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Qualifications-Based
Selection (QBS)
What
is the issue?
Currently, most engineering
services are contracted on the basis of “low-fee
bidding.” In other words, contracts are
typically awarded to the supplier that can offer
to complete the work at the lowest price. This
process all but eliminates the ability of engineers
and engineering firms to innovate. When the emphasis
is on short-term cost versus the long-term value
of the project, engineers are forced to focus
on immediate financial parameters as opposed to
innovative solutions that may make a project more
cost effective long term. Low-fee bidding encourages
the replication of older, cheaper technologies,
which may actually cost more over the life cycle
of a project.
OSPE
Position
OSPE
believes that clients receive the best overall
project value when they rely on procurement practices
that emphasize the qualifications and experience
of engineering service providers. OSPE recognizes
that economics play a role in every procurement
process, but we believe that innovation, competitiveness,
and long-term sustainability are more important.
For
more information and a printable version of the
policy statement >>>
Developments
In
July 2008, the province of Quebec officially adopted
QBS as its procurement method for contracting
engineering services.
The
City of London has now fully implemented and adopted
a system of QBS for all its infrastructure projects
following its completion of a pilot study on its
benefits. To review the summary of this project’s
success, select
the link.
OSPE
has been collaborating with the Ministry of Transportation
and Consulting Engineers of Ontario on the development
of a pilot study to demonstrate the benefits of
QBS. Currently, the Ministry is undertaking several
pilot studies that involve various public infrastructures
projects across Ontario.
Mar.
6, 2007- Popular
InfraGuide comes to an end
Aug.
1, 2006- OSPE
event helps government understand benefits of
Qualifications-Based Selection
Feb.
21, 2006- OSPE
continues to advocate Qualifications-Based Selection
at Queen's Park
Jan.
24, 2006- OSPE
presses Ontario government to adopt Qulaifications-Based
Selection
Nov.
10, 2005 - OSPE
develops Qualifications-Based Selection Guide
May
2, 2005 - OSPE
news release urges Ontario government to implement
QBS
Apr.
28, 2005 - OSPE
sends letter to Premier urging government to implement
QBS
Aug.
30, 2004 - OSPE
meets with representatives from the Ministry of
Transportation to discuss QBS
Aug.
26, 2004 - Qualifications-Based
Selection (QBS) high on the agenda with the Minister
of Infrastructure Renewal
Jun.
2004 - Letter
to Chair of Consulting Engineers Ontario (CEO)
inviting them to participate on the Qualifications-Based
Selection and Innovation Task Force
May
2004 - OSPE
response to the Ministry of Public Infrastructure
Renewal's Discussion
Paper on Infrastructure Financing and Procurement
- Building a Better Tomorrow.
June
2003 – The Society Board of Directors
approved the creation of the Qualifications-Based
Selection and Innovation Task Force. The Task
Force will examine the issue of low fee bidding
and its impact on engineering innovation and competitiveness,
formulating policies, promoting best practices
and developing positions that can be promoted
to various levels of government and other procurers
of engineering services.
View
all of OSPE's submissions on QBS
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