Engineering Inc. - November/December 2004 - 20

Don Heep David R. Stewart Senior manager of President/CEO engineering
Stewart Environmental The Boeing Co. Consultants Fort Collins, Colo. What
advice would you give an What improvements are needed in the procurement
and engineering firm that wants to work delivery of engineering services?
for your company? oeing currently has a mature engi- e need to have a
better dialogue on what engineering services are needed and the B W
neering supply base supporting the value of these services. In most cases,
clients are trying to buy time, while most architectural and engineering
engineering firms are delivering an idea that has considerable value to
the client. A&E needs at its sites across the U.S. Therefore, it is
important for the engineering firm to educate the client on the services
In general, these firms work closely with and ideas that are being
delivered. Boeing's internal engineering and sup- For example, we have
developed wastewater treatment technologies that save a consid- plier
management groups. Consequently, erable amount of money over conventional
technologies. If we have the opportunity to opportunities for new
suppliers typically work with our client and provide financial information
on the benefits of our services and develop slowly, usually beginning with
ideas, then we are able to participate in the savings and increase our
overall compensation. work on small, low-risk projects. This encourages
the engineer to provide innovative solutions that work and provide the
When Boeing does engage a new sup- client with a better service. plier we
try to match that supplier's Improvements also are needed within the
selection process. Most of our business is in expertise and strengths with
the require- the private sector. Within this area, the client typically
chooses an engineering firm and ments for a given project. In order to
then stays with it for a significant period of time. This lowers the cost
of doing business, identify a match, it is important for and everyone
benefits. Boeing to understand how each firm is However, in the public
sector, the cost of responding to Requests for Proposals RFPs positioned
in the marketplace. Also it's and getting through the selection process
does not encourage innovation nor does it helpful to know how the firm has
differ- encourage client partnerships. The Qualifications-Based Selection
QBS process is better entiated itself from other A&E suppliers suited for
the public sector, but in most cases, the public sector is basing the
selection of as well as how it has defined its unique an engineering firm
on hard costs, not on life-cycle costs. This selection process does not
value proposition. help in the overall reduction or sustainability of the
market. When evaluating the relative potential of a new supplier, Boeing
also tries to weigh the firm's willingness to address our priorities. Key
objectives for Boeing include safety, cost, quality and delivery Dale L.
Jacobs on schedule. Therefore, it's essential for new suppliers to
communicate the spe- Principal cific ways they intend to support our
objectives. Also it's critical that the sup- BSA LifeStructures plier
engage in an honest discussion Indianapolis, Ind. about the type,
character and scale of What improvements are needed in the procurement
work they wish to pursue with Boeing. and delivery of engineering
services? Ultimately, it's a disservice to both parties if we embark on a
new relationship based oo often, especially in conjunction with very large
on misunderstandings or misrepresented T projects, the firm is asked to
prepare a proposal expectations. and fee estimate for a project program
and scope that are not yet established. Own- ers are responsible for
establishing the program for their projects either using in-house staff or
an outside consultant. The program is one of the most important components
of the project development process, setting space and performance
requirements for the project necessary for the owner to accomplish his
goals. Sadly, this task often is overlooked or poorly performed, leaving
the firm with little owner input to help in the development of the project
design, budget and fees. Well-prepared programs will enhance the
development of the project through better communication among all members
of the project design team, owner and users. 2 0 ENGINEERING INC. N o v e
m b e r l December 2004
Engineering Inc. - November/December 2004

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