STEP 5. IMPLEMENTATION 30 program or project concept is defined. The project concept then becomes the context or lens through which the resourcing strategy, contracting strategy, sourcing strategy, and project delivery tactics are selected. Resourcing Strategy Once the resiliency program is defined and the phasing pace identified, an assessment of needed resources can take place. Key among these resources are construction labor and supervision. Many electric utilities maintain significant internal construction and crew resources and utilize contractors in peaking capacity. As the resource needs are defined, a later decision on the use and application of internal crews versus contractor crews is required. Contracting Strategy The approach to contracting strategy revolves around a series of decisions that the electric investor-owned, municipal, and co-op utility will need to make regarding the approach to execution of the resiliency program. The setting of a sourcing strategy for the design, right of way acquisition, and construction services associated with the resiliency program is the first step followed by the selection of project delivery tactics, followed by making an insourcing versus outsourcing decision. One of the drivers of the insourcing versus outsourcing decision is an estimate of resources needed and the implications of the utility to building or hiring this workforce. Sourcing Strategy The concept of a sourcing strategy involves first deciding whether the owner prefers a more arms-length or collaborative/integrated relationship with service providers to execute the resiliency program. A more arms-length approach or traditional approach is easier to implement and understand. A collaborative or integrated sourcing strategy offers the potential for lower long-term cost, risk reduction, and process improvement. Given the visibility of these types of programs, the long-term nature of them, the opportunity for process refinement or improvement, and the regulatory oversight, a sourcing strategy that offers risk reduction may prove beneficial. Project Delivery Tactics Once a decision is made on a more collaborative/integrated versus arms-length relationship, the next major decision is to select a project delivery system for the resiliency program. The project delivery system defines how individual projects or bundles of work will be undertaken. There are three tactical decisions that the utility should answer and the combination of all three of these decisions equals a project delivery system (Exhibit 5.3). 1. What contract vehicle or method will you use to select a price? 2. How will you manage the design/construction process? 3. How will you build the job? The use of a delivery system that is different from the traditional approach of Design/Bid/Build will require careful consideration and an ability to logically explain the rationale for why an alternative delivery system fits. The use of a Project Delivery System Matrix to assist in applying a structured logic to selecting a project delivery system is needed. Deciding what contract vehicle or the method you will use to select a price will require discussion and consensus. In a pure bid environment and with the purchase of a “commodity” type service, the price of services will be the defining criteria. Given the nature and risk associated with a resiliency program, a more negotiated approach is likely a better solution where a balance can be struck between the price of services and other routine and valueadded capabilities a designer or contractor may offer. As an example of value-added services, a contractor that is experienced with and can self-perform easement acquisition may prove highly valuable. Other more traditional criteria that may prove important include contractors’ certification of their employees, safety/quality plans, OSHA recordable rate, DOT drug & alcohol programs, and insurance modification rates which should be weighed into the final decision to award. Additional capabilities like engineering, permitting, and procurement practices should be reviewed if they are included in the scope of work.
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