21 Mar United Airlines (UAL)
Date of Work: 1996-1998
The United Airlines (UAL) San Francisco Maintenance Center is responsible for performing many high-risk functions 365 days a year. The facility department is faced with the difficulty of maintaining approximately 5 million square feet of office space, 135 acres of land, seven hangars, and various other buildings. Traditionally, projects were awarded using the low-bid process, resulting in costly change orders and low quality work.
- Quality construction was procured with less management and inspection.
- Performers gravitated to UAL.
- By using performance information at the right time, UAL minimized the amount of technical specifications it used.
- The best value PIPS can be implemented by non-technical personnel.
- High performing subcontractors can work on the same project without a general contractor.
- The high performance projects led to ten years of high performance, more than doubling the expectation of the client, and making their facility envelope/floors maintenance free for over ten years.
The United Airlines maintenance
facility implemented PIPS for over 2 years.
During this time period, the project manager ran PIPS on every type of
project that he was involved on, including:
- General construction
- High-speed roll-up doors
- Elevator installation
- Underground storage tanks
- Submersible pumps
- Environmental projects
Results were far superior to anything that had been procured at the facility. (Table 15.1)
|1||Total number of projects||32|
|2||Total award amount||$13 Million|
|3||Users comparison – Low Bid vs. Performance-Based||3 : 9|
|4||Overall satisfaction of PIPS||100%|
|5||Overall quality of construction procured using PIPS (10 max)||9|
|6||Percent of PIPS contractors that would be hired again||95%|
|7||Percent of project finished on time||98%|
|8||Percent of projects finished within budget||100%|
|9||Percent of projects with no change orders||100%|
|10||Number of companies that were evaluated (PPI)||75|
Table 15.1: Results of PIPS Projects at United Airlines