76R13377 CAS-F                          
         By Ratliff                                             S.B. No. 669
         Substitute the following for S.B. No. 669:
         By Sadler                                          C.S.S.B. No. 669
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain contracting procedures for school districts and
 1-3     institutions of higher education.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsections (a), (d), (f), (g), (h), (i), (j),
 1-6     and (l), Section 44.031, Education Code, are amended to read as
 1-7     follows:
 1-8           (a)  Except as provided by this subchapter, all school
 1-9     district contracts, except contracts for the purchase of produce or
1-10     vehicle fuel, valued at $25,000 or more in the aggregate for each
1-11     12-month period shall be made by the method, of the following
1-12     methods, that provides the best value for [to] the district:
1-13                 (1)  competitive bidding;
1-14                 (2)  competitive sealed proposals;
1-15                 (3)  a request for proposals, for services other than
1-16     construction services;
1-17                 (4)  a catalogue purchase as provided by Subchapter B,
1-18     Chapter 2157, Government Code;
1-19                 (5)  an interlocal contract;
1-20                 (6)  a design/build contract;
1-21                 (7)  a contract to construct, rehabilitate, alter, or
1-22     repair facilities that involves using a construction manager; or
1-23                 (8)  a job order contract for the minor construction,
 2-1     repair, rehabilitation, or alteration of a facility.
 2-2           (d)  The board of trustees of the district may adopt rules
 2-3     and procedures for the acquisition of goods or services.
 2-4           (f)  This section does not apply to contracts [fees received]
 2-5     for professional services [rendered, including architect's fees,
 2-6     attorney's fees, and fees for fiscal agents].  In this subsection,
 2-7     "professional services" has the meaning assigned by Section
 2-8     2254.002.
 2-9           (g)  Notice of the time by when and place where the bids or
2-10     proposals, or the responses to a request for qualifications, will
2-11     be received and opened shall be published in the county in which
2-12     the district's central administrative office is located, once a
2-13     week for at least two weeks before the deadline for receiving bids,
2-14     proposals, or responses to a request for qualifications.  If[;
2-15     except that on contracts involving less than $25,000, the
2-16     advertising may be limited to two successive issues of any
2-17     newspaper published in the county in which the district's central
2-18     administrative office is located, and if] there is not a newspaper
2-19     in that county, the advertising shall be published in a newspaper
2-20     in the county nearest the county seat of the county in which the
2-21     district's central administrative office is located.  In a two-step
2-22     procurement process, the time and place where the second-step bids,
2-23     proposals, or responses will be received are not required to be
2-24     published separately.
2-25           (h)  If school equipment or a part of a school facility or
2-26     personal property is destroyed or severely damaged or, as a result
2-27     of an unforeseen catastrophe or emergency, undergoes major
 3-1     operational or structural failure, and the board of trustees
 3-2     determines that the delay posed by the methods provided for in this
 3-3     section [competitive bidding process] would prevent or
 3-4     substantially impair the conduct of classes or other essential
 3-5     school activities, then contracts for the replacement or repair of
 3-6     the equipment or the part of the school facility may be made by
 3-7     methods other than those [without competitive bidding as otherwise]
 3-8     required by this section.
 3-9           (i)  A [The board of trustees of a] school district may
3-10     acquire computers and computer-related equipment, including
3-11     computer software, through the General Services Commission under
3-12     contracts entered into in accordance with Chapter 2157, Government
3-13     Code.  Before issuing an invitation for bids, the commission shall
3-14     consult with the agency concerning the computer and
3-15     computer-related equipment needs of school districts.  To the
3-16     extent possible the resulting contract shall provide for such
3-17     needs.
3-18           (j)  Without complying with Subsection (a), [the board of
3-19     trustees of] a school district may purchase an item that is
3-20     available from only one source, including:
3-21                 (1)  an item for which competition is precluded because
3-22     of the existence of a patent, copyright, secret process, or
3-23     monopoly;
3-24                 (2)  a film, manuscript, or book;
3-25                 (3)  a utility service, including electricity, gas, or
3-26     water; and
3-27                 (4)  a captive replacement part or component for
 4-1     equipment.
 4-2           (l)  Each contract proposed to be made by [the board of
 4-3     trustees of] a school district for the purchase or lease of one or
 4-4     more school buses, including a lease with an option to purchase,
 4-5     must be submitted to competitive bidding when the contract is
 4-6     valued at $20,000 or more.
 4-7           SECTION 2.  Subchapter B, Chapter 44, Education Code, is
 4-8     amended by adding Sections 44.0311 and 44.0312 to read as follows:
 4-9           Sec. 44.0311.  APPLICABILITY TO JUNIOR COLLEGE DISTRICTS.
4-10     (a)  This subchapter applies to junior college districts.
4-11           (b)  For purposes of this subchapter, "board of trustees"
4-12     includes the governing board of a junior college district.
4-13           Sec. 44.0312.  DELEGATION.  (a)  The board of trustees of the
4-14     district may, as appropriate, delegate its authority under this
4-15     subchapter regarding an action authorized or required by this
4-16     subchapter to be taken by a school district to a designated person,
4-17     representative, or committee.  In procuring construction services,
4-18     the district shall provide notice of the delegation and the limits
4-19     of the delegation in the request for bids, proposals, or
4-20     qualifications or in an addendum to the request.  If the district
4-21     fails to provide that notice, a ranking, selection, or evaluation
4-22     of bids, proposals, or qualifications for construction services
4-23     other than by the board of trustees in an open public meeting is
4-24     advisory only.
4-25           (b)  The board may not delegate the authority to act
4-26     regarding an action authorized or required by this subchapter to be
4-27     taken by the board of trustees of a school district.
 5-1           SECTION 3.  Subsection (f), Section 44.032, Education Code,
 5-2     is amended to read as follows:
 5-3           (f)  A court may enjoin performance of a contract made in
 5-4     violation of this subchapter [Section 44.031(a) or (b)].  A county
 5-5     attorney, a district attorney, a criminal district attorney, [or] a
 5-6     citizen of the county in which the school district is located, or
 5-7     any interested party may bring an action for an injunction.  A
 5-8     party [citizen] who prevails in an action brought under this
 5-9     subsection is entitled to reasonable attorney's fees as approved by
5-10     the court.
5-11           SECTION 4.  Section 44.035, Education Code, is amended to
5-12     read as follows:
5-13           Sec. 44.035.  EVALUATION OF BIDS AND [COMPETITIVE SEALED]
5-14     PROPOSALS FOR CONSTRUCTION SERVICES.  (a)  The board of trustees of
5-15     a school district that is considering a construction contract using
5-16     a method specified by Section 44.031(a) must, before advertising,
5-17     determine which method [Except as otherwise provided by this
5-18     subchapter, a school district using competitive sealed proposals to
5-19     select a contractor for construction services, to select a
5-20     construction manager, or to award a job order contract for
5-21     construction services shall base its selection or award on a
5-22     combination of price and other factors that the district
5-23     determines] provides the best value for [to] the district.
5-24           (b)  The [A school] district shall base its selection among
5-25     offerors on criteria authorized to be used under Section 44.031(b).
5-26     The district shall publish in the request for bids, proposals, or
5-27     qualifications the criteria that will be used to evaluate the
 6-1     offerors and the relative weights, if known at the time of the
 6-2     publication, given to the criteria [using competitive sealed
 6-3     proposals may discuss proposals with offerors after proposals have
 6-4     been opened to allow for clarification and changes.  The district
 6-5     shall take adequate precautions to ensure that information from
 6-6     competing proposals is not disclosed to other offerors].
 6-7           (c)  The district shall document the basis of its selection
 6-8     and shall make the evaluations public not later than the seventh
 6-9     day after the date the contract is awarded.
6-10           SECTION 5.  Subdivision (3), Subsection (a), Section 44.036,
6-11     Education Code, is amended to read as follows:
6-12                 (3)  "Design criteria package" means a set of documents
6-13     that provides sufficient information to permit a design-build firm
6-14     to prepare a response to a school district's request for
6-15     qualifications and any additional information requested, including
6-16     criteria for selection [proposals].  The design criteria package
6-17     must specify criteria the district considers necessary to describe
6-18     the project and may include, as appropriate, the legal description
6-19     of the site, survey information concerning the site, interior space
6-20     requirements, special material requirements, material quality
6-21     standards, conceptual criteria for the project, special equipment
6-22     requirements, cost or budget estimates, time schedules, quality
6-23     assurance and quality control requirements, site development
6-24     requirements, applicable codes and ordinances, provisions for
6-25     utilities, parking requirements, or any other requirement, as
6-26     applicable.
6-27           SECTION 6.  Subsections (e), (f), and (j), Section 44.036,
 7-1     Education Code, are amended to read as follows:
 7-2           (e)  The district shall evaluate statements of qualifications
 7-3     [proposals] and select a design-build firm in two phases:
 7-4                 (1)  In phase one, the district shall prepare a request
 7-5     for qualifications and evaluate each offeror's experience,
 7-6     technical competence, and capability to perform, the past
 7-7     performance of the offeror's team and members of the team, and
 7-8     other appropriate factors submitted by the team or firm in response
 7-9     to the request for qualifications, except that cost-related or
7-10     price-related evaluation factors are not permitted.  Each offeror
7-11     must certify to the district that each engineer or architect that
7-12     is a member of its team was selected based on demonstrated
7-13     competence and qualifications.  The district shall qualify a
7-14     maximum of five [potential] offerors to submit additional
7-15     information and, if the district chooses, to interview for final
7-16     selection [regarding technical proposals, implementation, and
7-17     costing methodologies in response to a formal request for proposals
7-18     based on the design criteria package].
7-19                 (2)  In phase two, the district shall evaluate the
7-20     information submitted by the offerors on the basis of the selection
7-21     criteria stated in the request for qualifications and the results
7-22     of any interview.  The district may request additional information
7-23     regarding demonstrated competence and qualifications,
7-24     considerations of the safety and long-term durability of the
7-25     project, the feasibility of implementing the project as proposed,
7-26     the ability of the offeror to meet schedules, costing methodology,
7-27     or other factors as appropriate.  The district may not require
 8-1     offerors to submit detailed engineering or architectural designs as
 8-2     part of the proposal.  The district shall rank each proposal
 8-3     submitted on the basis of the criteria set forth in the request for
 8-4     qualifications.  The district shall select the design-build firm
 8-5     that submits the proposal offering the best value for the district
 8-6     on the basis of the published selection criteria and on its ranking
 8-7     evaluations.  The district shall first attempt to negotiate with
 8-8     the selected offeror a contract.  If the district is unable to
 8-9     negotiate a satisfactory contract with the selected offeror, the
8-10     district shall, formally and in writing, end negotiations with that
8-11     offeror and proceed to negotiate with the next offeror in the order
8-12     of the selection ranking until a contract is reached or
8-13     negotiations with all ranked offerors end.
8-14           (f)  Following selection of a design-build firm under
8-15     Subsection (e), that firm's engineers or architects shall complete
8-16     the design, submitting all design elements for review and
8-17     determination of scope compliance to [by] the district or
8-18     district's engineer or architect before or concurrently with
8-19     construction.
8-20           (j)  A payment or performance bond is not required for, and
8-21     may not provide coverage for, the portion of a design-build
8-22     contract under this section that includes design services only.  If
8-23     a fixed contract amount or guaranteed maximum price has not been
8-24     determined at the time a design-build contract is awarded, the
8-25     penal sums of the performance and payment bonds delivered to the
8-26     district must each be in an amount equal to the project budget, as
8-27     specified in the design criteria package.  The design-build firm
 9-1     shall deliver the bonds not later than the 10th day after the date
 9-2     the design-build firm executes the contract unless the design-build
 9-3     firm furnishes a bid bond or other financial security acceptable to
 9-4     the district to ensure that the design-build firm will furnish the
 9-5     required performance and payment bonds when a guaranteed maximum
 9-6     price is established.
 9-7           SECTION 7.  Subsections (b) and (c), Section 44.037,
 9-8     Education Code, are amended to read as follows:
 9-9           (b)  A construction manager-agent is a sole proprietorship,
9-10     partnership, corporation, or other legal entity that provides
9-11     consultation to the school district regarding construction,
9-12     rehabilitation, alteration, or repair of the facility.  A district
9-13     using the construction manager-agent method may, under the contract
9-14     between the district and the construction manager-agent, require
9-15     the construction manager-agent to provide administrative personnel,
9-16     equipment necessary to perform duties under this section, and
9-17     on-site management and other services specified in the contract.  A
9-18     construction manager-agent represents the district in a fiduciary
9-19     capacity[, except that it may perform general conditions as
9-20     provided by the contract].
9-21           (c)  Before or concurrently with selecting a construction
9-22     manager-agent, the district shall select or designate an engineer
9-23     or architect who shall prepare the construction documents for the
9-24     project and who has full responsibility for complying with The
9-25     Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
9-26     Statutes) or Chapter 478, Acts of the 45th Legislature, Regular
9-27     Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), as
 10-1    applicable.  If the engineer or architect is not a full-time
 10-2    employee of the district, the district shall select the engineer or
 10-3    architect on the basis of demonstrated competence and
 10-4    qualifications as provided by Section 2254.004, Government Code.
 10-5    The district's engineer or architect may not serve, alone or in
 10-6    combination with another person, as the construction manager-agent
 10-7    unless the engineer or architect is hired to serve as the
 10-8    construction manager-agent under a separate or concurrent
 10-9    procurement conducted in accordance with this subchapter.  This
10-10    subsection does not prohibit the district's engineer or architect
10-11    from providing customary construction phase services under the
10-12    engineer's or architect's original professional service agreement
10-13    in accordance with applicable licensing laws.
10-14          SECTION 8.  Sections 44.038 and 44.039, Education Code, are
10-15    amended to read as follows:
10-16          Sec. 44.038.  CONTRACTS FOR FACILITIES:  CONSTRUCTION
10-17    MANAGER-AT-RISK.  (a)  A school district may use the construction
10-18    manager-at-risk method for the construction, rehabilitation,
10-19    alteration, or repair of a facility.  In using that method and in
10-20    entering into a contract for the services of a construction
10-21    manager-at-risk, a district shall follow the procedures prescribed
10-22    by this section.
10-23          (b)  A construction manager-at-risk is a sole proprietorship,
10-24    partnership, corporation, or other legal entity that assumes the
10-25    risk for construction, rehabilitation, alteration, or repair of a
10-26    facility at the contracted price as a general contractor and
10-27    provides consultation to the school district regarding construction
 11-1    during and after the design of the facility.
 11-2          (c)  Before or concurrently with selecting a construction
 11-3    manager-at-risk, the district shall select or designate an engineer
 11-4    or architect who shall prepare the construction documents for the
 11-5    project and who has full responsibility for complying with The
 11-6    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
 11-7    Statutes) or Chapter 478, Acts of the 45th Legislature, Regular
 11-8    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), as
 11-9    applicable.  If the engineer or architect is not a full-time
11-10    employee of the district, the district shall select the engineer or
11-11    architect on the basis of demonstrated competence and
11-12    qualifications as provided by Section 2254.004, Government Code.
11-13    The district's engineer, architect, or construction manager-agent
11-14    for a project may not serve, alone or in combination with another,
11-15    as the construction manager-at-risk.
11-16          (d)  The district shall provide or contract for,
11-17    independently of the construction manager-at-risk, the inspection
11-18    services, the testing of construction materials engineering, and
11-19    the verification testing services necessary for acceptance of the
11-20    facility by the district.  The district shall select those services
11-21    for which it contracts in accordance with Section 2254.004,
11-22    Government Code.
11-23          (e)  The district shall select the construction
11-24    manager-at-risk in either a one-step or two-step process.  The
11-25    district shall prepare a request for [competitive sealed]
11-26    proposals, in the case of a one-step process, or a request for
11-27    qualifications, in the case of a two-step process, that includes
 12-1    general information on the project site, project scope, schedule,
 12-2    selection criteria, estimated budget, and the time and place for
 12-3    receipt of proposals or qualifications, as applicable, a statement
 12-4    as to whether the selection process is a one-step or two-step
 12-5    process, and other information that may assist the district in its
 12-6    selection of a construction manager-at-risk.  The district shall
 12-7    state the selection criteria in the request for proposals or
 12-8    qualifications, as applicable.  The selection criteria may include
 12-9    the offeror's experience, past performance, safety record, proposed
12-10    personnel and methodology, and other appropriate factors that
12-11    demonstrate the capability of the construction manager-at-risk.  If
12-12    a one-step process is used, the district may request, as part of
12-13    the offeror's proposal, proposed fees and prices for fulfilling the
12-14    general conditions.  If a two-step process is used, the district
12-15    may not request fees or prices in step one.  In step two, the [The]
12-16    district may request that five or fewer offerors, selected solely
12-17    on the basis of qualifications, provide additional information,
12-18    including [proposals provide] the construction manager-at-risk's
12-19    [manager's] proposed fee and its price for fulfilling the general
12-20    conditions.  [The district shall state the selection criteria in
12-21    the request for proposals.  The selection criteria may include the
12-22    offeror's experience, past performance, safety record, proposed
12-23    personnel and methodology, and other appropriate factors that
12-24    demonstrate the capability of the construction manager.]
12-25          (f)  At each step, the [The district may provide for
12-26    prequalifying offerors before proposals are submitted.
12-27    Prequalification may not be a conclusive determination that an
 13-1    offeror offers the best value to the district, and a prequalified
 13-2    offeror may be rejected on the basis of subsequently discovered
 13-3    information.  A failure to prequalify does not bar a subsequent
 13-4    determination that an offeror offers the best value to the district
 13-5    with respect to a given proposal.]
 13-6          [(g)  The] district shall receive, publicly open, and read
 13-7    aloud the names of the offerors.  At the appropriate step, the
 13-8    district shall also read aloud the fees and  prices, if any, stated
 13-9    in [and the monetary proposals, if any, for] each proposal as the
13-10    proposal is opened.  Within 45 days after the date of opening the
13-11    proposals, the district shall evaluate and rank each proposal
13-12    submitted in relation to the criteria set forth in the request for
13-13    proposals.
13-14          (g) [(h)]  The district shall select the offeror that submits
13-15    the proposal that offers the best value for [to] the district based
13-16    on the published selection criteria and on its ranking evaluation.
13-17    The district shall first attempt to negotiate with the selected
13-18    offeror a contract.  If the district is unable to negotiate [reach]
13-19    a satisfactory contract [agreement] with the selected offeror, the
13-20    district shall, formally and in writing, end negotiations with that
13-21    offeror [terminate further discussions] and proceed to negotiate
13-22    with the next offeror in the order of the selection ranking until a
13-23    contract [agreement] is reached or negotiations with all ranked
13-24    offerors end [all proposals are rejected].
13-25          (h) [(i)]  A construction manager-at-risk shall publicly
13-26    advertise, in accordance with Section 44.031(g), and receive bids
13-27    or [and solicit either competitive bids or competitive sealed]
 14-1    proposals from trade contractors or subcontractors for the
 14-2    performance of all major elements of the work other than the minor
 14-3    work that may be included in the general conditions.  A
 14-4    construction manager-at-risk may seek to perform portions of the
 14-5    work itself if the construction manager-at-risk submits its bid or
 14-6    proposal for those portions of the work in the same manner as all
 14-7    other trade contractors or subcontractors and if the district
 14-8    determines that the construction manager-at-risk's bid or proposal
 14-9    provides the best value for the district.
14-10          (i) [(j)]  The construction manager-at-risk and the district
14-11    or its representative shall review [receive and open] all trade
14-12    contractor or subcontractor bids or proposals in a manner that does
14-13    not disclose the contents of the bid or proposal during the
14-14    selection process to a person not employed by the construction
14-15    manager-at-risk, engineer, architect, or  district.  All bids or
14-16    proposals shall be made public after the award of the contract or
14-17    within seven days after the date of final selection of bids or
14-18    proposals, whichever is later.
14-19          (j) [(k)]  If the construction manager-at-risk reviews,
14-20    evaluates, and recommends to the district a bid or proposal from a
14-21    trade contractor or subcontractor but the district requires another
14-22    bid or proposal to be accepted, the district shall compensate the
14-23    construction manager-at-risk by a change in price, time, or
14-24    guaranteed maximum cost for any additional cost and risk that the
14-25    construction manager-at-risk may incur because of the district's
14-26    requirement that another bid or proposal be accepted.
14-27          (k)  If a selected trade contractor or subcontractor defaults
 15-1    in the performance of its work or fails to execute a subcontract
 15-2    after being selected in accordance with this section, the
 15-3    construction manager-at-risk may, without advertising, itself
 15-4    fulfill the contract requirements or select a replacement trade
 15-5    contractor or subcontractor to fulfill the contract requirements.
 15-6          (l)  If a fixed contract amount or guaranteed maximum price
 15-7    has not been determined at the time the contract is awarded, the
 15-8    penal sums of the performance and payment bonds delivered to the
 15-9    district must each be in an amount equal to the project budget, as
15-10    specified in the request for qualifications.  The construction
15-11    manager shall deliver the bonds not later than the 10th day after
15-12    the date the construction manager executes the contract unless the
15-13    construction manager furnishes a bid bond or other financial
15-14    security acceptable to the district to ensure that the construction
15-15    manager will furnish the required performance and payment bonds
15-16    when a guaranteed maximum price is established.
15-17          Sec. 44.039.  SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES
15-18    THROUGH COMPETITIVE SEALED PROPOSALS.  (a)  In selecting a
15-19    contractor for construction, rehabilitation, alteration, or repair
15-20    services for a facility through competitive sealed proposals, a
15-21    school district shall follow the procedures prescribed by this
15-22    section.
15-23          (b)  The district shall select or designate an engineer or
15-24    architect to prepare construction documents for the project.  The
15-25    selected or designated engineer or architect has full
15-26    responsibility for complying with The Texas Engineering Practice
15-27    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
 16-1    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
 16-2    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
 16-3    architect is not a full-time employee of the district, the district
 16-4    shall select the engineer or architect on the basis of demonstrated
 16-5    competence and qualifications as provided by Section 2254.004,
 16-6    Government Code.
 16-7          (c)  The district shall provide or contract for,
 16-8    independently of the contractor, the inspection services, the
 16-9    testing of construction materials engineering, and the verification
16-10    testing services necessary for acceptance of the facility by the
16-11    district.  The district shall select those services for which it
16-12    contracts in accordance with Section 2254.004, Government Code, and
16-13    shall identify them in the request for proposals.
16-14          (d)  The district shall prepare a request for competitive
16-15    sealed proposals that includes construction documents, selection
16-16    criteria, estimated budget, project scope, schedule, and other
16-17    information that contractors may require to respond to the request.
16-18    The district shall state in the request for proposals the selection
16-19    criteria that will be used in selecting the successful offeror [in
16-20    the request for proposals].  [The selection criteria may include
16-21    the offeror's experience, past performance, safety record, proposed
16-22    personnel and methodology, and other appropriate factors that
16-23    demonstrate the capability of the contractor.]
16-24          (e)  [The district may provide for prequalifying offerors
16-25    before proposals are submitted.  Prequalification may not be a
16-26    conclusive determination that an offeror offers the best value to
16-27    the district, and a prequalified offeror may be rejected on the
 17-1    basis of subsequently discovered information.  A failure to
 17-2    prequalify does not bar a subsequent determination that an offeror
 17-3    offers the best value to the district with respect to a given
 17-4    proposal.]
 17-5          [(f)]  The district shall receive, publicly open, and read
 17-6    aloud the names of the offerors and, if any are required to be
 17-7    stated, all prices [the monetary proposals, if any,] stated in each
 17-8    proposal.  Within 45 days after the date of opening the proposals,
 17-9    the district shall evaluate and rank each proposal submitted in
17-10    relation to the published selection criteria.
17-11          (f) [(g)]  The district shall select the offeror that offers
17-12    the best value for [to] the district based on the published
17-13    selection criteria and on its ranking evaluation.  The district
17-14    shall first attempt to negotiate with the selected offeror a
17-15    contract.  The district and its engineer or architect may discuss
17-16    with the selected offeror options for a scope or time modification
17-17    and any price change associated with the modification [cost
17-18    reduction].  If the district is unable to negotiate [reach] a
17-19    contract [agreement] with the selected offeror, the district shall,
17-20    formally and in writing, end negotiations with that offeror
17-21    [terminate further discussions] and proceed to the next offeror in
17-22    the order of the selection ranking until a contract [agreement] is
17-23    reached or all proposals are rejected.
17-24          (g) [(h)]  In determining best value for the district, the
17-25    district is not restricted to considering price alone, but may
17-26    consider any other factor stated in the selection criteria.
17-27          SECTION 9.  Subsection (b), Section 44.040, Education Code,
 18-1    is amended to read as follows:
 18-2          (b)  Except as otherwise specifically provided by this
 18-3    subsection, Subchapter B, Chapter 271 [Sections 271.021, 271.022,
 18-4    271.026, 271.027(a), and 271.0275-271.030], Local Government Code,
 18-5    does not apply to a competitive bidding process under this
 18-6    subchapter [section].  Sections 271.026, 271.027(a), and 271.0275,
 18-7    Local Government Code, apply to a competitive bidding process under
 18-8    this subchapter.
 18-9          SECTION 10.  Section 44.041, Education Code, is amended to
18-10    read as follows:
18-11          Sec. 44.041.  JOB ORDER CONTRACTS FOR FACILITIES CONSTRUCTION
18-12    OR REPAIR.  (a)  A school district may award job order contracts
18-13    for the minor construction, repair, rehabilitation, or alteration
18-14    of a facility if the work is of a recurring nature but the delivery
18-15    times are indefinite and indefinite quantities and orders are
18-16    awarded substantially on the basis of predescribed and prepriced
18-17    tasks.
18-18          (b)  The school district may establish contractual unit
18-19    prices for a job order contract by:
18-20                (1)  specifying one or more published construction unit
18-21    price books and the applicable divisions or line items; or
18-22                (2)  providing a list of work items and requiring the
18-23    offerors to bid or propose one or more coefficients or multipliers
18-24    to be applied to the price book or work items as the price
18-25    proposal.
18-26          (c)  The school district shall advertise for, receive, and
18-27    publicly open [competitive] sealed proposals for job order
 19-1    contracts [based on time and material rates for various types and
 19-2    classifications of work.  The rates under a job order contract
 19-3    shall be in effect for at least six months and for not longer than
 19-4    two years].
 19-5          (d) [(c)]  The district may require offerors to submit
 19-6    additional information besides rates, including experience, past
 19-7    performance, and proposed personnel and methodology.
 19-8          (e) [(d)]  The district may award job order contracts to one
 19-9    or more job order contractors in connection with each solicitation
19-10    of bids or [based on price] proposals[, experience, past
19-11    performance, proposed personnel and methodology, safety record, and
19-12    other appropriate factors].
19-13          (f) [(e)]  An order for a job or project under the job order
19-14    contract must be signed by the district's representative and the
19-15    contractor.  The order may be a fixed price, lump-sum contract
19-16    based substantially on contractual unit pricing applied to
19-17    estimated quantities [a statement of work negotiated between the
19-18    district or its representative and the contractor,] or [the order]
19-19    may be a unit price order based on the [estimated] quantities and
19-20    line items delivered.
19-21          (g)  The contractor shall provide payment and performance
19-22    bonds, if required by law, based on the amount or estimated amount
19-23    of any order.
19-24          (h)  The base term of a job order contract is for the period
19-25    and with any renewal option that the district sets forth in the
19-26    request for proposals.  If the district fails to advertise that
19-27    term, the base term may not exceed two years and is not renewable
 20-1    without further advertisement and solicitation of proposals.
 20-2          (i)  If a job order contract or an order issued under the
 20-3    contract requires engineering or architectural services that
 20-4    constitute the practice of engineering within the meaning of The
 20-5    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
 20-6    Statutes) or the practice of architecture within the meaning of
 20-7    Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
 20-8    (Article 249a, Vernon's Texas Civil Statutes), those services shall
 20-9    be provided in accordance with applicable law.
20-10          SECTION 11.  Section 51.776(8), Education Code, is amended to
20-11    read as follows:
20-12                (8)  "Institution" means an institution of higher
20-13    education as defined by Section 61.003, other than a public junior
20-14    college.
20-15          SECTION 12.  Section 51.779, Education Code, is amended to
20-16    read as follows:
20-17          Sec. 51.779.  EVALUATION OF BIDS AND [COMPETITIVE SEALED]
20-18    PROPOSALS FOR CONSTRUCTION SERVICES.  (a)  An institution that is
20-19    considering a construction contract using a method authorized by
20-20    this subchapter must, before advertising, determine which method
20-21    [Except as otherwise provided by this subchapter, the board of an
20-22    institution using competitive sealed proposals to select a
20-23    contractor for construction services, to select a construction
20-24    manager, or to award a job order contract for construction services
20-25    shall base its selection or award on a combination of price and
20-26    other factors that the board determines] provides the best value
20-27    for [to] the institution.
 21-1          (b)  The [An] institution shall base its selection among the
 21-2    offerors on criteria established by the institution.  The
 21-3    institution shall publish in the request for bids, proposals, or
 21-4    qualifications the criteria that will be used to evaluate the
 21-5    offerors and the relative weights, if known at the time of the
 21-6    publication, given to the criteria [using competitive sealed
 21-7    proposals may discuss proposals with offerors after proposals have
 21-8    been opened to allow for clarification and changes.  The
 21-9    institution shall take adequate precautions to ensure that
21-10    information from competing proposals is not disclosed to other
21-11    offerors].
21-12          (c)  The institution shall document the basis of its
21-13    selection  and shall make the evaluations public not later than the
21-14    seventh day after the date the contract is awarded.
21-15          SECTION 13.  Subdivision (3), Subsection (a), Section 51.780,
21-16    Education Code, is amended to read as follows:
21-17                (3)  "Design criteria package" means a set of documents
21-18    that provides sufficient information to permit a design-build firm
21-19    to prepare a response to an institution's request for
21-20    qualifications and any additional information requested, including
21-21    criteria for selection [proposals].  The design criteria package
21-22    must specify criteria the institution considers necessary to
21-23    describe the project and may include, as appropriate, the legal
21-24    description of the site, survey information concerning the site,
21-25    interior space requirements, special material requirements,
21-26    material quality standards, conceptual criteria for the project,
21-27    special equipment requirements, cost or budget estimates, time
 22-1    schedules, quality assurance and quality control requirements, site
 22-2    development requirements, applicable codes and ordinances,
 22-3    provisions for utilities, parking requirements, or any other
 22-4    requirement, as applicable.
 22-5          SECTION 14.  Subsections (f) and (k), Section 51.780,
 22-6    Education Code, are amended to read as follows:
 22-7          (f)  The board or its representative shall evaluate
 22-8    statements of qualifications [proposals] and select a design-build
 22-9    firm in two phases:
22-10                (1)  In phase one, the board or its representative
22-11    shall prepare a request for qualifications and evaluate each
22-12    offeror's experience, technical competence, and capability to
22-13    perform, the past performance of the offeror's team and members of
22-14    the team, and other appropriate factors submitted by the team or
22-15    firm in response to the request for qualifications, except that
22-16    cost-related or price-related evaluation factors are not permitted.
22-17    Each offeror must certify to the board that each engineer or
22-18    architect that is a member of its team was selected based on
22-19    demonstrated competence and qualifications.  The board or its
22-20    representative shall qualify a maximum of five [potential] offerors
22-21    to submit additional information and, if the board or its
22-22    representative chooses, to interview for final selection [regarding
22-23    technical proposals, implementation, and costing methodologies in
22-24    response to a formal request for proposals based on the design
22-25    criteria package].
22-26                (2)  In phase two, the board or its representative
22-27    shall evaluate the information submitted by the offerors on the
 23-1    basis of the selection criteria stated in the request for
 23-2    qualifications and the results of any interview.  The board or its
 23-3    representative may request additional information regarding
 23-4    demonstrated competence and qualifications, considerations of the
 23-5    safety and long-term durability of the project, the feasibility of
 23-6    implementing the project as proposed, the ability of the offeror to
 23-7    meet schedules, costing methodology, or other factors as
 23-8    appropriate.  The board or its representative [institution] may not
 23-9    require offerors to submit detailed engineering or architectural
23-10    designs [design] as part of the proposal.  The board or its
23-11    representative shall rank each proposal submitted on the basis of
23-12    the criteria specified in the request for qualifications.  The
23-13    board or its representative shall select the design-build firm that
23-14    submits the proposal offering the best value for the institution on
23-15    the basis of the published selection criteria and on its ranking
23-16    evaluations.  The board or its representative shall first attempt
23-17    to negotiate with the selected offeror a contract.  If the board or
23-18    its representative is unable to negotiate a satisfactory contract
23-19    with the selected offeror, the institution shall, formally and in
23-20    writing, end all negotiations with that offeror and proceed to
23-21    negotiate with the next offeror in the order of the selection
23-22    ranking until a contract is reached or negotiations with all ranked
23-23    offerors end.
23-24          (k)  A payment or performance bond is not required for, and
23-25    may not provide coverage for, the portion of a design-build
23-26    contract under this section that includes design services only.  If
23-27    a fixed contract amount or guaranteed maximum price has not been
 24-1    determined at the time a design-build contract is awarded, the
 24-2    penal sums of the performance and payment bonds delivered to the
 24-3    institution shall each be in an amount equal to the project budget,
 24-4    as specified in the design criteria package.  The design-build firm
 24-5    shall deliver the bonds not later than the 10th day after the date
 24-6    the design-build firm executes the contract unless the design-build
 24-7    firm furnishes a bid bond or other financial security acceptable to
 24-8    the institution to ensure that the design-build firm will furnish
 24-9    the required performance and payment bonds when a guaranteed
24-10    maximum price is established.
24-11          SECTION 15.  Subsections (b) and (c), Section 51.781,
24-12    Education Code, are amended to read as follows:
24-13          (b)  A construction manager-agent is a sole proprietorship,
24-14    partnership, corporation, or other legal entity that provides
24-15    consultation to the institution regarding construction,
24-16    rehabilitation, alteration, or repair of the facility.  An
24-17    institution using the construction manager-agent method may, under
24-18    the contract between the institution and the construction
24-19    manager-agent, require the construction manager-agent to provide
24-20    administrative personnel, equipment necessary to perform duties
24-21    under this section, and on-site management and other services
24-22    specified in the contract.  A construction manager-agent represents
24-23    the institution in a fiduciary capacity[, except that it may
24-24    perform general conditions as provided by the contract].
24-25          (c)  Before or concurrently with selecting a construction
24-26    manager-agent, the board shall select or designate an engineer or
24-27    architect who shall prepare the construction documents for the
 25-1    project and who has full responsibility for complying with The
 25-2    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
 25-3    Statutes) or Chapter 478, Acts of the 45th Legislature, Regular
 25-4    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), as
 25-5    applicable.  If the engineer or architect is not a full-time
 25-6    employee of the institution, the board shall select the engineer or
 25-7    architect on the basis of demonstrated competence and
 25-8    qualifications as provided by Section 2254.004, Government Code.
 25-9    The institution's engineer or architect may not serve, alone or in
25-10    combination with another person, as the construction manager-agent
25-11    unless the engineer or architect is hired to serve as the
25-12    construction manager-agent under a separate or concurrent
25-13    procurement conducted in accordance with this subchapter.  This
25-14    subsection does not prohibit the institution's engineer or
25-15    architect from providing customary construction phase services
25-16    under the engineer's or architect's original professional service
25-17    agreement in accordance with applicable licensing laws.
25-18          SECTION 16.  Sections 51.782, 51.783, and 51.784, Education
25-19    Code, are amended to read as follows:
25-20          Sec. 51.782.  CONTRACTS FOR FACILITIES:  CONSTRUCTION
25-21    MANAGER-AT-RISK.  (a)  An institution may use the construction
25-22    manager-at-risk method for the construction, rehabilitation,
25-23    alteration, or repair of a facility.  In using that method and in
25-24    entering into a contract for the services of a construction
25-25    manager-at-risk, a board shall follow the procedures prescribed by
25-26    this section.
25-27          (b)  A construction manager-at-risk is a sole proprietorship,
 26-1    partnership, corporation, or other legal entity that assumes the
 26-2    risk for construction, rehabilitation, alteration, or repair of a
 26-3    facility at the contracted price as a general contractor and
 26-4    provides consultation to the institution regarding construction
 26-5    during and after the design of the facility.
 26-6          (c)  Before or concurrently with selecting a construction
 26-7    manager-at-risk, the board shall select or designate an engineer or
 26-8    architect who shall prepare the construction documents for the
 26-9    project and who has full responsibility for complying with The
26-10    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
26-11    Statutes) or Chapter 478, Acts of the 45th Legislature, Regular
26-12    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), as
26-13    applicable.  If the engineer or architect is not a full-time
26-14    employee of the institution, the board shall select the engineer or
26-15    architect on the basis of demonstrated competence and
26-16    qualifications as provided by Section 2254.004, Government Code.
26-17    The institution's engineer, architect, or construction
26-18    manager-agent for a project may not serve, alone or in combination
26-19    with another, as the construction manager-at-risk.
26-20          (d)  The board shall provide or contract for, independently
26-21    of the construction manager-at-risk, the inspection services, the
26-22    testing of construction materials engineering, and the verification
26-23    testing services necessary for acceptance of the facility by the
26-24    institution.  The board shall select those services for which it
26-25    contracts in accordance with Section 2254.004, Government Code.
26-26          (e)  The board shall select the construction manager-at-risk
26-27    in either a one-step or two-step process.  The board shall prepare
 27-1    a request for [competitive sealed] proposals, in the case of a
 27-2    one-step process, or a request for qualifications, in the case of a
 27-3    two-step process, that includes general information on the project
 27-4    site, project scope, schedule, selection criteria, estimated
 27-5    budget, and the time and place for receipt of proposals or
 27-6    qualifications, as applicable, a statement as to whether the
 27-7    selection process is a one-step or two-step process, and other
 27-8    information that may assist the board in its selection of a
 27-9    construction manager-at-risk.  The board shall state the selection
27-10    criteria in the request for proposals or qualifications, as
27-11    applicable.  The selection criteria may include the offeror's
27-12    experience, past performance, safety record, proposed personnel and
27-13    methodology, and other appropriate factors that demonstrate the
27-14    capability of the construction manager-at-risk.  If a one-step
27-15    process is used, the board may request, as part of the offeror's
27-16    proposal, proposed fees and prices for fulfilling the general
27-17    conditions.  If a two-step process is used, the board may not
27-18    request fees or prices in step one.  In step two, the  [The] board
27-19    may request that five or fewer offerors, selected solely on the
27-20    basis of qualifications, provide additional information, including
27-21    [proposals provide] the construction manager-at-risk's [manager's]
27-22    proposed fee and its price for fulfilling the general conditions.
27-23    [The board shall state the selection criteria in the request for
27-24    proposals.  The selection criteria may include the offeror's
27-25    experience, past performance, safety record, proposed personnel and
27-26    methodology, and other appropriate factors that demonstrate the
27-27    capability of the construction manager.]
 28-1          (f)  The board shall publish the request for qualifications
 28-2    [proposals] in a manner prescribed by the board.
 28-3          (g)  At each step, the [The board may provide for
 28-4    prequalifying offerors before proposals are submitted.
 28-5    Prequalification may not be a conclusive determination that an
 28-6    offeror offers the best value to the institution, and a
 28-7    prequalified offeror may be rejected on the basis of subsequently
 28-8    discovered information.  A failure to prequalify does not bar a
 28-9    subsequent determination that an offeror offers the best value to
28-10    the institution with respect to a given proposal.]
28-11          [(h)  The] board shall receive, publicly open, and read aloud
28-12    the names of the offerors.  At the appropriate step, the board
28-13    shall also read aloud the fees and prices, if any, stated in [and
28-14    the monetary proposals, if any, for] each proposal as the proposal
28-15    is opened.  Within 45 days after the date of opening the proposals,
28-16    the board or its representative shall evaluate and rank each
28-17    proposal submitted in relation to the criteria set forth in the
28-18    request for proposals.
28-19          (h) [(i)]  The board or its representative shall select the
28-20    offeror that submits the proposal that offers the best value for
28-21    [to] the institution based on the published selection criteria and
28-22    on its ranking evaluation.  The board or its representative shall
28-23    first attempt to negotiate with the selected offeror a contract.
28-24    If the board or its representative is unable to negotiate [reach] a
28-25    satisfactory contract [agreement] with the selected offeror, the
28-26    board or its representative shall, formally and in writing, end
28-27    negotiations with that offeror [terminate further discussions] and
 29-1    proceed to negotiate with the next offeror in the order of the
 29-2    selection ranking until a contract [agreement] is reached or
 29-3    negotiations with all ranked offerors end [all proposals are
 29-4    rejected].
 29-5          (i) [(j)]  A construction manager-at-risk shall publicly
 29-6    advertise, in the manner prescribed by the institution, and receive
 29-7    bids or [and solicit either competitive bids or competitive sealed]
 29-8    proposals from trade contractors or subcontractors for the
 29-9    performance of all major elements of the work other than the minor
29-10    work that may be included in the general conditions.  A
29-11    construction manager-at-risk may seek to perform portions of the
29-12    work itself if the construction manager-at-risk submits its bid or
29-13    proposal for those portions of the work in the same manner as all
29-14    other trade contractors or subcontractors and if the board
29-15    determines that the construction manager-at-risk's bid or proposal
29-16    provides the best value for the institution.
29-17          (j) [(k)]  The construction manager-at-risk and the board or
29-18    its representative shall review [receive and open] all trade
29-19    contractor or subcontractor bids or proposals in a manner that does
29-20    not disclose the contents of the bid or proposal during the
29-21    selection process to a person not employed by the construction
29-22    manager-at-risk, engineer, architect, or institution.  All bids or
29-23    proposals shall be made public after the award of the contract or
29-24    within seven days after the date of final selection of bids and
29-25    proposals, whichever is later.
29-26          (k) [(l)]  If the construction manager-at-risk reviews,
29-27    evaluates, and recommends to the board a bid or proposal from a
 30-1    trade contractor or subcontractor but the board requires another
 30-2    bid or proposal to be accepted, the institution shall compensate
 30-3    the construction manager-at-risk by a change in price, time, or
 30-4    guaranteed maximum cost for any additional cost and risk that the
 30-5    construction manager-at-risk may incur because of the board's
 30-6    requirement that another bid or proposal be accepted.
 30-7          (l)  If a selected trade contractor or subcontractor defaults
 30-8    in the performance of its work or fails to execute a subcontract
 30-9    after being selected in accordance with this section, the
30-10    construction manager-at-risk may, without advertising, itself
30-11    fulfill the contract requirements or select a replacement trade
30-12    contractor or subcontractor to fulfill the contract requirements.
30-13          (m)  If a fixed contract amount or guaranteed maximum price
30-14    has not been determined at the time the contract is awarded, the
30-15    penal sums of the performance and payment bonds delivered to the
30-16    institution must each be in an amount equal to the project budget,
30-17    as set forth in the request for qualifications.  The construction
30-18    manager shall deliver the bonds not later than the 10th day after
30-19    the date the construction manager executes the contract unless the
30-20    construction manager furnishes a bid bond or other financial
30-21    security acceptable to the institution to ensure that the
30-22    construction manager will furnish the required performance and
30-23    payment bonds when a guaranteed maximum price is established.
30-24          Sec. 51.783.  SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES
30-25    THROUGH COMPETITIVE SEALED PROPOSALS.  (a)  In selecting a
30-26    contractor for construction, rehabilitation, alteration, or repair
30-27    services for a facility through competitive sealed proposals, a
 31-1    board shall follow the procedures prescribed by this section.
 31-2          (b)  The board shall select or designate an engineer or
 31-3    architect to prepare construction documents for the project.  The
 31-4    selected or designated engineer or architect has full
 31-5    responsibility for complying with The Texas Engineering Practice
 31-6    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
 31-7    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
 31-8    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
 31-9    architect is not a full-time employee of the institution, the board
31-10    shall select the engineer or architect on the basis of demonstrated
31-11    competence and qualifications as provided by Section 2254.004,
31-12    Government Code.
31-13          (c)  The board shall provide or contract for, independently
31-14    of the contractor, the inspection services, the testing of
31-15    construction materials engineering, and the verification testing
31-16    services necessary for acceptance of the facility by the
31-17    institution.  The board shall select those services for which it
31-18    contracts in accordance with Section 2254.004, Government Code, and
31-19    shall identify them in the request for proposals.
31-20          (d)  The board shall prepare a request for competitive sealed
31-21    proposals that includes construction documents, selection criteria,
31-22    estimated budget, project scope, schedule, and other information
31-23    that contractors may require to respond to the request.  The board
31-24    shall state in the request for proposals the selection criteria
31-25    that will be used in selecting the successful offeror [in the
31-26    request for proposals].  [The selection criteria may include the
31-27    offeror's experience, past performance, safety record, proposed
 32-1    personnel and methodology, and other appropriate factors that
 32-2    demonstrate the capability of the contractor.]
 32-3          (e)  The board shall publish notice of the request for
 32-4    proposals in a manner prescribed by the board.
 32-5          (f)  [The board may provide for prequalifying offerors before
 32-6    proposals are submitted.  Prequalification may not be a conclusive
 32-7    determination that an offeror offers the best value to the
 32-8    institution, and a prequalified offeror may be rejected on the
 32-9    basis of subsequently discovered information.  A failure to
32-10    prequalify does not bar a subsequent determination that an offeror
32-11    offers the best value to the institution with respect to a given
32-12    proposal.]
32-13          [(g)]  The board shall receive, publicly open, and read aloud
32-14    the names of the offerors and, if any are required to be stated,
32-15    all prices [the monetary proposals, if any,] stated in each
32-16    proposal.  Within 45 days after the date of opening the proposals
32-17    the board shall evaluate and rank each proposal submitted in
32-18    relation to the published selection criteria.
32-19          (g) [(h)]  The board shall select the offeror that offers the
32-20    best value for [to] the institution based on the published
32-21    selection criteria and on its ranking evaluation.  The board shall
32-22    first attempt to negotiate with the selected offeror a contract.
32-23    The board and its engineer or architect may discuss with the
32-24    selected offeror options for a scope or time modification and any
32-25    price change associated with the modification [cost reduction].  If
32-26    the board is unable to reach a contract [agreement] with the
32-27    selected offeror, the board shall, formally and in writing, end
 33-1    negotiations with that offeror [terminate further discussions] and
 33-2    proceed to the next offeror in the order of the selection ranking
 33-3    until a contract [agreement] is reached or all proposals are
 33-4    rejected.
 33-5          (h) [(i)]  In determining best value for the institution, the
 33-6    board is not restricted to considering price alone but may consider
 33-7    any other factor stated in the selection criteria.
 33-8          Sec. 51.784.  JOB ORDER CONTRACTS FOR FACILITIES CONSTRUCTION
 33-9    OR REPAIR.  (a)  An institution may award job order contracts for
33-10    the minor construction, repair, rehabilitation, or alteration of a
33-11    facility if the work is of a recurring nature but the delivery
33-12    times are indefinite and indefinite quantities and orders are
33-13    awarded substantially on the basis of predescribed and prepriced
33-14    tasks.
33-15          (b)  The institution may establish contractual unit prices
33-16    for a job order contract by:
33-17                (1)  specifying one or more published construction unit
33-18    price books and the applicable divisions or line items; or
33-19                (2)  providing a list of work items and requiring the
33-20    offerors to bid or propose one or more coefficients or multipliers
33-21    to be applied to the price book or work items as the price
33-22    proposal.
33-23          (c)  The board shall advertise for, receive, and publicly
33-24    open [competitive] sealed proposals for job order contracts [based
33-25    on time and material rates for various types and classifications of
33-26    work.  The rates under a job order contract shall be in effect for
33-27    at least six months and for not longer than two years].
 34-1          (d) [(c)]  The board may require offerors to submit
 34-2    additional information besides rates, including experience, past
 34-3    performance, and proposed personnel and methodology.
 34-4          (e) [(d)]  The board may award job order contracts to one or
 34-5    more job order contractors in connection with each solicitation of
 34-6    bids or [based on price] proposals[, experience, past performance,
 34-7    proposed personnel and methodology, safety record, and other
 34-8    appropriate factors].
 34-9          (f) [(e)]  An order for a job or project under the job order
34-10    contract must be signed by the board's representative and the
34-11    contractor.  The order may be a fixed price, lump-sum contract
34-12    based substantially on contractual unit pricing applied to
34-13    estimated quantities [a statement of work negotiated between the
34-14    board or its representative and the contractor,] or [the order] may
34-15    be a unit price order based on the [estimated] quantities and line
34-16    items delivered.
34-17          (g)  The contractor shall provide payment and performance
34-18    bonds, if required by law, based on the amount or estimated amount
34-19    of any order.
34-20          (h)  The base term of a job order contract is for the period
34-21    and with any renewal options that the institution sets forth in the
34-22    request for proposals.  If the institution fails to advertise that
34-23    term, the base term may not exceed two years and is not renewable
34-24    without further advertisement and solicitation of proposals.
34-25          (i)  If a job order contract or an order issued under the
34-26    contract requires engineering or architectural services that
34-27    constitute the practice of engineering within the meaning of The
 35-1    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
 35-2    Statutes) or the practice of architecture within the meaning of
 35-3    Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
 35-4    (Article 249a, Vernon's Texas Civil Statutes), those services shall
 35-5    be provided in accordance with applicable law.
 35-6          SECTION 17.  Section 51.9335(f), Education Code, is amended
 35-7    to read as follows:
 35-8          (f)  This section does not apply to professional services as
 35-9    defined by Section 2254.002, Government Code [expires September 1,
35-10    1999].
35-11          SECTION 18.  This Act takes effect September 1, 1999.  The
35-12    changes in law made by this Act apply only to a contract for which
35-13    requests for bids, proposals, or qualifications are published or
35-14    distributed on or after that date.
35-15          SECTION 19.  The importance of this legislation and the
35-16    crowded condition of the calendars in both houses create an
35-17    emergency and an imperative public necessity that the
35-18    constitutional rule requiring bills to be read on three several
35-19    days in each house be suspended, and this rule is hereby suspended.