SRC-DPW S.B. 927 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 927
76R7483 JD-FBy: Wentworth
Infrastructure
5/3/1999
As Filed


DIGEST 

Currently, Texas law does not allow the Texas Transportation Commission
(commission) and the Texas Department of Transportation to utilize a
design-build contract for the design and construction of highways and
turnpike projects.  Contracting procedures are governed by statute which
make the distinction between construction services and pre-construction
services.  Each type of service is governed by its own law, and the two
conflict to the extent that they cannot be reconciled, precluding the
possibility of combining both types of services in a single contract.  The
design-build concept generally involves awarding a highway improvement
project to a firm or combination of firms responsible for both the design
and subsequent construction of the project.  This bill would authorize the
commission and the Texas Turnpike Authority division of the Texas
Department of Transportation to award a designbuild contract for the
improvement of turnpike projects that are part of the state highway system. 

PURPOSE

As proposed, S.B. 927 establishes requirements and procedures for granting
contracts for the development of turnpike projects of the Texas Department
of Transportation and the Texas Turnpike Authority division of the
department. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Transportation Commission in
SECTION 1 (Section 223.165(a), Transportation Code) and to the board of
directors of the Texas Turnpike Authority division of the Texas Department
of Transportation in SECTION 2 (Section 361.2311(j), Transportation Code)
of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 223, Transportation Code, by adding Subchapter E,
as follows: 

SUBCHAPTER E. DESIGN-BUILD CONTRACTS

Sec. 223.161. DEFINITIONS. Defines  "design-build contract" and
"preconstruction services." 

Sec. 223.162. AWARD OF DESIGN-BUILD CONTRACTS. Authorizes the Texas
Transportation Commission (commission) to award a design-build contract for
a preventative maintenance or rehabilitation project or a congestion
mitigation project, as an alternative to the procedures provided by
Subchapters A and D of this chapter. 

Sec. 223.163. SOLICITATION OF PROPOSALS. Requires the Texas Department of
Transportation (department) to use competitive sealed proposals to obtain
services and construction under this subchapter.  Requires the commission
to establish prequalification requirements for persons from  which the
department solicits proposals.  Requires a proposal to comply with the
prequalification requirements to be eligible for consideration.  Authorizes
the commission to reimburse a person a stipulated amount for design costs
incurred in submitting an unsuccessful application.  Prohibits the Texas
Board of Professional Engineers from taking disciplinary action under the
Texas Engineering Practice Act (Article 3271a, V.T.C.S.) to prevent a
qualified person or firm from submitting a proposal or entering into a
contact under this subchapter. 

Sec. 223.164. BEST VALUE STANDARD.  Requires the commission to award
design-build  contracts to persons whose proposals provide the best value
to this state.  Authorizes the commission to adjust the rating of a
proposal for the value of time based on the number of days needed to
complete the project multiplied by a value per day established by the
department. Requires the commission to state in writing the basis on which
an award is made. 

Sec. 223.165. RULES. Authorizes the commission to adopt rules including
prequalification and proposal requirements, short-listing procedures, and
evaluation categories for various projects. 

SECTION 2. Amends Chapter 361F, Transportation Code,  by adding Section
361.2311, as follows: 

Sec. 361.2311. DESIGN-BUILD CONTRACTS. Defines "design-build contract."
Authorizes the board of directors of the Texas Turnpike Authority division
of the Texas Department of Transportation (board) to award a design-build
contract for a turnpike project or a congestion mitigation project
authorized by the commission.  Requires the Texas Turnpike Authority
division of the Texas Department of Transportation (authority) to use
competitive sealed proposals to obtain services and construction under this
section.  Requires the board to establish prequalification requirements for
persons from which the authority solicits proposals.  Requires a proposal
to comply with the prequalification requirements to be eligible for
consideration. Prohibits the Texas Board of Professional Engineers from
taking disciplinary action under the Texas Engineering Practice Act
(Article 3271a, V.T.C.S.) to prevent a qualified person or firm from
submitting a proposal or entering into a contact under this section.
Requires the board to award  design-build contracts to persons whose
proposals provide the best value to this state. Authorizes the board to
adjust the rating of a proposal for the value of time based on the number
of days needed to complete the project multiplied by a value per day
established by the authority.  Requires the board to state in writing the
basis on which an award is made. Authorizes the board  to adopt rules
including prequalification and proposal requirements, shortlisting
procedures, and evaluation categories for various projects. 

SECTION 3. Amends Sections 224.154(a) and (c), Transportation Code, to
authorize the commission to authorize, by order, the authority to charge a
toll for the use of lanes on a state highway.  Authorizes the commission to
authorize the department, the authority, or a transportation corporation to
build and maintain a congestion mitigation project or a facility under this
section.  Makes conforming changes. 

SECTION 4. Effective date: September 1, 1999.