Evaluating and Using Stipends

Recorded On: 10/27/2020

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CONTENT EXPIRES: December 31, 2022

The cost of preparing proposals for best value design-build competitions can constitute a considerable burden upon the proposers.  As such, some Owners use stipends as an integral part of their design-build procurement process. This session will discuss various perspectives as to whether stipends are a good use of taxpayer dollars; assess what factors should be considered in determining an appropriate stipend amount; and investigate the true purpose of stipends.

Richard J. Formella, PMP, DBIA, CPPO


Design-Build Strategic Solutions, LLC

Richard J. Formella is the President of Design-Build Strategic Solutions, LLC, a design & construction contracting process consulting firm. He recently retired from federal service as Chief of the Bio-Containment Procurement Branch for the Department of Homeland Security (DHS). He has over 32 years of federal acquisition/contracting experience and joined DHS in 2006 serving as a Head of the Contracting Activity through 2014. Prior to joining DHS, Mr. Formella was employed by the Department of Justice (DOJ), Federal Bureau of Prisons (BOP) for over 20 years and concluded his service at BOP as the Chief of Construction Contracting where he led and administered the $3.0 billion dollar new federal prison construction contracting program. At the DHS he led the team providing design and construction contracting support for the DHS Science and Technology Directorate for major laboratory renovations and new construction an overall $1.5 billion program, including the $1.3 billion National Bio & Agro Defense Facility.

 Mr. Formella is a 1986 graduate of the FLETC, and holds a BS in Forest Management from the University of Wisconsin – Stevens Point; a Masters Certificate in Project Management from Regis University, and a MS in Management – Leadership and Organizational Effectiveness from Troy University. He is a certified Project Management Professional (PMP), a designated Design-Build Professional (DBIA) and a Certified Public Procurement Officer (CPPO).

Stephen Richard Benton, PE, FDBIA, F.ASCE


SR Benton & Associates, LLC

Rich Benton is a consultant to the engineering and construction industry providing consultant services and training to owners, design professionals, and contractors; focusing on design-build best practices, acquisition strategy, proposal development, contracting for public works projects, and leadership development programs.  

Previously he was a Senior Vice President for the Pernix Group (formerly Telesource International, Inc.), an international construction company focusing on design-build projects for the US State Department and other Federal agencies.  During his tenure they completed a $48 million design-build US Embassy project and pursued projects around the world.  Previously he had served 10 years as a senior executive with Centennial Contractors Enterprises, Inc, a general contractor with over 45 offices across the United States, providing primarily job order contracting and design-build construction services nationwide. Rich’s responsibilities at Centennial included championing the utilization of design-build project delivery; leadership and management education; training and development; preparation of cost and price proposals; risk management; legal review; coordinating with sureties; managing the small business subcontracting support program; policy and procedure development, implementation and enhancement; and strategic planning.  Prior to entering the private sector, Rich served with the US Army Corps of Engineers for 23 years where he served in a multitude of positions, both domestically and internationally, in construction, combat engineering, contracting and teaching assignments. His facilities management experience includes cost effectively maintaining multi-million dollar construction and administrative support equipment.

He is a Fellow of the American Society of Civil Engineers, a Past President of the National Capital Chapter of the Design-Build Institute of America (DBIA), and a member of the American Society of Mechanical Engineers and National Society of Professional Engineers.  Rich is an Adjunct Professor on the faculty of George Mason University teaching courses in Construction, Project Management, and Design-Build.  He’s also on the Board of the Civil Engineering Institute of George Mason University, which has a mission of supporting the expansion of civil engineering programs at the university.  Rich is on the editorial board for the ASCE quarterly Journal of Management in Engineering and previously served on the founding editorial board of the ASCE quarterly Leadership and Management in Engineering.  He also serves as Chairman of the nationwide Leadership Committee for the DBIA and on a committee of the National Council of Examiners for Engineering and Surveying (NCEES) writing and testing professional engineer examination questions.   Rich is a Life Member of the Society of American Military Engineers, Army Engineer Association, Disabled American Veterans, and Phi Kappa Phi National Honor Society.  He also has been listed in numerous versions of Who’s Who in America since 1994.

He has a M.S. in Civil Engineering (Construction Engineering and Management) and a M.S. in Mechanical Engineering (Applied Thermodynamics), both from Stanford University.  His B.S. degree in Engineering is from the U.S. Military Academy at West Point.  He is licensed as a Professional Engineer by the Commonwealth of Virginia and a designated Design-Build professional.


Open to view video.
Open to view video.
5 Questions
1.00 CEU credit  |  Certificate available
1.00 CEU credit  |  Certificate available