Challenges in Engineering Estimates for Best Value Design–Build Highway Projects

Gaikwad, Suraj V.; Calahorra-Jimenez, Maria; Molenaar, Keith R.; Torres-Machí, Cristina

doi:10.1061/(asce)co.1943-7862.0002104

Cited by 5 publications

(7 citation statements)

References 37 publications

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“…In US design-build best-value procurement, highway agencies consider non-cost factors (Choi et al 2020;Papajohn et al 2019) by including a wide variety of evaluation criteria. However, previous research has pointed out that the selection of design-builders is heavily skewed toward price (FMI 2018;Gaikwad 2019). The design-build utilization study by FMI (2018) determined that, despite using non-cost selection criteria, highway agencies make the majority of their selection based on price.…”

Section: Introductionmentioning

confidence: 99%

“…The design-build utilization study by FMI (2018) determined that, despite using non-cost selection criteria, highway agencies make the majority of their selection based on price. Further, reviews of the bidding results of 305 DB best-value highway projects in the US also reveals that 80% of the projects were awarded to the lowest bidder on a sample of projects from 15 states between 2005 and 2018 (Gaikwad 2019). Thus, although highway agencies consider non-cost criteria in the evaluation, most of these criteria are not influential in the decision.…”

Section: Introductionmentioning

confidence: 99%

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Structured Approach for Best-Value Evaluation Criteria: US Design–Build Highway Procurement

et al. 2020

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In best-value procurement, current practice shows that cost is frequently more influential than non-cost factors, and consequently, the lowest bidder is chosen in most of the cases; thus, a best-value selection is not achieved. Designbuilders cannot offer the best-value in their proposals if evaluation criteria do not show precisely what constitutes best-value and how best-value is scored. Thus, the aim of this research is twofold: first, to identify how highway agencies articulate evaluation criteria; and second, to propose a structured approach that enhances current practice on writing evaluation criteria. Through the lens of decision analysis, the researchers conducted a content analysis on 540 evaluation criteria included in 98 requests for proposals (RFPs) from 21 states across the United States (US). The study showed that 43% of evaluation criteria were generic, 53% used a generic constructed scale, and 4% assigned points or levels directly. These three groups represent different levels of specificity in writing evaluation criteria.Building upon these levels and on decision analysis theory principles, this research proposes a structured approach to support highway agencies in the process of crafting evaluation criteria. More precise and specific evaluation criteria

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Structured Approach for Best-Value Evaluation Criteria: US Design–Build Highway Procurement

et al. 2020

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“…Previous research has shown that after two decades of using best-value procurement, 80% of the projects were awarded to the lowest bidder [9,10]. Based on these data, it might be argued that best-value procurement works as the low-bid procurement with a selection only based on cost.…”

Section: Findings and Discussionmentioning

confidence: 99%

“…The final score (FS) for each proposer is the result of the award algorithm formula in each case, as indicated by Eqs. (10) and (11).…”

Section: Weighted Criteria Two Components and Three Componentsmentioning

confidence: 99%

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Best-Value in the Procurement of Highway Projects: Lessons Learned from US Design-Build Projects

Calahorra-Jimenez,

Garcia-Melero

2024

Civil Engineering

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Best value has been used for more than two decades in the procurement of design-build highway projects in the United States. The question of whether this type of procurement selects best-value proposers has been raised by several authors. Considering procurement data from 128 projects procured between 2000 and 2022, this chapter aims to provide insights on the impact that different types of best-value award algorithms have in the selection of design-builders as well as answers to the question of whether or not best-value procurement is actually selecting the best-value proposers. Ultimately, the chapter will reflect on lessons learned that might help highway administrators plan to use or use the best value in procuring highway projects.

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Importance of Noncost Criteria Weighing in Best-Value Design–Build US Highway Projects

et al. 2021

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United States highway agencies use best-value procurement with a fixed price to select design-builders. This method enables public agencies to choose the best proposer by assessing several factors in addition to price. Theoretically, considering cost and non-cost factors in the selection enhances the probability of selecting the proposer that provides the best value for each dollar spent. However, bidding results from the last 15 years show that 80% of best-value procurements are awarded the proposer with the lowest bid. The selection seems thus to be biased towards price. This research explores the balance between cost and non-cost components in best-value procurement by identifying how weights and scores influence the selection. The goal of this analysis is to determine the ranges of weights that better balance cost and non-cost factors in the weighted criteria best-value procurement. This study characterized a first-ofa-kind dataset of 882 non-cost scores and 1,158 cost scores from 347 best-value highway projects. The study applied simulation to the weighted criteria award algorithm to explore the balance between cost and non-cost factors and derive recommendations about how to make non-cost factors more influential. The results show that weight of cost

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Challenges in Engineering Estimates for Best Value Design–Build Highway Projects

Cited by 5 publications

References 37 publications

Structured Approach for Best-Value Evaluation Criteria: US Design–Build Highway Procurement

Structured Approach for Best-Value Evaluation Criteria: US Design–Build Highway Procurement

Best-Value in the Procurement of Highway Projects: Lessons Learned from US Design-Build Projects

Importance of Noncost Criteria Weighing in Best-Value Design–Build US Highway Projects

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