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Lecture 1

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  • 1. CE 558 Transportation Systems Development and Management Lab. AKA: A simulation of the delivery of professional services to local governments
  • 2. Disclaimer
    • THIS IS ONLY A STUDENT PROJECT. ALL RECOMMENDATION AND GUIDANCE PROVIDE THROUGH THIS CLASS IS ONLY ADVISORY AND ADVISE FROM A LICENSED PROFESSSIONAL SHOULD BE SOUGHT BEFORE TAKING ANY ACTIONS.
  • 3. Subject City – Perry, Iowa
  • 4. Local Map
  • 5. Perry Facts - Demographics
    • Population (year 2000): 7,633,
    • Est. population in July 2004: 8,642 (+13.2% change)
    • Iowa Population grew during the same period by < 1% Males: 3,777 (49.5%), Females: 3,856 (50.5%)
    • Races in Perry:
    • White Non-Hispanic (72.9%)
    • Hispanic (24.5%)
    • Other race (13.2%)
    • Two or more races (1.7%)
    • Black (1.1%)
    • American Indian (0.6%)
    • Races in Des Moines
    • White Non-Hispanic (79.6%)
    • Black (8.1%)
    • Hispanic (6.6%)
    • Other race (3.5%)
    • Two or more races (2.2%)
    • Other Asian (1.6%)
    • Vietnamese (1.1%)
    • American Indian (0.8%)
  • 6. Class Steps
    • Meet with City to identify issues
      • Divide into teams and pick a team leader
    • Develop and deliver a proposal
    • Develop and deliver an interview
    • Conduct work
    • Prepare weekly progress reports
    • Prepare team report
    • Prepare class report
    • Deliver findings to city council
  • 7. Proposal preparation
    • Your understanding of the problem or issue
    • Background information
    • Scope and tasks
    • Project management
    • Team member qualification
    • Similar projects
    • Schedule
    • Budget
  • 8. Methods for Selecting a Professional Service
  • 9. Selection of Firms For Professional Services - Solicitation
    • Solicitation for a single project
      • Wide-open Request for Proposals
      • Unlimited List of Pre-qualified list of Firms
      • Limited List of Qualified Firms – usually with limited competitive requirements
        • Indefinite delivery, indefinite quantity contracts
  • 10. Selection of Firms For Professional Services – Selection Criteria
    • Qualification Based Selection (QBS)
      • Two Envelope Approach
      • Post selection negotiation
    • Best Value – scoring that includes price
    • Screened based on Qualification and low price
  • 11. Selection of Firms For Professional Services – Process
    • Agency lets professional firms know that they need professional service
      • Request for Proposal
      • Request for Qualification
      • Request for Notification of Interest
    • Agency Score and Ranks Proposal/Qualifications
      • Makes a selection
      • Interview most qualified
  • 12. Indefinite quantity contracts
    • Usually smaller projects where a competitive solicitation would be inefficient
    • Selection
      • Limited competition proposals
      • Limited competition interviews
      • Rotation mixed with qualifications and project attributes
      • Rotation mixed with capacity to do work
  • 13. Problems with this process
    • Large investment for proposers
      • Cost inefficiencies
    • Large investment for agencies
    • For non-routine project, it may be difficult to price
    • Repetitive interrogation of public officials by consultants
    • It is difficult to be impartial
      • Rewards current professional firm partners
      • It is difficult to enter new geographical markets
  • 14. Cost inefficiencies of competitive process
    • Must maintain marketing and promotion staff
    • Must maintain some excess capacity
    • Capabilities will be underutilized to fit work flow
    • Consultants must maintain a back log of work to keep staff utilized and buffer against risk
      • Results in high overhead = (direct costs)+(direct costs*Ohrate) = total costs
      • Results in high multiplier = (direct labor costs)*multiplier = total costs
  • 15. Homework Get on the Iowa DOT web page professional services web page ( http://www.prof-tech-consultant.dot.state.ia.us/ ) and identify how a consultant becomes qualified and selected to provide professional services for the Iowa DOT then get on the Minnesota DOT web page (http://www.dot.state.mn.us/consult/index.html) for professional services and identify how a consultant is selected to provide professional services for the Minnesota DOT. Compare and contrast the two states. Don’t be afraid to call either state’s consultant coordinator.
  • 16. Homework continued
    • Find the maximum allowed consultant overhead allowed at five DOTs.
    • Find the maximum allowed consultant profit at five DOTs.
    • Define QBS and state the reasons why selection based on qualifications is important to the professional services industry.
  • 17. Class Web Site http://www.ctre.iastate.edu/educweb/ce_558/