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2010 Problem Statement Your Vice-President has tasked your team with bidding a State DOT project making modifications to an existing interstate interchange system. Your team must research the project, review the plans and specifications and assemble a full estimate and proposal to submit a qualified bid package. In today’s economy, companies are struggling to stay in business and will operate at or near cost just to survive. This is not acceptable with your Company. You must strive to find a competitive edge in your construction methods and estimate to beat your competition while still maintaining a reasonable margin. The DOT project you are bidding on is a unit-price based contract. However, you are also required to submit the following: A Qualifications Package – including the following: Letter of Transmittal Mission Statement and Management Philosophy Organizational Structure Resumes of Key Personnel Financial Statements Representative Past Projects Current Projects and Backlog Project Control Procedures/Systems Safety Management/Safety Record Quality Management Any other Qualifications that set your Company apart Submit six hard copies (8.5" X 11", three-hole punched, binder clipped document; there is a 20 page maximum on the qualification package excluding the transmittal letter) and one electronic copy (PDF file format on CD). Project Bid – Some items to consider: Accurate quantity takeoffs Reasonable crew sizing and production rates Accurate subcontractor/supplier quote analysis Reasonable overhead and profit budgets Estimate organization and backup information for unit prices Bid form completed correctly Project Schedule – Some items to consider: Address specific time constraints in the specifications Enough detail to provide an evaluation of the accuracy and credibility of the schedule Reasonable durations for activities Orderly and logical In agreement with bid estimate and proposed construction methods Identify critical work items and/or milestone dates Labor, equipment and cost loading Cash flow (projected demand on the contractor’s capital) based on the project bid and the project schedule Construction Planning, Equipment and Methods – Some Items to consider: Appropriate construction planning and methods Equipment and manpower selection Staffing assumptions, both labor and management In agreement with bid estimate and schedule Anticipated contingencies or concerns Solutions to potential problems Project and cost control procedures/systems Safety and quality issues In agreement with specifications Oral Presentation - Some items to consider: Quality of visual aids, handouts Apparent knowledge Appearance/professionalism of presenters Freedom from distracting mannerisms Quality of voice (projection) Visual contact Confidence and salesmanship Teamwork and coordination; all participate Question and answer responses Heavy Highway Division 2009 Your local market is struggling and the competition is fierce. An unusual project from an unusual owner has just come out for bid. You have experience with the type and scale of work in this locale. To win the job, you must be the low bidder in a unit-price bid with multiple competitors. In order to receive permission to bid the job, you have to gain your District Manager’s confidence and put together a thorough estimate, without errors. As part of the competition, you must complete and submit a Bid Package as stipulated in the documents. It will be a competitively bid, unit-price job. In addition to the bid package, your company must submit its Detailed Estimate. · The detailed estimate shall include a cost breakdown of labor, equipment, materials, subcontracts and other necessary supplies for each bid item. · Overhead costs shall be identified and allocated. · Include a detailed explanation of risk and margin (profit) analysis. · Provide a summary explanation of your methods of construction required to perform each bid item. The Project Schedule that your team develops will also be submitted for review during your oral presentation. The Oral Presentation will be structured so that your team can demonstrate your understanding of the project and your bid. Your team should be able to provide, at a minimum – a project overview, problem solutions, measurable accuracy and the reviewer’s confidence that you know the project. Ultimately, the total project cost is most important, but if your scheme of building the work doesn’t gain your District Manager’s confidence, he/she will not allow you to submit your bid. Heavy Civil Division - Problem Statement 2007 – Fall Because of your company’s good reputation as a reliable structural concrete subcontractor, a large general contractor has contacted you to submit a proposal to them for construction of a portion of one project for a large mass transit system. Although they could easily do this particular portion with their own forces, there are several more projects that comprise the overall system coming up for bid in the near future. They hope to enlist the help (resources) of several subcontractors to increase their chances of being able to construct all of the projects in the system. The contractor’s bid to the owner for this work will be one Lump Sum – complete in place. However, they will make sure you have everything included for this portion of the project by requiring a detailed breakdown of your estimate for the work rather than one Lump Sum. Key to the success of this proposed subcontract is your ability to supply the necessary manpower and equipment to complete the work. Giving them your estimate of these resource requirements will enhance their confidence in you. Also, the bid documents require a projected cash flow for the work so it is to your advantage to supply this information on your portion for incorporation into their proposal. Time is of the essence for them and so it will be for you. Since access and working room will be tighter than normal for all involved, they will want you in and out in a timely manner. They have work to do on both ends of your portion so they will want to know where you will start, where you will finish and details of everything in between so they can plan their work accordingly. The general contractor has a formal bid proposal to complete for submission to the owner, however you do not. You have flexibility on what to submit and how to present it. To gain the general contractor’s confidence, all of your information should be submitted in a professional manner using the latest computer software and project management technology. In addition to your written proposal, the general contractor will schedule a meeting with you to give you a chance to explain and elaborate on your proposal. You will want to convince them that your methodology and plan will succeed. An accurate and feasible plan that anticipates field problems as well as other constraints will give the general contractor the confidence they need to enter into a subcontract with you. A successful project will likely lead to more opportunities with this company. Heavy Highway Division 2006 A transportation oriented public works project that you have been tracking for a long time is finally out in your area. You expect 2 or 3 other bidders. You’ve got to be cheap but you can’t afford to be wrong. You will need your most experienced team on this one. As part of the competition you must complete and submit a Bid Package as stipulated in the documents. It will be a competitively bid unit price job. In addition to the bid package, your company must submit its Estimate. · The estimate should include a detailed cost breakdown of labor, equipment, materials, subcontracts and other necessary supplies for each bid item. · In addition to your estimated costs, your methods of construction should be clear for each bid item. In the final problem statement there will be specific requests for methods, manpower and equipment usage for designated items of work. · Overhead costs should be identified and allocated. · Include an explanation of risk and margin analysis. · The work requires concrete batching, structural concrete (bridgework), concrete paving and more… The Project Schedule that your team develops will also be submitted for review during your oral presentation. Computerized cpm schedules are o.k., but bring adequate schedule paper for hand drawn schedules. The oral presentation will be run like a contractor’s internal Estimate Review Meeting. Cost is important but if your scheme doesn’t gain your District Manager’s confidence it won’t matter. Problem Statement 2005 Fall The owner is concerned that the successful contractor be able to achieve his schedule and understands the environmental complexities of the project. The Army Corps of Engineers 401 permit will be provided with the problem statement. Your local market is booming and the competition is fierce. But an unusual project from an unusual owner has just come out for bid. You have experience with the type of work and locale. To win the job you have to be low bidder. To bid the job you have to gain your District Manager’s confidence and put together a thorough estimate without errors. As part of the competition you must complete and submit a Bid Package as stipulated in the documents. It will be a competitively bid unit price job. In addition to the bid package, your company must submit its Estimate. · The estimate should include a detailed cost breakdown of labor, equipment, materials, subcontracts and other necessary supplies for each bid item. · In addition to your estimated costs, your methods of construction should be clear for each bid item. · Overhead costs should be identified and allocated. · Include an explanation of risk and margin analysis. · The work involves RCC and some challenging ground conditions. The Project Schedule that your team develops will also be submitted for review during your oral presentation. The oral presentation will be run like a contractor’s internal Estimate Review Meeting. Cost is important but if your scheme doesn’t gain your District Manager’s confidence it won’t matter. Problem Statement 2004 Your state DOT has just issued the contract documents for a project your firm has been tracking for several months. You expect the competition to be tough (at least 6 other bidders), but you think your firm has developed some competitive advantages. As part of the competition your company is required to submit a complete bid package, develop a thorough estimate and project schedule. The Bid Package will be similar to any DOT competitively bid, unit price job. Your company should acquaint itself with these standard procedures before the competition. In addition to the bid package you company must submit it’s Estimate of costs for review and comment during the oral presentation. The project estimate will include many subcontracted items. Some will require comparison with alternatives to select the lowest cost option. Emphasis will be placed on your companies self performed work. This will include highway grading and asphalt paving (including asphalt plant mix), structural concrete bridges (including batching), maintenance of traffic, and overhead costs. Your methods and crew analysis should be included for each item of self performed work including a detailed cost breakdown of labor, equipment, materials, subcontractors and necessary supplies. Overhead costs will include an analysis of project management requirements, office facilities and other. Explanation of risk and margin analysis. The Project Schedule that your team develops will also be submitted for review during oral presentations. The contract will be A+B, requiring resource loading and leveling. The Oral Presentations will closely resemble a contractor’s internal bid review process. Teams should be prepared to review their approach to the job including the critical path on the schedule, estimated production rates and project management requirements Problem Statement 2003 Fall Your firm has the reputation for fast track urban transit work, and the ability to come up with cost effective ideas and innovative equipment for varying soil conditions. Due to your firm's reputation, your firm is invited to submit a proposal for construction of foundation for a fast track urban transit project. There are several environmental and noise issues that will need to be addressed as part of your proposal. These will be addressed closer to the bid date. The R.O.W. is very tight in some areas of the job and headroom restrictions exist as well. The new foundations are on the critical path, and must be completed in a timely manner. The owner has very strict requirements on the methods of construction. Your proposal must be within the owner's strict guidelines. Obstruction may be encounter during the foundation construction. The new foundations may include auger cast piling, concrete bearing pile, or caissons. Your firm is to submit a proposal for the construction of the foundation system. The proposal should include a cost estimate, means, method and a detailed scheduled. Problem Statement 2003 Spring A public works project has just advertised in your area. Your company has been tracking this project and will be submitting a bid. It is a fixed unit price bid with schedule requirements. The owner has chosen the A + B bidding format: Total Bid (A) = _________________ Total Bid (B) $3,000 x ____________________ = _________________ (cost per day) (enter calendar days bid) (not to exceed ___ days) Total Basis for Comparison (A + B) = _________________ A = Total Bid by contractor (amount to be paid at completion of the project) B = Calendar Days required for construction as determined by the contractor This project involves: concrete structures, excavation and embankment, pile driving, support of excavation, large diameter pipe, concrete box culvert, and dewatering. Your company will be required to submit a complete A + B bid for the project in accordance with the line items in the Bid Form. You will need to consider all elements of bid preparation including but not limited to: quantity take-off, means and methods, production factors, schedule, direct costs, indirect costs (overhead) and risk analysis. You will be required to analyze quotations from material suppliers and subcontractors. It is an equipment intensive project and you will need to select equipment appropriate for the job. Local wage and equipment rates will be provided with the problem statement. The following must be submitted with the sealed Bid: § Completed Bid Form. § Detailed cost analysis supporting each price submitted on the Bid Form, including “at a minimum” quantity take-offs, labor and equipment cost, permanent material pricing, subcontract pricing and small tools/supplies utilized. § Detailed cost analysis of indirect costs (overhead) and an explanation of how it is allocated to the Bid Form line items. § A written description of the means and methods. § A manpower loaded critical path method schedule for the project.
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