Summary of IDAC Delivery Method.pptx
PPTX presentation 4 MB Posted
- Solicitation number
- W912DQ25SSJCMC
About this file
This is a PowerPoint presentation explaining the Early Contractor Involvement (ECI) and Integrated Design and Construction (IDaC) delivery methods, accompanied by a Sources Sought notice for an Architect-Engineer (A-E) Single Award Task Order Contract (SATOC) for the Department of Veterans Affairs John Cochran Medical Center.
The PowerPoint details how IDaC differs from traditional delivery methods by incorporating pre-construction services, increased collaboration between stakeholders, and optional Fixed Price Incentive Successive (FPIS) or Firm Fixed Price construction approaches. Key benefits include improved design quality, better cost control, and risk sharing. The Sources Sought notice seeks qualified A-E firms for a $100M unrestricted SATOC with a 5-year base period and 5-year option. The contract will support planning, design, and construction phase services for a new healthcare facility in St. Louis, MO. Responses are due by January 6, 2025, at 11 A.M. CST, with a virtual industry day scheduled for December 19, 2024. The solicitation is expected to be published in Q2 FY2026. The work requires experience with medical facilities, DVA Technical Information Library, and the IDaC delivery method. NAICS code is 541330 (Engineering Services).
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Text version
Introduction to
EARLY CONTRACTOR INVOLVEMENT
(eci) A variation of Tools on the Fixed Price Continuum
Introduction What Determines a Successful Project (*per AIA and AGC task force) Cost Quality Time/Schedule Safety Meets Originally Intended Purpose
Factors That Impact Success Integration/Collaboration Innovation Partnering
Success Factors – per the 2011 task force between American Institute of Architects (AIA) and the Associated General Contractors of America (AGC).
Integration and collaboration Civil Mechanical Plumbing Electrical Landscape Structural Other Site Mechanical Plumbing Electrical Landscape Steel Other Core Group
Owner
Stakeholders
Designer
Builder
Contract Type Risk Profile
IDaC
FPIS
-Pre-Construction Services -Firm Fixed Price Construction -Pre-Construction Services -Firm Fixed Price Construction
*OR*
-Fixed Price Incentive Construction
FFP = Firm Fixed Price FPEPA = Fixed Price with Economic Price Adjustment FPR = Fixed Price with price Redetermination FPIS = Fixed Price Incentive Successive Targets FPIF = Fixed Price Incentive Firm Target
CPIF = Cost Plus Incentive Fee CPAF = Cost Plus Award Fee Cost = Cost only CPFF = Cost Plus Fixed Fee
Traditional vs ECI Delivery Methods
AE
Firm Fixed Price Construction Bid Finish Traditional No Perfect Plans & Specs Change Orders Disputes Adversarial Cost/Schedule Growth
Traditional vs ECI Delivery Methods
AE
Firm Fixed Price Construction Bid Finish Fixed Price Incentive Construction Traditional
ECI – FPIS
Finish
AE
PreCon Svcs Bid Non-Traditional Administration Cost Accounting Standards Earned Value Management Fast Tracking Integration Increased Collaboration Reduce Cost/Schedule Growth Increase Quality Share Risk
Traditional vs ECI Delivery Methods
AE
Firm Fixed Price Construction Bid Finish Fixed Price Incentive Construction Traditional
ECI – FPIS
Finish
AE
PreCon Svcs Bid FPIS Construction
ECI – FPIS
Firm Fixed Price Construction
Finish
AE
PreCon Svcs Bid Non-Traditional Administration Fast Tracking Cost Accounting Standards Earned Value Mgmt System
OR
Non-Traditional Administration Fast Tracking Cost Accounting Standards Earned Value Mgmt System
Traditional vs ECI Delivery Methods
AE
Bid Fixed Price Incentive Construction
Finish
AE
Traditional
ECI – FPIS
PreCon Svcs Firm Fixed Price Construction
Finish
AE
IDaC
PreCon Svcs Non-Traditional Administration Fast Tracking Cost Accounting Standards Earned Value Mgmt System Firm Fixed Price Construction Bid Bid Traditional FFP Administration Integration Collaboration Cost Schedule Quality Shared Risk
Finish Firm Fixed Price Construction
Preconstruction services -Preconstruction Services include:
-Consultation in construction methodology, current market conditions and identification of coordination issues;
-Construction cost estimates -to validate designer prepared estimates at each review phase -for alternative designs and materials -for changed market conditions
-Cost control when there is a significant difference or the construction estimate exceeds the target, the estimates will be examined to determine the cause for the differences and steps made to correct the Government or contractor estimates
NOTE: The contractor shall not be responsible for any design services.
The responsibility of the design will remain wholly with the Designer of Record.
Fixed Price Incentive concept Government point of view As cost decreases, price to the Government decreases Share the risk of cost increase Ceiling Price limits the Government’s exposure
Contractor point of view Contractor can increase profit dollars and profit percentage by reducing cost below target cost Share Ratio above target price provides risk mitigation to the Contractor
Pull from ECI slide(s).
Preconstruction Services – Firm Fixed Price (FFP) Integration & Collaboration w/ Construction Manager Construction Option established at award Initial Target Cost + Target Profit = Initial Target Price Ceiling Price Share Ratio and Profit Adjustment Incentives Only exercised Bilaterally Construction must be definitized FFP prior to execution Off-Ramp and re-advertise Early Work Packages (FFP determined at award) Potential Examples Clearing, Grubbing, Site Development, Testing Long Lead Procurement Items
ADMIN DOES NOT INCLUDE
Fixed Price Incentive Construction Admin Cost Accounting Standards Earned Value Management System Fast Tracking (Preserve Off-Ramp)
Early contractor involvement Preconstruction Services – Firm Fixed Price (FFP) Integration & Collaboration w/ Construction Manager Construction Option established at award Initial Target Cost + Target Profit = Initial Target Price Ceiling Price Share Ratio and Profit Adjustment Incentives Exercise Unilateral or Bilateral Firm Target Cost to Final Price Negotiation (Incentive) Off-Ramp and re-advertise (unless fast-tracked) Early Work Packages (FFP determined at award) Potential Examples Clearing, Grubbing, Site Development, Testing Long Lead Procurement Items
ADMIN INCLUDES
Fixed Price Incentive Construction Admin Cost Accounting Standards Earned Value Management System Fast Tracking (Compress Schedule / Lose Off-Ramp) Significant risk in Fixed Price Incentive Design-Bid-Build contract.
Integrated Design and Construction FAR 52.216-17 (IDaC - Deviation) Fixed Price Incentive Successive
FAR 52.216-17 (FPIS)
Fast Tracking is defined as commencement of construction prior to completion/approval of Design.
This risk is completely owned by the contractor in a Firm Fixed Price Design/Build contract.
However, The Government owns significant risk in a Fixed Price Incentive Design-Bid-Build (ECI-FPIS) contract.
Improved Design Quality – Constructability Increased understanding of market conditions Pricing feedback from industry during design development Contractor incentivized to collaboratively work with Designer and Government team to meet cost objectives
BENEFITS OF IDaC
Opportunity for the builder to collaborate with the designer to optimize the design for quality and a cost-effective construction solution for a project.
IDaC permits award of the construction contract early in a project’s development through a competitive process. The Government retains the IDaC contractor during the design phase to work with the architect-engineer firm to provide pre-construction phase consultation services such as constructability reviews and cost estimating validation.
IDaC provides an opportunity for collaboratively solving problems early in the process. The earlier problems can be resolved, the greater savings can be achieved by the project and potential delays can be avoided.
By sharing risk with the construction contractor, it results in less risk to contractors and stakeholders while financially incentivizing the contractor to collaborate with the team to meet cost objectives.
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