Construction & Service Procurement Strategy Low Bid vs. Best - - PowerPoint PPT Presentation

CITY OF MINNEAPOLIS

Construction & Service Procurement Strategy Low Bid vs. Best Value

Presented to W&M Committee

by:

Pam Fernandez Bob Friddle Tim P. Norton

1

July 9, 2019

Proposed Construction & Service Procurement & Delivery Methods

• 1. *Low Bid

Design, Bid, Build, etc.

• 2. *RFP

Service Contract

• 3. **Best Value Contracting

Value Added/Complex Projects

• 4. **Construction Manager as Advisor (CMa)

Advisor/Multiple Prime Options

• 5. **Construction Manager-At-Risk (CMAR)

Early Cost/Refinement Ongoing

dard procurement and delivery method sider adding to procurement strategies as necessary

Best Value Legal Requirements:

Owners must:

• Issue a Request for Proposals (RFP) versus an Invitation for Bids
• Assign a weight (as a relative percentage) for cost and the non-cost

factors

• Identify each non-cost factor in the RFP along with its relative

weight

Owners may:

• Require written submittals addressing specific Non-cost factors
• Require interviews of each proposer’s key personnel (including key

subcontractors)

3

RFP for Impound Facility Improvements – Evaluation Criteria and Weights

4

Score Based on 1,000 Available Points · 500 points available from Cost · 500 points available from 4 Non-Cost Factors Criteria Weight (Points) Total Base Cost 500 Company/Key Personnel Experience 125 SUBP Participation/Good Faith Efforts 125 Project Planning, Delivery & Safety 125 Risk Plan 125 Total Points 1,000

Hennepin County Best Value Program Outcomes

Purchasing & Contract Services

Best Value Contract Awards to the Lowest Price Proposer:

YEAR % 2011 100% 2012 71% 2013 67% 2014 57% 2015 77% 2016 53% 2017 90%