Quality Based Selection Perspectives from Both Purchaser and Supplier Presented to: MWWA 2013...

Quality Based SelectionPerspectives from BothPurchaser and Supplier

Presented to:

MWWA 2013 Conference

by

Allen K. Lucas, P.Eng.Utilities Kingston

&Steve Grundy

Rockwell Automation

Qualifications Based Selection Review

When faced with the decision of who you want to work on your project how do you choose?


The core of Qualifications Based Selection is:

Clear Scope

&

Complete

Request For Proposal


We all know in the end who is left to clean up after the project is over

Quality Based Selection Purchaser & Supplier Perspective

Utilities Kingston has more than 14 Years experience with Qualifications Based Selection for Engineering Services.

Accepted in Corporate Purchasing Policy

Extend the concept for procurement of products. . . Why not?


Ravensview WPCP, Kingston, Ontario

Upgrade Budget $116,325,000


18 Pre-Approved Equipment Suppliers + Northern Transformer

Total value $20M Need to incorporate Life Cycle Costs in some evaluations Some coordination between suppliers MCC and PLC package affected a number of others (BAF,

back-up power, pumps, overall controls) Each package developed specific to need by design team,

operations and management


The core of ANY Selection Process is:

Clear Scope

&

Complete

Request For Proposal


ProposalEvaluation Process

Quality Based Selection Purchaser & Supplier PerspectiveA number of iterations to set clear needs and values specific to equipment/process

Balance Operations Performance Maintenance & Safety and Financial

Include review of references, similar projects, conformance & completeness


Scoring was not as clearly divided for the MCC PLC Packages with respect to the identified categories and appeared more technically based

MCC’s - 6 Components – 5 to 20 pts each – 19.05% PLC’s - 10 Components – 5 to 20 pts each – 26.98% Tech Support - 4 Components – 10 - 15 pts ea 15.87% Capital Cost - 2 Components – 34.92% Interview – 10 points – 3.17%


Give the best Proponent the Maximum Score for each item.

Second best gets a lower score, etc.. Ties are discouraged. If you choose not to score an item give a

0 to all Proponents.

Quality Based Selection Purchaser & Supplier PerspectiveIndividuals review and score the proposals independently.

Permitting each reviewer to score across the range of available points for each component was considered a better approach than a percentage based on ranking.

The ranking method is seen as better when there are four or more proposals being reviewed.


Up to 10 points were awarded for adherence to the proposed Terms of Payment

Financial criteria scored using a radial approach,

Average price was awarded 50 points

Prices higher than average lost 1 point for every percent or fraction above average.

Prices lower than average awarded 1 point for every percent or fraction below average.

Quality Based Selection Purchaser & Supplier PerspectiveWhen considering the Life Cycle Costs, Financial criteria was reviewed collectively due to the preparation of a number of components by multiple individuals. While the process of Quality Based Selection was firmly supported by senior management, there was a need to demonstrate fiscal responsibility to municipal officials and public.The methodology as described above was deemed to achieve this effectively.

Quality Based Selection Purchaser & Supplier PerspectivePre-Approved Supplier Equipment

Napier Reid Ltd. Sludge heat exchanger

Circul-Aire Inc. Odour control system Degrit Facility

Napier Reid Ltd. Grit classifiers

John Meunier Inc. Heat recovery exchanger

Circul-Aire Inc. Odour control systemBiosolid Storage Facility

Mabarex Inc. Grit screw conveyors and spare parts


ENV Treatment Systems Inc. Mechanical screen and screening compactor

Greatario Engineered Storage Systems

Mechanical digester mixingequipment

ENV Treatment Systems Inc. Flight and chain sludge collectors

BoilerSmith Ltd. Three replacement boilers

US Filter Envirex Ltd. Scum collectors Primary Clarifiers 1-4

Siemens Canada Ltd. Main switchgear and various busways


Schwing America Inc. Sludge cake pump and hopper system

Alfa Laval Inc. Two sludge dewatering centrifuges

ITT Flygt Canada * Primary effluent pumps and parts

Rockwell AutomationCanada and Allen-Bradley

Motor Control Centres andProgrammable Logic Controls

Toromont Power Systems Cogeneration unit, gas treatmentskid & emergency generators

John Meunier Inc. Process technology & equipment11 Biological Aerated Filter cells

* NOTE: When Centrifugal pumps were determined to be appropriate, ITT Flygt was selected as per Sole Source Supplier Board Authorization

Leading global provider of industrial power, control and information solutions.

Rockwell Automation At A Glance

Fiscal 2011 Sales$6 billion

Employees Over 21,000

World Headquarters Milwaukee, WI USA

MarketOver 80 countries

Emerging Markets 22% of total sales

Trading SymbolROK

Process Integration

Supplied by the Systems Integrator

Includes HMI, PLC’s, Instrumentation

Digital and Analog I/O Motor Control Centers Adjustable Speed Drives SCADA Architecture Modulating valves

Provides a cohesive solution

Conduct a Complete FAT Provide network

validation Provide I/O validation Confirm HMI functionality Calibrate and Scale all

Analog Devices Confirm Alarming and

Diagnostics to all devices

Automation and Power Control Dilemma

Influence on Project Dollars

Project Impact DollarsSystems IntegratorRest of Project

Influence on Project Success

Systems Integrator

Rest of Project

The tie that holds it all together

Automation and ControlThe tie that holds it all together

Aging infrastructure Aging workforce and attrition issues Increased environmental compliance and reporting requiring more

complex control solutions Limited budgets for training, maintenance, spare parts Economic constraints are affecting tax base revenue stream Proliferation of Open Bid/Low Bid selection process has

compounded these issues Many stakeholders make a living on this process Public Market is the only industry to support this method of

procurement

There has to be a better way

Project Risk Issues

Gaps Contractor Purchased/SI

Responsible for Design and installation

Delivery not coordinated with SI schedule

No coordination or integration to OEM supplied process skids

Coordination of start up of control systems, drives, MCC’s, Pumps, process equipment

Different purchasing contracts between contractor and SI cause inconsistency with the process integration vendor

Issues SI not in control of equipment to

be installed Inability to perform complete FAT

prior to site installation Inability to complete installation

drawings prior to site installation No single point of responsibility Additional meetings to clarify

design, I/O, and integration requirements

Additional cost/delays/time to match undocumented field conditions

Issues with Spec Sect 16000 (Contractor Supplied MCC/Drives)

Customer/Supplier Benefits of QBS

Customer Lower Life Cycle Cost

Less Training Expense Lower Parts Cost

Price stability Lower Risk

Minimal use of protocol converters

Unified Control Architecture

Expandable System Improved Reliability

MTTF/MTTR Customer Support

Consistency

Supplier Lower Risk

Unified Control Architecture

Minimal use of protocol converters

Long term customer relationship

Lower cost of sale Provide a complete support

solution Deliver the most value our

company can provide


Questions & Discussion

Quality Based Selection Perspectives from Both Purchaser and Supplier Presented to: MWWA 2013...

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Transcript of Quality Based Selection Perspectives from Both Purchaser and Supplier Presented to: MWWA 2013...