Trends

1
Trends Best Practices for Selecting
ConsultantsA Journey towards Quality
Presented toInternational Federation of
Consulting Engineers Quebec September 7 10,
2008

• Peter W. Steblin, P.Eng.
• City Manager, Coquitlam, British Columbia and
  former
• General Manager of Environmental Engineering
  Services City Engineer,
• London, Ontario

2
Presentation Outline

• Why did we go on the journey?
• Consultant Selection Processes
• Challenges
• Outcomes

3
The Journey

• Started in 2004 focus on the Profession
• Initial change in London
• Involved in debating selection practices with
  various professional groups
• Led development of BP for Canada
• Implemented QBS for all London assignments (2007)
• Implementing QBS in Coquitlam, BC (2008)

4
Why Did We Do It?

• Honour the profession
• Elevate decision making
• Stop wasting peoples time
• Focus on the project, not the process
• Encourage innovation
• Lowest life cycle cost
• Fast track selection process
• Build stronger teams
• Its the right thing to do!

5
Honouring the Profession

• Extremely ethical profession
• Deserve more recognition
• Our own worst critics
• Beat each other up over cost of our services
• Need to reward good work

6
Londons Pre-2004 Selection Process

• 3 competent firms invited for routine projects
• Detailed proposals responding to rigid scope of
  work price and schedule
• Evaluation by teams of 3 technologists, maybe an
  engineer
• 15 to 20 on price value based selection
• Difficult to distinguish on technical merit

7
2004 to 2005 Selection Process

• Took price out of equation, emphasized quality
• If highest ranked firm was within 10 of average
  price, it was awarded project
• If highest ranked firm was outside of 10 of
  average price, decision referred to senior
  management
• Remainder of process basically unchanged
• - Detailed proposal, work plan, price and schedule

8
OSPE Best PracticeSelection of Professional
Engineering Services

• Report February 2006
• 7 drafts produced during 2005/06
• Ladder concept of practices
• Overtaken by InfraGuide Best Practice
• Statement of Support for InfraGuide

9
Finally A Tool for Hiring Engineers
InfraGuides Last and Best Best Practice
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InfraGuide Best Practice

• Chair of Committee and on Working Group
• Survey
• Engineers believe profession should be honoured
  and not selected by price
• most utilize price in formula
• most are comfortable with current process and
  dont see the above contradiction
• QBS widely advocated but seldom used in Canada

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Where Should Cost Focus Be? (contd)
12
Infraguide Best Practice

• Recommended Best Practice
• Request for Qualifications
• Evaluate Rank Consultants
• Request for Proposals
• Select Highest-Ranked Consultant
• Define Scope
• Negotiate Fee Agreement
• Award Assignment

13
Interview Process

• Advertise
• Short list based on resumes
• Interview
• Reference check
• Decision
• Discuss salary
• QBS parallels this process

14
Refining Londons Process

• Concluded previous changes didnt go far enough.
• Corridor renewal projects
• - 7 projects, 8 consultants
• Combined selection process
• Major Time Savings
• (Council, Administration and Consultants)

15
Benefits

• Lowest Life Cycle Costs
• Focus on quality, not engineering cost
• Design the solution for the problem
• Staff savings 200 to 400 hours
• Profession savings - 70k to 100k
• Quicker into design 3 month saving

16
Message to Our Consultants

• We want the highest quality designs, service and
  finished product the job
• We are prepared to pay for it
• We will be monitoring performance closely
• Good performance is rewarded with additional work.

17
Outcomes for London

• Still hiring the same good consultants with much
  less effort
• The best consultants are getting more work
• City is a preferred client
• More senior staff involvement elevates the
  profession
• Better solutions? YES
• Life Cycle Costs???

18
Wheres The Competition?

• Competing on QUALITY not PRICE
• Best staff
• Best ideas
• Best commitment to service
• Best track record

19
Open Selection Process

• Process is covered by City By-law/Policy
• Procedure is well documented
• Scoring sheets are used by selection team
• Team reviews results and makes selection
• Public Reports are prepared for Committee and
  Council

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How Did We Get There?

• Senior Management Leadership
• Champions to develop details
• Cultural shift among program and project managers
  to implement
• Support from consulting community and
  professional associations
• Trust of City Council

21
Leadership in the Profession

• Honouring the Profession
• Taking action
• - Ontario Society of Professional Engineers
• - InfraGuide Best Practices
• Risk taking
• Celebrating the success

22
Continuing Challenges

• Need to better demonstrate savings
• Need to deal with poor practices
• Need to demonstrate how to negotiate ethically
• LACK OF RISK-TAKING

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Conclusion

• InfraGuide Best Practice is a significant
  achievement
• Significant progress in London
• Significant challenge in expanding to other areas
• Need more risk takers and many voices/champions
• Only at base camp in ascending the mountain.

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• Final Comments
• And Questions