Requests for A winning proposals combinationThe combined entity also recently announced that it had...

Requests for proposals

A winning combination

Finance & accounting applications

Zweig Group’s 2015 Financial Performance Survey of AEP and Environmental Consulting Firms finds that Deltek Vision (Deltek Systems) is the most common finance and accounting application at firms surveyed (62 percent). Fifteen percent of firms surveyed use Ajera (Axium) as their primary finance and accounting application, 6 percent use QuickBooks (Intuit, Inc.), 5 percent use BST Enterprise (BST Consultants), 2 percent use InFocus (Clearview Software), and 1 percent use Deltek Advantage (Deltek Systems) and Financial Management System (Wind2 Software). 7 percent of firms surveyed have a primary finance and accounting application other than those listed. — Leah Santos, research analyst assistant

T R E N D L I N E S

MORE COLUMNS F I R M I N D E X

w w w . t h e z w e i g l e t t e r . c o m

Page 9

xz FROM THE EDITOR: Why seek public sector work? Page 5

xz THE FAST LANE: Preparing your response. Page 7

xz GUEST SPEAKER: Public-private partnerships. 2

T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N T A L C O N S U L T I N G F I R M S

0%

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30%

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Balfour Beatty Construction ............................ 2, 9CEI Engineering Associates Inc. .......................... 3Dennis Corporation ............................................. 4DLR Architects ..................................................... 9Hoffmann Architects ........................................... 6HOK Architects .................................................... 9Kitchell ................................................................ 9Langan Engineering & Environmental Services .. 4Mason & Hangar Group Inc. ............................... 6Parsons Brinckerhoff Group Inc. .......................... 2Siemens ............................................................. 12Siemens Government Technologies Inc. ........... 12Tetra Tech ............................................................ 6U.S. Army Corps of Engineers ........................... 12Westwood Professional Services Inc. ................ 4Widseth Smith Nolting ....................................... 4WSP Global Inc. .................................................. 2See MARK ZWEIG, page 2

Mark Zweig

Pages 6, 7

Working with the governmentSix suggestions for firms seeking to work with the largest buyer of A/E and environmental services.

“The government – be it local,

state, or federal – is the biggest buyer

of A/E and environmental

consulting services there

is.”

Let’s face it: The government – be it local, state, or federal – is the biggest buyer of

A/E and environmental consulting services there is. Many firms in this industry rely on government work for half, or more, of their business.

If you are going to work for the government, here are a few suggestions:

1) Know their rules. If you don’t know them, you’ll have a hard time getting work in the first place. But it is important to know what you can and cannot do when it comes to buying meals for clients and travelling on client meetings, what you can charge and not charge for, who you can hire, and so much more. Ignorance is no excuse. Do your homework, and save yourself a lot of grief.

2) Accounting differences can be hard to deal with. Take a look at any company that does both public and private work: There’s usually a balancing-act between accurately tracking every hour worked on private client projects and not charging any more than 40 hours a week to their timesheet for public work when they are being paid on a cost-plus basis. These things can create ethical, and even legal, problems for firms, depending on how they are handled.

3) Make every suppliers and subconsultants comply with what you have to do for your client. In other words: Make them bill you in the same fashion you bill for your services; make them charge their time the same way you do; make them comply with all federal

J u n e 2 9 , 2 0 1 5 , I s s u e 111 0

Pages 5 - 12

GOV E RNME N T CON T R ACT S

PLUSxz CEO PROFILE: Jeff Geurian of CEI embraces experience. Page 3

CASE STUDY:

© Copyright 2015. Zweig Group.

All rights reserved. THE ZWEIG LETTER JUNE 29, 2015, ISSUE 1110

2

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Mark Zweig | Publisher [email protected]

Andrea Bennett | Managing Editor [email protected]

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and local hiring laws, workers’ compensation requirements, and more. Some agencies can make you, as a prime, responsible for each of your subs being in complete compliance.

4) Hire people from governmental organizations, but be sure to hire the right people. It can be risky. Someone is retiring from your state DOT, and you hire them, thinking it will be a coups. But, instead, you get the dud – the one they were all sick of and couldn’t wait to get out of there – and they will not work with your firm as long as you have anything to do with him or her. Be careful! Do your due-diligence before hiring. You cannot afford a mistake.

5) Don’t look too flashy. Most government clients don’t want to see your new supercharged Bentley or $8,000 Rolex. If they do, they’ll think they’re paying you too much and will want to stop doing business with you. Be extremely cautious! Even if you do drive a Ferrari F360 Modena to the office every day, keep a 5-year-old Taurus or Camry around that you can drive if you need to.

6) Don’t let them ruin you. I have seen a lot of A/E firms that work for the government start to morph into the clients they serve. They hire government people, adopt governmental pay practices, adopt governmental policies, lay out their offices similarly to governmental agencies, and even mirror governmental organization structures. You probably don’t want this, IF you want to run a profitable, growing company, as the government isn’t known for efficiency and entrepreneurial spirit.

MARK ZWEIG is founder and CEO of Zweig Group. Contact him at [email protected].

MARK ZWEIG, from page 1

EDITOR’S NOTE THE ZWEIG LETTER prints 48 editions each year, with no issues running the weeks of 4th of July, Labor Day, Thanksgiving, and Christmas. To this end, there will be no TZL next week, and your next edition will arrive on July 13. Zweig Group wishes everyone a safe and happy Independence Day.

Take your advice from Mark Zweig to-go.

zweiggroup.com/podcast

Listen to this and past editorials from The Zweig Letter via the free TZL Podcast on Stitcher, iTunes and Soundcloud.

TRANSACTIONSWSP COMPLETES PREVIOUSLY ANNOUNCED ACQUISITION OF PARSONS BRINCKERHOFF WSP Glob-al Inc. (Montreal, Quebec) has announced that it completed the previously announced acquisi-tion of all of the issued and outstanding capital stock of the entities comprising the business of Parsons Brinckerhoff Group Inc., the professional services division of Balfour Beatty.“I am pleased with this acquisition, as we become an industry leader, with the ability to deliver more expertise and services to our client base across the world,” said Pierre Shoiry, president and CEO of the new combined entity. “We will now focus on combining our respective businesses and on generating revenue synergies, such as in the rail sector where we see an opportunity to combine WSP’s expertise in above ground station and platform design, with Parsons Brinckerhoff’s expertise in tunnelling and underground technology or in the aviation sector, where our expertise in land and air sides are complementary.”

Upon closing, George Pierson, president and CEO of Parsons Brinckerhoff, was appointed an executive director of the corporation.

WSP, through its acquisition of Parsons Brinckerhoff, is one of the world’s leading professional services firms in its industry, working with governments, businesses, architects and planners and providing integrated solutions across many disciplines. The firm provides services to transform the built environment and restore the natural environment, and its expertise ranges from environmental remediation to urban planning, from engineering iconic buildings to designing sustainable transport networks, and from developing the energy sources of the future to enabling new ways of extracting essential resources. It has approximately 31,000 employees, including engineers, technicians, scientists, architects, planners, surveyors environmental specialists, as well as other design, program and construction management professionals, based in more than 500 offices, across 39 countries, on 5 continents. WSP, including Parsons Brinckerhoff, had pro forma revenues of $5.2 billion for the 12 months ended December 31, 2014.

The combined entity also recently announced that it had updated its social media platforms to reflect the acquisition. The firm’s new Twitter handle is @wsp_pbworld, and it is WSP | Parsons Brinckerhoff on LinkedIn, YouTube, and Facebook.

WE WANT YOUR NEWS Send press releases about your firm’s recent hires, promotions, projects, mergers, and acquisitions to Andrea Bennett at [email protected] for inclusion TZL.

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THE ZWEIG LETTER JUNE 29, 2015, ISSUE 1110

CEO embraces experienceJeff Geurian’s tenure at CEI Engineering began with hard labor in high school; he now uses his 25 years of experience to lead the firm.

P R O F I L E

By RICHARD MASSEYCorrespondent

Jeff Geurian, president and CEO of CEI Engi-neering Associates Inc. (Bentonville, AR) broke

into the engineering industry the hard way – with a sledgehammer in his hands.

While still in high school, Geurian worked as a la-borer with Van Horn Engineering in Russellville, Arkansas. One of his first jobs was pulling nails from scrap lumber left over from the demolition of a blast freezer for Tyson Foods Inc. He helped fin-ish the job by swinging and axe and a sledgeham-mer: Long hours and hard labor.

But for young Geurian, the dirty work paid off.

“The owner of the firm, John Van Horn Jr., gave me opportunities in the office drafting as well as help-ing put together bids for new projects,” Geurian says. “As the years progressed, I was given oppor-tunities to play bigger and bigger roles in projects. During the summer months and over the holidays, I was given the opportunity to bid, schedule, and manage smaller construction projects. A substan-tial number required design work, as well.”

From that foundation, Geurian, a civil engineering graduate from the University of Arkansas, launched into a fast-track career – he became president and CEO just six years after arriving at CEI. He now presides over a firm with 107 employees and offices in Bentonville; Fresno, California; Houston; Dallas; Minneapolis; and Scranton, PA.

On CEI’s horizon is a new service: traffic engineer-ing, out of the Dallas office. Geurian says the new direction will support the firm’s current land devel-opment projects in Texas and will position the firm to do more of that type of work in other parts of the country, growing its client base.

CEI, founded in 1973, has more than 40 years of

experience in civil engineering, surveying, plan-ning, landscape architecture and construction ser-vices for medium to large-scale developments and multi-structure sites. Projects include lifestyle cen-ters; business parks; education, healthcare, and municipal buildings; and tech centers.

Based in Bentonville, CEI enjoys a long and fruitful relationship with the largest retailer in the world: Wal-Mart Stores Inc. And big-box retail represents a large piece of CEI’s output.

“Diversification has been at the top of the priority list for many years,” Geurian says. “However, CEI’s path started with doing a significant amount of work for Wal-Mart, and I am proud to say that Wal-Mart remains a significant client for CEI today. The experience we gained working with Wal-Mart en-abled us to successfully work for other national re-tail rollout programs across the country. While we have now diversified into other sectors – like en-ergy, industrial, transportation, and parks and rec-reation – commercial rollout programs remain the largest contributor in terms of sales.”

While big-box retail pays the bills, CEI is not afraid to tackle high-profile projects watched by architects and engineers across the country. One such project was construction of the storm water facilities to ac-commodate Crystal Bridges Museum of American Art in Bentonville. Straddling Crystal Spring and surrounded by water, management of storm surge was key to the integrity of the museum.

“It is definitely one of, if not the, most high-pro-file project that CEI has ever designed or been a part of,” Geurian says. “The museum itself is a piece of art. As a result, the design changed throughout construction. The piano weir design utilized in the project to pass large amounts of storm water in a very narrow area was a very unique solution for a very unique project. We had a terrific and very

Jeff Geurian, President & CEO, CEI Engineering Associates Inc.

See GEURIAN, page 4

“While we have now diversified into other sectors – like energy, industrial, transportation, and parks and recreation – commercial rollout programs remain the largest contributor in terms of sales.”

“We all learn as we gain more and more experience. Some of that experience is learned from making mistakes and some is learned from watching others be successful and make mistakes of their own.”



4

ON THE MOVE

talented group of professional engineers, de-signers, and construction observers assigned to the project that did an absolutely tremen-dous job.

“As with most complex projects like Crystal Bridges, it takes a very engaged effort from all disciplines and companies in order for the project to be successfully completed. The project required an attention to detail and a level of teamwork that is significantly higher than any project CEI has done before.”

In keeping with the theme of water, this year CEI was given a Grand Conceptor Award by the American Council of Engineering Com-panies of Arkansas for educating the public about water quality and the latest technolo-gy and design practices to protect the envi-ronment.

“It was great,” Geurian says. “We honestly did not anticipate winning the award, and I think that’s what made it so special.”

Rather than operate the out-of-town offices as separate profit centers, the hub of CEI is based in Bentonville, where the majority of design work is produced. The regional offices handle permitting, entitlements, and project

management. The company’s goal is to grow its fee by 15 percent each year, and, while there are no hard plans as of yet to open an-other regional office, Geurian says growth is an ongoing discussion in the firm’s strategic planning.

At CEI since 1990, Geurian has 25 years with the company. Whether an up or a down, Geurian says he manages to make it benefi-cial for the company.

“I would like to think that we all learn as we gain more and more experience,” he says. “Some of that experience is learned from making mistakes and some is learned from watching others be successful and make mis-takes of their own. We have weathered a lot of storms and have overcome many obstacles during my time at CEI, some created by us and some that were not. I would like to think that the experience I have gained through those challenges has a positive impact on CEI.”

Geurian, 49, is about to celebrate his 25th anniversary with wife, Gina. They have two sons, Tyler, 21, and Lucas, 15. Geurian is passionate bass fisherman.

GEURIAN, from page 3 CHANGES TO FEES...

Fifty-seven percent of respondents to Zweig Group’s 2014 Fee & Billing Survey of Architecture, Engineering, Planning & Environmental Consulting Firms said they had discounted project fees in the previous year.

Of those that had discounted project fees:

z 63 percent did so through a discount on the final project price

z 56 percent did so through a lower billing rate/multiplier

z 23 percent did so through a discount on reimbursables

z 8 percent did so through a different means

Percentages do not total 100 because more than one option could be selected.

0%

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Final price Billing Rate/Multiplier Reimbursables Other

“The experience we gained working with Wal-Mart enabled us to successfully work for other national retail rollout programs across the country. “

“I would like to think that the experience I have gained through those challenges has a positive impact on CEI.”

DENNIS CORP. NAMES NEW VP Dennis Corporation (Columbia, SC), an engineering, surveying, construction management, and general con-tracting firm, has named Ricky Craps as its vice president. Craps will oversee the Special Inspections Division’s daily activities and business development in several new key markets. Craps’ background includes construction, transportation, and institutional and educational inspec-tion projects.

SCOTT BERGHERR PROMOTED, RELOCATES TO WESTWOOD’S ND OFFICE Westwood Professional Services Inc. (Minneapolis, MN), a multi-disciplined professional surveying and engineering services firm, has promoted Scott Bergherr to survey manager. In his new position, Bergherr will manage survey operations and provide leadership and support to build Westwood’s presence in North Dakota.

Office Leader Nate Carlson said, “Scott has many years of experience working with clients in Minnesota and North Dakota and is a great fit to help them with their complex surveying projects. His expertise across all of our markets is an asset, and we look forward to support-ing his efforts in Dickinson.”

HINES EARNS PE LICENSE Vanessa Hines, a civil engineer at Widseth Smith Nolting (Rochester, NY) – a multidisciplinary engineering, ar-chitecture, land surveying, and environmental services firm with more than 180 employees -- passed the exams and met the requirements

necessary to become a registered professional engineer in Minne-sota. Licensure is granted by the Minnesota Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design.

Hines joined WSN in 2014 as an engineer-in-training. She is respon-sible for interpreting design criteria and developing site plans. She is also involved in programming, design development, building code re-view, construction budget analysis, and conducting field work.

LANGAN NAMES CIANCIA BOARD CHAIRMAN Langan Engineering & Environmental Services (Elmwood Park, NJ), which has nearly 1,000 employees and provides integrated site engineering and environmen-tal consulting services, has named Andrew Ciancia as chairman of its board of directors. Ciancia, managing principal and co-leader of the firm’s New York City office, has been a director for 10 years, and has served on multiple Langan leadership bodies.

Ciancia has practiced engineering in New York, Philadelphia, and Washington D.C. for more than 40 years. He joined Langan in 1996, Ciancia as a principal. Some of his notable projects include the National September 11 Memorial and Museum, 3 and 11 Times Square, Hudson River Park, Museum of Modern Art expansion, Hearst Tower, and Barclays Center at Atlantic Yards in Brooklyn, and the United States Holocaust Museum in Washington D.C.

5


GOVERNMENT CONTRACTS

Andrea Bennett

In the second edition of Successful Project Management for A/E/P & Environmental Firms, author Ernest Burden delineates the two major categories of clients with

which most firms will work:

Why seek public sector work?This edition of TZL seeks to give readers a few starting points and some helpful hints to procure dependable, valuable government contracts.

O P I N I O N

“It is well known that there are two separate A/E client sectors for securing work: the private sector and the government, or public, sector,” he says. “Less well known are the distinct differences in the manner in which you prepare proposals (for each), although they are many similarities in the details. Many governmental (requests for proposals) ask for substantial data on qualifications and experience, whereas the private sector only wants the bottom line of price. It pays to know the difference as to which group needs to know what information.”

THE PUBLIC SECTOR AT-A-GLANCE. The government – federal, state, and local – is the No. 1 client in the U.S. and the most diverse. When the government unveils and RFP or statement of qualifications or qualifications and experience report, its needs are clearly laid out. To win government work, firms must specify the skills and experience they have that match the needs of the soliciting agency. The Brooks Act of 1972 laid the foundation for this by requiring that government agencies – federal and state, where the Act has been adopted – base the procurement of A/E/P services on qualifications rather than price.

It is fairly well known that procuring government contracts is hard work and, once a firm has won a project, there are additional requirements. In fact, Burden says that “venturing into (public sector contracting) territory without knowledge of the rules is dangerous territory for the novice.” So, why would anyone want to do it?

THE FRUITS OF HARD LABOR. Even with the paperwork, wait-time, and competition associated with pro-curing public sector contracts, to the victors go

some significant spoils, including:

z Dependable income. According to Periscope Hold-ings (Austin, TX), a procurement firm, the most obvious benefit to organizations that win govern-ment work is the income that the contract generates: “Once you have been awarded a government con-tract and all of the final details have been negotiated and clarified, if you continue to deliver, income can be steady from month to month.”

z Client portfolio boost. Periscope’s website points out that listing government agencies as past and/or current clients and using testimonials from them in your firm’s marketing efforts can serve to strength-en the firm’s portfolio and attract new clients.

z Company value increase. A portfolio that includes government contracts also looks good when it comes time to apply for a line of credit or business loan, to go public, or to sell. Past and/or current gov-ernment contracts make your firm a more attractive acquisition, as they reflect quality of work and earn-ing potential. As your firm’s reputation for depend-able, quality work grows, so does its value.

WHAT’S INSIDE. This edition of THE ZWEIG LET-TER aims to share some insights on public sector contracts. There is a case studies of a recent gov-ernment contract awardee; the Spotlight section focuses on RFPs – the government’s main means of soliciting bids; and along the way are some resources and places you can find more informa-tion. In fact, here’s one, now: Federal RFPs are advertised to the general public via the Commerce Business Daily, published by the U.S. Department of Commerce (cbd-net.gov).

ANDREA BENNETT, MPA, is managing editor of The Zweig Letter and manager of Zweig Group’s book publications. Contact her at [email protected].

A QUICK VOCABULARY LESSON

z EOI: expression of interest – clients might send EOIs to firms they know are qualified for a project.

z SOQ or Q+E: statement of qualifications or qualifications and experience – used by many government agencies to request project proposals.

z RFP: request for proposal – designed to obtain specific information through questions that firms must answer in order to be considered for a project.


6

Answering RFPsFYI: Requests for proposalsDeveloping partnerships with other firms is among the many tactics of businesses that successfully procure public sector contracts.

By LIISA ANDREASSENCorrespondent

Are you looking to bring in new business? If so, you’re probably on the watch for government contracts coming up to bid. But, what

can a firm do to heighten its chances of success when bidding govern-ment work? Are there any rules of thumb that traditionally lead to more wins? Here, leaders of A/E/P firms with government contracts talk about the techniques they utilize to stand out from their com-petition.

LARGE FIRMS TEAM UP. Tetra Tech (Pasadena, CA), a 13,000 person consulting, engineering, program management, and construction management services firm, and Mason & Hangar Group Inc. (Phila-delphia, PA), a 21,000 person architecture and engineering services firm, recently joined forces to win a multiple-award indefinite-deliv-ery contract worth $45 million from the U.S. Army Corps of Engi-neers Mobile District. Under the contract, which spans a period of five years, the joint-venture team will provide master planning, value engineering, and facility design services in connection with a range of projects.

Tetra Tech’s services will include the preparation of project definition and programming documents, design-build solicitations, value engi-neering studies, environmental permit applications, and facility con-dition assessments. The projects will be located in the Southeastern United States.

In a press release, Steve Burdick, executive vice president and CFO of Tetra Tech, says he believes the company’s major government con-tract wins will act as a key driver of profitability, going forward. In the long run, such contracts will serve to strengthen the company’s posi-tion in the government end-markets and ensure a steady and predict-able revenue stream.

SMALL FIRM EXPERIENCE. Alison Hoffmann, communications manager at Hoffmann Architects (Hamden, CT), a 42-person firm, shares a few things that have worked for the company in winning government contracts:

z Stay out front. Consistent and persistent public relations campaigns, most notably its quarterly technical newsletter, the Hoffmann Archi-tects Journal, reminds potential clients who the firm is and what it does – specializes in the niche field of rehabilitating building exteriors. The Journal highlights aspects of the firm’s work, reinforcing its exper-tise and often placing the right topic at the right time in front of key decision-makers. So, when a government agency receives a Hoffman proposal, it’s not the first time they’re hearing about the firm.

z Work as a sub to lay the groundwork for securing future opportunities. If Hoffmann is new to working with a particular gov-ernment agency, its strategy is to act as sub-consultant through a firm

See FYI, page 8

Preparing your responseNeed to get an RFP submission out the door? Don’t panic: Follow these steps to complete a timely proposal.

O P I N I O N

BernieSiben

Standard Form 330 (SF330), “Architect-Engineer Qualifications,” provides information to federal government agencies about an architecture or engineering firm’s qualifications. The form is one of the tools used by governmental selection panels to evaluate a firm’s abilities to deliver services for a proposed project contract.

SF330s are submitted to federal agencies upon request or in response to a notices published on FedBizOpps.gov.

SF330 Part I is reviewed through a qualifications-based selection process mandated by the Brooks Architect-Engineers Act and Federal Acquisition Regulation Part 36. An A/E team might consist of one office of one firm, several branches of one firm, or several firms and offices. Part I is submitted to an agency only in response to a specific RFP; therefore, the agency usually does not retain a reference copy on file after the contract is awarded.

SF330 Part II reflects the general capabilities of a firm or of an individual branch office. Part II is a mandatory component of every SF330 submittal, and a separate Part II must be included for each firm or branch office proposed for a “key role” on a contract on which a Part I is submitted.

Part II may also be submitted as a stand-alone document to individual offices of federal agencies, to be retained for future reference. A/E firms are advised to do this: For certain projects that are exempt from public notice, agencies might use Part II to prequalify firms before requesting a Part I submittal. Remember to submit an updated Part II annually to each office of each agency, and whenever major changes to your qualifications occur.

SF330 can be downloaded at gsa.gov/portal/forms/download/116486.

Source: Insider’s Guide to SF330 Preparation by Nancy Usrey.

MORE ON RFPS...

z Find RFPs: findrfp.com

z The RFP Database: rfpdb.com

z How to Develop & Evaluate an Engineering Services Proposal: qbs-mi.org/files/hegartyarticle.pdf

z Writing Better RFP Responses: pcs.ieee.org/writing-better-rfp-responses-2/

Alison Hoffmann, Communications Manager, Hoffmann Architects.


All rights reserved.

7


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ZweigGroupAnswering RFPsFYI: Requests for proposalsDeveloping partnerships with other firms is among the many tactics of businesses that successfully procure public sector contracts.

Your boss is on vacation. There’s a solicitation on your desk, with a note from one of the principals: “We need to submit on this. Please take care of it.”

Preparing your responseNeed to get an RFP submission out the door? Don’t panic: Follow these steps to complete a timely proposal.

O P I N I O N

Inhale . . . slowly. Exhale . . . slowly. Do it again. OK; here’s what you do:

1) Find the due date and time. Is it an emergency? No: You have two weeks to deliver the document.

2) Find the delivery address. Is it local? Yes: So, you can finish printing and assembling next Friday morning and still deliver on-time.

3) Read the solicitation from beginning to end to get a general sense of what it’s about. Grab a highlighter and read it again. This tells you what must be included in the submittal, as well as how much and what kind of help you will need to be responsive.

4) Go!

What is the solicitation asking for? More specifically, is it asking you for a statement of qualifications or a proposal? The two documents are similar but not the same; the processes are different and include differ-ent people.

IF THE CLIENT WANTS AN SOQ: Sit down with the appropri-ate principal, determine the projects and staff to pres-ent, prepare the draft, and have the principal review it before delivery. The general firm introduction can come from boilerplate/database or some other re-cent SOQ for a similar type of work. Projects should be relevant to this client’s project and needs. Use the client’s name and project name often. Constant refer-ences to “the client” and “the project” make it look like boilerplate.

All information from previous submittals or boil-erplate must be tailored to respond to the current solicitation.

Regarding staffing, the solicitation should indicate how much detail the client wants. It may ask for brief biographical sketches, or it may ask for resumes. If there is no specific indication, include key staff members only with perhaps a paragraph and three or four bullets with project names, locations, and role for each person. Try to avoid an organization chart or schedule until you have sufficient detail about the project.

IF THE CLIENT WANTS A PROPOSAL: You need to add techni-cal folks to the team. The solicitation should contain enough detail to identify appropriate projects, select and tailor detailed resumes, and prepare an organiza-tion chart and schedule. Along with a project under-standing and approach, it may ask you to respond to some specific challenges.

z Meet internally and come up with a plan. Your dis-cussion of win-strategies should include the person who will write the technical sections. Also, you’ll need to talk about specific staff qualifications and potential subconsultants. In this meeting, make writing as-signments with deadlines. Then, work backward from the delivery date to develop a proposal schedule that ensures sufficient time for writing, review, revision, and production.

Developing a proposal schedule is not easy. Each team member already has commitments, and each has a su-pervisor pulling in a different direction and pushing for billable hours. The secret here is to ask technical folks only for what you can’t write yourself. Don’t involve them in page layout or other design decisions. Give them quick technical assignments and let them get back to their “real” (billable) work.

z Determine the required kinds of reviews and iden-tify the appropriate staff to perform each. Make sure these individuals will be available when you need them and are willing to fulfill the role of reviewer.

z Get the graphics staff involved early. Knowing the thought process that led to a decision may help them design a variety of graphics that help communicate your ideas.

BernieSiben

“All information from previous submittals or boilerplate must be tailored to respond to the current solicitation.”

See BERNIE SIBEN, page 8

Standard Form 330 (SF330), “Architect-Engineer Qualifications,” provides information to federal government agencies about an architecture or engineering firm’s qualifications. The form is one of the tools used by governmental selection panels to evaluate a firm’s abilities to deliver services for a proposed project contract.

SF330s are submitted to federal agencies upon request or in response to a notices published on FedBizOpps.gov.

SF330 Part I is reviewed through a qualifications-based selection process mandated by the Brooks Architect-Engineers Act and Federal Acquisition Regulation Part 36. An A/E team might consist of one office of one firm, several branches of one firm, or several firms and offices. Part I is submitted to an agency only in response to a specific RFP; therefore, the agency usually does not retain a reference copy on file after the contract is awarded.

SF330 Part II reflects the general capabilities of a firm or of an individual branch office. Part II is a mandatory component of every SF330 submittal, and a separate Part II must be included for each firm or branch office proposed for a “key role” on a contract on which a Part I is submitted.

Part II may also be submitted as a stand-alone document to individual offices of federal agencies, to be retained for future reference. A/E firms are advised to do this: For certain projects that are exempt from public notice, agencies might use Part II to prequalify firms before requesting a Part I submittal. Remember to submit an updated Part II annually to each office of each agency, and whenever major changes to your qualifications occur.

SF330 can be downloaded at gsa.gov/portal/forms/download/116486.

Source: Insider’s Guide to SF330 Preparation by Nancy Usrey.

MORE ON RFPS...

z Find RFPs: findrfp.com

z The RFP Database: rfpdb.com

z How to Develop & Evaluate an Engineering Services Proposal: qbs-mi.org/files/hegartyarticle.pdf

z Writing Better RFP Responses: pcs.ieee.org/writing-better-rfp-responses-2/



8

that already has a strong relationship with that agency. Once the client is comfortable with Hoffman and values its work, they begin to insist that the other firm continue to team with it for new work, or they hire it directly.

z Team up. In terms of project outcomes, state and federal agencies, such as the Division of Construction Services in Connecticut, the State University Construction Fund in New York, or the Architect of the U.S. Capitol, typically employ owner’s representatives and/or project managers who are licensed professionals and who understand the design and construction process. This is also true for large institutional clients such as universities and some private corporations. Working with another design professional can improve own-er-architect communication, which generally leads to a more successful project.

z Hire the necessary experience. The labor pool provides opportunities for strategic hires to augment existing firm experience, creating a more robust project portfolio. A com-pany can learn the process literally on-the-job while gaining valuable experience necessary to take a lead role on future government projects. It should be noted that good candidates will be increasingly hard to find over the next few years, so now is the time to assess portfolio gaps and hire strategically to address them.

STICK TO THE FORMAT. Hoffmann says that when the firm re-sponds to RFPs and RFQs, attention to detail is a must. She says firms should go to the walk-through, ask questions and pay attention to what the client wants, and then demon-strate an understanding of their issues and challenges.

“Be creative but adhere strictly to the prescribed format. Answer every question,” she says.

Hoffmann realizes that completing the paperwork can be a significant time commitment; that’s why the firm has a ded-icated staff member who is responsible for coordinating all of the pieces.

“Formatting can demand substantial lead-time to complete correctly, as does securing information from teaming part-ners,” she says.

WHAT ARE THE BENEFITS? Having a substantial government portfolio provides stability.

“Government project funding often has an economic cycle that is staggered from the broader economic cycle. During some downturns, the government may still be investing in infrastructure and may even infuse money into the con-struction market in order to stimulate the economy,” Hoff-mann says. “If a firm is already doing work for a govern-ment agency when the economy starts to cool down, that relationship makes it easier to continue to win new projects with that agency, even when work is scarce.”

Here is an example: During the height of the Great Reces-sion, two very large government projects with which Hoff-mann was involved went into full swing. One had been dor-mant for nearly 20 years, the other for 10 years.

“This type of timing that is out of sync with the commer-cial sector occurs frequently with government projects,” she says.

Sustainability and durability are also benefits. Hoffmann explains that municipal, state, and federal buildings are of-ten used for hundreds of years, government projects tend to mean longer-lasting, more sustainable design than their private-sector counterparts.

“For instance, roofs on many commercial facilities have a life expectancy of just 20 years, whereas it is not unusual to specify a 100-year slate or copper roof for a government building,” she says.

Firms with federal contracts can be identified at fbo.gov or gsa.gov.

FYI, from page 6

z Look at your overall schedule. If possible, for the first few days of the effort, deal with new emergencies first thing in the morning and reserve the afternoon for the SOQ or proposal. You may have to let some things sit and become emer-gencies or find someone else to handle the interruptions.

Make sure your schedule has some “wiggle room” in case there is an emer-gency, such as losing a team member, learning that an additional subcon-tractor would help you win, learning about an issue of concern to the client, etc.

If nothing like this comes up, consider delivering the proposal early, but only one day early. Two days is enough time for the client to lose your pack-age, or there might be an addendum/revision that will require changes in your proposal.

Tip #1: Don’t be afraid to ask for help. In the end, it is better to ask for help and turn in a winning proposal, than to pretend you can do it alone and have the client tell your principal it was the worst proposal he’d ever read.

Tip #2: Slow down! Getting it right the first time is always faster than hav-ing to do it again.

BERNIE SIBEN, CPSM, is owner/principal consultant of The Siben Consult, LLC, in Austin, TX. Contact him at 559-901-9596 or [email protected].

BERNIE SIBEN, from page 7 IRON LAWSA STARTING POINT FOR FIRST-TIMERS

In A Guide to Winning Federal Government Contracts, for A/E/P & Environmental Consulting Firms, 2nd edition, author David J. Alexander outlines three basic truths to guide the research and planning process of firms looking to enter the federal market.

1. All federalmarkets are nichemarkets.

2. Contract vehicles are ofparamountimportance.

3. Federal government clients want “safe buys”

9



Case study: A winning combinationBalfour Beatty, HOK, Kitchell, DLR join forces and win contract to win $100.5 million contract for addition to California corrections facility.

By LIISA ANDREASSENCorrespondent

Kern County, California, is getting a new $100.5 million addition to its justice facility in Bakers-

field, and Balfour Beatty Construction (Dallas, TX), an international general contracting, at-risk construction management and design-build firm, will lead the way.

COMBINING FORCES. The 215,000-square-foot facility is expected to create nearly 400 jobs for the local community, including a contractual target goal to subcontract 25 percent of design and construction services to local businesses, with 35 percent of the labor supplied by local workers. The project team will leverage lean construction practices and the latest technologies to efficiently deliver the facility.

The 24-plus acre site is part of the larger county-owned Lerdo Detention Facility site. The project scope includes the design and construction of hous-ing and support facilities for 822 inmates, includ-ing a central plant for heating and cooling. Proj-ect site development also includes security fenc-ing, utility systems, new electrical service and dis-tribution systems, pedestrian walkways, staff and visitor parking, roadway realignment, a new entry guard house, landscaping, and site lighting.

The design-build team is comprised of Balfour Beatty Construction (general contractor), HOK Architects (project architect), Kitchell (construc-tion manager), and DLR Architects, which created the project’s initial set of conceptual drawings.

Brian Cahill, southwest division president of Bal-four Beatty, believes that the integration of the de-sign-build team that got them the contract.

“As an integrated design-build team, the companies will collaborate throughout the project to meet the county’s goal of building a facility that is safe and secure for inmates, staff, and the public, in addi-tion to delivering it on-time and on-budget,” he

says. “We look forward to developing a highly in-teractive client-project team relationship in order to deliver the most innovative, cost- and energy-ef-fective solutions for Kern County and the sheriff’s department.”

The cumulative experience of the entire team com-prises more than 350 major justice facilities, in-cluding Balfour’s current work on three large pris-on projects in California.

The project is scheduled to break ground in August 2015, with project completion anticipated by June 2017. The new housing building will consist of three medium-security housing units with approximate-ly 100 cells each and one maximum security men-tal health/special housing unit with approximately 104 cells; four housing control rooms; attorney vis-iting booths; and treatment, recreation, adminis-trative, and educational/vocational program space.

The support building will provide space for health-care, custody, video visitation, and administra-tive and support services. The standalone cen-tral plant will provide heating, cooling, and elec-trical services for the new facility, comprising two chillers, a cooling tower, and three boilers. Design innovations planned for the project in-clude clusters of smaller-scale housing units that are grouped according to detention levels and sup-port the varying security classifications and pro-grammatic needs of the inmate population. Addi-tional features include low-maintenance finishes, energy efficient LED light fixtures, and the use of water-saving landscaping elements. The County also plans to enroll the project in Pacific Gas & Elec-tric Company’s Saving by Design program, which offers incentives to owners of construction projects that exceed California’s Title 24 energy efficiency standards.

“As an integrated design-build team, the companies will collaborate throughout the project to meet the county’s goal of building a facility that is safe and secure for inmates, staff, and the public, in addition to delivering it on-time and on-budget.”

The cumulative experience of the entire team comprises more than 350 major justice facilities, including Balfour’s current work on three large prison projects in California.

Brian Cahill, Southwest Divi-sion President, Balfour Beatty Construction.



10

RESOURCES

QUESTIONSTO ANSWER WHEN IDENTIFYING & CHARACTERIZING MARKET NICHES

How many active contracts does this entity managing that are of relevance to our firm?How big are these contracts? What’s thevalue & how much has actually been spent?

When do these contracts expire? Which arelikely to be reprocured?

What firms are performing these contracts?How intense was the competition for them?Does a small handful of firms appear to dominate the work of the agency?How well are the current contractorsperforming? How does this entity tend to structure itscontracts?

To what extent does this agency issue set-asides for which we might qualify?

How does this agency tend to structure itsRFPs? What criteria are emphasized?

What trends are occurring in the industrythat might affect the procurement process?

To what extent is the entity using GSASchedule contracts, in lieu of stand-alones?

How much has this entity spent on contractsover the past several years?What program trends are occurring that might affect this agency’s needs?

QUALIFICATIONS-BASED SELECTION CRITERIAGovernment agencies are required to use the following non-price/cost selection criteria, and are not allowed to use price/cost criteria, when procuring A/E services.

Requiredprofessionalqualifications

Specialized experience andtechnical competence

Capacity to accomplish thework on-time

Performance onpast governmentcontracts

Proximity and/or knowledge of the project’sgeographic areaAcceptabilityunder otherevaluationcriteria

RFP/RFQ EVALUATIONBelow is an example of a RFP/RFQ Evaluation form used by a real-world E/A firm. For a free full-page version, email [email protected].

RFP

RFQ

Date:

Distribution:

Prepared by:

Go

No-Go

Undecided

project:

client: location:construction cost: office/departments (include % split): controlling office/department:milestone dates:

quals due:site visit:pre-proposal meeting:proposal due:presentation: notification of award:

date / weekday time client contact / location / phone number

potential subconsultant roles:

participation goals:mbe: wbe:dbe: sbe:

funding availabililty:

budget:schedule:contract type (cpff, lump sum, atc):geographical limitations:

scope of work:

proposal requirements: evaluation criteria

copies to client: page limit:font size: single/double sided:

competition: misc. info:

Source: A/E Proposals Cookbook; Zweig White, 2006

USES OF PROJECT WEBSITES

Thirty-five percent of respondents to Zweig Group’s 2014 ProjectManagement Survey of A/E/P & Environmental Consulting Firms said that team members can usually review/submit RFPs via theproject websites their firms use.

Other uses for project websites include:

Communicate electronically (76%)

View/edit design documents (65%)

Review/update schedules (62%)

View/submit RFIs (57%)

View/edit sketches (54%)

Submit change orders (41%)

Source: A Guide to Winning Federal Government Contracts for A/E/P & Environmental Consulting Firms, 2nd ed.

Source: A Guide to Winning Federal Government Contracts for A/E/P & Environmental Consulting Firms, 2nd ed.

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“Public-private partnerships” is one of the hottest buzz terms in public construction in the United States these days. A relatively new concept in

America, but old and well established in many other parts of the world, P3s are starting to transform the face of public construction throughout the country. But, just what are P3s and, more importantly, how can they change the business plan of an engineering firm seeking to capitalize on the opportunities they present?

Public-private partnershipsWhen government agencies and firms come together, innovative and efficient designs can drive project success.

O P I N I O N

In their purest form, P3s are exactly what they sound like: partnerships between private industry and the public sector to deliver projects for public use, whereby public and private participants share in the cost, risk, and benefits of the projects. In a typical P3, the private sector designs, builds, and finances the project then operates and maintains it over a multi-decade period. Though the private sector usually bears most of the design and construction costs, it gets paid during the prolonged period of operations and maintenance, which is where it can earn a healthy return, as long as the project remains available for public use.

P3s are seen throughout the country in a multitude of forms, some of them neatly fitting the model and others being more abstract forms of partnerships, humorously referred to as “P3-ish.” Regardless of their structure, P3 projects involve a partnership of some form between public- and private-sector participants in which they share the risks and rewards.

Unlike the traditional design-bid-build process, where price and qualifications are the primary drivers in firm selection, P3 procurement is often driven by factors such as ingenuity in design and

financial returns to the private and public sectors. A common saying is: “If you have seen one P3, you have seen one P3,” meaning there is opportunity for the design team to entice public sector buy-in through innovative design and to impact financial return through efficient designs. In this way, the design participant becomes integral to the project’s success.

ENGINEERING OPPORTUNITIES. P3s offer a unique op-portunity for engineering firms to take a lead role in the delivery of public projects. Competition in P3s drives innovation. In a design-bid-build model, contractors find weaknesses in the plans on which bids are based, so they can drive their bid price down, knowing future change orders will make up for the low margins. That dynamic is irrelevant in P3s, where the private-sector concessionaire does the design, construction, and financing themselves. Hence, there are rarely change orders and, if there are, the private sector absorbs the cost.

In P3s, ingenuity becomes the driving factor. Because of the transfer of risk from the public sector to the private sector, the rules of competition change. For instance, an engineering firm that can find ways to run utility lines in easements, instead of under roads, to minimize future maintenance costs can increase the private sector’s return on investment. Therefore, an

See LEE WEINTRAUB, page 12

“In a P3 project ... the engineer becomes a valuable commodity, challenging him- or herself to design efficient and innovative systems that can reduce operations and maintenance costs.”

“Unlike the traditional design-bid-build process, where price and qualifications are the primary drivers in firm selection, P3 procurement is often driven by factors such as ingenuity in design and financial returns to the private and public sectors.“



12

engineering firm has a big role to play in finding ways to reduce the costs of construction, operations, and maintenance in a manner that could increase efficient operations for the public sector and financial returns for the private sector. To the extent the public sector may share in some of those returns, depending on the project’s financial model, such a design would make the private team’s proposal more attractive during the competitive bidding process.

In design-build projects, the contractor usually controls the process from the private sector’s perspective and the engineer usually works for the contractor on a service-fee basis. In P3s, however, the engineer takes control. In a traditional project, a contractor saves costs by cutting corners on the materials and systems specified in the design. Though such value engineering may increase construction profits, it often also increases future maintenance costs. That is not much of a concern to a design-build contractor, who completes and leaves the project long before the owner begins operating and maintaining the project.

In a P3 project, where the private sector must operate and maintain the project, the engineer becomes a valuable commodity, challenging him- or herself to design efficient and innovative systems that can reduce operations and maintenance costs, thereby increasing the returns to the private-sector team that operates the facility once construction is complete.

Though engineers are sometimes compensated a standard design fee for their services, on large P3 projects, the engineer may choose instead to be compensated by a share of the private team’s profit, often determined by a percentage of savings achieved through innovative design. In this way, an engineer can increase its financial rewards on P3 projects by agreeing to a compensation model tied

to a share of profits realized through, among other things, maintenance cost savings achieved through innovative and efficient design, a very different concept than value engineering or design-build.

Another interesting dynamic is that the private concessionaire team, usually consisting of a developer and one or more contractors, financial investors, design professionals, and operations firms, which is often led by the developer, as opposed to the contractor. On traditional projects, there is often an inherent tension between a contractor and an engineer. When the developer leads the team instead of the contractor and all participants have skin in the game as teammates of the overall concessionaire team, the tension between the construction and design components is reduced or eliminated. The project can then be collaboratively structured so that most of the profit would be realized during the operations and maintenance period. Though the engineer can be compensated for his/her initial design on a service-fee basis, he/she can become one of the most important participants in the private concession team through his/her ability to increase profits by reducing maintenance expenses.

Simply put, P3s are the latest in the progression of public delivery methods: from design-bid-build, to design-build, and now to P3s. They are the wave of the future and will be as commonplace one day as design-build is now. Now is the time to familiarize yourself with the process the same way engineers did when design-build was novel. And get innovative. After all, that is what it is all about!

LEE A. WEINTRAUB, a shareholder at Becker & Poliakoff, is board certified in construction law by the Florida Bar and serves as vice chair of the firm’s Construction Law Practice Group. Contact him at [email protected].

A version of this column first appeared in our sister publication, Civil+Structural Engineer. Learn more at CENews.com.

LEE WEINTRAUB, from page 11

BUSINESS NEWSSIEMENS WINS NEXT STEP IN USACE EFFORT TO ACHIEVE SIGNIFICANT ENERGY, COST SAVINGS The U.S. Army Corps of Engineers has selected Siemens (Arlington, VA) as one of the contract vehicle holders for a base contract award that now gives the company the opportunity to bid on the design, construction, and operation of a variety of energy-savings projects across the U.S. government. The U.S. Army Engineering and Support Center in Hunstville, Alabama, awarded USACE ESPC III to Siemens on May 8. Siemens Government Technologies Inc. will hold this energy savings performance contract. The cost of any projects subsequently won by Siemens will be funded by the energy savings derived from the conservations measures the firm implements. Siemens also guarantees the savings, which will allow the federal government to advance President Obama’s vision that federal facilities generate 20 percent of their energy from renewables by 2020.

The USACE has been one of the most actives users of ESPCs in the federal government. This successor indefinite delivery indefinite quantity builds on earlier momentum by providing a new funding ceiling, an extended timeframe, and an expanded scope beyond U.S. territory and into U.S. government facilities in Germany, South Korea, and the Marshall Island. Though USACE will hold the contract, all federal agencies will be able to use this vehicle to seek industry help to achieve their own energy and cost savings. Other federal agencies currently using ESPCs rang from the Departments of Defense and Energy to the General Services Administration and National Park Service.

Siemans holds several ESPCs across the federal government. An ESPC is an alternative financial mechanism, that allows federal agencies to reduce their energy usage, incur no up-front costs, and then retain the associated savings. As a certified Energy Service Company, Siemens provides expertise for meeting federal energy goals and optimizing energy management – from energy audits and full-program design, to alternative financing that covers costs while energy savings are realized. Siemens’ performance-based solutions leave appropriated funds intact and leverage energy savings to pay for facility, capital, and technology improvements. This enables federal agencies to reduce operating costs while realizing the additional value of new, energy-efficient equipment and infrastructure. These facility improvements decrease energy consumption, save money, optimize functionality, and help government agencies meet their federal energy-saving mandates.

“Siemens is proud to be a significant partner across the federal government, helping a variety of agencies use ESPCs to meet their mission to save energy and use more renewable energy,” said Judy Marks, president and CEO of Siemens Government Technologies.

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