By:  Truan                                            S.B. No. 1909
         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, costs 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 $50,000,000 or more, 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.