By: Truan S.B. No. 1908 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED AN ACT 1-1 relating to the authority of a municipality to use a design-build 1-2 contract for public improvement projects and facilities. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter C, Chapter 252, Local Government Code, 1-5 is amended by adding Section 252.051 to read as follows: 1-6 Sec. 252.051. DESIGN-BUILD CONTRACTS FOR MUNICIPAL PUBLIC 1-7 IMPROVEMENT PROJECTS OR FACILITIES. (a) In this section: 1-8 (1) "Design-build contract" means a single contract 1-9 with a design-build firm for the design and construction of a 1-10 public improvement project or facility. 1-11 (2) "Design-build firm" means a partnership, 1-12 corporation, or other legal entity or team that includes an 1-13 engineer or architect and builder qualified to engage in building 1-14 construction in this state. 1-15 (3) "Design criteria package" means a set of documents 1-16 that provides sufficient information to permit a design-build firm 1-17 to prepare a response to a municipality's request for proposals. 1-18 The design criteria package must specify criteria the municipality 1-19 considers necessary to describe the project or facility and may 1-20 include, as appropriate, the legal description of the site, survey 1-21 information concerning the site, interior space requirements, 1-22 special material requirements, material quality standards, 2-1 conceptual criteria for the project or facility, special equipment 2-2 requirements, cost or budget estimates, time schedules, quality 2-3 assurance and quality control requirements, site development 2-4 requirements, applicable codes and ordinances, provisions for 2-5 utilities, parking requirements, or any other requirement, as 2-6 applicable. 2-7 (b) A municipality may use the design-build method for the 2-8 construction, rehabilitation, alteration, or repair of a public 2-9 building project and associated site work that has a total 2-10 projected cost of less than $50,000,000, but a municipality may not 2-11 use the design-build method for a separate public road, highway 2-12 bridge or utility project. In using that method and in entering 2-13 into a contract for the services of a design-build firm, the 2-14 contracting municipality and the design-build firm shall follow the 2-15 procedures provided by this section. 2-16 (c) The municipality may designate an engineer or architect 2-17 to act as its representative. If the municipality's engineer or 2-18 architect is not a full-time employee of the municipality, any 2-19 engineer or architect designated shall be selected on the basis of 2-20 demonstrated competence and qualifications in accordance with 2-21 Subchapter A, Chapter 2254, Government Code. 2-22 (d) The municipality shall prepare a request for 2-23 qualifications that includes general information on the project 2-24 site, project scope, budget, special systems, selection criteria, 2-25 and other information that may assist potential design-build firms 2-26 in submitting proposals for the project or facility. The 3-1 municipality shall also prepare the design criteria package that 3-2 includes more detailed information on the project or facility. If 3-3 the preparation of the design criteria package requires engineering 3-4 or architectural services that constitute the practice of 3-5 engineering within the meaning of The Texas Engineering Practice 3-6 Act (Article 3271a, Vernon's Texas Civil Statutes) or the practice 3-7 of architecture within the meaning of Chapter 478, Acts of the 45th 3-8 Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas 3-9 Civil Statutes), those services shall be provided in accordance 3-10 with the applicable law. 3-11 (e) The municipality shall evaluate proposals and select a 3-12 design-build firm in two phases: 3-13 (1) In phase one, the municipality shall evaluate each 3-14 offeror's experience, technical competence, and capability to 3-15 perform, the past performance of the offeror's team and members of 3-16 the team, and other appropriate factors submitted by the team or 3-17 firm in response to the request for qualifications, except that 3-18 cost-related or price-related evaluation factors are not permitted. 3-19 Each offeror must certify to the municipality that each engineer or 3-20 architect that is a member of its team was selected based on 3-21 demonstrated competence and qualifications. The municipality shall 3-22 qualify a maximum of five potential offerors to submit additional 3-23 information regarding technical proposals, implementation, and 3-24 costing methodologies in response to a formal request for proposals 3-25 based on the design criteria package. 3-26 (2) In phase two, the municipality shall evaluate 4-1 offerors on the basis of demonstrated competence and 4-2 qualifications, considerations of the safety and long-term 4-3 durability of the project, the feasibility of implementing the 4-4 project or facility as proposed, the ability of the offeror to meet 4-5 schedules, costing methodology, or other factors as appropriate. 4-6 The municipality may not require offerors to submit detailed 4-7 engineering or architectural design as part of the proposal. The 4-8 municipality shall select the design-build firm that submits the 4-9 proposal offering the best value for the municipality. 4-10 (f) Following selection of a design-build firm under 4-11 Subsection (e), that firm's engineers or architects shall complete 4-12 the design, submitting all design elements for review and 4-13 determination of scope compliance by the municipality's engineer or 4-14 architect before or concurrently with construction. 4-15 (g) An engineer shall have responsibility for compliance 4-16 with the engineering design requirements and all other applicable 4-17 requirements of The Texas Engineering Practice Act (Article 3271a, 4-18 Vernon's Texas Civil Statutes). An architect shall have 4-19 responsibility for compliance with the requirements of Chapter 478, 4-20 Acts of the 45th Legislature, Regular Session, 1937 (Article 249a, 4-21 Vernon's Texas Civil Statutes). 4-22 (h) The municipality shall provide or contract for, 4-23 independent of the design-build firm, the inspection services, the 4-24 testing of construction materials engineering, and the verification 4-25 testing services necessary for acceptance of the project or 4-26 facility by the municipality. The municipality shall select those 5-1 services for which it contracts in accordance with Section 5-2 2254.004, Government Code. 5-3 (i) The design-build firm shall supply a signed and sealed 5-4 set of construction documents for the project or facility to the 5-5 municipality at the conclusion of construction. 5-6 (j) A payment or performance bond is not required for, and 5-7 may not provide coverage for, the portion of a design-build 5-8 contract under this section that includes design services only. 5-9 SECTION 2. Chapter 262, Local Government Code, is amended by 5-10 adding Section 262.024(a)(11) to read as follows: 5-11 (11) contracts let pursuant to procurement methodology 5-12 authorized by Subchapter C, Chapter 252, Section 252.051. 5-13 SECTION 3. This Act takes effect September 1, 1999. The 5-14 changes in law made by this Act apply only to a contract for which 5-15 requests for qualifications are distributed or published on or 5-16 after that date. 5-17 SECTION 4. The importance of this legislation and the 5-18 crowded condition of the calendars in both houses create an 5-19 emergency and an imperative public necessity that the 5-20 constitutional rule requiring bills to be read on three several 5-21 days in each house be suspended, and this rule is hereby suspended.