20070910388

XIAI)ESI(N-BUILD VS DESIGN-BID-BUILD: A PROCUREMENT METHOD SELECTION FRAMEWORK

By

Griffin K. Stauffer LT, CEC. USN

DISTR~IBUTION STATEMENT A Approved far Public Release Distribution Unlimited

AX(t jIJSI*2006

20070910388

0N T * UI 0

&

Purdue University Division of Construction

A

Engineering and Management

21N, ?School

of Civil Engineering

West Lafayette, Indiana 47907-2051

DESIGN-BUILD VS DESIGN-BID-BUILD: A PROCUREMENT METHOD SELECTION FRAMEWORK

An Independent Research Study Submitted to the Faculty of Purdue University by Griffin K. Stauffer LT, CEC, USN

In Partial Fulfillment of the Requirements for the Degree

of Master of Science in Civil Engineering

August 2006

Approved:

Professor Luh-Mann Chang

!Pr-ofessor Thons Seager

Profe'ssor Phillip Dunston

ACKNOWLEDGEMENTS

I would like to thank those individuals who helped make this study successful. Specifically, I would like to thank Professor Chang, whose previous work and insight into this field lent significant guidance that proved invaluable, the U.S. Navy and Civil Engineer Corps for giving me the opportunity to attend Purdue University, and LT Dude Underwood for his insight, friendship, and camaraderie that made the experience memorable. Finally, I would like to extend the most sincere thanks to my wife, Jessica, whose patience, love, and support throughout my career has been unfailing, and to my two year old daughter Sophia, whose hugs and words of "Daddy, you're going to school. Ok, I love you, goodbye." brought a smile to my face every time.

iii

Table of Contents

Page

LIST OF TABLES ..........................................................................................................

v

LIST OF FIGURES .......................................................................................................

vi

ABSTRA CT ......................................................................................................................

vii

CHAPTER 1. INTRODUCTION .......................................................................................

I

1.1. Problem Statement ....................................................................................................

1

1.2. Objectives ............................................................................................................

1

1.3. Organization ..........................................................................................................

3

1.4. Research Summary ..............................................................................................

3

CHAPTER 2. RESEARCH METHODOLOGY ..........................................................

4

2.1. Methodology ........................................................................................................

4

2.2. Research Process ......................................................................................................

5

CHAPTER 3. PROCUREMENT SELECTION PARAMETERS ................................ 9

3.1. Literature Review ................................................................................................

9

3.2. Procurement Method Characteristics ................................................................. 12

3.3. Procurement Method Selection Research ........................................................... 13

CHAPTER 4. DATA COLLECTION ........................................................................... 16

4.1. Procurement Selection Criteria List Formulation ............................................... 16

4.2. Project Scoring and Expert Evaluation ................................................................ 18

CHAPTER 5. DATA ANALYSIS ...............................................................................

20

5.1. Criteria List Analysis ..........................................................................................

20

5.2. Utility Function Generation ................................................................................

22

5.3. Project and Total Utility Value Generation ........................................................ 23

5.4. Purpose and Use of Threshold Value .................................................................. 25

5.5. Framework Recommendation and Actual Procurement Comparison ................ 26

5.6. Confounding Factors .........................................................................................

28

CHAPTER 6. RECOMMENDATIONS AND CONCLUSIONS ................................. 29

6.1. Results and Findings ..........................................................................................

29

6.2. Research Limitations .........................................................................................

29

6.3. Recommendations ..............................................................................................

30

6.4. Research Conclusions ..........................................................................................

30

LIST OF REFERENCES ..............................................................................................

31

Appendices

Appendix A: NAVFAC Organizational Breakdown ............................................... 33

Appendix B: Expert #1 Criteria List Survey Results .............................................. 34

Appendix C: Expert #2 Criteria List Survey Results .............................................. 35

Appendix D: Expert #3 Criteria List Survey Results ............................................... 36

Appendix E: Expert #4 Criteria List Survey Results ............................................... 37

Appendix F: Expert #5 Criteria List Survey Results ............................................... 38

iv

Appendix G: Expert #1 Criteria Weighting and Project Scoring Survey ................. 39

Appendix H: Expert #2 Criteria Weighting and Project Scoring Survey ................. 44

Appendix I: Expert #3 Criteria Weighting and Project Scoring Survey .................. 49

Appendix J: Expert #4 Criteria Weighting and Project Scoring Survey .................. 54

Appendix K: Expert #5 Criteria Weighting and Project Scoring Survey ................. 59

Appendix L: Calculations and Raw Data .................................................................

64

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