State of Georgia test with Performance Information Procurement System (PIPS)

The State of Georgia contracted with Arizona State University in 1999 to test the information based Performance Information Procurement System (PIPS) on two procurements: a $45M Environmental Science and Technology Building on the Georgia Institute of Technology campus, and a $8M automotive training facility at the Savannah Technical School. The first test resulted in a "no award" due to the bids being 15% over the design estimate. The project was redesigned, eliminating $4.5M of the project, and the project was re-bid using the sealed bid process (low-bid). The project was awarded for $46.5M, still $1.5M over the budget. The project is now at $48.8M, and over six months behind schedule. The Savannah Technical School project is near completion. This paper discusses the problems associated with the delivery of construction and the PIPS tests; including the over design of the project to make the user happy, the resulting problems for the construction manager, the lack of accuracy of project cost control firms, the inability of users to understand the concept of construction costs and performance, the bureaucracy of participants and the general conditions, and the low-bid environment.