firm

Notify Firm & Provide Fact

Sheet

NCDOTPre-Scopes

Tasks

FirmPre-Scopes

Tasks

Scope Tasks with Firm(May involve meeting / teleconference /

email exchange / questions / minutes)

NCDOT completes independentManday Cost Estimate

Firm completes independentManday Cost Estimate


Verify rates


DAY –XNotify Firm and

Supporting Units

DAY 0Scope Contact

DAY 6Scope Response from Firm, Subs and Supporting Units

DAY 10Scope

Concurrence

DAY 17Unit Estimates

Due to PMSub Estimates Due to Prime

DAY 20Initial Estimate

Submitted

DAY 21 DAY 24Negotiations

Complete


Submit Final NCDOT and PEF Manday

Cost Estimates

Complete AIR Form

Complete and Sign

Cost Comparison

Sheet

Firm begins Work

Gather Executed NTP Letter and

Signed RS-2 Forms

DAY 30Process

Complete

Attach forms to PO in SAP and email PSMU

DAY 28Forms

Returned

PO Approval in SAP Workflow

(PSMU, OIG, Fiscal)

Create PO in SAP

under LSC

DAY 25Notice to Proceed

Issue NTP Letter