The City of Miami Beach has been integrating principles from the best value Performance Information Procurement System (PIPS) into their Capital Improvement Program (CIP) over the past 18 months. The goal of the PIPS is to transfer risk to the contractors and allow them to minimize the risk through quality control and preplanning. In trying to infuse PIPS concepts into the existing Best Value Selection process at CIP, many client problems have been encountered.

These problems caused a refinement of the application of the PIPS best value models and demonstrated that an understanding of the logical theory, based on the Information Measurement Theory (IMT), supersedes technical expertise and experience in optimizing procurement problems.

This paper analyzes the transition experience of the CIP in using PIPS, the results, the modifications made, the implication to best value procurement, and the impact of the findings to the construction industry.