Best-Value Process Implementation at the City of Peoria: Five Years of Research Testing
Keywords:organizational performance, best value, construction efficiency, design efficiency, risk management
The City of Peoria is Arizona’s ninth largest city. It covers nearly 178 square miles and is home to over 153,000 residents. The projected 10 year growth of the City is estimated to be over 204,000, which has prompted a significant expansion of the City’s municipal services and facilities. In an attempt to efficiently meet the demands of the projected growth, the City of Peoria partnered with the Performance Based Studies Research Group out of Arizona State University in 2004. The objective of the partnership was to test and implement a best value structure within the City’s construction program, specifically as applicable to capital projects. This paper presents a five year summary of the test implementation results, the evolution of the best value structure within the city, project performance, service expansion to include non-construction projects, and lessons learned from the research. The research effort has included $385,691,802 in total projects awarded and implemented under the best value structure, with documented performance increases in cost metrics, schedule metrics, and customer satisfaction.