Traditional v. Negotiated Procurement. Malcolm T. Kerley, P.E. Capital Beltway HOT Lanes PPTA Advisory Panel December 4, 2003
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1 Traditional v. Negotiated Procurement Malcolm T. Kerley, P.E. Capital Beltway HOT Lanes PPTA Advisory Panel December 4,
2 Traditional v. Negotiated Procurement Traditional: Design-bid bid-buildbuild Separate contracts for design and construction Negotiated: for professional or other than professional services Issue Request for Proposal (RFP) Negotiate with fully qualified and best suited offerors For design, design-build, construction management, or construction contracts 2
3 Traditional Procurement Design-bid bid-buildbuild Design phase Professional services (e.g. designer) Qualifications Based Selection (QBS) Federal: Brooks Act State: Chapter 43 Virginia Public Procurement Act , 3. a. Procurement of Professional Services» Identify qualified offerors» Negotiate contract with most meritorious proposer 3
4 Traditional Procurement Design-bid bid-buildbuild Bid-build phase Non-Professional services (e.g. contractor) Competitive sealed bidding ( 2.2( ) 1. Invitation to bid 2. Public notice 3. Public opening and announcement of all bids 4. Evaluation of bids 5. Award to the lowest responsive and responsible bidder 4
5 Negotiated Procurement Public Private Transportation Act through Enacted 1995 Amended 2001, 2002 and 2003 Design-build Contracts (2) (b) CTB may award contracts on a design-build basis Section amended
6 Negotiated Procurement Design-build Contracts (2) (b) CTB may award Five contracts < $20 million, annually Five contracts > $20 million, at any one time if advantageous to VDOT and the Public 6
7 Negotiated Procurement Public Private Transportation Act (PPTA) Competitive negotiation allowed Procurement Consistent with and subsection B of if advantageous to VDOT and the Public based on probable scope, complexity, or urgency (e.g. schedule) of a project or risk sharing, added value, an increase in funding that would not otherwise be available Requires Secretary of Transportation approval before comprehensive agreement is signed, per 2002 amendment 7
8 Competitive Negotiation 3. b. Procurement of other than professional services Request for Proposal Identify evaluation factors May include price as one factor May provide terms and conditions for multiple awards Select fully qualified and best suited offerors Negotiate with each selected offeror Price shall be considered, but need not be the sole determining factor Select offeror(s) which made best proposal 8
9 PPTA C. Proposal serves public purpose if: 1. There is a public need for the transportation facility or facilities of the type the private entity proposes to operate as a qualifying transportation facility; 2. The transportation facility or facilities and the proposed interconnections with existing transportation facilities, are reasonable and compatible with the state transportation plan and with the local comprehensive plan or plans; 3. The estimated cost of the transportation facility or facilities is reasonable in relation to similar facilities; and 4. The private entity s plans will result in the timely acquisition or construction of or improvements to the transportation facility or facilities or their more efficient operation. 9
10 PPTA 2001 Implementation Guidelines Four Phase Evaluation and Selection Process Phase One: Initial Review Committee Phase Two: Commonwealth Transportation Board Approval Phase Three: Public-Private Private Transportation Advisory Panel Recommendation Phase Four: Commonwealth Transportation Commissioner Approval 10
11 PPTA 2001 Implementation Guidelines Phase Three: Public-Private Private Transportation Advisory Panel Recommendation Proposal Evaluation and Selection Criteria 1. Qualifications and Experience 2. Project Characteristics 3. Project Financing 4. Public Support 5. Project Compatibility Provide recommendation to Commissioner 11
12 Traditional v. Negotiated Procurement Malcolm T. Kerley, P.E. Capital Beltway HOT Lanes PPTA Advisory Panel December 4,
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