scholarly journals The Best Value Approach in the Netherlands: A Reflection on Past, Present and Future

2012 ◽  
Vol 4 (2) ◽  
pp. 147 ◽  
Author(s):  
Jeroen Van de Rijt ◽  
Sicco Santema
Keyword(s):  
The Netherlands ◽  
Construction Projects ◽  
State University ◽  
Performance Information ◽  
Adoption Theory ◽  
Future Developments ◽  
Best Value ◽  
History Of ◽  
Procurement System ◽  
And Control

More than 15 years ago Dean Kashiwagi created a process called BVP/PIPS (Best Value Procurement/Performance Information Procurement System) at Arizona State University. PIPS is a procurement method that aims to select the most suitable vendor for the job, to spur this vendor on to highest performance, and to reduce the client’s management and control tasks (Kashiwagi, 2009b). Kashiwagi developed the method for several years with the objective of improving the procurement and management of construction projects by reducing risk in selecting the top performer. The method (herein BV approach) has a number of steps, each built around a specific "filter”, which focuses on a different element to separate high and low performers. The early phase of the adoption of the process in the Netherlands has been described by Van de Rijt and Witteveen (2011) in the special issue of the Journal for the Advancement of Performance Information and Value. In this paper an update is given and future developments are described. The paper covers the BV approach, a brief history of PIPS in the Netherlands, technology adoption theory, adoption and adaptation of the technology and future developments.

scholarly journals Best Value Procurement/Performance Information Procurement System Development

2011 ◽  
Vol 3 (1) ◽  
pp. 12 ◽  
Author(s):  
Dean Kashiwagi
Keyword(s):  
The Netherlands ◽  
System Development ◽  
Measurement Theory ◽  
State University ◽  
Arizona State University ◽  
Performance Information ◽  
Information Measurement ◽  
Best Value ◽  
Procurement System ◽  
And Control

Best Value Procurement/Performance Information Procurement System (BVP/PIPS) has been developed by Dean Kashiwagi and the Performance Based Studies Research Group (PBSRG) from 1991 - 2010. BVP/PIPS is a licensed technology from Arizona State University that includes a deductive logic called Information Measurement Theory (IMT), an industry structure model which shapes the PIPS functions, and a process and structure that transfers risk and control to expert vendors. The BVP/PIPS has gone through numerous stages: the performance information centered PIPS (1994-2001); the PIPS testing phase (2001-2005); and the implementation stage (2005-2009); and the theoretical refinement and standardization of BVP/PIPS technology (2010). BVP/PIPS was introduced into the Netherlands in 2005 by a large general contractor Heijmans, the Rijkeswaterstaat, and aggressively proliferated by Scenter and others. BVP/PIPS usage in the Netherlands is modified to fit within the European procurement law. However, the main advantage of PIPS is the IMT based philosophy of minimized management, direction, and control of expert vendors.

scholarly journals Use of Best Value Process for Inspection and Preventive Maintenance of Pumping Stations

2012 ◽  
Vol 4 (2) ◽  
pp. 195
Author(s):  
Jannie Koster-Robaard
Keyword(s):  
Preventive Maintenance ◽  
Professional Services ◽  
Lessons Learned ◽  
Performance Information ◽  
New Paradigm ◽  
Water Board ◽  
Best Value ◽  
Pumping Stations ◽  
Procurement System ◽  
And Control

The water board Velt en Vecht is a Best Value (BV) client who used the Performance Information Procurement System (PIPS) process to select professional services in 2012. The client had a procurement mission of integrity, transparency, objectivity, and non-discrimination that aligned them with the BV PIPS system. With a strategic plan of leadership instead of management and control, the water board is an example of a visionary owner that can be successful with BV PIPS. Lessons learned from the water board implementation of PIPS are that BV PIPS is a change of paradigm, even for a visionary owner. Both the owner who selects and the contractors who compete for the award must learn the new paradigm of minimized decision making, proactive planning, and risk management.

scholarly journals A Large Dutch Engineering Service Adopts the Best Value Approach

2015 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Elske Bosma ◽  
Marcus Van der Ven ◽  
Oscar Kerkhoven ◽  
Dean Kashiwagi ◽  
Isaac Kashiwagi
Keyword(s):  
The Netherlands ◽  
Traditional Approach ◽  
Professional Services ◽  
Professional Organizations ◽  
State University ◽  
Arizona State University ◽  
New Approach ◽  
Best Value ◽  
Working Together ◽  
And Control

The Best Value (BV) environment was introduced into the Netherlands in 2006. By 2008 testing was being done by a partnership of Arizona State University and Scenter (Sicco Santema, professor from Delft University). In 2010, the first significant test of the BV approach was done by the Rijkswaterstaat to deliver the $1B fast track infrastructure projects, and by 2015, the BV approach had become the “buzzword” of procurement and the professional procurement organization NEVI. However, in the delivery of professional engineering services, larger, more traditional services which were built on a system of relationships between clients and vendors, clients controlling the expert, and the importance of “billable man-hours”. The transition from a traditional approach to a BV approach is very challenging. Large traditional professional organizations naturally will have more difficulty adapting to the new approach. The BV approach utilized the expertise of experts to replace the need for relationships and owner management, direction and control (MDC). It also places less value on traditional practices that have been used by professional services to get business (relationships and working together with the client in a trust based relationship). The study captures the efforts of a very successful engineering firm (the second largest in the Netherlands) as they attempt to become successful in this new approach. The Best Value team that they have put together has had outstanding results in using the BV approach to changing their paradigm.

scholarly journals Legal Perspective: Is Best Value Procurement achievable within the framework of the ARW 2005?

2011 ◽  
Vol 3 (1) ◽  
pp. 72 ◽  
Author(s):  
Ramona Apostol
Keyword(s):  
The Netherlands ◽  
Public Works ◽  
Test Case ◽  
Performance Information ◽  
The Public ◽  
Best Value ◽  
Legal Implications ◽  
Legal Perspective ◽  
Pros And Cons ◽  
Procurement System

This paper discusses the legal implications of using the elements of the Performance Information Procurement System (PIPS) procedure in the Netherlands. The article proposes the pros and cons of the potential compliance of these elements, in the form adopted in a test case with the municipality of ‘s-Hertogenbosch who attempted to meet the requirements of Aanbestedingsreglement Werken1 (hereafter: ARW) 2005. The author proposes that the national restricted procurement with pre-selection prescribed by the ARW 2005 may raise potential issues of interpretation and may therefore be too strict for the efficient application of the elements of the American methodology. Based on the legal discussion of the test case, the author is proposing to choose a more flexible policy for the public works contracts, which can benefit from the application of the American methodology.

scholarly journals Best Value Procurement Results within the GSA

2014 ◽  
Vol 6 (1) ◽  
pp. 72
Author(s):  
John Savicky ◽  
Dean Kashiwagi ◽  
Kristen Barlish ◽  
Kenneth Sullivan
Keyword(s):  
Construction Projects ◽  
Performance Metrics ◽  
Government Agency ◽  
Performance Information ◽  
Best Value ◽  
Overall Performance ◽  
Concurrent Testing ◽  
Procurement System ◽  
The Impact

A large government agency, seeking to become more efficient, implemented the Performance Information Procurement System (PIPS) Best Value (BV) process on various construction projects to determine if the program could increase the performance of outsourced services. The impact of this model for increasing the performance of procured projects is presented. The environment of the projects and testing of the process were unique, as they allowed concurrent testing and validation of multiple projects, similar in scope, and uniform application of key performance metrics. A case study is also used to illustrate the overall performance of the BV process. The findings in this paper show that the process resulted in approximately a 60% increase in performance with regards to customer satisfaction, project delays, and cost increases. In an industry with delays in excess of 20-50%, a model that results in an increase of performance for outsourced services is significant.

scholarly journals Using Best Value PiPS Procurement in Europe, Need for Compromise?

2011 ◽  
Vol 3 (1) ◽  
pp. 56 ◽  
Author(s):  
Marianne Van Leeuwen
Keyword(s):  
United States ◽  
The Netherlands ◽  
The United States ◽  
Legal Framework ◽  
Performance Information ◽  
Best Value ◽  
Legal Context ◽  
Private And Public ◽  
Legal Constraints ◽  
Procurement System

Best Value Procurement Performance Information Procurement System (hereinafter: BVP-PIPS) is a methodology developed in the United States and is now being used by private and public contractors in the Netherlands. For public contractors in Europe, application of BVP-PIPS is not straightforward because of the constraints of the European legislation on procurement. This paper describes how BVP-PiPS can be used in a European legal context. First, some basic aspects of European procurement law are explained. Next, the original BVP-PiPS method is described in short. Subsequently the method is tested against the European legal constraints. Implications from European procurement law to all phases from the BVP-PiPS method will be described. The paper ends with conclusions on how BVP-PiPS can be used within the European legal framework.

scholarly journals The Development of the Best Value Approach in the State of Minnesota

2015 ◽  
Vol 7 (1) ◽  
pp. 116
Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Kenneth Sullivan ◽  
Isaac Kashiwagi
Keyword(s):  
The State ◽  
State University ◽  
University Of Minnesota ◽  
Arizona State University ◽  
Best Interest ◽  
Project Risk ◽  
Best Value ◽  
History Of ◽  
Procurement System ◽  
The University

Owners in the State of Minnesota have a ten-year history of implementing the Best Value (BV) approach utilizing the Performance Information Procurement System (PIPS) with the Performance Based Studies Research Group (PBSRG) at Arizona State University (ASU). The University of Minnesota started testing and implementing in 2005. Other users quickly followed. By 2015, over 400 projects valued at approximately $500M had been delivered using the Best Value process. The results of the BV test projects validated the industry structure analysis concepts and results from another longitudinal study performed by the U.S. Army Medical Command (MEDCOM). The paper also discusses the modifications in the BV approach during the ten-year development. The research conclusions include the following: identified the owner and owner’s representatives as the major source of project risk (time and cost deviation); the identification of professional designers as a source of risk; contractors selected by the BV approach was the smallest source of project risk; and a paradigm shift is required to optimize the delivery of construction services. This paper concludes with a case study on a large construction renovation project with the Best Value minimizing project cost by the contractor thinking in the best interest of the client.

scholarly journals W117 Performance Information in Construction: 2017 Research Roadmap Report

2017 ◽  
Vol 9 (1) ◽  
Author(s):  
Dean Kashiwagi ◽  
David Gastelum ◽  
Jacob Kashiwagi ◽  
Sicco Santema
Keyword(s):  
Performance Metrics ◽  
Academic Research ◽  
State University ◽  
Arizona State University ◽  
Performance Information ◽  
Best Value ◽  
University Of Technology ◽  
Industry Practice ◽  
Productive Research ◽  
Construction Services

The CIB Working Commission W117, “Performance Measurement in Construction,” is one of the more innovative and productive research-based commissions in CIB. It focuses on the utilization of performance metrics in the delivery of construction services. The home for W117 is the Performance Based Studies Research Group (PBSRG) at Arizona State University (ASU) in Tempe, Arizona, where W117 and ASU-PBSRG hold their annual Best Value Conference. From its start in 2009, W117 was led by Prof. Dean Kashiwagi (ASU), and his group of innovators (Dr. Kenneth Sullivan, Sylvia Romero, John Savicky and Dr. Jacob Kashiwagi) and co-coordinator, Professor Charles Egbu, (Glasgow Caledonian University). In 2016, W117 was joined by Co-Coordinator Prof. Sicco Santema, (University of Technology, Delft, Netherlands) the visionary who led to the proliferation of the W117 technology in the Netherlands. W117 aims to change construction procurement and stakeholder organizations worldwide through the use of the information-based Best Value Approach (BVA). As such, it differs from most CIB Commissions that are more science driven, while W117 is more concept and impact driven. It has been one of the most successful CIB Commissions in bridging the gap between the construction industry practice and academic research. It has been prolific in publishing and running research tests with industry partners. W117 and PBSRG have published over 300 papers and generated licensed technology (47 licenses from AZTech, the licensing body of ASU for intellectual property rights). It is the most licensed technology from the most innovative university in the U.S. (as rated by U.S. News and World Report (2016).

scholarly journals Changes Required to Sustain a Best Value Environment

2020 ◽  
Vol 7 (1) ◽  
pp. 26
Author(s):  
Antoinette Bos ◽  
Dean Kashiwagi ◽  
Isaac Kashiwagi
Keyword(s):  
Risk Mitigation ◽  
Professional Services ◽  
Main Stream ◽  
Full Time ◽  
State University ◽  
Arizona State University ◽  
Best Value ◽  
Private Entity ◽  
And Control

The BV environment was introduced into the Netherlands in 2004. By 2008 testing was being done by a partnership between Arizona State University and Scenter (private entity led by Sicco Santema). In 2010, the $1B fast track projects were procured by the Rijkswaterstaat, using the Best Value Procurement. By 2015, instead of the BV approach being treated as just another option, NEVI, the Dutch professional procurement group (third largest procurement group in the world) designated the Best Value Procurement as one of the main stream procurement approaches, and hired a full time Director to guide their Best Value Procurement training programs. However, in three major areas: IT delivery, professional services and the medical arena, buyers and larger-traditional vendors were having difficulty adapting to the approach. The BV approach utilizes the expertise of experts to replace the need for owner management, direction and control (MDC). However, a stumbling block occurred, when a “Best Value” vendor was selected, but did not have their detailed plan as a baseline from which they could identify risk that was outside of their control, their risk mitigation plan, and a simple way to create transparency to help the client/user. This is a case study that shows how the Best Value Approach was requiring a paradigm shift with both the user and the vendor, which neither party was well-prepared for.

scholarly journals Introduction of the Best Value Approach in India

2013 ◽  
Vol 5 (2) ◽  
pp. 137
Author(s):  
Syed Nihas ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi
Keyword(s):  
Construction Industry ◽  
Research Group ◽  
Measurement Theory ◽  
Industry Structure ◽  
Performance Information ◽  
Information Measurement ◽  
Best Value ◽  
Procurement System

In September of 2013 the Performance Based Studies Research Group (PBSRG) made its first entry into India to introduce the Best Value approach. The purpose of the entry was to identify if the Best Value (BV) approach and technology could optimize the performance of the Indian Construction industry. This paper documents the results of the exploratory effort. In 2014, industry visionaries in coordination with the SJCE university group, will commence testing of the implementation of the licensed Best Value technology in India. The technology includes the Information Measurement Theory (IMT), the Performance Information Procurement System (PIPS) and the Construction Industry Structure (CIS).

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