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 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 Important Causes of Delayed Projects in Saudi Arabia vs. PIPS: A University Campus Case Study

2016 ◽  
Vol 8 (1) ◽  
Author(s):  
Majed Alzara ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi ◽  
Abdulrahman Al-Tassan
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
University Campus ◽  
Performance Information ◽  
Literature Research ◽  
Public Construction ◽  
Procurement System ◽  
Causes Of Delays ◽  
The University

Saudi Arabia has been facing issues with completing construction projects on time and on budget. It has been documented that 70% of public construction projects are delayed. A case study was performed, at a University campus in northern Saudi Arabia, identifying the major causes of project delays. The University was experiencing delays from 50% to 150%. The delay factors were gathered from the University Projects Director and five engineers. The University delay factors were then compared to delay factors experienced on Saudi construction projects, identified by performing a literature research. The comparison identified nine causes of delays that both studies documented. The study also proposes a solution to minimize the nine major delay factors. A literature research identified one construction management method, the Performance Information Procurement System (PIPS), has documented multiple times its ability to improve project performance and minimize delays.

scholarly journals A Case Study Analysis on the Impact of a Hybrid Application of the Best Value Approach

2019 ◽  
Vol 11 (1) ◽  
pp. 52-61
Author(s):  
Lars Claassen ◽  
Arjan Roodhorst ◽  
Isaac Kashiwagi
Keyword(s):  
Decision Making ◽  
Performance Metrics ◽  
Selection Process ◽  
Case Study Research ◽  
Case Study Analysis ◽  
Best Value ◽  
Research Findings ◽  
The Impact ◽  
Selection Of

The Best Value Approach (BVA) has been used as a method to procure and manage services. As the BVA is further proliferated, there are applications of the BVA which deviate from the standard approach which are labeled as hybrid processes. This research focuses on better understanding BVA hybrid projects and the implications that may arise with such deviations. Using case study research, the BVA was used to procure services for the construction of ships. The research findings show the impact of hybrid applications of the BVA including (1) the selection of suppliers based on decision making instead of expertise (2) attempts to share and transfer risk, (3) incomplete clarification phase planning by expert suppliers, and (4) incomplete use of the Weekly Risk Report and Director’s report to track project deviation. The resulting hybrid application was found to have increased costs, increased decision making, and created a non-transparent environment. Suggestions have been made to improve upon these areas by applying the BVA structure including a selection process to identify expertise and a project management process which utilizes the supplier’s expertise to create a structure of transparency through performance metrics.

scholarly journals Price Based Environment of Design and Engineering Services

2014 ◽  
Vol 6 (1) ◽  
pp. 40
Author(s):  
Dean Kashiwagi ◽  
Geoffrey Child ◽  
Jacob Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Risk Management ◽  
Selection Process ◽  
Management Plan ◽  
Project Managers ◽  
Performance Information ◽  
New Model ◽  
Management Capability ◽  
Best Value ◽  
Procurement System ◽  
The Impact

Design Services have not met the value and expectations of the clients and their project managers. A previous research project studied the impact of the price based award environment on construction practices, and this research proposes that designers’ current practices and expectations are also price based and not performance based asperceived by many due to the qualifications based system [QBS] approach. The authors also propose that the qualification-based system [QBS] is a price based system and should be replaced by a best value approach, which includes a best value selection process such as the Performance Information Procurement System (PIPS.) The proposed design model will give control and risk management capability back to designers by having the designers utilize expertise, create transparency utilizing a weekly risk report (WRR) and a risk management plan (RMP.) The new model utilizes the expert’s expertise to create transparency, giving the advantage to the higher performing professionals. The researchers interviewed over 400 professionals to validate the concepts of the best value approach for the design community.

scholarly journals A Procurement Method that Considers Innovation

2020 ◽  
Vol 7 (1) ◽  
pp. 11
Author(s):  
Jorn Verwey ◽  
Wim De Vries ◽  
Isaac Kashiwagi ◽  
Dean Kashiwagi
Keyword(s):  
Measurement Theory ◽  
Performance Information ◽  
Past Performance ◽  
Information Measurement ◽  
Best Value ◽  
Treatment Equipment ◽  
And Performance ◽  
Procurement System ◽  
Procurement Method

A challenge facing buyers in the delivery of innovative construction and facility services is to utilize expertise without increasing project risk. The traditional price-based Design-Bid-Build approach minimizes the utilization of expertise of expert construction vendors by using an owner driven specification. The non-traditional approaches such as design-build, construction management @ risk (CM@Risk), and integrated project delivery are more flexible but still have no methodology to minimize the risk caused by innovative practices. The Best Value Approach utilizing the Performance Information Procurement System (PIPS) and the Information Measurement Theory (IMT) has been tested for over 20 years with high customer satisfaction and performance. However, the use of past performance information still gave the perception of high risk when considering innovative concepts that have never been previously utilized. This research uses a case study of a hospital owner competing the risk of innovative systems with existing, proven systems. The research group had the opportunity to interject the Best Value Approach into the case study delivering the innovative service/equipment requirement, allowing them to see how the approach and created Best Value environment reacted to the expertise that uses innovation. The case study involves the delivery of cutting edge cancer technology, the proton cancer treatment equipment/system. Even though the delivered service is not standard construction, the delivery approach can be easily used in construction.

scholarly journals Best Value Case Study for Cold Storage Facility in Miami, Florida

2014 ◽  
Vol 6 (1) ◽  
pp. 53 ◽  
Author(s):  
Dhaval Gajjar ◽  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Cold Storage ◽  
Complex Problem ◽  
Storage Facility ◽  
Performance Information ◽  
Modified Bitumen ◽  
Safety Hazard ◽  
Best Value ◽  
Facility Manager ◽  
Procurement System

A cold storage facility had been reroofed in 2003 (investment of $600,000) that required the removal of existing insulated roof and replaced with a 20 year modified bitumen roof. After six years, the facility posed a safety hazard due to the ice formations inside the cold storage facility. The source of the problem was not known. The traditional process of using a professional designer, a certified contractor, receiving a manufacturer’s warranty, and having the roof inspected by the local government inspector could not assist the owner and the FM resolve the complex problem. The facility manager (FM) decided to utilize a non-traditional Best Value (BV) Performance Information Procurement System (PIPS) to identify and resolve the problem. The main difference of the system is that the best value vendor and not the owner determines the final scope. This paper documents the BV PIPS approach and the resulting performance. An inspection five years later verified the performance of the Best Value approach and showed the value of the installed sprayed polyurethane (SPF) roofing system.

scholarly journals Improving the Current Procurement System in Saudi Arabia: A University Case Study

2020 ◽  
Vol 9 (2) ◽  
pp. 63-78 ◽  
Author(s):  
Majed Alzara ◽  
Mohammed Algahtany ◽  
Jacob Kashiwagi ◽  
Abdulrahman Al-Tassan ◽  
Dean Kashiwagi
Keyword(s):  
Saudi Arabia ◽  
Project Performance ◽  
University Campus ◽  
Performance Information ◽  
Past Performance ◽  
Public Projects ◽  
Best Value ◽  
Procurement System ◽  
Level Of Agreement

Public projects in Saudi Arabia have faced performance issues. The primary procurement system used in Saudi Arabia (low-bid) does not consider the contractors’ performance. A case study conducted at a university campus in northern Saudi Arabia showed low project performance. The current procurement system was analyzed and modified to utilize the concepts of the Best Value Performance Information Procurement System (BV PIPS). BV PIPS has demonstrated high levels of project performance in previous tests. A large survey was conducted of 761 classified contractors and 43 universities’ representatives. Survey respondents were asked to quantify their view regarding the current procurement system, rate their level of agreement regarding Best Value principles, and rate their level of agreement with the newly proposed procurement system which integrates Best Value principles. The results of the survey show that both, clients and contractors, are dissatisfied with the current procurement system, and agree with the new procurement system. The survey also suggests that respondents agree with Best Value principles suggesting that contractors’ performance should be tracked, and procurement should be conducted using both price and past performance information. The authors recommend that the newly proposed procurement model should be implemented in more projects in Saudi Arabia to further validate the Best Value system and improve the performance of projects in the country.

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 Application of Urban Geology in Construction Projects (Case Study: Urban Geology of Sarpol-e Zahab, Kermanshah Province, Iran)

2021 ◽  
Vol 53 (1) ◽  
Author(s):  
Sajad Afzali ◽  
Faezeh Taheri Sarmad ◽  
Mojtaba Heidari ◽  
Seyed Hossein Jalali
Keyword(s):  
Urban Space ◽  
Construction Projects ◽  
Urban Geology ◽  
Natural Phenomena ◽  
Horizontal Acceleration ◽  
Preliminary Study ◽  
The Impact ◽  
The City ◽  
Financial Losses

Urban geology is a preliminary study for the construction and development of cities, which has been more prominent in recent decades in some countries despite its long application history. It assesses the impact of geological and natural phenomena on urban space and available structures. The earthquake on Nov. 21, 2017, inflicted a lot of damage to the city of Sarpol-e Zahab, west of Iran, including financial losses and casualties. Reconstruction of this city and planning for its sustainable development entail conducting urban geological studies. In the present study, the effect of natural phenomena on Sarpol-e Zahab County was studied by investigating its geology and geomorphology. The results showed that, in addition to the earthquake that habitually affected the city of Sarpol-e Zahab, the hazards of other phenomena are also significant. Recorded horizontal acceleration in the recent earthquake confirmed the high seismicity of Sarpol-e Zahab has.

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