University of Minnesota
In 2005, the University of Minnesota Capital Planning and Project Management (CPPM) partnered with the PBSRG to test the PIPS Best-Value process on various construction projects on the Twin Cities Campus. The goal of the research was to increase the performance of construction, obtain the best-value for the University, and increase the overall efficiency of the delivery of construction. The process was initially tested on roofing, mechanical, and electrical projects.
In 2007, after two years of testing, UMN-CPPM made the PIPS program a standard procurement option available on all projects. This decision was made in part due to the high performance results of the pilot program. In 2008, the UMN-CPPM expanded the use of the program to include professional services (architectural, engineering, and consulting).
In 2011, Michael Perkins stated on an NCS Radio interview that while using PIPS, the University has saved $42M or 31% off their expected spend in construction projects.
Program Summary & Significant Achievements (2005-2012)
|Number of years using/testing PIPS||7 Years|
|Total number of project procured using PIPS||320|
|Total estimated budget of projects||$238 M|
|Total awarded cost of projects||$119.6 M|
|Total number of vendors with Past Performance Information (PPI)||355|
|Total number of completed projects||216|
|Percent of project completed without vendor cost increases||98.65%|
|Average contractor change order rate||0.07%|
|Final post project close out rating of PIPS (1-10)||9.7|
|Final post project close out rating of vendor (1-10)||9.5|
|Average increase in contractor profit||4.5%|
|Percent of projects where Best Value was also lowest cost||51.42%|