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PIPS Background & History |
| Since 1994, the PBSRG has researched and developed a tool to assist Clients/Owners in selecting high performing vendors, products, or services. The Performance Information Procurement System (PIPS) is a best-value selection process that can be used to purchase any type of product or service. The process has been tested on hundreds of projects, resulting in extremely high customer satisfaction (98%). |
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The PIPS best-value 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 selection process has three major stages that include: identification of the potential best-value vendor, requiring the vendor to pre-plan, and forcing the vendor to manage the project using a risk minimization tool after the award has been made (see Figure 1 below). |
Figure 1: Stages of Best-Value Procurement |
The detailed steps that are used to identify and select the best-valued vendor are shown in Figure 2. The PIPS process has six major components that are used in combination with one another to minimize risk. These components include:
- Education and Past Performance Information: The vendors are educated on the process, and Past Performance Information is collected on all critical components (vendor, suppliers, individuals, subcontractors, etc)
- Bid Proposal and Risk Assessment Plan: The vendors submit a bid proposal and a short (2-page) Risk Assessment Plan that forces the vendor to identify and minimize potential risk on the project being bid
- Interviews: The vendors critical individuals are interviewed
- Prioritization: The vendors are competed based on all of the performance information that has been collected. Various models (DIM and Linear Matrix) can be used to quickly analyze data
- The potential best-value vendor is required to pre-plan the entire project in detail and prepare their Quality Control plan
- Award, Weekly Monitoring, and Close Out: The awarded vendor will manage risks on the project using a weekly reporting system and their QC plan. 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
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The PIPS process is not a procurement method, but a best-value selection process. The process has been implemented within many different types of delivery methods, such as: Design-Bid-Build (DBB), Design-Build (DB), Construction Manager at Risk (CMAR), and Indefinite Delivery Indefinite Quantity (IDIQ) procurement methods.
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 projects ranging from under $5,000, to over $70 Million. The system has been tested on new construction and renovation projects. |
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Figure 2 The PIPS Best Value Selection Process |
The PIPS process is only a tool that should be used to assist the client in making a more informed decision. Although the PIPS process was originally developed to assist clients in selecting high performing construction contractors, the process can be used to assist in selecting any type of product or service based on value. The process has been tested in non-construction related services such as computer software selection, janitorial services and copy machine vendor services.
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PIPS Research Clients |
Healthcare
Denver Health, Holy Family Memorial, Bay City Health |
School District & Universities
Harvard University, University of Minnesota, Dallas ISD, Nadaburg SD, Arizona School Facility Board, University of Hawaii, Arizona State University |
Federal
US Army Medical Command, US Coast Guard, FAA |
State/Local
State of Hawaii, State of Utah, State of Washington, State of Missouri, State of Wyoming, State of Georgia, Hawaii DOT, City of Peoria, City of Miami Beach, City of Tempe, WY National Guard |
Private
United Airlines, Intel, Motorola, Honeywell, Phelps Dodge, International Rectifier, PECO Energy, IBM, Raytheon Missile Systems |
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Types of Projects Tested |
Construction
General Construction
Roofing
Painting
Mechanical
Waterproofing
Flooring
Electrical
Deck Coating
Paving
Elevator Installation
Pre-qualification
Abatement / Environmental
High-speed roll-up doors
Fire alarm
Emergency lights |
Non-Construction
Designer selection
Computer software
Copy machine vendor
Janitorial services
Landscaping services |
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The PBSRG is developing video presentations to assist in providing education to users on the PIPS process. Each video will require a username and password. To learn more about the PIPS process, please visit the Video Tutorials page. |
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