PROCUREMENT OPTIONS INTRODUCTION The manner in which the owner makes the final selection of the primary members of the project team is considered the procurement process. Depending on the project delivery model, the selection may extend to the design professionals, the prime constructor, the design-build team, or, in the case of Integrated Project Delivery (IPD), all the signatories to the multi-party contract. The procurement process is also referred to as the “selection” method. The solicitation, advertisement, bid, Request for Qualifications (RFQ), Request for Proposals (RFP), timing and basis of the firm selection, type of contract, administration processes, and procedures are all elements of procurement affecting the project delivery process. Many in the industry separate the discussion of project delivery methods from the discussion of procurement. This approach is acceptable; however, the subjects of project delivery and procurement are so tightly intertwined that they should be considered together. The best example of this interrelationship is with the Design-Build project delivery method. Design-Build can be procured with any one of the procurement approaches described in this chapter. However, to procure a Design-Build project with a Low Bid or Best Value: Total Cost procurement, the owner might choose to require more highly developed design criteria or even create bridging documents to provide to the design-builders competing for the project. Developing these design criteria takes time and may call for bringing in an outside consultant. This can be very different from procuring a Design-Build project using Qualifications Based Selection, which requires little or no design information during the selection process. Even though both examples are referred to as Design-Build projects, the strategies and business dynamics are very different. This illustrates that the procurement process used to select the design and construction teams does have a major impact on the delivery method and the resulting relationship. Consequently, the definitions of the project delivery methods used throughout this book are often discussed in conjunction with the procurement options. This chapter discusses the four typical procurement options: = Low Bid = Best Value: Total Cost = Best Value: Fees ® Qualifications Based Selection There are numerous terms for the four typical procurement options. For example, Low Bid is sometimes referred to as a “Sealed Bid.” These synonymous terms are discussed later in the chapter. 23