SRC-BWC, MKV S.B. 110 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 110
77R443 BDH-FBy: Madla
Criminal Justice
3/15/2001
As Filed


DIGEST AND PURPOSE 

Currently, the only public entities that have design-build as an option are
school districts and state universities.  During the interim of the 76th
Legislature, the Senate Committee on Intergovernmental Relations
(committee) evaluated the potential benefits offered through the
"design-build" form of bidding.  Based on committee findings, it was
determined that the Texas Department of Criminal Justice (TDCJ) would
benefit from having design-build as a procurement option.  Design-build
allows for an architect, engineer, and builder to form a team and bid on a
construction project together with the contractor heading up the team.  One
firm handles all of the aspects of the project, from planning and
preliminary design to the final landscaping.  In this process, projects are
not necessarily awarded to the lowest bidder, but are also evaluated on
factors such as the design-build firm's past experience, technical
competence, and past performance record.  By combining various factors in
the award process, the state can select a proposal that reflects the
greatest value, not just the lowest cost.  As proposed, S.B. 110 authorizes
the TDCJ to use design-build for the repair or construction of facilities. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 495B, Government Code, by adding Section
495.025, as follows: 

Section 495.025.  DESIGN-BUILD CONTRACTS FOR FACILITIES.  (a) Defines
"architect," "contractor," "design-build contract," "design-build firm,"
"design criteria package," "engineer," and "facility." 

(b) Authorizes the Texas Department of Criminal Justice (department) to use
the design-build method for the construction, rehabilitation, alteration,
or repair of a facility. Requires the department and design-build firm to
follow the procedures provided by this section.   

(c) Authorizes the department to designate an engineer or architect to act
as its representative in administering this section with regard to a
project.  Requires that if an engineer or architect is not a full-time
employee of the department, then any engineer or architect will be selected
on the basis of demonstrated competence and qualifications in accordance
with Chapter 2254A, Government Code.  

(d) Requires the department to prepare a request for qualifications that
includes certain information that may assist potential design-build firms
in submitting proposals for the project.  Requires the department to also
prepare a design criteria package for the project.  Sets forth that if the
preparation of the design criteria package requires the practice of
engineering  or architectural services under Article 3271a (Texas
Engineering Practice Act), V.T.C.S. or the practice of architecture under
Article 249a  (Regulation of practice of architecture), V.T.C.S., those
services must be provided in accordance with the applicable law. 

(e) Requires the department to evaluate statements of qualifications and
select a designbuild firm in two phases as provided in Subsections (f) and
(g). 

(f) Requires the department to prepare a request for qualifications and
evaluate each offeror's experience, technical competence, capability to
perform, and other appropriate factors submitted by the team or firm in
response to the request.  Prohibits the department from considering
cost-related or price-related evaluation factors. Requires each offeror to
certify that each engineer or architect that is a member of its team was
selected based on demonstrated competence and qualifications.  Prohibits
the department from qualifying more than five offerors to submit additional
information and, if the department chooses, to interview for final
selection. 

(g) Requires the department to evaluate the information submitted by the
offerors on the basis of the selection criteria and the results of any
interview.  Authorizes the department to request additional information
regarding demonstrated competence and qualifications and other factors as
appropriate.  Prohibits the department from requesting detailed engineering
or architectural designs as part of the proposal. Requires the department
to rank each proposal on the basis of the criteria set forth in the request
for qualifications, and to select the design-build firm that offers the
best value for the department on the basis of the criteria.  Requires the
department to attempt to negotiate a contract with the selected offeror,
and if they are unable to negotiate a satisfactory contract, to formally
and in writing end negotiations with that offeror and proceed with the next
offeror in order of the selection ranking. 

(h) Requires the firm's engineers or architects to complete the design,
submitting all design elements for review and determination of scope
compliance to the department or department's engineer or architect before
or concurrently with construction. 

(i) Requires, in carrying out a project under a design-build contract, that
an engineer be assigned responsibility for compliance with the engineering
design requirements and all other applicable requirements of Article 3271a,
V.T.C.S., and that an architect be assigned responsibility for compliance
with the requirements of Article 249a, V.T.C.S. 

(j) Requires the department to provide or contract for, independently of
the designbuild firm, the inspection services, the testing of construction
materials engineering, and the verification testing services necessary for
acceptance of the facility by the department.  Requires the selection of
those services to be in accordance with Section 2254.004, Government Code. 

(k) Requires the design-build firm to supply a signed and sealed set of
construction documents for the project to the department at the conclusion
of construction. 

(l) Provides that a design-build contract is governed by Chapter
2253,Government Code, except that a payment or performance bond is not
required for and may not provide coverage for the portion of a design-build
contract that includes design services only.  Provides that if a contract
amount or guaranteed maximum price has not been determined at the time a
contract is awarded, then the performance bond and payment bond must each
be in an amount equal to the project budget, as specified in the design
criteria package.  Requires the design-build firm to deliver the bonds to
the department no later than the 10th day after the date the firm executes
the contract unless the firm furnishes a bid bond or other financial
security to the department to ensure that the firm will furnish the
required performance and payment bonds when a guaranteed maximum  price is
established. 


SECTION 2.  Effective date: September 1, 2001.
            Makes application of this Act prospective.