UNIVERSITY OF ILLINOIS CEE ENGINEERING IN RESIDENCE PROGRAM
54
UNIVERSITY OF ILLINOIS CEE ENGINEERING IN RESIDENCE PROGRAM “Now I’m An Engineer - Do I Want To Be A Consultant?” Presented By: Paul D. Koch, P.E., BCEE April 20, 2012
description
UNIVERSITY OF ILLINOIS CEE ENGINEERING IN RESIDENCE PROGRAM. “ Now I’m An Engineer - Do I Want To Be A Consultant?” Presented By: Paul D. Koch, P.E., BCEE April 20, 2012. PRESENTATION SUMMARY. Overview Of Consulting Engineering Key Elements Of A Consulting Practice - PowerPoint PPT Presentation
Transcript of UNIVERSITY OF ILLINOIS CEE ENGINEERING IN RESIDENCE PROGRAM
UNIVERSITY OF ILLINOISCEE ENGINEERING
IN RESIDENCE PROGRAM
UNIVERSITY OF ILLINOISCEE ENGINEERING
IN RESIDENCE PROGRAM
“Now I’m An Engineer -Do I Want To Be A Consultant?”
Presented By:
Paul D. Koch, P.E., BCEE
April 20, 2012
PRESENTATION SUMMARYPRESENTATION SUMMARYPRESENTATION SUMMARYPRESENTATION SUMMARY
• Overview Of Consulting Engineering
• Key Elements Of A Consulting Practice
• Terms, Tools, & Tips for You To Consider and Remember
JOB OPPORTUNITIESJOB OPPORTUNITIESJOB OPPORTUNITIESJOB OPPORTUNITIES
• Government
• Academia
• Industry
• Consulting
OPPORTUNITY ADVANTAGES DISADVANTAGES GOVERNMENT RESPONSIBILITY/
SECURITY/POLICY DEVELOPMENT
SALARY
ACADEMIA INDEPENDENCE INSTITUTIONAL CONSTRAINTS
INDUSTRY SALARY VARIETY/SECURITY
CONSULTING VARIETY/SALARY/ INDEPENDENCE
HOURS/SECURITY
CHOOSING CONSULTING CHOOSING CONSULTING AS A CAREERAS A CAREER
CHOOSING CONSULTING CHOOSING CONSULTING AS A CAREERAS A CAREER
• Type Of Firm– Services Offered– Disciplines Covered
• Size Of Firm– Small - Less Than 50– Medium - 50 - 500– Large - > 500
CHOOSING CONSULTING CHOOSING CONSULTING AS A CAREERAS A CAREER (continued) (continued)
CHOOSING CONSULTING CHOOSING CONSULTING AS A CAREERAS A CAREER (continued) (continued)
• Reputation & Position In Industry• People
– Management/Ownership– Staff
• Benefits and Location
ORGANIZATION OF A ORGANIZATION OF A CONSULTING FIRMCONSULTING FIRM
ORGANIZATION OF A ORGANIZATION OF A CONSULTING FIRMCONSULTING FIRM
• HRA
• PES
• SAIC
HRA BOARD OF DIRECTORS
PRESIDENTADMINISTRATIVE
SUPPORT
DIR. OF OPERATIONSVP/TREAS. &
DIR. ELEC. ENG.VP/SEC. &
DIR. MECH. ENG.DIR. OF ARCH.
CONSTRUCTION FIELDREPS
ELECTRICAL MECHANICAL ARCHITECTURAL
CLERICAL, TECHNICIANS & CAD OPERATORS
HRAORGANIZATION CHART
PACIFIC ENVIRONMENTAL SERVICES, INC.ORGANIZATION CHART
PRESIDENT
WESTERNREGION
MIDWESTREGION
SOUTHEASTREGION
MID-ATLANTICREGION
SOUTHWESTREGION
AIRQUALITY
SOURCETESTING
OCC. HEALTH& SAFETY
COMPUTERSYSTEMS
WATER
WASTEWATER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGERHAZ WASTE/P2 MANAGER
CORPORATEPLANNING
CONTROLLER/ADMINISTRATION
TECHNICALDIRECTORS
MANAGER
MANAGER
MANAGER
MANAGER
MANAGER
MANAGERMANAGER
MANAGER
MANAGER
MARKETING
SAIC CORPORATION
Chairman and Chief Vice ChairmanExecutive Officer
Vice ChairmanPresident and ChiefOperating Officer Vice Chairman
SAIC CommercialTechnology
Science & TechnologySegment
Technology & SystemsSegment
Technology ServicesCompany
Real TimeSystems Group
Aerospace & DefenseSector
Communications, Info& Space Sector
Advanced Technology& Analysis Sector
Info & TechnologySystems Sector
Technology, Policy &Operations Sector
TechnologyResearch Group
Environment
Advanced TechnologySector
Science & EngineeringSector
Space, Energy &Environment Sector
Systems, Software &Telecommun. Sector
Systems Technology &Integration Sector
1 of 20 Pages
SAIC ORGANIZATION - FY92
‘‘ELEMENTS’ OF A ELEMENTS’ OF A CONSULTING PRACTICECONSULTING PRACTICE
‘‘ELEMENTS’ OF A ELEMENTS’ OF A CONSULTING PRACTICECONSULTING PRACTICE
• Business Plan or (Strategy)• Business Development
– Marketing– Sales
• Contracts• Project Management:
– Produce a Quality Product– Meet Budget and Schedule– Develop a Professional Staff
• Customer Follow-up– Review Deliverables and Customer Satisfaction– Pursue Additional Work
THE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESS
ContractExecutionBusiness
Plan
BusinessDevelopment
ProjectMgmt.
CustomerFollow-up
BUSINESS PLANBUSINESS PLANBUSINESS PLANBUSINESS PLAN
• Define Services Offered• Identify Types Of Clients• Establish Geographic Area• Assess Competition• Develop Targets & Tracking
Mechanisms• Agree It’s A “Living Plan”
THE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESS
ContractExecutionBusiness
Plan
BusinessDevelopment
ProjectMgmt.
CustomerFollow-up
DEFINITION OFDEFINITION OFBUSINESS DEVELOPMENT BUSINESS DEVELOPMENT
(BD)(BD)
“Creating the opportunity to “Creating the opportunity to bring the best solutions to bring the best solutions to
customers.”customers.”
DEFINITION OFDEFINITION OFBUSINESS DEVELOPMENT BUSINESS DEVELOPMENT
(BD)(BD)
“Creating the opportunity to “Creating the opportunity to bring the best solutions to bring the best solutions to
customers.”customers.”
BD CONCEPTSBD CONCEPTSBD CONCEPTSBD CONCEPTS
• Apply to All Career Choices– Consulting– Industry– Academia– Government
• Required to Successfully Compete and Have the Opportunity To Execute Work
FUNDAMENTAL BD FUNDAMENTAL BD BUILDING BLOCKSBUILDING BLOCKSFUNDAMENTAL BD FUNDAMENTAL BD BUILDING BLOCKSBUILDING BLOCKS
Relationships
Communication
•Listening•Response
KEY COMPONENTS OF KEY COMPONENTS OF BUSINESS DEVELOPMENTBUSINESS DEVELOPMENT
KEY COMPONENTS OF KEY COMPONENTS OF BUSINESS DEVELOPMENTBUSINESS DEVELOPMENT
•Marketing•Sales
MARKETING:MARKETING:STRATEGIC EFFORT WITH STRATEGIC EFFORT WITH
FOLLOW-UP ACTIONSFOLLOW-UP ACTIONS
MARKETING:MARKETING:STRATEGIC EFFORT WITH STRATEGIC EFFORT WITH
FOLLOW-UP ACTIONSFOLLOW-UP ACTIONS• What Services Do We Offer?• What Customers Will We Pursue?• What Geographic Area Will We
Support?• What Tools Will We Use?
– Brochures– Advertising– Internet
– Conferences/ Publications
– ‘Freebies’
SALES:SALES:ACTION EFFORT TO ACTION EFFORT TO
EXECUTE A MARKETING EXECUTE A MARKETING STRATEGYSTRATEGY
SALES:SALES:ACTION EFFORT TO ACTION EFFORT TO
EXECUTE A MARKETING EXECUTE A MARKETING STRATEGYSTRATEGY
• Additional Work From Existing Customers
• New Work From New Customers– References– Networking– Cold Calls
BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT STEPS STEPS
BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT STEPS STEPS
• Identify/Obtain Clients
• Define Needs/Projects
• Prepare/Submit Proposals
• Select Firm
• Negotiate/Execute Contract
““WHEN AND WHERE ARE WHEN AND WHERE ARE YOU INVOLVED?”YOU INVOLVED?”
ALWAYS ANDALWAYS ANDEVERYWHERE!EVERYWHERE!
““WHEN AND WHERE ARE WHEN AND WHERE ARE YOU INVOLVED?”YOU INVOLVED?”
ALWAYS ANDALWAYS ANDEVERYWHERE!EVERYWHERE!
IDENTIFY/OBTAIN CLIENTSIDENTIFY/OBTAIN CLIENTSIDENTIFY/OBTAIN CLIENTSIDENTIFY/OBTAIN CLIENTS
• Existing Clients• Firm’s Reputation• Personal Contacts - “Networking”• Advertising/Promotion/Conferences• Cold Calls
‘‘MAKING THE SALE’MAKING THE SALE’‘‘MAKING THE SALE’MAKING THE SALE’
• One-step Sale:Problem and Project Defined; Prepare Proposal and Select a Firm
• Two-step Sale:Agree a Problem Exists; Define a Project; Prepare a Proposal and Select a Firm
• Three-step Sale:Identify a Problem and Agree It Exists; Define a Project; Prepare a Proposal and Select a Firm
WHEN DO YOU PREPARE A WHEN DO YOU PREPARE A PROPOSAL?PROPOSAL?
WHEN DO YOU PREPARE A WHEN DO YOU PREPARE A PROPOSAL?PROPOSAL?
When you are Requested to do so by a potential customer – i.e., in response to a verbal or written: “Request for Proposal” – “RFP”
HOWHOW DO YOU GET AN DO YOU GET AN RFP?RFP?
HOWHOW DO YOU GET AN DO YOU GET AN RFP?RFP?
•Proactive Customer Contact
•Customer Mailing to ‘Key’ Firms
•Commercial Publications – Engineering News Record (ENR), Dodge Reports
•Government Publications –
–Federal Business Opportunities—”FBO”
–State Procurement Opportunities
–‘City Bulletin’
WHAT KINDS OF PROPOSALS WHAT KINDS OF PROPOSALS ARE THERE?ARE THERE?
WHAT KINDS OF PROPOSALS WHAT KINDS OF PROPOSALS ARE THERE?ARE THERE?
• ‘Verbal’ Proposal - No!• Letter Proposal• ‘Comprehensive’ Proposal—
Technical and Cost Proposals• SF 330 or Equivalent• Statement of Qualifications
WHAT DO YOU DO WHEN WHAT DO YOU DO WHEN YOU GET AN RFP?YOU GET AN RFP?
WHAT DO YOU DO WHEN WHAT DO YOU DO WHEN YOU GET AN RFP?YOU GET AN RFP?
• Read ALL of It Thoroughly!• Give It to Other Key Staff to Review
(Both Technical and Administrative)• Identify Incumbents• Make ‘Go, No-Go’ Decision
– ‘Prime’ Contractor– ‘Sub’ Contractor
HOW DO YOU DECIDE?HOW DO YOU DECIDE?HOW DO YOU DECIDE?HOW DO YOU DECIDE?
• Who Is the Customer? Are We Known?• What Is the Scope of Work - ‘SOW’?• What Technical Skills and Level of
Effort (LOE) Is Required?• What Are the Selection Criteria and
Weights?• How ‘Big’ Is the Project?
HOW DO YOU DECIDE? HOW DO YOU DECIDE? (continued)(continued)
HOW DO YOU DECIDE? HOW DO YOU DECIDE? (continued)(continued)
• Is It a ‘Set Aside’?—8(a); SBSA; SDVOSB; WOB/WOSB; HubZone
• What Are the Location Factors?• What Is the Duration of the
Assignment?• What Is the ‘Fine Print’?• When and Where Is the Proposal Due?
WRITTEN PROPOSALWRITTEN PROPOSALWRITTEN PROPOSALWRITTEN PROPOSAL
• Introduction• Scope of Services - Tasks• Project Schedule• Project Budget (Cost)• Qualifications of ‘Team’
– Prior Experience– Staff Resumes– Facilities
WINNING PROPOSALSWINNING PROPOSALSWINNING PROPOSALSWINNING PROPOSALS
• Address ALL Requirements
• Make Yours ‘Easy to Score’
• Discriminators not Platitudes
• Factor-Benefit-Proof
SELECTION PROCESSSELECTION PROCESSSELECTION PROCESSSELECTION PROCESS
• Presentation or BAFO
• Win--Negotiate Contract
• Win or Lose--Get a Debrief
• Lose--Protest (RARE!!!)
THE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESS
ContractExecutionBusiness
Plan
Business Development
ProjectMgmt.
CustomerFollow-up
CONTRACTS -CONTRACTS -ALWAYS HAVE ONE!ALWAYS HAVE ONE!
CONTRACTS -CONTRACTS -ALWAYS HAVE ONE!ALWAYS HAVE ONE!
• Forms
• Elements
• Type Of Contract = Basis Of
Payment
FORM OF CONTRACTFORM OF CONTRACTFORM OF CONTRACTFORM OF CONTRACT
• Verbal - Never!
• Written - Always!
CONTRACT ELEMENTSCONTRACT ELEMENTSCONTRACT ELEMENTSCONTRACT ELEMENTS
• Client• Consultant• Scope Of Work• Price• Schedule• Terms/Conditions - “Fine Print”• Authorization/Signatures
TYPES OF CONTRACTSTYPES OF CONTRACTSTYPES OF CONTRACTSTYPES OF CONTRACTS
• Fixed Price/Lump Sum/% of Construction
—Scope Well-Defined
• ‘T&M’ or ‘T&E’—Scope Flexible
• Cost-Plus-Fixed-Fee—Either Case
• Cost-Plus-Award-Fee—Fee Based on
Performance
IMPORTANT TERMSIMPORTANT TERMSIMPORTANT TERMSIMPORTANT TERMS
• Labor Rates– Direct Labor Rate– Billing Rate
• Overhead - Indirect Costs• G&A - General & Admin. Expense• Direct/Reimburseable Costs• Profit
CLASSIFICATION (DIRECT LABOR RATE) BILLING RATE
Principal Engineer/Scientist I $50.00 $150.00Supervisory Engineer/Scientist I $40.00 $120.00Engineer/Scientist I $30.00 $ 90.00Assistant Engineer/Scientist I $20.00 $ 60.00Senior Support Services $10.00 $ 30.00
STANDARD SCHEDULE OF COMPENSATIONSTANDARD SCHEDULE OF COMPENSATIONENGINEERING SERVICESENGINEERING SERVICES
EXAMPLE BILLING RATE EXAMPLE BILLING RATE CALCULATIONCALCULATION
EXAMPLE BILLING RATE EXAMPLE BILLING RATE CALCULATIONCALCULATION
Direct Labor (DL) $20.00/HR
Overhead (150% of DL) $30.00/HR
G&A (10%) $ 5.00/HR
Total Burdened Labor (BL) $55.00/HR
Fee (9% of BL) $ 5.00/HR
Billing Rate $60.00/HR
0500 Indirect Labor/Selling/Admin./Incentive Comp0515 Vacation/Holiday/Sick Leave0535 Payroll Taxes0540 Worker’s Comp/Group Insurance0550 Employee Welfare/Training & Education0560 Benefits Plans Administration0565 Recruiting & Relocation0570 Travel - Fares/Lodging & Subsistence/
Car Rental/Mileage/Tolls/Travel - Other0595 Office Rent/Utilities/Janitorial & Maintenance0607 Equipment Maintenance & Repair0610 General Insurance0615 Reproduction
OVERHEAD BREAKDOWNOVERHEAD BREAKDOWN
G&A BREADDOWN
Accounting CostsCorporate Management Costs
LUMP SUM/FIXED PRICE/% LUMP SUM/FIXED PRICE/% CONST.CONST.
LUMP SUM/FIXED PRICE/% LUMP SUM/FIXED PRICE/% CONST.CONST.
• Very Well Defined Scope
• Complete Project For Fixed $
• FIRM ASSUMES RISK
• Imagination Yields More Profit• Payment By % Complete Or
Deliverable
T&E OR T&MT&E OR T&MT&E OR T&MT&E OR T&M
• Scope Of Work Less Well Defined• Compensation Based On Total Labor
Costs And Expenses• Option: “Upset” Maximum Amount• FIRM AND CLIENT SHARE RISK• Payment Based On Schedule Of
Compensation
CPFF/CPAFCPFF/CPAFCPFF/CPAFCPFF/CPAF
• Well-Defined or Flexible Scope• Complete Project For An Estimated
Total Cost Plus A Negotiated “Fee” (Profit)
• FIRM AND CLIENT SHARE RISK• Total Profit (Fee) Is Fixed - “Costs”
Can Increase for Payment• Payments Based Costs Incurred, Plus
Portion of Fixed/Award Fee
THE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESS
ContractExecutionBusiness
Plan
Business Development
ProjectMgmt.
CustomerFollow-up
PROJECTPROJECT MANAGEMENTMANAGEMENTPROJECTPROJECT MANAGEMENTMANAGEMENT
• Team Concept
• Project Work Plan
• Tools/Techniques
TEAM CONCEPTTEAM CONCEPTTEAM CONCEPTTEAM CONCEPT
• Project Manager, Project Engineers and
Subcontractors
• Corporate Management—Legal, Accounting,
SR Staff (QA/QC)
• Support Staff
PROJECT WORK PLANPROJECT WORK PLANPROJECT WORK PLANPROJECT WORK PLAN
• Discrete Tasks/Outputs
• Defined Budget/Schedule
• Staff Responsibility Identified
• Subcontractor Management
TOOLS/TECHNIQUESTOOLS/TECHNIQUESTOOLS/TECHNIQUESTOOLS/TECHNIQUES
• Tracking: Scope, Cost, Schedule
and Deliverables
• QA/QC and Key Review Points:
Internal and with Customer
THE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESSTHE CYCLE OF SUCCESS
ContractExecutionBusiness
Plan
Business Development
ProjectMgmt.
CustomerFollow-up
FOLLOW-UPFOLLOW-UPFOLLOW-UPFOLLOW-UP
• Communication
• Relationships
• “NO SURPRISES!!!”
Remember the “Building Blocks”
CLOSING OBSERVATIONSCLOSING OBSERVATIONSCLOSING OBSERVATIONSCLOSING OBSERVATIONS
• Have a Plan – Firm Meets Your Goals
• Know How to Communicate
• Be a Team Player - Develop Relationships and Find A Mentor
• Get Your PE!!!
CLOSING OBSERVATIONSCLOSING OBSERVATIONS(Continued)(Continued)
CLOSING OBSERVATIONSCLOSING OBSERVATIONS(Continued)(Continued)
• Focus on What the Firm Does Best but Adapt to Change and Be Creative
• Consulting is a Service-Oriented Profession—not a Commodity
