Background:
Pioneering Performance-Based Procurement for the 2002 Winter Olympics
The 2002 Winter Olympics presented a unique challenge for the State of Utah: delivering high-quality housing at the University of Utah on an expedited timeline to accommodate pre-Olympic events and full functionality during the games. Traditional procurement methods were deemed inadequate to meet these exacting requirements.
Innovation Through Performance-Based Procurement
To address this challenge, the Utah Division of Facilities Construction and Management, under my leadership, spearheaded the implementation of a novel approach: the Performance-Based Procurement System (PBPS). This innovative method moved beyond simply selecting the lowest bid. Instead, it prioritized contractor selection based on a comprehensive evaluation of performance criteria and pricing. The consultant who developed this procurement selection model was Dr. Dean Kashiwagi,
Arizona State University.
A Data-Driven Approach
The PBPS utilized a sophisticated mathematical model to assess contractor suitability. The model evaluated various categories, including:
Past Performance: This ensured contractors had a proven track record of successful project delivery.
Management Plan: Contractors presented anonymized plans outlining their approach to ensure project success.
Team Qualifications: Interviews assessed the project team’s capabilities and experience.
Measurable Success
The 2002 Housing project served as a testament to the effectiveness of PBPS. The project achieved significant milestones:
On-Time Completion: The project was completed within the tight deadline, with only one minor building delay.
Budget Adherence: The project stayed within its allocated budget.
High-Quality Construction: The delivered housing units met the highest quality standards.
A Legacy of Excellence
The success of the 2002 Housing project led to the widespread adoption of PBPS by the State of Utah for subsequent building projects. Importantly, this shift away from a “low-bid” mentality ensured that Utah citizens received high-performing buildings delivered on time and within budget.
A National Leader in Procurement
It’s noteworthy that Utah remains the only state to have abandoned the traditional low-bid approach in favor of a performance-based selection process. This innovative system serves as a model for other government entities seeking to optimize their procurement practices.
