DBIA Procuring Design-Build Services Questions and Answers 2 — Questions and Answers
Question 1: What are the three common design-build procurement methods recognized by DBIA?
- Low bid, negotiated, and sole source
- Qualifications-based selection (QBS), best-value with adjusted score, and low price/technically acceptable (Correct answer)
- Direct appointment, lottery, and reverse auction
- Cost-plus, fixed-price, and time-and-materials
Correct answer: Qualifications-based selection (QBS), best-value with adjusted score, and low price/technically acceptable
DBIA recognizes three primary procurement approaches across a spectrum from pure qualifications-based to pure price-based selection.
QBS evaluates teams solely on qualifications then negotiates price. Best-value uses a weighted formula combining qualifications with price. Low price/technically acceptable selects the lowest price meeting minimum standards.
Question 2: What is a 'stipend' in design-build procurement, and why is it used?
- A monthly payment to the winning design-builder
- A payment to unsuccessful shortlisted firms for their intellectual effort in preparing design-build proposals (Correct answer)
- A tax credit for using design-build delivery
- An insurance premium paid by all proposers
Correct answer: A payment to unsuccessful shortlisted firms for their intellectual effort in preparing design-build proposals
Stipends compensate shortlisted proposers for the significant intellectual effort and cost of preparing proposals, which typically include preliminary design concepts.
Design-build proposals require substantially more effort than traditional bids. Stipends (typically 0.25-0.5% of estimated construction cost) partially compensate firms, attract higher-quality competitors, and typically give the owner the right to use non-selected proposals' ideas.
Question 3: What is the purpose of a Request for Qualifications (RFQ) in a two-phase design-build procurement?
- To obtain final pricing from all interested firms
- To shortlist the most qualified design-build teams before requesting detailed proposals in the RFP phase (Correct answer)
- To eliminate the need for an RFP
- To award the contract to the first respondent
Correct answer: To shortlist the most qualified design-build teams before requesting detailed proposals in the RFP phase
The RFQ phase narrows the field to a manageable shortlist (typically 3-5 firms) based on qualifications.
Phase 1 (RFQ) evaluates qualifications to shortlist 3-5 firms. Phase 2 (RFP) invites only shortlisted firms for detailed proposals. This benefits both owners (better evaluation quality) and proposers (reasonable chances of selection).
Question 4: In best-value design-build procurement, what does 'adjusted score' mean?
- The score after removing outlier evaluations
- A methodology where technical scores are mathematically combined with price to determine the best overall value (Correct answer)
- A score adjusted for inflation
- The score after the oral interview phase
Correct answer: A methodology where technical scores are mathematically combined with price to determine the best overall value
Adjusted score combines the technical evaluation score with the price proposal to produce a single value metric.
Common approaches include dividing the technical score by the proposed price. This provides objective, defensible selection criteria and clearly communicates to proposers how the owner values technical quality relative to price.
Question 5: What elements should a design-build RFP evaluation criteria include?
- Only the proposed price
- Weighted criteria covering technical approach, team qualifications, project understanding, schedule, price, and potentially design concepts (Correct answer)
- Only the proposer's financial statements
- Subjective impressions of the proposal team
Correct answer: Weighted criteria covering technical approach, team qualifications, project understanding, schedule, price, and potentially design concepts
Comprehensive RFP evaluation criteria should weight multiple factors to identify the team most likely to deliver a successful project.
Common criteria include technical approach (25-35%), team qualifications (20-30%), design concept (15-25%), schedule (10-15%), and price (15-30%). Weights should reflect project priorities and must be published in the RFP.
Question 6: Why does DBIA recommend limiting the shortlist to 3-5 firms?
- More than 5 firms is prohibited by law
- A shortlist of 3-5 balances competitive pressure with the significant cost proposers incur preparing design-build proposals (Correct answer)
- Evaluators cannot review more than 5 proposals
- Only 3-5 firms typically respond to design-build RFQs
Correct answer: A shortlist of 3-5 balances competitive pressure with the significant cost proposers incur preparing design-build proposals
Limiting the shortlist balances the owner's need for competition with the reality that design-build proposals are expensive to prepare.
Design-build proposals can cost $50,000 to $500,000+ to prepare. With a shortlist of 3, each firm has roughly a 33% chance of winning. With 7+ firms, win probability drops below 15%, causing the strongest firms to decline to propose or reduce quality.
DBIA Procuring Design-Build Services Questions and Answers 2
What are the three common design-build procurement methods recognized by DBIA?