Resource
Executive Summary
The federal government and most states use a competitive procurement process known as Qualifications-Based Selection (QBS) to acquire architectural and engineering (A/E) services on public projects. Under QBS, firms compete for work based on experience and technical expertise rather than submitting the lowest price.
After firms are evaluated and shortlisted based on their qualifications, the top-ranked firm is selected for price negotiations. A fair and reasonable price is then established based on a detailed scope of the project. If an agreement on price cannot be reached, negotiations proceed with the second most qualified firm. In most cases, the top-ranked firm is selected at a price that fits the client’s budget.
Chinowsky and Kingsley published the initial study of QBS in 2007 to examine whether and how this procurement process benefits agency clients and the public. From a quantitative perspective, their examination of project data found that using QBS saves money and achieves better performance, including lower construction costs and lower schedule growth compared to national averages. The study also found that the use of QBS resulted in consistently high levels of client satisfaction in terms of project success, as well as better risk management, particularly in the context of complex projects.
Today, more than a decade later, QBS remains the general law of the land for procuring design services. Despite the benefits of QBS identified in the 2007 study, as well as in prior and subsequent research, factors such as reductions in trained staff in smaller jurisdictions, lack of education on appropriate procurement policy, and misperceptions driven by confusing marketing campaigns from alternative procurement groups have caused questions to arise again regarding the advantages of QBS.
In this study, the authors address these questions through a national analysis of the current state of QBS procurement, an evaluation of the performance of both QBS and non-QBS projects drawn from a population of 68 projects, and a series of project case studies. An initial objective of the study was to determine whether the benefits of QBS in terms of cost savings and improved project delivery identified previously are still present today. The overall conclusion is that QBS continues to provide an advantage in traditional project performance metrics related to cost and schedule.
Specifically, QBS outperforms national performance averages in both cost growth and schedule growth, with QBS projects experiencing three percent cost growth compared to six percent nationally and seven percent schedule growth compared to ten percent nationally. Based on the analysis of the projects included in the study, the authors conclude that there is a strong association between the use of QBS, the quality of construction documents developed by the design team, and final cost and schedule performance.
In addition to cost and schedule benefits, the study finds that QBS provides value-added benefits across all projects, with particularly strong advantages for complex projects. These projects benefit most from experienced and stable design teams composed of high-quality providers. Project complexity can arise from factors such as community engagement, political or social sensitivities, technical design or construction challenges, and the management and collaboration of multiple project participants.
From the agency-client perspective, QBS projects achieve greater consistency in overall project success compared to non-QBS projects. The study also finds that QBS leads to increased innovation on projects. Innovation is critical to advancing project solutions and improving outcomes for clients, and it can occur on projects of any size or in any sector. The findings show that projects using QBS are more likely to produce innovative solutions, often because design teams have greater opportunity to explore creative approaches and collaboration when cost is not the primary factor in selection.
In summary, more than a decade after the original study, the authors again find that QBS provides direct benefits in both the design and construction phases of projects. From measurable cost and schedule improvements to indirect benefits such as reduced management challenges and increased innovation, QBS demonstrates a clear advantage across a wide range of project types and geographic regions.
Additional Resources:
- Future of Engineering Roundtable Series: An Analysis of QBS in the Procurement of Engineering Services – Previously recorded December 7, 2022
- Press Release: New Research Shows Engineering Projects Save Time & Money by Selecting Firms Based on Qualifications and Experience
- QBS Primer
- QBS Media Kit
- QBS Infographic