Project Case Studies

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Value in Procurement of Large Scale Services


Cost Impact: increased to $80M net revenues

Value Added Impact: $2.3M capital improvements


Type: Services
Vendor: ReCommunity

Location: Phoenix, Arizona


Contract: $48,707,806


Start Date: December 2012
Duration: 10 years

Material Recovery Facility (MRF) Services

The City of Phoenix Public Works Department owns two facilities used to produce single stream recyclable material. The City partnered with ASU to re-compete the contract for facility operation services with the intent of improving performance and increasing revenues.

The City found the Best Value interview process to be highly successful in identifying the expertise of bidders. Each team brought operations personnel for individual interviews and answered questions regarding their planned operation approach and risk minimization strategies.

The Value Added portion of the RFP process allowed the bidders to propose additional scope and services that would benefit the City. Due to this process, the awarded vendor was able to offer capital improvements valued at $2.3 million to upgrade certain processing equipment.

REFERENCE:  Chuck Hamstra, City of Phoenix |

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Vendor-Generated Solution Maximizes Cost Model


Schedule: 0% Transition Delays
Cost Impact: $3.5M guaranteed revenue generation per year


Type: Services

Vendor:  Follett Higher Education

Location: Tempe, AZ


Contract: $35,000,000


Start Date:  May 2011

Duration: 10 Years

Campus Book Stores

The University turned to our group to outsource campus book store services. Although satisfied with their in-house operations, the University felt pressure to seek vendor expertise for long-term solutions due to rapidly evolving market conditions in the book industry.

Our group facilitated an RFI process to define market capabilities and identify current performance levels of in-house book store operations. A Best Value RFP was released, including an option for vendor-created cost model proposals. This innovative RFP approach resulted in an awarded contract which guaranteed the University minimum commissions of $3.5M per year, $2M in capital improvements, plus additional percent commissions. This was a huge financial success, especially when compared to the cost-based in-house model being utilized prior to outsourcing.

As the awarded vendor participated in the Best Value pre-planning process to seamlessly transition into full operation and management responsibilities before the start of the ensuing semester, all with 0% schedule impacts.

REFERENCE:  Sam Wheeler,  Executive Director of Business Services |

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Selecting the Best Value for the Lowest Cost


Contractor Change Orders: 0%
Cost Impacts: 2.8%
Satisfaction: 10 out of 10 vendor risk rating by Client PM


Type: Best Value (PIPS)


Contractor: J.E. Dunn Construction

Designer: TSP, Inc.

Location: New Hope, MN

Contract: $26,000,000

Start Date:  March 2011

Completion Date: August 2012

North Education Center, New Hope MN

Intermediate School District 287 partnered with our group to implement the Best Value Model on the construction of a new classroom facility. Best Value procurement identified the selected contractor as being both the most qualified proposer and the lowest cost.

The risk- and value-focused procurement model clearly identified the best value contractor among the nine competing contractors. Best Value evaluations demonstrated that the awarded contractor understood the project needs and risks, as their Risk Assessment submittal and project team interviews both received the highest score.

North Education Center was completed with an overall 2.8% cost increase (0% contractor change orders) in August, 2012. The project was awarded the 2013 Minnesota Construction Association Choice Award, which honors one project that was completed through resourceful blending of construction techniques and professionalism.

District 287’s Facilities Director, Tom Shultz, identified the Best Value method for their success:
“If I’m the owner, I’m not the expert [in construction],” Shultz said. “I’m asking the experts to tell me how much it’s going to cost, and where the risks are in the building. The process doesn’t focus solely on price: it focuses on finding the best contractor to give you the best building.”

REFERENCE:  Tom Shultz,  Director of Facilities | | 763-550-7120

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Best Value Optimizes Delivery of Health Insurance Services


Total number of colleges involved: 4
Increase in financial performance: 27%
Increase in client satisfaction: 18%
Reduction in client effort: 22%
Reduction in vendor effort: 9%

Premium rates decreased while coverage increased


Type: Health Care


Contract: $36 M


Renaissance Insurance Agency


Start Date: August 2010
Completion Date: August 2013

Student Health Insurance Consortium (SHIP)

health-careIn 2009, the State of Idaho partnered with the PBSRG to test the Best Value process on the provision of a student health insurance consortium (SHIP) between Boise State University, Idaho State University, and Lewis-Clark State College. In 2010, Eastern Idaho Technical College joined the consortium. The performance of the SHIP program is being measured in terms of student satisfaction, university satisfaction, and program financials, and there have been significant improvements in each criterion since 2009 when the new program began.

Testimonial: "Best Value is simplistic, systematic, and it holds everybody accountable. And it shifts risk to the right place…the vendor." - Mark Little, State Purchasing Manager, State of Idaho

REFERENCE: Mark Little, State Purchasing Manager | | 208-332-1611

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