A/E Selection Process A/E Selection Process from the Corps - - PowerPoint PPT Presentation

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A/E Selection Process A/E Selection Process from the Corps - - PowerPoint PPT Presentation

A/E Selection Process A/E Selection Process from the Corps perspective from the Corps perspective Marilyn W. Lewis, P.E. Asst Chief, Engineering Division Louisville District US Army Corps of Engineers Louisville District US Army Corps of


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US Army Corps of Engineers Louisville District US Army Corps of Engineers Louisville District

A/E Selection Process A/E Selection Process from the Corps perspective from the Corps perspective

Marilyn W. Lewis, P.E. Asst Chief, Engineering Division Louisville District

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Agenda Agenda

Acquisition planning Selection Board procedures Variables in the selection process Common mistakes in SF330 submittals Estimating & negotiating techniques Tips for success

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Overall Acquisition Planning Overall Acquisition Planning

Determine type & value of contracts Analyze workload versus contract capacity District/regional/national assets Formal acquisition plans take time Constantly moving picture

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Project Acquisition Planning Project Acquisition Planning

Formal Acquisition Strategy Meeting (ASM) District in-house forces get 1st choice Preference given to LRL IDIQ contracts Other contract sources may be consulted Small business goals are considered

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Small Business Program Small Business Program (FY 2007) (FY 2007)

CATEGORY PROJECT $ ACTUAL % FLOOR %

Small Business

340.8M 26.8 44.8

SDB

123.4M 9.7 19.9

Women-Owned

29.9M 2.4 5.4

HUBZone

133.7M 10.5 9.2

Svs Dsbl Vet

5.6M 0.5 1.5

8(a) Support

41.4M 3.3

  • TOTAL DISTRICT BUSINESS - $1.27B

POC: Linda Hunt-Smith 3 Oct 07

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Why not sole source? Why not sole source?

Sole source allowed in certain SB categories

(i.e. 8a)

Not fair to those who competed & won Circumvents the selection process Bypasses annual acquisition planning process Contrary to Brooks Act

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Contract vs In Contract vs In-

  • House Percentage

House Percentage

Program A/E I-H MILCON ~ 75% ~ 25% Environmental ~ 90% ~ 10% Civil Works ~ 35% ~ 65%

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

How does the A/E selection process How does the A/E selection process work? work?

Follow the Brooks Act Prepare, review & approve scope of work Advertise in the FedBizOps Require SF 330 Collect all submittals received by closing date

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

From Where We Sit From Where We Sit

Average number of A/E Selections per year in

the Louisville District = 10

Average number of submittals received per

solicitation = 10 to 25

Number of qualified individuals who sit on

Preselection/Selection Boards = 70/30

Average number of hours devoted to selection

procedure per solicitation = 96 to 270

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

A A-

  • E Evaluation Boards

E Evaluation Boards – – Preselection and Selection Preselection and Selection

Engineering Division oversees the A-E selection

process and chairs all boards

Boards are composed of registered professional

personnel with experience in engineering, architecture, construction and acquisition

Using agency invited, but must be qualified Compare firms' qualifications using criteria in the

synopsis

Must be rational, consistent and fair

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

What is important? What is important?

Qualified and capable firm Address all criteria Fully articulate your approach Relevant experience is key Fully address any weaknesses Past performance will be important

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Variables in the Selection Process Variables in the Selection Process

Excellent team member qualifications

– Education – Professional registration – Years and relevance of experience

Strong company/team experience

– How recent – Tie to proposed team members

Past Performance

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

ACASS Evaluations ACASS Evaluations (USACE Only) (USACE Only)

Overall Rating Percent

Excellent/Exceptional 23.6% Above Average/Very Good 34.2% Average/Satisfactory 41.8% Below Average/Marginal 0.3% Poor/Unsatisfactory 0.1%

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

General Selection Criteria General Selection Criteria

FAR 36.602-1 / DFARS 236.602-1

Professional Qualifications Specialized Experience & Technical Competence Capacity Past Performance Knowledge of Locality Location of Firm* Volume of Recent DOD Work* Participation of Small Business & Small

Disadvantaged Business*

* Secondary factors per DFARS

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

What A What A-

  • E Evaluation Boards

E Evaluation Boards Primarily Look For Primarily Look For

All requirements listed in the synopsis are addressed Adequate depth in all disciplines cited in synopsis

– Generally, same person cannot have multiple roles – Should have at least 2 individuals in all key disciplines

Key personnel have:

– Degree and registration – Pertinent experience – Worked on example relevant projects

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

What A What A-

  • E Evaluation Boards

E Evaluation Boards Primarily Look For Primarily Look For

Prime and subs have:

– Relevant recent experience in the required type of work – Worked together recently on similar projects – Clear roles established

Well defined Design Management Plan Established quality management program

– Present convincing evidence firm has a QC program and

uses it

Unsatisfactory or excellent past performance

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Common mistakes Common mistakes

Don’t second guess what we ask for EIT/FE does not equal PE Missing resumes Not enough depth in key disciplines Failure to address all items

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Common mistakes Common mistakes

Difficult to read submittals Dual assignments Providing more than we ask for Assigned roles confusing Firm taking credit for individuals past

experience

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Estimating and Negotiating Estimating and Negotiating

Requirements for a govt estimate Preparation of govt estimate – Detailed Analysis Method – Profit – 6% Statutory Limitation Approval of govt estimate Revision of govt estimate

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Independent Government Estimates (IGE) Independent Government Estimates (IGE) for A for A-

  • E Services

E Services

Required for contract actions, including task

  • rders, over $100,000 (FAR 36.605(a))

Not required for basic Indefinite Delivery

Contracts - instead do an independent cost analysis of rates

Based on detailed analysis of work required Must show compliance with 6% statutory limit

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Preparation of IGE Preparation of IGE

Intent is to determine a price that is fair and reasonable. Don't base IGE on:

Percentage of construction costs Arbitrary ceilings or caps Availability of funds Government labor rates

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Information Required to Prepare IGE Information Required to Prepare IGE

A-E statement of work Planning and programming documents Design criteria Estimated construction cost Recent historical data on similar

projects

Input from technical specialists

Detailed Analysis Method

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

IGE Cost Breakdown IGE Cost Breakdown For each phase of work:

Direct labor costs Overhead Travel costs Other direct costs Profit - Applied to total costs

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Direct Labor Costs Direct Labor Costs

Based on required disciplines and levels of expertise Labor-hours from task analysis Hourly labor rates

– Task orders: Use rates established in IDC – “C” contracts:

Use rates representative of class of firms

selected as most highly qualified to perform the work (EFARS 36.605(a))

Refer to industry publications* Rates must equal or exceed SCA wage

determination, if applicable to the contract

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Overhead Overhead

Usually expressed as a single % which includes

OH on direct labor and G&A OH.

Use different rates for prime and

subcontractors, if appropriate

Task orders: Use rates established in IDC “C” Contracts:

– Use rates representative of class of firms

selected as most highly qualified to perform the work (EFARS 36.605(a))

– Refer to industry publications*

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Travel Costs Travel Costs

Typical examples:

– Rental car – Company car mileage – Airfare – Tolls and parking – Per diem

Guidance in FAR 31.205-46. Contractors must

generally comply with same travel and per diem limits as Government

Labor costs of travelers included in direct labor costs

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Other Direct Costs Other Direct Costs

Not ordinarily included in G&A overhead Typical examples:

– Reproduction of submittals for review – Special materials and supplies – Photographs, renderings and models – Soil borings – Laboratory tests

Should be itemized and priced by unit cost

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

USACE Method USACE Method for Profit on A for Profit on A-

  • E Contracts

E Contracts

Profit Factor Range Technical Complexity 5% — 10% Contract Length 2% — 4% Support of Socioeconomic 0% — 2% Programs (not applicable overseas) Total 7% — 16%

EFARS 15.404-73-101

(< 1 month) (> 21 months)

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Application of Profit to Total Costs Application of Profit to Total Costs

Total Prime A-E costs (w/o profit) $________ Total consultant / subcontractor costs (w/o profit) $________ Total Costs $________ Profit (per EFARS Method) $________ Total Estimated Contract Price $________

NO PROFIT - ON - PROFIT

When Preparing Government Estimate

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

6% Statutory Limitation on Price of A 6% Statutory Limitation on Price of A-

  • E Design Services

E Design Services

  • -- 10 U.S.C. 4540(b)

10 U.S.C. 4540(b)

Only applies to “producing and delivering designs, plans,

drawings and specifications”. Includes preparing construction cost estimates.

Applied as a percentage of estimated construction cost EFARS 36.606-70(c) lists typical services excluded from

the limitation. Use good judgment when considering whether other services are excludable.

Excluded services may still be A-E services (example:

surveying)

Options must also be included if design-related

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Application of 6% Limit to Modifications Application of 6% Limit to Modifications DFARS 236.606-70(b)

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Individual modifications may exceed 6% provided the total price of A-E services doesn’t exceed 6%.

Original design cost + additional or redesign cost Original ECC + ECC of added or redesigned features ECC = estimated construction cost

  • 100

%

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Approval of IGE Approval of IGE

Approved by supervisor having expertise in type

  • f work being contracted

Approval level appropriate for complexity and

dollar value of contract action.

– Delegate to lowest reasonable level!

Approved prior to opening A-E proposal. Internal management controls to ensure

preparation is independent of A-E proposal.

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Revision of IGE Revision of IGE

IGE should be revised if significant changes

arise in statement of work

IGE should be revised if significant errors or

  • missions are discovered

Revised IGE to be approved at same supervisory

level which approved original IGE

Revision of IGE not required to accept proposal

higher than IGE if significant differences explained in price negotiation memorandum (PNM)

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Tips for success Tips for success

Do your homework – Understand the district’s missions – Track the workload – Be aware of contract resources

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

The Bottom Line The Bottom Line

Difficult negotiations are not a good way to start Schedule and budget are important Corps does no technical review

– Product quality is critical – Accurate cost estimates are expected

Design within cost limitations

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Your reputation precedes you Your reputation precedes you

Evaluations are kept for 6 years Performance evaluations always checked Exceptional appraisals are noted Bad performance is not tolerated Utilizing new electronic system A/E gets chance to rebut ratings

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Let’s both be successful Let’s both be successful

Contractors help us with peak workload Educate yourself on our work flow Be prepared for slow periods Have a backup plan for heavy workload Tell us when we give you too much

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

What can you do? What can you do?

Visit potential clients Get to know our clients’ business Ask what “keeps them up at night” Study the money Don’t forget your subcontractors

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Please understand where I sit Please understand where I sit

The Corps works on a reimbursable basis We get numerous requests for A/E visits We attempt to share information in an efficient

manner

– Annual Open House – SAME meetings – Seminars for KEC

Don’t plan to visit everyone in the office

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US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District US Army Corps of Engineers, Louisville District

Serving the Army and the Nation http://www.lrl.usace.army.mil

Gate lifter Henry M. Shreve in Louisville, Ky.