By Brown of Kaufman                                    H.B. No. 833
         77R3572 MI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of a municipality to use a design-build
 1-3     contract for public facilities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 252, Local Government Code,
 1-6     is amended by adding Section 252.051 to read as follows:
 1-7           Sec. 252.051.  DESIGN-BUILD CONTRACTS FOR MUNICIPAL PUBLIC
 1-8     FACILITIES. (a)  In this section:
 1-9                 (1)  "Design-build contract" means a single contract
1-10     with a design-build firm for the design and construction of a
1-11     public facility.
1-12                 (2)  "Design-build firm" means a partnership,
1-13     corporation, or other legal entity or team that includes an
1-14     engineer or architect and builder qualified to engage in building
1-15     construction in this state.
1-16                 (3)  "Design criteria package" means a set of documents
1-17     that provides sufficient information to permit a design-build firm
1-18     to prepare a response to a municipality's request for proposals.
1-19     The design criteria package must specify criteria the municipality
1-20     considers necessary to describe the project and may include, as
1-21     appropriate, the legal description of the site, survey information
1-22     concerning the site, interior space requirements, special material
1-23     requirements, material quality standards, conceptual criteria for
1-24     the project, special equipment requirements, cost or budget
 2-1     estimates, time schedules, quality assurance and quality control
 2-2     requirements, site development requirements, applicable codes and
 2-3     ordinances, provisions for utilities, parking requirements, or any
 2-4     other requirement, as applicable.
 2-5           (b)  A municipality may use the design-build method for the
 2-6     construction, rehabilitation, alteration, or repair of a public
 2-7     facility. In using that method and in entering into a contract for
 2-8     the services of a design-build firm, the contracting municipality
 2-9     and the design-build firm shall follow the procedures provided by
2-10     this section.
2-11           (c)  The municipality may designate an engineer or architect
2-12     to act as its representative.  If the municipality's engineer or
2-13     architect is not a full-time employee of the municipality, any
2-14     engineer or architect designated shall be selected on the basis of
2-15     demonstrated competence and qualifications in accordance with
2-16     Subchapter A, Chapter 2254, Government Code.
2-17           (d)  The municipality shall prepare a request for
2-18     qualifications that includes general information on the project
2-19     site, project scope, budget, special systems, selection criteria,
2-20     and other information that may assist potential design-build firms
2-21     in submitting proposals for the project.  The municipality shall
2-22     also prepare the design criteria package that includes more
2-23     detailed information on the project.  If the preparation of the
2-24     design criteria package requires engineering or architectural
2-25     services that constitute the practice of engineering within the
2-26     meaning of The Texas Engineering Practice Act (Article 3271a,
2-27     Vernon's Texas Civil Statutes) or the practice of architecture
 3-1     within the meaning of Chapter 478, Acts of the 45th Legislature,
 3-2     Regular Session, 1937 (Article 249a, Vernon's Texas Civil
 3-3     Statutes), those services shall be provided in accordance with the
 3-4     applicable law.
 3-5           (e)  The municipality shall evaluate proposals and select a
 3-6     design-build firm in two phases:
 3-7                 (1)  In phase one, the municipality shall evaluate each
 3-8     offeror's experience, technical competence, and capability to
 3-9     perform, the past performance of the offeror's team and members of
3-10     the team, and other appropriate factors submitted by the team or
3-11     firm in response to the request for qualifications, except that
3-12     cost-related or price-related evaluation factors are not permitted.
3-13     Each offeror must certify to the municipality that each engineer or
3-14     architect that is a member of its team was selected based on
3-15     demonstrated competence and qualifications.  The municipality shall
3-16     qualify a maximum of five potential offerors to submit additional
3-17     information and, if the municipality chooses, to interview for
3-18     final selection.
3-19                 (2)  In phase two, the municipality shall evaluate
3-20     offerors on the basis of demonstrated competence and
3-21     qualifications, considerations of the safety and long-term
3-22     durability of the project, the feasibility of implementing the
3-23     project as proposed, the ability of the offeror to meet schedules,
3-24     costing methodology, or other factors as appropriate.  The
3-25     municipality may not require offerors to submit detailed
3-26     engineering or architectural design as part of the proposal. The
3-27     municipality shall select the design-build firm that submits the
 4-1     proposal offering the best value for the municipality.
 4-2           (f)  Following selection of a design-build firm under
 4-3     Subsection (e), that firm's engineers or architects shall complete
 4-4     the design, submitting all design elements for review and
 4-5     determination of scope compliance by the municipality's engineer or
 4-6     architect before or concurrently with construction.
 4-7           (g)  An engineer shall have responsibility for compliance
 4-8     with the engineering design requirements and all other applicable
 4-9     requirements of The Texas Engineering Practice Act (Article 3271a,
4-10     Vernon's Texas Civil Statutes).  An architect shall have
4-11     responsibility for compliance with the requirements of Chapter 478,
4-12     Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
4-13     Vernon's Texas Civil Statutes).
4-14           (h)  The municipality shall provide or contract for,
4-15     independent of the design-build firm, the inspection services, the
4-16     testing of construction materials engineering, and the verification
4-17     testing services necessary for acceptance of the project by the
4-18     municipality.  The municipality shall select those services for
4-19     which it contracts in accordance with Section 2254.004, Government
4-20     Code.
4-21           (i)  The design-build firm shall supply a signed and sealed
4-22     set of construction documents for the project to the municipality
4-23     at the conclusion of construction.
4-24           (j)  A payment or performance bond is not required for, and
4-25     may not provide coverage for, the portion of a design-build
4-26     contract under this section that includes design services only.
4-27           SECTION 2.  Section 252.022(a), Local Government Code, is
 5-1     amended to read as follows:
 5-2           (a)  This chapter does not apply to an expenditure for:
 5-3                 (1)  a procurement made because of a public calamity
 5-4     that requires the immediate appropriation of money to relieve the
 5-5     necessity of the municipality's residents or to preserve the
 5-6     property of the municipality;
 5-7                 (2)  a procurement necessary to preserve or protect the
 5-8     public health or safety of the municipality's residents;
 5-9                 (3)  a procurement necessary because of unforeseen
5-10     damage to public machinery, equipment, or other property;
5-11                 (4)  a procurement for personal, professional, or
5-12     planning services;
5-13                 (5)  a procurement for work that is performed and paid
5-14     for by the day as the work progresses;
5-15                 (6)  a purchase of land or a right-of-way;
5-16                 (7)  a procurement of items that are available from
5-17     only one source, including:
5-18                       (A)  items that are available from only one
5-19     source because of patents, copyrights, secret processes, or natural
5-20     monopolies;
5-21                       (B)  films, manuscripts, or books;
5-22                       (C)  gas, water, and other utility services;
5-23                       (D)  captive replacement parts or components for
5-24     equipment;
5-25                       (E)  books, papers, and other library materials
5-26     for a public library that are available only from the persons
5-27     holding exclusive distribution rights to the materials; and
 6-1                       (F)  management services provided by a nonprofit
 6-2     organization to a municipal museum, park, zoo, or other facility to
 6-3     which the organization has provided significant financial or other
 6-4     benefits;
 6-5                 (8)  a purchase of rare books, papers, and other
 6-6     library materials for a public library;
 6-7                 (9)  paving drainage, street widening, and other public
 6-8     improvements, or related matters, if at least one-third of the cost
 6-9     is to be paid by or through special assessments levied on property
6-10     that will benefit from the improvements;
6-11                 (10)  a public improvement project, already in
6-12     progress, authorized by the voters of the municipality, for which
6-13     there is a deficiency of funds for completing the project in
6-14     accordance with the plans and purposes authorized by the voters;
6-15                 (11)  a payment under a contract by which a developer
6-16     participates in the construction of a public improvement as
6-17     provided by Subchapter C, Chapter 212;
6-18                 (12)  personal property sold:
6-19                       (A)  at an auction by a state licensed
6-20     auctioneer;
6-21                       (B)  at a going out of business sale held in
6-22     compliance with Subchapter F, Chapter 17, Business & Commerce Code;
6-23                       (C)  by a political subdivision of this state, a
6-24     state agency of this state, or an entity of the federal government;
6-25     or
6-26                       (D)  under an interlocal contract for cooperative
6-27     purchasing administered by a regional planning commission
 7-1     established under Chapter 391;
 7-2                 (13)  services performed by blind or severely disabled
 7-3     persons;
 7-4                 (14)  goods purchased by a municipality for subsequent
 7-5     retail sale by the municipality;  [or]
 7-6                 (15)  electricity; or
 7-7                 (16)  a contract let under a purchasing method
 7-8     authorized by Section 252.051.
 7-9           SECTION 3.  This Act takes effect September 1, 2001. The
7-10     changes in law made by this Act apply only to a contract for which
7-11     requests for qualifications are distributed or published on or
7-12     after that date.