AN ACT
 1-1     relating to certain contracting procedures for 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.  Subsections (a), (d), (f), (g), (h), (i), (j),
 1-5     and (l), Section 44.031, Education Code, are amended to read as
 1-6     follows:
 1-7           (a)  Except as provided by this subchapter, all school
 1-8     district contracts, except contracts for the purchase of produce or
 1-9     vehicle fuel, valued at $25,000 or more in the aggregate for each
1-10     12-month period shall be made by the method, of the following
1-11     methods, that provides the best value for [to] the district:
1-12                 (1)  competitive bidding;
1-13                 (2)  competitive sealed proposals;
1-14                 (3)  a request for proposals, for services other than
1-15     construction services;
1-16                 (4)  a catalogue purchase as provided by Subchapter B,
1-17     Chapter 2157, Government Code;
1-18                 (5)  an interlocal contract;
1-19                 (6)  a design/build contract;
1-20                 (7)  a contract to construct, rehabilitate, alter, or
1-21     repair facilities that involves using a construction manager; or
1-22                 (8)  a job order contract for the minor construction,
1-23     repair, rehabilitation, or alteration of a facility.
1-24           (d)  The board of trustees of the district may adopt rules
 2-1     and procedures for the acquisition of goods or services.
 2-2           (f)  This section does not apply to a contract [fees
 2-3     received] for professional services rendered, including services of
 2-4     an architect, attorney, or fiscal agent.  A school district may, at
 2-5     its option, contract for professional services rendered by a
 2-6     financial consultant or a technology consultant in the manner
 2-7     provided by Section 2254.003, Government Code, in lieu of the
 2-8     methods provided by this section [architect's fees, attorney's
 2-9     fees, and fees for fiscal agents].
2-10           (g)  Notice of the time by when and place where the bids or
2-11     proposals, or the responses to a request for qualifications, will
2-12     be received and opened shall be published in the county in which
2-13     the district's central administrative office is located, once a
2-14     week for at least two weeks before the deadline for receiving bids,
2-15     proposals, or responses to a request for qualifications.  If[;
2-16     except that on contracts involving less than $25,000, the
2-17     advertising may be limited to two successive issues of any
2-18     newspaper published in the county in which the district's central
2-19     administrative office is located, and if] there is not a newspaper
2-20     in that county, the advertising shall be published in a newspaper
2-21     in the county nearest the county seat of the county in which the
2-22     district's central administrative office is located.  In a two-step
2-23     procurement process, the time and place where the second-step bids,
2-24     proposals, or responses will be received are not required to be
2-25     published separately.
2-26           (h)  If school equipment or a part of a school facility or
 3-1     personal property is destroyed or severely damaged or, as a result
 3-2     of an unforeseen catastrophe or emergency, undergoes major
 3-3     operational or structural failure, and the board of trustees
 3-4     determines that the delay posed by the methods provided for in this
 3-5     section [competitive bidding process] would prevent or
 3-6     substantially impair the conduct of classes or other essential
 3-7     school activities, then contracts for the replacement or repair of
 3-8     the equipment or the part of the school facility may be made by
 3-9     methods other than those [without competitive bidding as otherwise]
3-10     required by this section.
3-11           (i)  A [The board of trustees of a] school district may
3-12     acquire computers and computer-related equipment, including
3-13     computer software, through the General Services Commission under
3-14     contracts entered into in accordance with Chapter 2157, Government
3-15     Code.  Before issuing an invitation for bids, the commission shall
3-16     consult with the agency concerning the computer and
3-17     computer-related equipment needs of school districts.  To the
3-18     extent possible the resulting contract shall provide for such
3-19     needs.
3-20           (j)  Without complying with Subsection (a), [the board of
3-21     trustees of] a school district may purchase an item that is
3-22     available from only one source, including:
3-23                 (1)  an item for which competition is precluded because
3-24     of the existence of a patent, copyright, secret process, or
3-25     monopoly;
3-26                 (2)  a film, manuscript, or book;
 4-1                 (3)  a utility service, including electricity, gas, or
 4-2     water; and
 4-3                 (4)  a captive replacement part or component for
 4-4     equipment.
 4-5           (l)  Each contract proposed to be made by [the board of
 4-6     trustees of] a school district for the purchase or lease of one or
 4-7     more school buses, including a lease with an option to purchase,
 4-8     must be submitted to competitive bidding when the contract is
 4-9     valued at $20,000 or more.
4-10           SECTION 2.  Subchapter B, Chapter 44, Education Code, is
4-11     amended by adding Sections 44.0311 and 44.0312 to read as follows:
4-12           Sec. 44.0311.  APPLICABILITY TO JUNIOR COLLEGE DISTRICTS.
4-13     (a)  This subchapter applies to junior college districts.
4-14           (b)  For purposes of this subchapter, "board of trustees"
4-15     includes the governing board of a junior college district.
4-16           Sec. 44.0312.  DELEGATION.  (a)  The board of trustees of the
4-17     district may, as appropriate, delegate its authority under this
4-18     subchapter regarding an action authorized or required by this
4-19     subchapter to be taken by a school district to a designated person,
4-20     representative, or committee.  In procuring construction services,
4-21     the district shall provide notice of the delegation and the limits
4-22     of the delegation in the request for bids, proposals, or
4-23     qualifications or in an addendum to the request.  If the district
4-24     fails to provide that notice, a ranking, selection, or evaluation
4-25     of bids, proposals, or qualifications for construction services
4-26     other than by the board of trustees in an open public meeting is
 5-1     advisory only.
 5-2           (b)  The board may not delegate the authority to act
 5-3     regarding an action authorized or required by this subchapter to be
 5-4     taken by the board of trustees of a school district.
 5-5           SECTION 3.  Subsection (f), Section 44.032, Education Code,
 5-6     is amended to read as follows:
 5-7           (f)  A court may enjoin performance of a contract made in
 5-8     violation of this subchapter [Section 44.031(a) or (b)].  A county
 5-9     attorney, a district attorney, a criminal district attorney, [or] a
5-10     citizen of the county in which the school district is located, or
5-11     any interested party may bring an action for an injunction.  A
5-12     party [citizen] who prevails in an action brought under this
5-13     subsection is entitled to reasonable attorney's fees as approved by
5-14     the court.
5-15           SECTION 4.  Section 44.035, Education Code, is amended to
5-16     read as follows:
5-17           Sec. 44.035.  EVALUATION OF BIDS AND [COMPETITIVE SEALED]
5-18     PROPOSALS FOR CONSTRUCTION SERVICES.  (a)  The board of trustees of
5-19     a school district that is considering a construction contract using
5-20     a method specified by Section 44.031(a) must, before advertising,
5-21     determine which method [Except as otherwise provided by this
5-22     subchapter, a school district using competitive sealed proposals to
5-23     select a contractor for construction services, to select a
5-24     construction manager, or to award a job order contract for
5-25     construction services shall base its selection or award on a
5-26     combination of price and other factors that the district
 6-1     determines] provides the best value for [to] the district.
 6-2           (b)  The [A school] district shall base its selection among
 6-3     offerors on criteria authorized to be used under Section 44.031(b).
 6-4     The district shall publish in the request for bids, proposals, or
 6-5     qualifications the criteria that will be used to evaluate the
 6-6     offerors and the relative weights, if known at the time of the
 6-7     publication, given to the criteria [using competitive sealed
 6-8     proposals may discuss proposals with offerors after proposals have
 6-9     been opened to allow for clarification and changes.  The district
6-10     shall take adequate precautions to ensure that information from
6-11     competing proposals is not disclosed to other offerors].
6-12           (c)  The district shall document the basis of its selection
6-13     and shall make the evaluations public not later than the seventh
6-14     day after the date the contract is awarded.
6-15           SECTION 5.  Subdivision (3), Subsection (a), Section 44.036,
6-16     Education Code, is amended to read as follows:
6-17                 (3)  "Design criteria package" means a set of documents
6-18     that provides sufficient information to permit a design-build firm
6-19     to prepare a response to a school district's request for
6-20     qualifications and any additional information requested, including
6-21     criteria for selection [proposals].  The design criteria package
6-22     must specify criteria the district considers necessary to describe
6-23     the project and may include, as appropriate, the legal description
6-24     of the site, survey information concerning the site, interior space
6-25     requirements, special material requirements, material quality
6-26     standards, conceptual criteria for the project, special equipment
 7-1     requirements, cost or budget estimates, time schedules, quality
 7-2     assurance and quality control requirements, site development
 7-3     requirements, applicable codes and ordinances, provisions for
 7-4     utilities, parking requirements, or any other requirement, as
 7-5     applicable.
 7-6           SECTION 6.  Subsections (e), (f), and (j), Section 44.036,
 7-7     Education Code, are amended to read as follows:
 7-8           (e)  The district shall evaluate statements of qualifications
 7-9     [proposals] and select a design-build firm in two phases:
7-10                 (1)  In phase one, the district shall prepare a request
7-11     for qualifications and evaluate each offeror's experience,
7-12     technical competence, and capability to perform, the past
7-13     performance of the offeror's team and members of the team, and
7-14     other appropriate factors submitted by the team or firm in response
7-15     to the request for qualifications, except that cost-related or
7-16     price-related evaluation factors are not permitted.  Each offeror
7-17     must certify to the district that each engineer or architect that
7-18     is a member of its team was selected based on demonstrated
7-19     competence and qualifications.  The district shall qualify a
7-20     maximum of five [potential] offerors to submit additional
7-21     information and, if the district chooses, to interview for final
7-22     selection [regarding technical proposals, implementation, and
7-23     costing methodologies in response to a formal request for proposals
7-24     based on the design criteria package].
7-25                 (2)  In phase two, the district shall evaluate the
7-26     information submitted by the offerors on the basis of the selection
 8-1     criteria stated in the request for qualifications and the results
 8-2     of any interview.  The district may request additional information
 8-3     regarding demonstrated competence and qualifications,
 8-4     considerations of the safety and long-term durability of the
 8-5     project, the feasibility of implementing the project as proposed,
 8-6     the ability of the offeror to meet schedules, costing methodology,
 8-7     or other factors as appropriate.  The district may not require
 8-8     offerors to submit detailed engineering or architectural designs as
 8-9     part of the proposal.  The district shall rank each proposal
8-10     submitted on the basis of the criteria set forth in the request for
8-11     qualifications.  The district shall select the design-build firm
8-12     that submits the proposal offering the best value for the district
8-13     on the basis of the published selection criteria and on its ranking
8-14     evaluations.  The district shall first attempt to negotiate with
8-15     the selected offeror a contract.  If the district is unable to
8-16     negotiate a satisfactory contract with the selected offeror, the
8-17     district shall, formally and in writing, end negotiations with that
8-18     offeror and proceed to negotiate with the next offeror in the order
8-19     of the selection ranking until a contract is reached or
8-20     negotiations with all ranked offerors end.
8-21           (f)  Following selection of a design-build firm under
8-22     Subsection (e), that firm's engineers or architects shall complete
8-23     the design, submitting all design elements for review and
8-24     determination of scope compliance to [by] the district or
8-25     district's engineer or architect before or concurrently with
8-26     construction.
 9-1           (j)  A payment or performance bond is not required for, and
 9-2     may not provide coverage for, the portion of a design-build
 9-3     contract under this section that includes design services only.  If
 9-4     a fixed contract amount or guaranteed maximum price has not been
 9-5     determined at the time a design-build contract is awarded, the
 9-6     penal sums of the performance and payment bonds delivered to the
 9-7     district must each be in an amount equal to the project budget, as
 9-8     specified in the design criteria package.  The design-build firm
 9-9     shall deliver the bonds not later than the 10th day after the date
9-10     the design-build firm executes the contract unless the design-build
9-11     firm furnishes a bid bond or other financial security acceptable to
9-12     the district to ensure that the design-build firm will furnish the
9-13     required performance and payment bonds when a guaranteed maximum
9-14     price is established.
9-15           SECTION 7.  Subsections (b) and (c), Section 44.037,
9-16     Education Code, are amended to read as follows:
9-17           (b)  A construction manager-agent is a sole proprietorship,
9-18     partnership, corporation, or other legal entity that provides
9-19     consultation to the school district regarding construction,
9-20     rehabilitation, alteration, or repair of the facility.  A district
9-21     using the construction manager-agent method may, under the contract
9-22     between the district and the construction manager-agent, require
9-23     the construction manager-agent to provide administrative personnel,
9-24     equipment necessary to perform duties under this section, and
9-25     on-site management and other services specified in the contract.  A
9-26     construction manager-agent represents the district in a fiduciary
 10-1    capacity[, except that it may perform general conditions as
 10-2    provided by the contract].
 10-3          (c)  Before or concurrently with selecting a construction
 10-4    manager-agent, the district shall select or designate an engineer
 10-5    or architect who shall prepare the construction documents for the
 10-6    project and who has full responsibility for complying with The
 10-7    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
 10-8    Statutes) or Chapter 478, Acts of the 45th Legislature, Regular
 10-9    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), as
10-10    applicable.  If the engineer or architect is not a full-time
10-11    employee of the district, the district shall select the engineer or
10-12    architect on the basis of demonstrated competence and
10-13    qualifications as provided by Section 2254.004, Government Code.
10-14    The district's engineer or architect may not serve, alone or in
10-15    combination with another person, as the construction manager-agent
10-16    unless the engineer or architect is hired to serve as the
10-17    construction manager-agent under a separate or concurrent
10-18    procurement conducted in accordance with this subchapter.  This
10-19    subsection does not prohibit the district's engineer or architect
10-20    from providing customary construction phase services under the
10-21    engineer's or architect's original professional service agreement
10-22    in accordance with applicable licensing laws.
10-23          SECTION 8.  Sections 44.038 and 44.039, Education Code, are
10-24    amended to read as follows:
10-25          Sec. 44.038.  CONTRACTS FOR FACILITIES:  CONSTRUCTION
10-26    MANAGER-AT-RISK.  (a)  A school district may use the construction
 11-1    manager-at-risk method for the construction, rehabilitation,
 11-2    alteration, or repair of a facility.  In using that method and in
 11-3    entering into a contract for the services of a construction
 11-4    manager-at-risk, a district shall follow the procedures prescribed
 11-5    by this section.
 11-6          (b)  A construction manager-at-risk is a sole proprietorship,
 11-7    partnership, corporation, or other legal entity that assumes the
 11-8    risk for construction, rehabilitation, alteration, or repair of a
 11-9    facility at the contracted price as a general contractor and
11-10    provides consultation to the school district regarding construction
11-11    during and after the design of the facility.
11-12          (c)  Before or concurrently with selecting a construction
11-13    manager-at-risk, the district shall select or designate an engineer
11-14    or architect who shall prepare the construction documents for the
11-15    project and who has full responsibility for complying with The
11-16    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
11-17    Statutes) or Chapter 478, Acts of the 45th Legislature, Regular
11-18    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), as
11-19    applicable.  If the engineer or architect is not a full-time
11-20    employee of the district, the district shall select the engineer or
11-21    architect on the basis of demonstrated competence and
11-22    qualifications as provided by Section 2254.004, Government Code.
11-23    The district's engineer, architect, or construction manager-agent
11-24    for a project may not serve, alone or in combination with another,
11-25    as the construction manager-at-risk.
11-26          (d)  The district shall provide or contract for,
 12-1    independently of the construction manager-at-risk, the inspection
 12-2    services, the testing of construction materials engineering, and
 12-3    the verification testing services necessary for acceptance of the
 12-4    facility by the district.  The district shall select those services
 12-5    for which it contracts in accordance with Section 2254.004,
 12-6    Government Code.
 12-7          (e)  The district shall select the construction
 12-8    manager-at-risk in either a one-step or two-step process.  The
 12-9    district shall prepare a request for [competitive sealed]
12-10    proposals, in the case of a one-step process, or a request for
12-11    qualifications, in the case of a two-step process, that includes
12-12    general information on the project site, project scope, schedule,
12-13    selection criteria, estimated budget, and the time and place for
12-14    receipt of proposals or qualifications, as applicable, a statement
12-15    as to whether the selection process is a one-step or two-step
12-16    process, and other information that may assist the district in its
12-17    selection of a construction manager-at-risk.  The district shall
12-18    state the selection criteria in the request for proposals or
12-19    qualifications, as applicable.  The selection criteria may include
12-20    the offeror's experience, past performance, safety record, proposed
12-21    personnel and methodology, and other appropriate factors that
12-22    demonstrate the capability of the construction manager-at-risk.  If
12-23    a one-step process is used, the district may request, as part of
12-24    the offeror's proposal, proposed fees and prices for fulfilling the
12-25    general conditions.  If a two-step process is used, the district
12-26    may not request fees or prices in step one.  In step two, the [The]
 13-1    district may request that five or fewer offerors, selected solely
 13-2    on the basis of qualifications, provide additional information,
 13-3    including [proposals provide] the construction manager-at-risk's
 13-4    [manager's] proposed fee and its price for fulfilling the general
 13-5    conditions.  [The district shall state the selection criteria in
 13-6    the request for proposals.  The selection criteria may include the
 13-7    offeror's experience, past performance, safety record, proposed
 13-8    personnel and methodology, and other appropriate factors that
 13-9    demonstrate the capability of the construction manager.]
13-10          (f)  At each step, the [The district may provide for
13-11    prequalifying offerors before proposals are submitted.
13-12    Prequalification may not be a conclusive determination that an
13-13    offeror offers the best value to the district, and a prequalified
13-14    offeror may be rejected on the basis of subsequently discovered
13-15    information.  A failure to prequalify does not bar a subsequent
13-16    determination that an offeror offers the best value to the district
13-17    with respect to a given proposal.]
13-18          [(g)  The] district shall receive, publicly open, and read
13-19    aloud the names of the offerors.  At the appropriate step, the
13-20    district shall also read aloud the fees and  prices, if any, stated
13-21    in [and the monetary proposals, if any, for] each proposal as the
13-22    proposal is opened.  Within 45 days after the date of opening the
13-23    proposals, the district shall evaluate and rank each proposal
13-24    submitted in relation to the criteria set forth in the request for
13-25    proposals.
13-26          (g) [(h)]  The district shall select the offeror that submits
 14-1    the proposal that offers the best value for [to] the district based
 14-2    on the published selection criteria and on its ranking evaluation.
 14-3    The district shall first attempt to negotiate with the selected
 14-4    offeror a contract.  If the district is unable to negotiate [reach]
 14-5    a satisfactory contract [agreement] with the selected offeror, the
 14-6    district shall, formally and in writing, end negotiations with that
 14-7    offeror [terminate further discussions] and proceed to negotiate
 14-8    with the next offeror in the order of the selection ranking until a
 14-9    contract [agreement] is reached or negotiations with all ranked
14-10    offerors end [all proposals are rejected].
14-11          (h) [(i)]  A construction manager-at-risk shall publicly
14-12    advertise, in accordance with Section 44.031(g), and receive bids
14-13    or [and solicit either competitive bids or competitive sealed]
14-14    proposals from trade contractors or subcontractors for the
14-15    performance of all major elements of the work other than the minor
14-16    work that may be included in the general conditions.  A
14-17    construction manager-at-risk may seek to perform portions of the
14-18    work itself if the construction manager-at-risk submits its bid or
14-19    proposal for those portions of the work in the same manner as all
14-20    other trade contractors or subcontractors and if the district
14-21    determines that the construction manager-at-risk's bid or proposal
14-22    provides the best value for the district.
14-23          (i) [(j)]  The construction manager-at-risk and the district
14-24    or its representative shall review [receive and open] all trade
14-25    contractor or subcontractor bids or proposals in a manner that does
14-26    not disclose the contents of the bid or proposal during the
 15-1    selection process to a person not employed by the construction
 15-2    manager-at-risk, engineer, architect, or  district.  All bids or
 15-3    proposals shall be made public after the award of the contract or
 15-4    within seven days after the date of final selection of bids or
 15-5    proposals, whichever is later.
 15-6          (j) [(k)]  If the construction manager-at-risk reviews,
 15-7    evaluates, and recommends to the district a bid or proposal from a
 15-8    trade contractor or subcontractor but the district requires another
 15-9    bid or proposal to be accepted, the district shall compensate the
15-10    construction manager-at-risk by a change in price, time, or
15-11    guaranteed maximum cost for any additional cost and risk that the
15-12    construction manager-at-risk may incur because of the district's
15-13    requirement that another bid or proposal be accepted.
15-14          (k)  If a selected trade contractor or subcontractor defaults
15-15    in the performance of its work or fails to execute a subcontract
15-16    after being selected in accordance with this section, the
15-17    construction manager-at-risk may, without advertising, itself
15-18    fulfill the contract requirements or select a replacement trade
15-19    contractor or subcontractor to fulfill the contract requirements.
15-20          (l)  If a fixed contract amount or guaranteed maximum price
15-21    has not been determined at the time the contract is awarded, the
15-22    penal sums of the performance and payment bonds delivered to the
15-23    district must each be in an amount equal to the project budget, as
15-24    specified in the request for qualifications.  The construction
15-25    manager shall deliver the bonds not later than the 10th day after
15-26    the date the construction manager executes the contract unless the
 16-1    construction manager furnishes a bid bond or other financial
 16-2    security acceptable to the district to ensure that the construction
 16-3    manager will furnish the required performance and payment bonds
 16-4    when a guaranteed maximum price is established.
 16-5          Sec. 44.039.  SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES
 16-6    THROUGH COMPETITIVE SEALED PROPOSALS.  (a)  In selecting a
 16-7    contractor for construction, rehabilitation, alteration, or repair
 16-8    services for a facility through competitive sealed proposals, a
 16-9    school district shall follow the procedures prescribed by this
16-10    section.
16-11          (b)  The district shall select or designate an engineer or
16-12    architect to prepare construction documents for the project.  The
16-13    selected or designated engineer or architect has full
16-14    responsibility for complying with The Texas Engineering Practice
16-15    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
16-16    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
16-17    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
16-18    architect is not a full-time employee of the district, the district
16-19    shall select the engineer or architect on the basis of demonstrated
16-20    competence and qualifications as provided by Section 2254.004,
16-21    Government Code.
16-22          (c)  The district shall provide or contract for,
16-23    independently of the contractor, the inspection services, the
16-24    testing of construction materials engineering, and the verification
16-25    testing services necessary for acceptance of the facility by the
16-26    district.  The district shall select those services for which it
 17-1    contracts in accordance with Section 2254.004, Government Code, and
 17-2    shall identify them in the request for proposals.
 17-3          (d)  The district shall prepare a request for competitive
 17-4    sealed proposals that includes construction documents, selection
 17-5    criteria, estimated budget, project scope, schedule, and other
 17-6    information that contractors may require to respond to the request.
 17-7    The district shall state in the request for proposals the selection
 17-8    criteria that will be used in selecting the successful offeror [in
 17-9    the request for proposals].  [The selection criteria may include
17-10    the offeror's experience, past performance, safety record, proposed
17-11    personnel and methodology, and other appropriate factors that
17-12    demonstrate the capability of the contractor.]
17-13          (e)  [The district may provide for prequalifying offerors
17-14    before proposals are submitted.  Prequalification may not be a
17-15    conclusive determination that an offeror offers the best value to
17-16    the district, and a prequalified offeror may be rejected on the
17-17    basis of subsequently discovered information.  A failure to
17-18    prequalify does not bar a subsequent determination that an offeror
17-19    offers the best value to the district with respect to a given
17-20    proposal.]
17-21          [(f)]  The district shall receive, publicly open, and read
17-22    aloud the names of the offerors and, if any are required to be
17-23    stated, all prices [the monetary proposals, if any,] stated in each
17-24    proposal.  Within 45 days after the date of opening the proposals,
17-25    the district shall evaluate and rank each proposal submitted in
17-26    relation to the published selection criteria.
 18-1          (f) [(g)]  The district shall select the offeror that offers
 18-2    the best value for [to] the district based on the published
 18-3    selection criteria and on its ranking evaluation.  The district
 18-4    shall first attempt to negotiate with the selected offeror a
 18-5    contract.  The district and its engineer or architect may discuss
 18-6    with the selected offeror options for a scope or time modification
 18-7    and any price change associated with the modification [cost
 18-8    reduction].  If the district is unable to negotiate [reach] a
 18-9    contract [agreement] with the selected offeror, the district shall,
18-10    formally and in writing, end negotiations with that offeror
18-11    [terminate further discussions] and proceed to the next offeror in
18-12    the order of the selection ranking until a contract [agreement] is
18-13    reached or all proposals are rejected.
18-14          (g) [(h)]  In determining best value for the district, the
18-15    district is not restricted to considering price alone, but may
18-16    consider any other factor stated in the selection criteria.
18-17          SECTION 9.  Subsection (b), Section 44.040, Education Code,
18-18    is amended to read as follows:
18-19          (b)  Except as otherwise specifically provided by this
18-20    subsection, Subchapter B, Chapter 271 [Sections 271.021, 271.022,
18-21    271.026, 271.027(a), and 271.0275-271.030], Local Government Code,
18-22    does not apply to a competitive bidding process under this
18-23    subchapter [section].  Sections 271.026, 271.027(a), and 271.0275,
18-24    Local Government Code, apply to a competitive bidding process under
18-25    this subchapter.
18-26          SECTION 10.  Section 44.041, Education Code, is amended to
 19-1    read as follows:
 19-2          Sec. 44.041.  JOB ORDER CONTRACTS FOR FACILITIES CONSTRUCTION
 19-3    OR REPAIR.  (a)  A school district may award job order contracts
 19-4    for the minor construction, repair, rehabilitation, or alteration
 19-5    of a facility if the work is of a recurring nature but the delivery
 19-6    times are indefinite and indefinite quantities and orders are
 19-7    awarded substantially on the basis of predescribed and prepriced
 19-8    tasks.
 19-9          (b)  The school district may establish contractual unit
19-10    prices for a job order contract by:
19-11                (1)  specifying one or more published construction unit
19-12    price books and the applicable divisions or line items; or
19-13                (2)  providing a list of work items and requiring the
19-14    offerors to bid or propose one or more coefficients or multipliers
19-15    to be applied to the price book or work items as the price
19-16    proposal.
19-17          (c)  The school district shall advertise for, receive, and
19-18    publicly open [competitive] sealed proposals for job order
19-19    contracts [based on time and material rates for various types and
19-20    classifications of work.  The rates under a job order contract
19-21    shall be in effect for at least six months and for not longer than
19-22    two years].
19-23          (d) [(c)]  The district may require offerors to submit
19-24    additional information besides rates, including experience, past
19-25    performance, and proposed personnel and methodology.
19-26          (e) [(d)]  The district may award job order contracts to one
 20-1    or more job order contractors in connection with each solicitation
 20-2    of bids or [based on price] proposals[, experience, past
 20-3    performance, proposed personnel and methodology, safety record, and
 20-4    other appropriate factors].
 20-5          (f) [(e)]  An order for a job or project under the job order
 20-6    contract must be signed by the district's representative and the
 20-7    contractor.  The order may be a fixed price, lump-sum contract
 20-8    based substantially on contractual unit pricing applied to
 20-9    estimated quantities [a statement of work negotiated between the
20-10    district or its representative and the contractor,] or [the order]
20-11    may be a unit price order based on the [estimated] quantities and
20-12    line items delivered.
20-13          (g)  The contractor shall provide payment and performance
20-14    bonds, if required by law, based on the amount or estimated amount
20-15    of any order.
20-16          (h)  The base term of a job order contract is for the period
20-17    and with any renewal option that the district sets forth in the
20-18    request for proposals.  If the district fails to advertise that
20-19    term, the base term may not exceed two years and is not renewable
20-20    without further advertisement and solicitation of proposals.
20-21          (i)  If a job order contract or an order issued under the
20-22    contract requires engineering or architectural services that
20-23    constitute the practice of engineering within the meaning of The
20-24    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
20-25    Statutes) or the practice of architecture within the meaning of
20-26    Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
 21-1    (Article 249a, Vernon's Texas Civil Statutes), those services shall
 21-2    be provided in accordance with applicable law.
 21-3          SECTION 11.  Subdivision (8), Section 51.776, Education Code,
 21-4    is amended to read as follows:
 21-5                (8)  "Institution" means an institution of higher
 21-6    education as defined by Section 61.003, other than a public junior
 21-7    college.
 21-8          SECTION 12.  Section 51.779, Education Code, is amended to
 21-9    read as follows:
21-10          Sec. 51.779.  EVALUATION OF BIDS AND [COMPETITIVE SEALED]
21-11    PROPOSALS FOR CONSTRUCTION SERVICES.  (a)  An institution that is
21-12    considering a construction contract using a method authorized by
21-13    this subchapter must, before advertising, determine which method
21-14    [Except as otherwise provided by this subchapter, the board of an
21-15    institution using competitive sealed proposals to select a
21-16    contractor for construction services, to select a construction
21-17    manager, or to award a job order contract for construction services
21-18    shall base its selection or award on a combination of price and
21-19    other factors that the board determines] provides the best value
21-20    for [to] the institution.
21-21          (b)  The [An] institution shall base its selection among the
21-22    offerors on criteria established by the institution.  The
21-23    institution shall publish in the request for bids, proposals, or
21-24    qualifications the criteria that will be used to evaluate the
21-25    offerors [using competitive sealed proposals may discuss proposals
21-26    with offerors after proposals have been opened to allow for
 22-1    clarification and changes.  The institution shall take adequate
 22-2    precautions to ensure that information from competing proposals is
 22-3    not disclosed to other offerors].
 22-4          (c)  The institution shall document the basis of its
 22-5    selection  and shall make the evaluations public not later than the
 22-6    seventh day after the date the contract is awarded.
 22-7          SECTION 13.  Subdivision (3), Subsection (a), Section 51.780,
 22-8    Education Code, is amended to read as follows:
 22-9                (3)  "Design criteria package" means a set of documents
22-10    that provides sufficient information to permit a design-build firm
22-11    to prepare a response to an institution's request for
22-12    qualifications and any additional information requested, including
22-13    criteria for selection [proposals].  The design criteria package
22-14    must specify criteria the institution considers necessary to
22-15    describe the project and may include, as appropriate, the legal
22-16    description of the site, survey information concerning the site,
22-17    interior space requirements, special material requirements,
22-18    material quality standards, conceptual criteria for the project,
22-19    special equipment requirements, cost or budget estimates, time
22-20    schedules, quality assurance and quality control requirements, site
22-21    development requirements, applicable codes and ordinances,
22-22    provisions for utilities, parking requirements, or any other
22-23    requirement, as applicable.
22-24          SECTION 14.  Subsections (f) and (k), Section 51.780,
22-25    Education Code, are amended to read as follows:
22-26          (f)  The board or its representative shall evaluate
 23-1    statements of qualifications [proposals] and select a design-build
 23-2    firm in two phases:
 23-3                (1)  In phase one, the board or its representative
 23-4    shall prepare a request for qualifications and evaluate each
 23-5    offeror's experience, technical competence, and capability to
 23-6    perform, the past performance of the offeror's team and members of
 23-7    the team, and other appropriate factors submitted by the team or
 23-8    firm in response to the request for qualifications, except that
 23-9    cost-related or price-related evaluation factors are not permitted.
23-10    Each offeror must certify to the board that each engineer or
23-11    architect that is a member of its team was selected based on
23-12    demonstrated competence and qualifications.  The board or its
23-13    representative shall qualify a maximum of five [potential] offerors
23-14    to submit additional information and, if the board or its
23-15    representative chooses, to interview for final selection [regarding
23-16    technical proposals, implementation, and costing methodologies in
23-17    response to a formal request for proposals based on the design
23-18    criteria package].
23-19                (2)  In phase two, the board or its representative
23-20    shall evaluate the information submitted by the offerors on the
23-21    basis of the selection criteria stated in the request for
23-22    qualifications and the results of any interview.  The board or its
23-23    representative may request additional information regarding
23-24    demonstrated competence and qualifications, considerations of the
23-25    safety and long-term durability of the project, the feasibility of
23-26    implementing the project as proposed, the ability of the offeror to
 24-1    meet schedules, costing methodology, or other factors as
 24-2    appropriate.  The board or its representative [institution] may not
 24-3    require offerors to submit detailed engineering or architectural
 24-4    designs [design] as part of the proposal.  The board or its
 24-5    representative shall rank each proposal submitted on the basis of
 24-6    the criteria specified in the request for qualifications.  The
 24-7    board or its representative shall select the design-build firm that
 24-8    submits the proposal offering the best value for the institution on
 24-9    the basis of the published selection criteria and on its ranking
24-10    evaluations.  The board or its representative shall first attempt
24-11    to negotiate with the selected offeror a contract.  If the board or
24-12    its representative is unable to negotiate a satisfactory contract
24-13    with the selected offeror, the institution shall, formally and in
24-14    writing, end all negotiations with that offeror and proceed to
24-15    negotiate with the next offeror in the order of the selection
24-16    ranking until a contract is reached or negotiations with all ranked
24-17    offerors end.
24-18          (k)  A payment or performance bond is not required for, and
24-19    may not provide coverage for, the portion of a design-build
24-20    contract under this section that includes design services only.  If
24-21    a fixed contract amount or guaranteed maximum price has not been
24-22    determined at the time a design-build contract is awarded, the
24-23    penal sums of the performance and payment bonds delivered to the
24-24    institution shall each be in an amount equal to the project budget,
24-25    as specified in the design criteria package.  The design-build firm
24-26    shall deliver the bonds not later than the 10th day after the date
 25-1    the design-build firm executes the contract unless the design-build
 25-2    firm furnishes a bid bond or other financial security acceptable to
 25-3    the institution to ensure that the design-build firm will furnish
 25-4    the required performance and payment bonds when a guaranteed
 25-5    maximum price is established.
 25-6          SECTION 15.  Subsections (b) and (c), Section 51.781,
 25-7    Education Code, are amended to read as follows:
 25-8          (b)  A construction manager-agent is a sole proprietorship,
 25-9    partnership, corporation, or other legal entity that provides
25-10    consultation to the institution regarding construction,
25-11    rehabilitation, alteration, or repair of the facility.  An
25-12    institution using the construction manager-agent method may, under
25-13    the contract between the institution and the construction
25-14    manager-agent, require the construction manager-agent to provide
25-15    administrative personnel, equipment necessary to perform duties
25-16    under this section, and on-site management and other services
25-17    specified in the contract.  A construction manager-agent represents
25-18    the institution in a fiduciary capacity[, except that it may
25-19    perform general conditions as provided by the contract].
25-20          (c)  Before or concurrently with selecting a construction
25-21    manager-agent, the board shall select or designate an engineer or
25-22    architect who shall prepare the construction documents for the
25-23    project and who has full responsibility for complying with The
25-24    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
25-25    Statutes) or Chapter 478, Acts of the 45th Legislature, Regular
25-26    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), as
 26-1    applicable.  If the engineer or architect is not a full-time
 26-2    employee of the institution, the board shall select the engineer or
 26-3    architect on the basis of demonstrated competence and
 26-4    qualifications as provided by Section 2254.004, Government Code.
 26-5    The institution's engineer or architect may not serve, alone or in
 26-6    combination with another person, as the construction manager-agent
 26-7    unless the engineer or architect is hired to serve as the
 26-8    construction manager-agent under a separate or concurrent
 26-9    procurement conducted in accordance with this subchapter.  This
26-10    subsection does not prohibit the institution's engineer or
26-11    architect from providing customary construction phase services
26-12    under the engineer's or architect's original professional service
26-13    agreement in accordance with applicable licensing laws.
26-14          SECTION 16.  Sections 51.782, 51.783, and 51.784, Education
26-15    Code, are amended to read as follows:
26-16          Sec. 51.782.  CONTRACTS FOR FACILITIES:  CONSTRUCTION
26-17    MANAGER-AT-RISK.  (a)  An institution may use the construction
26-18    manager-at-risk method for the construction, rehabilitation,
26-19    alteration, or repair of a facility.  In using that method and in
26-20    entering into a contract for the services of a construction
26-21    manager-at-risk, a board shall follow the procedures prescribed by
26-22    this section.
26-23          (b)  A construction manager-at-risk is a sole proprietorship,
26-24    partnership, corporation, or other legal entity that assumes the
26-25    risk for construction, rehabilitation, alteration, or repair of a
26-26    facility at the contracted price as a general contractor and
 27-1    provides consultation to the institution regarding construction
 27-2    during and after the design of the facility.
 27-3          (c)  Before or concurrently with selecting a construction
 27-4    manager-at-risk, the board shall select or designate an engineer or
 27-5    architect who shall prepare the construction documents for the
 27-6    project and who has full responsibility for complying with The
 27-7    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
 27-8    Statutes) or Chapter 478, Acts of the 45th Legislature, Regular
 27-9    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), as
27-10    applicable.  If the engineer or architect is not a full-time
27-11    employee of the institution, the board shall select the engineer or
27-12    architect on the basis of demonstrated competence and
27-13    qualifications as provided by Section 2254.004, Government Code.
27-14    The institution's engineer, architect, or construction
27-15    manager-agent for a project may not serve, alone or in combination
27-16    with another, as the construction manager-at-risk.
27-17          (d)  The board shall provide or contract for, independently
27-18    of the construction manager-at-risk, the inspection services, the
27-19    testing of construction materials engineering, and the verification
27-20    testing services necessary for acceptance of the facility by the
27-21    institution.  The board shall select those services for which it
27-22    contracts in accordance with Section 2254.004, Government Code.
27-23          (e)  The board shall select the construction manager-at-risk
27-24    in either a one-step or two-step process.  The board shall prepare
27-25    a request for [competitive sealed] proposals, in the case of a
27-26    one-step process, or a request for qualifications, in the case of a
 28-1    two-step process, that includes general information on the project
 28-2    site, project scope, schedule, selection criteria, estimated
 28-3    budget, and the time and place for receipt of proposals or
 28-4    qualifications, as applicable, a statement as to whether the
 28-5    selection process is a one-step or two-step process, and other
 28-6    information that may assist the board in its selection of a
 28-7    construction manager-at-risk.  The board shall state the selection
 28-8    criteria in the request for proposals or qualifications, as
 28-9    applicable.  The selection criteria may include the offeror's
28-10    experience, past performance, safety record, proposed personnel and
28-11    methodology, and other appropriate factors that demonstrate the
28-12    capability of the construction manager-at-risk.  If a one-step
28-13    process is used, the board may request, as part of the offeror's
28-14    proposal, proposed fees and prices for fulfilling the general
28-15    conditions.  If a two-step process is used, the board may not
28-16    request fees or prices in step one.  In step two, the  [The] board
28-17    may request that five or fewer offerors, selected solely on the
28-18    basis of qualifications, provide additional information, including
28-19    [proposals provide] the construction manager-at-risk's [manager's]
28-20    proposed fee and its price for fulfilling the general conditions.
28-21    [The board shall state the selection criteria in the request for
28-22    proposals.  The selection criteria may include the offeror's
28-23    experience, past performance, safety record, proposed personnel and
28-24    methodology, and other appropriate factors that demonstrate the
28-25    capability of the construction manager.]
28-26          (f)  The board shall publish the request for qualifications
 29-1    [proposals] in a manner prescribed by the board.
 29-2          (g)  At each step, the [The board may provide for
 29-3    prequalifying offerors before proposals are submitted.
 29-4    Prequalification may not be a conclusive determination that an
 29-5    offeror offers the best value to the institution, and a
 29-6    prequalified offeror may be rejected on the basis of subsequently
 29-7    discovered information.  A failure to prequalify does not bar a
 29-8    subsequent determination that an offeror offers the best value to
 29-9    the institution with respect to a given proposal.]
29-10          [(h)  The] board shall receive, publicly open, and read aloud
29-11    the names of the offerors.  At the appropriate step, the board
29-12    shall also read aloud the fees and prices, if any, stated in [and
29-13    the monetary proposals, if any, for] each proposal as the proposal
29-14    is opened.  Within 45 days after the date of opening the proposals,
29-15    the board or its representative shall evaluate and rank each
29-16    proposal submitted in relation to the criteria set forth in the
29-17    request for proposals.
29-18          (h) [(i)]  The board or its representative shall select the
29-19    offeror that submits the proposal that offers the best value for
29-20    [to] the institution based on the published selection criteria and
29-21    on its ranking evaluation.  The board or its representative shall
29-22    first attempt to negotiate with the selected offeror a contract.
29-23    If the board or its representative is unable to negotiate [reach] a
29-24    satisfactory contract [agreement] with the selected offeror, the
29-25    board or its representative shall, formally and in writing, end
29-26    negotiations with that offeror [terminate further discussions] and
 30-1    proceed to negotiate with the next offeror in the order of the
 30-2    selection ranking until a contract [agreement] is reached or
 30-3    negotiations with all ranked offerors end [all proposals are
 30-4    rejected].
 30-5          (i) [(j)]  A construction manager-at-risk shall publicly
 30-6    advertise, in the manner prescribed by the institution, and receive
 30-7    bids or [and solicit either competitive bids or competitive sealed]
 30-8    proposals from trade contractors or subcontractors for the
 30-9    performance of all major elements of the work other than the minor
30-10    work that may be included in the general conditions.  A
30-11    construction manager-at-risk may seek to perform portions of the
30-12    work itself if the construction manager-at-risk submits its bid or
30-13    proposal for those portions of the work in the same manner as all
30-14    other trade contractors or subcontractors and if the board
30-15    determines that the construction manager-at-risk's bid or proposal
30-16    provides the best value for the institution.
30-17          (j) [(k)]  The construction manager-at-risk and the board or
30-18    its representative shall review [receive and open] all trade
30-19    contractor or subcontractor bids or proposals in a manner that does
30-20    not disclose the contents of the bid or proposal during the
30-21    selection process to a person not employed by the construction
30-22    manager-at-risk, engineer, architect, or institution.  All bids or
30-23    proposals shall be made public after the award of the contract or
30-24    within seven days after the date of final selection of bids and
30-25    proposals, whichever is later.
30-26          (k) [(l)]  If the construction manager-at-risk reviews,
 31-1    evaluates, and recommends to the board a bid or proposal from a
 31-2    trade contractor or subcontractor but the board requires another
 31-3    bid or proposal to be accepted, the institution shall compensate
 31-4    the construction manager-at-risk by a change in price, time, or
 31-5    guaranteed maximum cost for any additional cost and risk that the
 31-6    construction manager-at-risk may incur because of the board's
 31-7    requirement that another bid or proposal be accepted.
 31-8          (l)  If a selected trade contractor or subcontractor defaults
 31-9    in the performance of its work or fails to execute a subcontract
31-10    after being selected in accordance with this section, the
31-11    construction manager-at-risk may, without advertising, itself
31-12    fulfill the contract requirements or select a replacement trade
31-13    contractor or subcontractor to fulfill the contract requirements.
31-14          (m)  If a fixed contract amount or guaranteed maximum price
31-15    has not been determined at the time the contract is awarded, the
31-16    penal sums of the performance and payment bonds delivered to the
31-17    institution must each be in an amount equal to the project budget,
31-18    as set forth in the request for qualifications.  The construction
31-19    manager shall deliver the bonds not later than the 10th day after
31-20    the date the construction manager executes the contract unless the
31-21    construction manager furnishes a bid bond or other financial
31-22    security acceptable to the institution to ensure that the
31-23    construction manager will furnish the required performance and
31-24    payment bonds when a guaranteed maximum price is established.
31-25          Sec. 51.783.  SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES
31-26    THROUGH COMPETITIVE SEALED PROPOSALS.  (a)  In selecting a
 32-1    contractor for construction, rehabilitation, alteration, or repair
 32-2    services for a facility through competitive sealed proposals, a
 32-3    board shall follow the procedures prescribed by this section.
 32-4          (b)  The board shall select or designate an engineer or
 32-5    architect to prepare construction documents for the project.  The
 32-6    selected or designated engineer or architect has full
 32-7    responsibility for complying with The Texas Engineering Practice
 32-8    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
 32-9    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
32-10    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
32-11    architect is not a full-time employee of the institution, the board
32-12    shall select the engineer or architect on the basis of demonstrated
32-13    competence and qualifications as provided by Section 2254.004,
32-14    Government Code.
32-15          (c)  The board shall provide or contract for, independently
32-16    of the contractor, the inspection services, the testing of
32-17    construction materials engineering, and the verification testing
32-18    services necessary for acceptance of the facility by the
32-19    institution.  The board shall select those services for which it
32-20    contracts in accordance with Section 2254.004, Government Code, and
32-21    shall identify them in the request for proposals.
32-22          (d)  The board shall prepare a request for competitive sealed
32-23    proposals that includes construction documents, selection criteria,
32-24    estimated budget, project scope, schedule, and other information
32-25    that contractors may require to respond to the request.  The board
32-26    shall state in the request for proposals the selection criteria
 33-1    that will be used in selecting the successful offeror [in the
 33-2    request for proposals].  [The selection criteria may include the
 33-3    offeror's experience, past performance, safety record, proposed
 33-4    personnel and methodology, and other appropriate factors that
 33-5    demonstrate the capability of the contractor.]
 33-6          (e)  The board shall publish notice of the request for
 33-7    proposals in a manner prescribed by the board.
 33-8          (f)  [The board may provide for prequalifying offerors before
 33-9    proposals are submitted.  Prequalification may not be a conclusive
33-10    determination that an offeror offers the best value to the
33-11    institution, and a prequalified offeror may be rejected on the
33-12    basis of subsequently discovered information.  A failure to
33-13    prequalify does not bar a subsequent determination that an offeror
33-14    offers the best value to the institution with respect to a given
33-15    proposal.]
33-16          [(g)]  The board shall receive, publicly open, and read aloud
33-17    the names of the offerors and, if any are required to be stated,
33-18    all prices [the monetary proposals, if any,] stated in each
33-19    proposal.  Within 45 days after the date of opening the proposals
33-20    the board shall evaluate and rank each proposal submitted in
33-21    relation to the published selection criteria.
33-22          (g) [(h)]  The board shall select the offeror that offers the
33-23    best value for [to] the institution based on the published
33-24    selection criteria and on its ranking evaluation.  The board shall
33-25    first attempt to negotiate with the selected offeror a contract.
33-26    The board and its engineer or architect may discuss with the
 34-1    selected offeror options for a scope or time modification and any
 34-2    price change associated with the modification [cost reduction].  If
 34-3    the board is unable to reach a contract [agreement] with the
 34-4    selected offeror, the board shall, formally and in writing, end
 34-5    negotiations with that offeror [terminate further discussions] and
 34-6    proceed to the next offeror in the order of the selection ranking
 34-7    until a contract [agreement] is reached or all proposals are
 34-8    rejected.
 34-9          (h) [(i)]  In determining best value for the institution, the
34-10    board is not restricted to considering price alone but may consider
34-11    any other factor stated in the selection criteria.
34-12          Sec. 51.784.  JOB ORDER CONTRACTS FOR FACILITIES CONSTRUCTION
34-13    OR REPAIR.  (a)  An institution may award job order contracts for
34-14    the minor construction, repair, rehabilitation, or alteration of a
34-15    facility if the work is of a recurring nature but the delivery
34-16    times are indefinite and indefinite quantities and orders are
34-17    awarded substantially on the basis of predescribed and prepriced
34-18    tasks.
34-19          (b)  The institution may establish contractual unit prices
34-20    for a job order contract by:
34-21                (1)  specifying one or more published construction unit
34-22    price books and the applicable divisions or line items; or
34-23                (2)  providing a list of work items and requiring the
34-24    offerors to bid or propose one or more coefficients or multipliers
34-25    to be applied to the price book or work items as the price
34-26    proposal.
 35-1          (c)  The board shall advertise for, receive, and publicly
 35-2    open [competitive] sealed proposals for job order contracts [based
 35-3    on time and material rates for various types and classifications of
 35-4    work.  The rates under a job order contract shall be in effect for
 35-5    at least six months and for not longer than two years].
 35-6          (d) [(c)]  The board may require offerors to submit
 35-7    additional information besides rates, including experience, past
 35-8    performance, and proposed personnel and methodology.
 35-9          (e) [(d)]  The board may award job order contracts to one or
35-10    more job order contractors in connection with each solicitation of
35-11    bids or [based on price] proposals[, experience, past performance,
35-12    proposed personnel and methodology, safety record, and other
35-13    appropriate factors].
35-14          (f) [(e)]  An order for a job or project under the job order
35-15    contract must be signed by the board's representative and the
35-16    contractor.  The order may be a fixed price, lump-sum contract
35-17    based substantially on contractual unit pricing applied to
35-18    estimated quantities [a statement of work negotiated between the
35-19    board or its representative and the contractor,] or [the order] may
35-20    be a unit price order based on the [estimated] quantities and line
35-21    items delivered.
35-22          (g)  The contractor shall provide payment and performance
35-23    bonds, if required by law, based on the amount or estimated amount
35-24    of any order.
35-25          (h)  The base term of a job order contract is for the period
35-26    and with any renewal options that the institution sets forth in the
 36-1    request for proposals.  If the institution fails to advertise that
 36-2    term, the base term may not exceed two years and is not renewable
 36-3    without further advertisement and solicitation of proposals.
 36-4          (i)  If a job order contract or an order issued under the
 36-5    contract requires engineering or architectural services that
 36-6    constitute the practice of engineering within the meaning of The
 36-7    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
 36-8    Statutes) or the practice of architecture within the meaning of
 36-9    Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
36-10    (Article 249a, Vernon's Texas Civil Statutes), those services shall
36-11    be provided in accordance with applicable law.
36-12          SECTION 17.  Subsection (f), Section 51.9335, Education Code,
36-13    is amended to read as follows:
36-14          (f)  This section does not apply to professional services as
36-15    defined by Section 2254.002, Government Code [expires September 1,
36-16    1999].
36-17          SECTION 18.  This Act takes effect September 1, 1999.  The
36-18    changes in law made by this Act apply only to a contract for which
36-19    requests for bids, proposals, or qualifications are published or
36-20    distributed on or after that date.
36-21          SECTION 19.  The importance of this legislation and the
36-22    crowded condition of the calendars in both houses create an
36-23    emergency and an imperative public necessity that the
36-24    constitutional rule requiring bills to be read on three several
36-25    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 669 passed the Senate on
         March 18, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 28, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 669 passed the House, with
         amendments, on May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor