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Vendor Centric Approach:
The BVA MechanismDelbert Feenstra, LEED AP, Senior Estimator / Procurement ManagerBVA Expert
KNUTSON CONSTRUCTIONABOUT US▪ In continuous operation since 1911
▪ Family owned – 3rd Generation
▪ 6 office locations
▪ 450 current employees
▪ Annual volume - $500 million
▪ Experience in 18 states + Canada
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Procurement PerformanceDescription Metrics
# of Project Proposals 44
Proposals Total Cost ($M) $484
# of wins 29
Cost of Projects won ($M) $370
Win % 66%
Next closest 13%
Loses are attributed to:
-Cost Reasonableness
-Misalignment
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BVA Project PerformanceOverall performance Overview
# of Projects 29
Original Project Cost ($M) $370
Customer Satisfaction 95%
Total % Over Budget 3%
% due to owner 2%
% due to Designer 2%
% due to contractor -1.5%
% due to unforeseen 0.5%
• Start measuring yourself and your team if you aren’t already.
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First Encounters with Best Value
• 2009-2010
– Knutson submitted proposals on five projects and failed.
Upper Management met with Dr Dean.
• Focused on changing people
• Requires lots of resources
• Relationship / bias driven
• Management didn’t understand the individuals
Control and Influence
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First Encounters with Best Value
• 2011 Experts identified and sent to AZ training.
• Focus is on changing system
• Leader is the constraint
• Requires fewer resources
• Information driven
• Requires the leader to understand and identify individuals Alignment
• Lesson learned: not everyone is an expert.
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Case Study: City Of RochesterMayo Civic Center
March 2015
March 2015
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Background
• Budget: $67M | 188,000 SF
• Two-story convention facility addition – 40,000 SF Ballroom– Meeting rooms – Hold two 1,000 person conventions - simultaneously – Why? In 2008, Rochester lost out on over 70 conventions ($74M
revenue)
• Schedule– RFP Released on 11/21/2014– 61 calendar days to submit proposals– 12 calendar days to evaluate– 29 calendar days for clarification and award
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Prioritization Comparison (Top 2 Ranking Vendors)
NO CRITERIA WEIGHTS FIRM A FIRM D FIRM A FIRM D
1 Cost 250 65,605,923$ 60,394,872$ 230 250
2 Risk Assessment 225 7.9 8.4 212 215
3 Value Assessment 175 8.8 8.6 172 164
4 Interviews 350 8.2 7.6 350 324
1,000
Price Points (250): 23% 25%
Performance Points (750): 73% 70%
TOTAL POINTS (1,000): 96% 95%
RAW DATACRITERIA & WEIGHTS PRIORITIZED DATA
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Project Results
• Project finished on time
• Cost Deviations
– Owner Change orders: 3%
– Contractor Changes: -2%
• Realized during Clarification process so owner could add scope.
– Client gets best value for a lower cost, on time with satisfaction.
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The Knutson Experience
• Company culture of BV on all projects
– Alignment of experts every time
– Open and transparent with all stake holders
– WIN-WIN
• Hard Bid / Non-BVA Client
– We still use all the tools from BVA
• It’s an expectation!
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What Next?
• 2015-2020 - 21 BVA proposals - 15 wins 6 loses.
• Only 2 Contractors submitting proposals.
– Both high performing with experts pre-planning
the work.
– Resulted in projects being awarded based on cost.
The future:
We anticipate Owners (public and private) wanting to
move to hiring BVA experts as consultants during
pre-construction.
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Our Plan
• Become a BVA Licensed Partner in Minnesota.
– (Achieved Spring 2020. First in the Nation.)
• Have A+ Certified Expert in house. (Achieved 2020)
• Expand BVA to other regional public sector owners.
• Expand BVA to the private sector which has traditionally
been relationship based with negotiated projects.
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Delivering BVA as a Licensed Partner.
Selection Execution
1 project - $30M
❖ 2-story 100,000 sf
elementary school
2 projects – $100M
❖ 3-story; 180,000sf
Middle School
❖ 2-story; 100,000sf
Elementary School
Preparation
4 projects - $165M
❖ Street & Utility Project
❖ 7- story medical
research building
❖ 2-story, 100,000sf
elementary school
❖ High school pool
addition.
Use BVA approach to select
1) Schedule critical path scopes of work
2) Building envelope trades.
Clarification
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BVA is the way.
• Benefits to Vendor using BVA:
– Good Margins
– Satisfied Customers
WHY?
– Identify risk , Provide solutions , Execute plan
– BVA allows forward-thinking.