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Lecture 1

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Lecture 1

  1. 1. CE 558 Transportation Systems Development and Management Lab. AKA: A simulation of the delivery of professional services to local governments
  2. 2. Disclaimer <ul><li>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. </li></ul>
  3. 3. Subject City – Perry, Iowa
  4. 4. Local Map
  5. 5. Perry Facts - Demographics <ul><li>Population (year 2000): 7,633, </li></ul><ul><li>Est. population in July 2004: 8,642 (+13.2% change) </li></ul><ul><li>Iowa Population grew during the same period by < 1% Males: 3,777 (49.5%), Females: 3,856 (50.5%) </li></ul><ul><li>Races in Perry: </li></ul><ul><li>White Non-Hispanic (72.9%) </li></ul><ul><li>Hispanic (24.5%) </li></ul><ul><li>Other race (13.2%) </li></ul><ul><li>Two or more races (1.7%) </li></ul><ul><li>Black (1.1%) </li></ul><ul><li>American Indian (0.6%) </li></ul><ul><li>Races in Des Moines </li></ul><ul><li>White Non-Hispanic (79.6%) </li></ul><ul><li>Black (8.1%) </li></ul><ul><li>Hispanic (6.6%) </li></ul><ul><li>Other race (3.5%) </li></ul><ul><li>Two or more races (2.2%) </li></ul><ul><li>Other Asian (1.6%) </li></ul><ul><li>Vietnamese (1.1%) </li></ul><ul><li>American Indian (0.8%) </li></ul>
  6. 6. Class Steps <ul><li>Meet with City to identify issues </li></ul><ul><ul><li>Divide into teams and pick a team leader </li></ul></ul><ul><li>Develop and deliver a proposal </li></ul><ul><li>Develop and deliver an interview </li></ul><ul><li>Conduct work </li></ul><ul><li>Prepare weekly progress reports </li></ul><ul><li>Prepare team report </li></ul><ul><li>Prepare class report </li></ul><ul><li>Deliver findings to city council </li></ul>
  7. 7. Proposal preparation <ul><li>Your understanding of the problem or issue </li></ul><ul><li>Background information </li></ul><ul><li>Scope and tasks </li></ul><ul><li>Project management </li></ul><ul><li>Team member qualification </li></ul><ul><li>Similar projects </li></ul><ul><li>Schedule </li></ul><ul><li>Budget </li></ul>
  8. 8. Methods for Selecting a Professional Service
  9. 9. Selection of Firms For Professional Services - Solicitation <ul><li>Solicitation for a single project </li></ul><ul><ul><li>Wide-open Request for Proposals </li></ul></ul><ul><ul><li>Unlimited List of Pre-qualified list of Firms </li></ul></ul><ul><ul><li>Limited List of Qualified Firms – usually with limited competitive requirements </li></ul></ul><ul><ul><ul><li>Indefinite delivery, indefinite quantity contracts </li></ul></ul></ul>
  10. 10. Selection of Firms For Professional Services – Selection Criteria <ul><li>Qualification Based Selection (QBS) </li></ul><ul><ul><li>Two Envelope Approach </li></ul></ul><ul><ul><li>Post selection negotiation </li></ul></ul><ul><li>Best Value – scoring that includes price </li></ul><ul><li>Screened based on Qualification and low price </li></ul>
  11. 11. Selection of Firms For Professional Services – Process <ul><li>Agency lets professional firms know that they need professional service </li></ul><ul><ul><li>Request for Proposal </li></ul></ul><ul><ul><li>Request for Qualification </li></ul></ul><ul><ul><li>Request for Notification of Interest </li></ul></ul><ul><li>Agency Score and Ranks Proposal/Qualifications </li></ul><ul><ul><li>Makes a selection </li></ul></ul><ul><ul><li>Interview most qualified </li></ul></ul>
  12. 12. Indefinite quantity contracts <ul><li>Usually smaller projects where a competitive solicitation would be inefficient </li></ul><ul><li>Selection </li></ul><ul><ul><li>Limited competition proposals </li></ul></ul><ul><ul><li>Limited competition interviews </li></ul></ul><ul><ul><li>Rotation mixed with qualifications and project attributes </li></ul></ul><ul><ul><li>Rotation mixed with capacity to do work </li></ul></ul>
  13. 13. Problems with this process <ul><li>Large investment for proposers </li></ul><ul><ul><li>Cost inefficiencies </li></ul></ul><ul><li>Large investment for agencies </li></ul><ul><li>For non-routine project, it may be difficult to price </li></ul><ul><li>Repetitive interrogation of public officials by consultants </li></ul><ul><li>It is difficult to be impartial </li></ul><ul><ul><li>Rewards current professional firm partners </li></ul></ul><ul><ul><li>It is difficult to enter new geographical markets </li></ul></ul>
  14. 14. Cost inefficiencies of competitive process <ul><li>Must maintain marketing and promotion staff </li></ul><ul><li>Must maintain some excess capacity </li></ul><ul><li>Capabilities will be underutilized to fit work flow </li></ul><ul><li>Consultants must maintain a back log of work to keep staff utilized and buffer against risk </li></ul><ul><ul><li>Results in high overhead = (direct costs)+(direct costs*Ohrate) = total costs </li></ul></ul><ul><ul><li>Results in high multiplier = (direct labor costs)*multiplier = total costs </li></ul></ul>
  15. 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. 16. Homework continued <ul><li>Find the maximum allowed consultant overhead allowed at five DOTs. </li></ul><ul><li>Find the maximum allowed consultant profit at five DOTs. </li></ul><ul><li>Define QBS and state the reasons why selection based on qualifications is important to the professional services industry. </li></ul>
  17. 17. Class Web Site http://www.ctre.iastate.edu/educweb/ce_558/

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