PDRI_101

PDRI 101 Project Definition Rating Index MILCON Building Projects

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Agenda • PDRI Overview •Section Contents •PDRI Categories •Score •Definition Levels •Time •The Tool •PDRI Savings •Benefits to DOD •Implementation •Tier Designations •Online Training •PDRI publications 2

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PDRI Overview What is the Product Definition Rating Index? •Developed by private sector in late 1990s •Response to end-product construction deficiencies •Evaluation tool applied at successive project “gates” – Early high-risk ratings may trigger later actions

•A simple and easy-to-use tool for measuring the degree of scope definition for completeness •Identifies and precisely describes each critical element in a scope definition package •Allows team to quickly predict factors impacting project risk

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PDRI Overview (Cont’) Many companies have found broad value in PDRI •Allows team to quickly predict factors impacting project risk •Amgen, 3M, Hensel Phelps, GM, Beck Group, (many others) •GSA, DHS, NASA, Smithsonian Institution – List includes Designers, Builders, and Owner/Sponsors Use to assist decisions to allocate resources at project level to “buy down” risk Use to identify risk and enhance project definition •BLUF – Benefit to DoD thru RISK MANAGEMENT at project level

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Section Contents PDRI Building Projects Section I: Basis of Project Decision – 3 categories – 18 elements – “Right project” Section II: Basis of Design – 4 categories – 32 elements – “Right product” Section III: Execution Approach – 4 categories – 14 elements – “Right way” 5

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PDRI for Buildings I. Basis of Project Decision

A. Business Strategy B. Owner Philosophy C. Project Requirements

II. Basis of Design

D. Site Information E. Building Programming F. Building/Project Design Parameters G. Equipment

III. Execution Approach

H. Procurement Strategy J. Deliverables K. Project Control L. Project Execution Plan 6

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Top 10 Pacing Elements 1. Building Use (4.4%) 2. Facility Requirements (3.1%) 3. Site Selection Considerations (2.8%) 4. Business Justification (2.7%) 5. Project Cost Estimate (2.7%) 6. Business Plan (2.6%) 7. Project Design Criteria (2.4%) 8. Evaluation of Existing Facilities (2.4%) 9. Future Expansion/Alteration Considerations (2.2%) 10. Architectural Design (2.2%) Top 10 = 27.5% of total PDRI score

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Understanding PDRI Scores

1000 Points

0 Points

LOWER SCORE IS BETTER!! BUILDING STRONG

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Definition Levels in PDRI

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Time Needed for Assessing a Project

90 to 120 minutes

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PDRI – The Tool Tool has been customized for MILCON process – Customized descriptions of project elements to our needs

Each element is weighted, algorithm generates a composite score for the project – Normalized from 0 to 1000 – Recommend a broad team composition – 500 is “good” at planning stage (subjective!!) – 300 is “good” at design stage (subjective!!) – 200 is “good” by RTA (Ready To Award)

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Comparison of Projects with PDRI Above & Below 200 – Building Projects PDRI Score

Performance

< 200

> 200

Cost

3% over budget

9% over budget

Schedule

5% behind schedule

21% behind schedule

Change Orders

8% of budget

11% of budget

(N=25)

(N=83)

•Reduce cost growth by 6% •Reduce schedule slip by 16% •Reduce change orders by 3% of budget BUILDING STRONG

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Benefits to DoD Early identification / management of project risk elements – Standard approach to Lifecycle Costing – Institutionalize procedures for • Risk Management • Risk Communication

– Target project-level resources to high-risk elements – Identify, track Action Office responsible for risk by element • Use of PDRI Action List

Risk Management improves customer end product – Reduce scope creep – Fewer mods – reduce cost, time growth – Early customer input and buy-in PDRI enables targeted, holistic, and quantitative approach to Risk Management 13

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Implementation Implementation at – Code 0 (Planning Charrette) – Code 6/7/T (DBB-Design Charrette, DB-RFP Development, AB) PM Review (over the shoulder) – Code 3 (Parametric Design) ENG 3086 Tier 3 designation may trigger a 3rd PDRI assessment – Retarget project resources on risk buydown – Previous PDRI rating used as additional data input prior to Tier designation Implementation Procedures – PDRI rating at 75% in Charrette • Generation of PDRI Action List

– Attach PDRI assessment to 1391 Tab C – Follow-up on PDRI Action List from PM & Design team MILCON timeline GY -1

Guidance Year

Design Year

Action List PDRI assessment at Code 0

Budget Year

Program Year

Action List

Action List PDRI assessment at Code 6/7/T

PDRI assessment for Tier 3 projects

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Tier Designations Tier 1 – Pres-bud and prior year un-awarded projects that have no perceived problems and will be "forecasted" and "scheduled" for an award within the goals established by for the FY

Tier 2 – Project with known or perceived problems but are still expected to be awarded/executed this fiscal year will be "forecasted" and "scheduled" for award within FY

Tier3 – Projects with problems and cannot be awarded within fiscal year include: • Projects with any incomplete NEPA documentation. These will not be "forecasted" for award in the FY but should be scheduled for award as appropriate based on the assumption the NEPA doc will be completed prior to he scheduled Ready to advertize date. The P2 "issues comment" will be used to provide the NEPA completion dates

• Projects on hold (code 4 - on hold; code 5- deferred and code 8- cancelled) status per customer request. • Projects that have scope, pa issues and/or other delaying factors that are recognized by the customer as being irresolvable within sufficient time to award within the FY. 15

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Online Training

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PDRI Publications

PDRI Building Projects CII Implementation Resource 155-2, 3rd Ed.

http://construction-institute.org/pdri/

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