By:  Ratliff                                           S.B. No. 583

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the construction of facilities by school districts and

 1-2     institutions of higher education.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter B, Chapter 44, Education Code, is

 1-5     amended by adding Section 44.0311 to read as follows:

 1-6           Sec. 44.0311.  DESIGN-BUILD CONTRACTS FOR FACILITIES.

 1-7     (a)  In this section:

 1-8                 (1)  "Architect" means an individual registered as an

 1-9     architect under Chapter 478, Acts of the 45th Legislature, Regular

1-10     Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).

1-11                 (2)  "Design-build contract" means a single contract

1-12     with a design-build firm for the design and construction of a

1-13     facility.

1-14                 (3)  "Design-build firm" means a partnership,

1-15     corporation, or other legal entity or team which includes an

1-16     engineer or architect and builder qualified to engage in building

1-17     construction in Texas.

1-18                 (4)  "Design criteria package" means a set of documents

1-19     that provides sufficient information to permit a design-build firm

1-20     to prepare a response to a school district's request for proposals.

1-21     The design criteria package shall specify criteria the district

1-22     deems necessary to describe the project and may include, as

1-23     appropriate, the legal description of the site, survey information

 2-1     concerning the site, interior space requirements, special material

 2-2     requirements, material quality standards, conceptual criteria for

 2-3     the project, special equipment requirements, cost or budget

 2-4     estimates, time schedules, quality assurance and quality control

 2-5     requirements, site development requirements, applicable codes and

 2-6     ordinances, provisions for utilities, parking requirements, or any

 2-7     other requirement, as applicable.

 2-8                 (5)  "Engineer" means an individual registered as a

 2-9     professional engineer under The Texas Engineering Practice Act

2-10     (Article 3271a, Vernon's Texas Civil Statutes).

2-11                 (6)  "Facility" means buildings or structures to be

2-12     used by a school district.

2-13           (b)  In entering into a contract for the construction of a

2-14     facility using design-build delivery procedures, the contracting

2-15     school district and the design-build firm shall follow the

2-16     procedures provided by Subsections (c) through (i).

2-17           (c)  The district may designate an engineer or architect to

2-18     act as its exclusive representative.  If the district's engineer or

2-19     architect is not a full-time employee of the district, any engineer

2-20     or architect designated shall be selected on the basis of

2-21     demonstrated competence and qualifications in accordance with

2-22     Subchapter A, Chapter 2254, Government Code.

2-23           (d)  The district shall prepare a request for qualifications

2-24     which includes general information on the project site, project

2-25     scope, budget, special systems, selection criteria, and other

 3-1     information that may assist potential design-build firms in

 3-2     submitting proposals for the project.  The district shall also

 3-3     prepare the design criteria package which includes more detailed

 3-4     information on the project.  If the design criteria package

 3-5     includes engineering or architectural elements, the package shall

 3-6     be prepared by an engineer or architect.

 3-7           (e)  The district shall publish the request for

 3-8     qualifications in at least two successive issues of any newspaper

 3-9     of general circulation in the county in which the district's

3-10     central office is located at least 30 days prior to the deadline

3-11     for receiving responses to the request for qualifications.

3-12           (f)  The district shall evaluate proposals and select a

3-13     design-build firm in two phases:

3-14                 (1)  In phase one, the district shall evaluate each

3-15     offeror's experience, technical competence, and capability to

3-16     perform, the past performance of the offeror's team and members of

3-17     the team, and other appropriate factors submitted by the team or

3-18     firm in response to the request for qualifications, except that

3-19     cost-related or price-related evaluation factors are not permitted.

3-20     Each offeror must certify to the district that the engineer or

3-21     architect that is a member of its team was selected based on

3-22     demonstrated competence and qualifications.  The district shall

3-23     qualify a maximum of three potential offerors to submit additional

3-24     information regarding technical proposals, implementation, and

3-25     costing methodologies in response to a formal request for proposals

 4-1     based on the design criteria package.

 4-2                 (2)  In phase two, the district shall evaluate

 4-3     proposers on the basis of demonstrated competence and

 4-4     qualifications; considerations of the safety and long-term

 4-5     durability of the project; the feasibility of implementing the

 4-6     project as proposed; the ability of the proposer to meet schedules;

 4-7     costing methodology; or other factors as appropriate.  If the

 4-8     preparation of proposals requires engineering or architectural

 4-9     design, the district shall reimburse qualified proposers for such

4-10     costs.  The district shall select the design-build firm that

4-11     submits the proposal offering the best value for the district.

4-12           (g)  Following selection of a design-build firm under

4-13     Subsection (f), that firm's engineers or architects shall complete

4-14     the design, submitting all design elements for review and

4-15     determination of scope compliance by the district's engineer or

4-16     architect prior to or concurrently with construction.

4-17           (h)  An engineer shall have responsibility for compliance

4-18     with the engineering design requirements and all other requirements

4-19     of The Texas Engineering Practice Act (Article 3271a, Vernon's

4-20     Texas Civil Statutes).  An architect shall have responsibility for

4-21     compliance with the requirements of Chapter 478, Acts of the 45th

4-22     Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas

4-23     Civil Statutes).

4-24           (i)  The design-build firm shall supply a signed and sealed

4-25     set of construction documents for the project and a record of the

 5-1     project as built to the district at the conclusion of construction.

 5-2           SECTION 2.  Section 51.907, Education Code, is amended to

 5-3     read as follows:

 5-4           Sec. 51.907.  COMPETITIVE BIDDING ON CONTRACTS.  Except as

 5-5     provided by Section 51.9071 of this code, all [All] contracts for

 5-6     the construction or erection of permanent improvements at an

 5-7     institution of higher education as defined in Section 61.003 of

 5-8     this code are void unless made after advertising for bids thereon

 5-9     in a manner prescribed by its governing board, receiving sealed

5-10     competitive bids, and awarding of the contract to the lowest

5-11     responsible bidder by the governing body.  If a contract is to be

5-12     recommended for award to other than the lowest bidder, any bidder

5-13     making a lower bid than the recommended bid shall be notified of

5-14     the recommendation for award and shall be allowed an opportunity

5-15     prior to the award to present evidence to the board or its

5-16     designated representative as to the responsibility of that bidder.

5-17           SECTION 3.  Subchapter Z, Chapter 51, Education Code, is

5-18     amended by adding Section 51.9071 to read as follows:

5-19           Sec. 51.9071.  DESIGN-BUILD CONTRACTS FOR FACILITIES.

5-20     (a)  In this section:

5-21                 (1)  "Architect" means an individual registered as an

5-22     architect under Chapter 478, Acts of the 45th Legislature, Regular

5-23     Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).

5-24                 (2)  "Design-build contract" means a single contract

5-25     with a design-build firm for the design and construction of a

 6-1     facility.

 6-2                 (3)  "Design-build firm" means a partnership,

 6-3     corporation, or other legal entity or team which includes an

 6-4     engineer or architect and builder qualified to engage in building

 6-5     construction in Texas.

 6-6                 (4)  "Design criteria package" means a set of documents

 6-7     that provides sufficient information to permit a design-build firm

 6-8     to prepare a response to an institution's request for proposals.

 6-9     The design criteria package shall specify criteria the institution

6-10     deems necessary to describe the project and may include, as

6-11     appropriate, the legal description of the site, survey information

6-12     concerning the site, interior space requirements, special material

6-13     requirements, material quality standards, conceptual criteria for

6-14     the project, special equipment requirements, cost or budget

6-15     estimates, time schedules, quality assurance and quality control

6-16     requirements, site development requirements, applicable codes and

6-17     ordinances, provisions for utilities, parking requirements, or any

6-18     other requirement, as applicable.

6-19                 (5)  "Engineer" means an individual registered as a

6-20     professional engineer under The Texas Engineering Practice Act

6-21     (Article 3271a, Vernon's Texas Civil Statutes).

6-22                 (6)  "Facility" means buildings or structures to be

6-23     used by an institution of higher education.

6-24                 (7)  "Institution" means an institution of higher

6-25     education as defined in Section 61.003.

 7-1                 (8)  "Board" means the governing board of an

 7-2     institution.

 7-3           (b)  In entering into a contract for the construction of a

 7-4     facility using design-build delivery procedures, the contracting

 7-5     institution and the design-build firm shall follow the procedures

 7-6     provided by Subsections (c) through (i).

 7-7           (c)  The board may designate an engineer or architect to act

 7-8     as its exclusive representative.  If the board's engineer or

 7-9     architect is not a full-time employee of the institution, any

7-10     engineer or architect designated shall be selected on the basis of

7-11     demonstrated competence and qualifications in accordance with

7-12     Subchapter A, Chapter 2254, Government Code.

7-13           (d)  The institution shall prepare a request for

7-14     qualifications which includes general information on the project

7-15     site, project scope, budget, special systems, selection criteria,

7-16     and other information that may assist potential design-build firms

7-17     in submitting proposals for the project.  The institution shall

7-18     also prepare the design criteria package which includes more

7-19     detailed information on the project.  If the design criteria

7-20     package includes engineering or architectural elements, the package

7-21     shall be prepared by an engineer or architect.

7-22           (e)  The board or its representative shall publish the

7-23     request for qualifications in a manner prescribed by the board.

7-24           (f)  The board or its representative shall evaluate proposals

7-25     and select a design-build firm in two phases:

 8-1                 (1)  In phase one, the board or its representative

 8-2     shall evaluate each offeror's experience, technical competence, and

 8-3     capability to perform, the past performance of the offeror's team

 8-4     and members of the team, and other appropriate factors submitted by

 8-5     the team or firm in response to the request for qualifications,

 8-6     except that cost-related or price-related evaluation factors are

 8-7     not permitted.  Each offeror must certify to the board that the

 8-8     engineer or architect that is a member of its team was selected

 8-9     based on demonstrated competence and qualifications.  The board or

8-10     its representative shall qualify a maximum of three potential

8-11     offerors to submit additional information regarding technical

8-12     proposals, implementation, and costing methodologies in response to

8-13     a formal request for proposals based on the design criteria

8-14     package.

8-15                 (2)  In phase two, the board or its representative

8-16     shall evaluate proposers on the basis of demonstrated competence

8-17     and qualifications; considerations of the safety and long-term

8-18     durability of the project; the feasibility of implementing the

8-19     project as proposed; the ability of the proposer to meet schedules;

8-20     costing methodology; or other factors as appropriate.  If the

8-21     preparation of proposals requires engineering or architectural

8-22     design, the institution shall reimburse qualified proposers for

8-23     such costs.  The board shall select the design-build firm that

8-24     submits the proposal offering the best value for the institution.

8-25           (g)  Following selection of a design-build firm under

 9-1     Subsection (f), that firm's engineers or architects shall complete

 9-2     the design, submitting all design elements for review and

 9-3     determination of scope compliance by the institution's engineer or

 9-4     architect prior to or concurrently with construction.

 9-5           (h)  An engineer shall have responsibility for compliance

 9-6     with the engineering design requirements and all other requirements

 9-7     of The Texas Engineering Practice Act (Article 3271a, Vernon's

 9-8     Texas Civil Statutes).  An architect shall have responsibility for

 9-9     compliance with Chapter 478, Acts of the 45th Legislature, Regular

9-10     Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).

9-11           (i)  The design-build firm shall supply a signed and sealed

9-12     set of construction documents for the project and a record of the

9-13     project as built to the institution at the conclusion of

9-14     construction.

9-15           SECTION 4.  This Act takes effect September 1, 1997.

9-16           SECTION 5.  The importance of this legislation and the

9-17     crowded condition of the calendars in both houses create an

9-18     emergency and an imperative public necessity that the

9-19     constitutional rule requiring bills to be read on three several

9-20     days in each house be suspended, and this rule is hereby suspended.