Pips Overview

Background and History

719 projects
$2.6 Billion in Procurement
98% Customer Satisfaction

The Performance Information Procurement System (PIPS) is a best-value selection and management process that can be used to purchase any type of product or service. Since 1994, the PBSRG has researched and tested the PIPS process on hundreds of projects, resulting in extremely high customer satisfaction (98%).

The PIPS process provides clients with a tool to assist them in making an informed decision based on performance information (and not based solely on price or marketing information). The process is unlike any other best-value tool in the industry. Not only does PIPS assist in selecting a high performing vendor, but the process also has a mechanism to document and manage the vendor/service during the project. This tool has proven to be just as valuable as the selection process itself.

The PIPS process has been implemented by many different clients in both the private and public sectors (by Local, State, and Federal agencies). Due to the rules and regulations of each client, the PIPS process is easily adapted and tailored to meet the constraints of each user. Clients have used the system on construction projects ranging from under $10,000 to over $100 Million, and have also used the process outside of construction (on service contracts) that have exceeded $400 Million. To view a complete list of clients that have used the process and a list of the different types of projects procured, click here.

The PIPS Process

The PIPS process provides clients with a tool to identify, select, and manage a best-valued vendor. The process uses several different components, as shown in Figure 1. Each component serves a particular purpose, and as a whole, they assist the user in minimizing risk. The steps of the PIPS process are briefly discussed below:

Filter 1 - Past Performance Information: Past performance information is collected on all critical team components (which are identified by the client). On a construction project, this may include the construction firm, the project manager, the site superintendent, and key subcontracting firms.

Filter 2 – Proposal and Project Assessment Plan: Vendors are required to submit a cost proposal and a 2 page Risk Assessment and Value Added plan, which relates to the project being proposed. The 2 page assessment allows the vendors to differentiate themselves based on their expertise rather than marketing information.

Filter 3 – Interviews: The vendor’s critical project individuals will be interviewed.

Filter 4 – Identification of Potential Best-Valued Vendor: Several decision making models are used to assist the client in quickly analyzing all of the data that has been collected. The models use pre-established weights, which are determined by the client on each project.

Filter 5 – Pre Award Period: The potential best-valued vendor is required to carefully preplan the project in detail, and to prepare a quality control document that addresses all of the risks they do not control.

Filter 6 – Weekly Risk Reporting System and Final Rating: Once the award has been made, the vendor is required to submit a weekly report that documents any risks that impact time or schedule. Upon completion of the project, the client will evaluate the performance of the vendor, and the rating will be incorporated into the vendors PPI database (to be used on all future projects).

Types of PIPS Users

The PBSRG has four distinct levels of user groups. Each user group has specific minimum requirements, which are shown in the Table 1 below.

No	Criteria	platinum	gold	silver	bronze
1	Number of years of PIPS implementation	4	2	2	1
2	Acquired ASU license for PIPS material	Yes	Yes	No	No
3	Number of personnel that have passed certification exam	2	1	0	0
4	Minimum number of PIPS projects procured	15	10	5	1
5	Minimum level of performance	90	90	90	80
6	Attend ASU Annual Conference every year	Yes	Yes	Yes	No
7	Coauthored paper on results of PIPS projects	Yes	Yes	No	No
8	Member of the PBSRG Industry Advisory Group	Yes	Yes	No	No
9	Member of CIB	Yes	Yes	No	No

	Platinum Users - Assigned to the most elite PIPS user. Platinum users must have at least 4-years of experience testing the process on a significant number of projects. Platinum users are able to promote the process to other users based on their high level of expertise.
	Gold Users - Assigned to advanced users that are testing transforming their organization into a more efficient and accountable agency. Users have invested resources in education, training, research and licensing. Users have also coauthored and published papers to document their results.
	Silver Users - Assigned to intermediate users that have tested the process on at least 5 projects. Users do not have licensing material to use process on their own, but have at least 1 personnel that has passed the certification exam.
	Bronze Users - Typically assigned to new users or small organizations that do not procure a large number of project a year. Users may have very limited experience with the PIPS process.