August 2, 2010

Qualifications-based selection gains traction with Defence Construction Canada

PATRICIA WILLIAMS

staff writer

As part of its ongoing efforts to promote qualifications-based selection (QBS), the Association of Consulting Engineering Companies (ACEC) -Canada is poised to meet with Defence Construction Canada (DCC), a key federal client.

Association president John Gamble said the department, which provides contracting and construction contract management services to the Department of National Defence, has signalled that it is prepared to look at alternative project delivery models, including QBS.

While ACEC has made overtures to Public Works and Government Services Canada, Gamble said the association believes Defence Construction represents the best prospect at this juncture for “fulsome” discussions.

“Proportionately speaking, DCC is much more focused on designing and building assets, in that real property is only one aspect of Public Works’ mandate,” he said.

“A significant amount of their mandate involves procurement of commodities.”

Last year, expenditures on professional services at DCC totalled just more than $82 million.

At the moment, Defence Construction uses a process called value-based selection, which includes technical and price components.

Typically, technical factors account for 85 to 90 per cent of the selection criteria, said Ron de Vries, senior vice-president of operations.

Under QBS, consultants’ proposals are evaluated initially on the basis of technical qualifications.

Negotiations are then undertaken with the top-ranked proponent on fees, among other items.

De Vries said meetings are expected to get under way in September with ACEC.

Gamble, whose association has been a long-time advocate of consultant selection on the basis of qualifications rather than lowest price, said DCC has a good appreciation of the value that engineers and architects bring to the table.

“They have a very good understanding of project lifecycle costs and the importance of having a good design at the outset of a project,” he said.

“They certainly view the fees they spend on architects and engineers as an investment in the project outcome.”

Gamble said the industry’s case has been bolstered by publication of a landmark university study commissioned by the American Council of Engineering Companies and the American Public Works Association.

That study confirmed that using QBS for procuring design and engineering services consistently results in lower overall construction costs, reduced change orders, better project results and enhanced client satisfaction.

“One of the challenges that the public sector has frequently put to us is ‘can you show us that this works,’” Gamble said.

“With this, we are in a position to show definitely this selection process works.”

In Canada, only Quebec has passed legislation mandating that ministries and agencies use QBS in procurement of architectural and engineering services.

Provincial consulting engineers’ association across the country continue to promote QBS, as recommended by the InfraGuide best practice for selecting a professional consultant.

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