Procurement

Qualification Based Selection (QBS)

Background:

Qualification Based Selection is the most effective method available for procuring professional design services. It assures the owner that they are getting the highest quality services at the best possible price. There has been great pressure on state government to reduce the costs of services and those downward pressures are reflected in legislation that has been introduced in recent years to make price a significant factor in the selection of all services, including engineering. Introducing price as a factor in the selection process can significantly reduce the quality of services being provided and creates an incentive for the designers to not do their “best” work, but only the simplest and easiest to provide.

 

Though selection by qualifications rather than price may seem counter-intuitive, it is clearly the best way to procure professional services. The cost of engineering services is only a tiny fraction of the overall cost of a project, yet has a significant effect on its overall costs. High quality design translates into better design, which result in lower costs for construction, maintenance and operation of the facility.

 

Selection by qualifications actually works in the State’s best interest. It assures that the highest quality services are provided through a negotiation process. The highest ranked firm is highly motivated to successfully negotiate an agreement onthe scope of services and fees with the owner, since the owner can end negotiations with the firm if they cannot come to agreement and begin negotiations with next highest ranked firm.

 

The State Designer Selection Board utilizes the QBS process and many counties and cities use it. The current QBS law allows for its use by state agencies, but it is not mandatory.

ACEC/MN Position
ACEC/MN strongly supports the use of Qualifications Based Selection for the selection of all engineering services. We believe that it should be the required method of selection of engineering services for all state and local units of government. The current law allowing the use of QBS as an option should be changed to require its use for all state and local units of government.