According to our partner, the Performance Based Studies Research Group (PBSRG), 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 over 720 projects valued at $2.6 Billion with an 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 has exceeded $400 Million.

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).