By Najera                                             H.B. No. 3428
         76R7215 CAG-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of a municipality to use a design-build
 1-3     contract for public improvement projects and facilities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 252, Local Government Code,
 1-6     is amended by adding Section 252.051 to read as follows:
 1-7           Sec. 252.051.  DESIGN-BUILD CONTRACTS FOR MUNICIPAL PUBLIC
 1-8     IMPROVEMENT PROJECTS OR FACILITIES.  (a)  In this section:
 1-9                 (1)  "Design-build contract" means a single contract
1-10     with a design-build firm for the design and construction of a
1-11     public improvement project or facility.
1-12                 (2)  "Design-build firm" means a partnership,
1-13     corporation, or other legal entity or team that includes an
1-14     engineer or architect and builder qualified to engage in building
1-15     construction in this state.
1-16                 (3)  "Design criteria package" means a set of documents
1-17     that provides sufficient information to permit a design-build firm
1-18     to prepare a response to a municipality's request for proposals.
1-19     The design criteria package must specify criteria the municipality
1-20     considers necessary to describe the project or facility and may
1-21     include, as appropriate, the legal description of the site, survey
1-22     information concerning the site, interior space requirements,
1-23     special material requirements, material quality standards,
1-24     conceptual criteria for the project or facility, special equipment
 2-1     requirements, cost or budget estimates, time schedules, quality
 2-2     assurance and quality control requirements, site development
 2-3     requirements, applicable codes and ordinances, provisions for
 2-4     utilities, parking requirements, or any other requirement, as
 2-5     applicable.
 2-6           (b)  A municipality may use the design-build method for the
 2-7     construction, rehabilitation, alteration, or repair of a public
 2-8     improvement project or facility.  In using that method and in
 2-9     entering into a contract for the services of a design-build firm,
2-10     the contracting municipality and the design-build firm shall follow
2-11     the procedures provided by this section.
2-12           (c)  The municipality may designate an engineer or architect
2-13     to act as its representative.  If the municipality's engineer or
2-14     architect is not a full-time employee of the municipality, any
2-15     engineer or architect designated shall be selected on the basis of
2-16     demonstrated competence and qualifications in accordance with
2-17     Subchapter A, Chapter 2254, Government Code.
2-18           (d)  The municipality shall prepare a request for
2-19     qualifications that includes general information on the project
2-20     site, project scope, budget, special systems, selection criteria,
2-21     and other information that may assist potential design-build firms
2-22     in submitting proposals for the project or facility.  The
2-23     municipality shall also prepare the design criteria package that
2-24     includes more detailed information on the project or facility.  If
2-25     the preparation of the design criteria package requires engineering
2-26     or architectural services that constitute the practice of
2-27     engineering within the meaning of The Texas Engineering Practice
 3-1     Act (Article 3271a, Vernon's Texas Civil Statutes) or the practice
 3-2     of architecture within the meaning of Chapter 478, Acts of the 45th
 3-3     Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas
 3-4     Civil Statutes), those services shall be provided in accordance
 3-5     with the applicable law.
 3-6           (e)  The municipality shall evaluate proposals and select a
 3-7     design-build firm in two phases:
 3-8                 (1)  In phase one, the municipality shall evaluate each
 3-9     offeror's experience, technical competence, and capability to
3-10     perform, the past performance of the offeror's team and members of
3-11     the team, and other appropriate factors submitted by the team or
3-12     firm in response to the request for qualifications, except that
3-13     cost-related or price-related evaluation factors are not permitted.
3-14     Each offeror must certify to the municipality that each engineer or
3-15     architect that is a member of its team was selected based on
3-16     demonstrated competence and qualifications.  The municipality shall
3-17     qualify a maximum of five potential offerors to submit additional
3-18     information regarding technical proposals, implementation, and
3-19     costing methodologies in response to a formal request for proposals
3-20     based on the design criteria package.
3-21                 (2)  In phase two, the municipality shall evaluate
3-22     offerors on the basis of demonstrated competence and
3-23     qualifications, considerations of the safety and long-term
3-24     durability of the project, the feasibility of implementing the
3-25     project or facility as proposed, the ability of the offeror to meet
3-26     schedules, costing methodology, or other factors as appropriate.
3-27     The municipality may not require offerors to submit detailed
 4-1     engineering or architectural design as part of the proposal. The
 4-2     municipality shall select the design-build firm that submits the
 4-3     proposal offering the best value for the municipality.
 4-4           (f)  Following selection of a design-build firm under
 4-5     Subsection (e), that firm's engineers or architects shall complete
 4-6     the design, submitting all design elements for review and
 4-7     determination of scope compliance by the municipality's engineer or
 4-8     architect before or concurrently with construction.
 4-9           (g)  An engineer shall have responsibility for compliance
4-10     with the engineering design requirements and all other applicable
4-11     requirements of The Texas Engineering Practice Act (Article 3271a,
4-12     Vernon's Texas Civil Statutes).  An architect shall have
4-13     responsibility for compliance with the requirements of Chapter 478,
4-14     Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
4-15     Vernon's Texas Civil Statutes).
4-16           (h)  The municipality shall provide or contract for,
4-17     independent of the design-build firm, the inspection services, the
4-18     testing of construction materials engineering, and the verification
4-19     testing services necessary for acceptance of the project or
4-20     facility by the municipality.  The municipality shall select those
4-21     services for which it contracts in accordance with Section
4-22     2254.004, Government Code.
4-23           (i)  The design-build firm shall supply a signed and sealed
4-24     set of construction documents for the project or facility to the
4-25     municipality at the conclusion of construction.
4-26           (j)  A payment or performance bond is not required for, and
4-27     may not provide coverage for, the portion of a design-build
 5-1     contract under this section that includes design services only.
 5-2           SECTION 2.  This Act takes effect September 1, 1999. The
 5-3     changes in law made by this Act apply only to a contract for which
 5-4     requests for qualifications are distributed or published on or
 5-5     after that date.
 5-6           SECTION 3.  The importance of this legislation and the
 5-7     crowded condition of the calendars in both houses create an
 5-8     emergency and an imperative public necessity that the
 5-9     constitutional rule requiring bills to be read on three several
5-10     days in each house be suspended, and this rule is hereby suspended.