By Walker                                             H.B. No. 1411
         77R4363 ATP-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the procurement methods a political subdivision or a
 1-3     related entity may use.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 252.021(a) and (c), Local Government
 1-6     Code, are amended to read as follows:
 1-7           (a)  Before a municipality may enter into a contract that
 1-8     requires an expenditure of more than $15,000 from one or more
 1-9     municipal funds, the municipality must comply with the procedure
1-10     prescribed by this subchapter [chapter] for competitive sealed
1-11     bidding or competitive sealed proposals or with a method described
1-12     by Subchapter E.
1-13           (c)  A municipality may use the competitive sealed proposal
1-14     procedure [only] for high technology procurements and [or], in a
1-15     municipality with a population of 75,000 or more, for the purchase
1-16     of insurance.
1-17           SECTION 2.  Section 252.022, Local Government Code, is
1-18     amended by adding Subsection (d) to read as follows:
1-19           (d)  This chapter does not apply to an expenditure described
1-20     by Section 252.021(a) if the governing body of a municipality
1-21     determines that a method described by Subchapter E provides a
1-22     better value for the municipality with respect to that expenditure
1-23     than the procedures described in this chapter, and the municipality
1-24     adopts and uses a method described in that subchapter with respect
 2-1     to that expenditure.
 2-2           SECTION 3.  Chapter 252, Local Government Code, is amended by
 2-3     adding Subchapter E to read as follows:
 2-4       SUBCHAPTER E.  ALTERNATIVE PROJECT DELIVERY METHODS FOR CERTAIN
 2-5                             MUNICIPAL PROJECTS
 2-6           Sec. 252.111.  DEFINITIONS.  In this subchapter:
 2-7                 (1)  "Architect" means an individual registered as an
 2-8     architect under Chapter 478, Acts of the 45th Legislature, Regular
 2-9     Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).
2-10                 (2)  "Contractor" in the context of a contract for the
2-11     construction, rehabilitation, alteration, or repair of a facility
2-12     means a sole proprietorship, partnership, corporation, or other
2-13     legal entity that assumes the risk for constructing,
2-14     rehabilitating, altering, or repairing all or part of the facility
2-15     at the contracted price.
2-16                 (3)  "Design-build contract" means a single contract
2-17     with a design-build firm for the design and construction of a
2-18     facility.
2-19                 (4)  "Design-build firm" means a partnership,
2-20     corporation, or other legal entity or team that includes an
2-21     engineer or architect and builder qualified to engage in building
2-22     construction in Texas.
2-23                 (5)  "Design criteria package" means a set of documents
2-24     that provides sufficient information to permit a design-build firm
2-25     to prepare a response to a municipality's request for
2-26     qualifications and any additional information requested, including
2-27     criteria for selection.  The design criteria package must specify
 3-1     criteria the municipality considers necessary to describe the
 3-2     project and may include, as appropriate, the legal description of
 3-3     the site, survey information concerning the site, interior space
 3-4     requirements, special material requirements, material quality
 3-5     standards, conceptual criteria for the project, special equipment
 3-6     requirements, cost or budget estimates, time schedules, quality
 3-7     assurance and quality control requirements, site development
 3-8     requirements, applicable codes and ordinances, provisions for
 3-9     utilities, parking requirements, or any other requirement, as
3-10     applicable.
3-11                 (6)  "Engineer" means an individual registered as a
3-12     professional engineer under The Texas Engineering Practice Act
3-13     (Article 3271a, Vernon's Texas Civil Statutes).
3-14                 (7)  "Facility" means a building or structure intended
3-15     primarily for human habitation and office use, the design and
3-16     construction of which is governed by accepted building codes.  The
3-17     term does not include highways, roads, streets, bridges, utilities,
3-18     water supply projects, water plants, wastewater plants, water and
3-19     wastewater distribution or conveyance facilities, wharves, docks,
3-20     electric generation or distribution facilities, drainage projects,
3-21     or related types of projects associated with civil engineering
3-22     construction.
3-23                 (8)  "Fee" in the context of a contract for the
3-24     construction, rehabilitation, alteration, or repair of a facility
3-25     means the payment a construction manager receives for its overhead
3-26     and profit in performing its services.
3-27                 (9)  "General conditions" in the context of a contract
 4-1     for the construction, rehabilitation, alteration, or repair of a
 4-2     facility means on-site management, administrative personnel,
 4-3     insurance, bonds, equipment, utilities, and incidental work,
 4-4     including minor field labor and materials.
 4-5           Sec. 252.112.  APPLICABILITY; OTHER LAW.  (a)  Any provision
 4-6     in the charter of a home-rule municipality that requires the use of
 4-7     competitive bidding or competitive sealed proposals or that
 4-8     prescribes procurement procedures and that is in conflict with this
 4-9     subchapter controls over this subchapter unless the governing body
4-10     of the municipality elects to have this subchapter supersede the
4-11     charter.
4-12           (b)  The purchasing requirements of Section 361.426, Health
4-13     and Safety Code, apply to purchases by a municipality made under
4-14     this subchapter.
4-15           (c)  Except as provided by this section, to the extent of any
4-16     conflict, this subchapter prevails over any other law relating to
4-17     the purchasing of goods and services except a law relating to
4-18     contracting with historically underutilized businesses.
4-19           Sec. 252.113.  PROCUREMENT PROCEDURES.  (a)  In entering into
4-20     a contract for the construction of a facility, a municipality may
4-21     use any of the following methods that provides the best value for
4-22     the municipality:
4-23                 (1)  competitive bidding;
4-24                 (2)  competitive sealed proposals for construction
4-25     services;
4-26                 (3)  a design-build contract;
4-27                 (4)  a contract to construct, rehabilitate, alter, or
 5-1     repair facilities that involves using a construction manager; or
 5-2                 (5)  a job order contract for the minor repair,
 5-3     rehabilitation, or alteration of a facility.
 5-4           (b)  Except as provided by this subchapter, in determining to
 5-5     whom to award a contract, the municipality may consider:
 5-6                 (1)  the purchase price;
 5-7                 (2)  the reputation of the vendor and of the vendor's
 5-8     goods or services;
 5-9                 (3)  the quality of the vendor's goods or services;
5-10                 (4)  the extent to which the goods or services meet the
5-11     municipality's needs;
5-12                 (5)  the vendor's past relationship with the
5-13     municipality;
5-14                 (6)  the impact on the ability of the municipality to
5-15     comply with rules relating to historically underutilized
5-16     businesses;
5-17                 (7)  the total long-term cost to the municipality to
5-18     acquire the vendor's goods or services; and
5-19                 (8)  any other relevant factor that a private business
5-20     entity would consider in selecting a vendor.
5-21           Sec. 252.114.  EVALUATION OF BIDS AND PROPOSALS FOR
5-22     CONSTRUCTION SERVICES.   (a)  The governing body of a municipality
5-23     that is considering a construction contract using a method
5-24     specified by Section 252.113(a) other than competitive bidding
5-25     must, before advertising, determine which method provides the best
5-26     value for the municipality.
5-27           (b)  The municipality shall base its selection among offerors
 6-1     on criteria authorized to be used under Section 252.113(b).  The
 6-2     municipality shall publish in the request for bids, proposals, or
 6-3     qualifications the criteria that will be used to evaluate the
 6-4     offerors and the relative weights, if known at the time of
 6-5     publication, given to the criteria.
 6-6           (c)  The municipality shall document the basis of its
 6-7     selection and shall make the evaluations public not later than the
 6-8     seventh day after the date the contract is awarded.
 6-9           Sec. 252.115.  SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES
6-10     THROUGH COMPETITIVE BIDDING.  (a)  Except to the extent prohibited
6-11     by other law and to the extent consistent with this subchapter, a
6-12     municipality may use competitive bidding to select a contractor to
6-13     perform construction, rehabilitation, alteration, or repair
6-14     services for a facility.
6-15           (b)  Except as otherwise specifically provided by this
6-16     subsection, Subchapter B, Chapter 271, does not apply to a
6-17     competitive bidding process under this section.  Sections 271.026,
6-18     271.027(a), and 271.0275 apply to a competitive bidding process
6-19     under this section.
6-20           (c)  A municipality shall award a competitively bid contract
6-21     at the bid amount to the bidder offering the best value to the
6-22     municipality according to the selection criteria that were
6-23     established by the municipality.  The selection criteria may
6-24     include the factors listed in Section 252.113(b).
6-25           Sec. 252.116.  SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES
6-26     THROUGH COMPETITIVE SEALED PROPOSALS.  (a)  In selecting a
6-27     contractor for construction, rehabilitation, alteration, or repair
 7-1     services for a facility through competitive sealed proposals, a
 7-2     municipality shall follow the procedures prescribed by this
 7-3     section.
 7-4           (b)  The municipality shall select or designate an engineer
 7-5     or architect to prepare construction documents for the project.
 7-6     The selected or designated engineer or architect has full
 7-7     responsibility for complying with The Texas Engineering Practice
 7-8     Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
 7-9     Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
7-10     Vernon's Texas Civil Statutes), as applicable.  If the engineer or
7-11     architect is not a full-time employee of the municipality, the
7-12     municipality shall select the engineer or architect on the basis of
7-13     demonstrated competence and qualifications as provided by Section
7-14     2254.004, Government Code.
7-15           (c)  The municipality shall provide or contract for,
7-16     independently of the contractor, the inspection services, the
7-17     testing of construction materials engineering, and the verification
7-18     testing services necessary for acceptance of the facility by the
7-19     municipality.  The municipality shall select those services for
7-20     which it contracts in accordance with Section 2254.004, Government
7-21     Code, and shall identify them in the request for proposals.
7-22           (d)  The municipality shall prepare a request for competitive
7-23     sealed proposals that includes construction documents, selection
7-24     criteria, estimated budget, project scope, schedule, and other
7-25     information that contractors may require to respond to the request.
7-26     The municipality shall state in the request for proposals the
7-27     selection criteria that will be used in selecting the successful
 8-1     offeror.
 8-2           (e)  The municipality shall receive, publicly open, and read
 8-3     aloud the names of the offerors and, if any are required to be
 8-4     stated, all prices stated in each proposal.  Not later than the
 8-5     45th day after the date of opening the proposals, the municipality
 8-6     shall evaluate and rank each proposal submitted in relation to the
 8-7     published selection criteria.
 8-8           (f)  The municipality shall select the offeror that offers
 8-9     the best value for the municipality based on the published
8-10     selection criteria and on its ranking evaluation.  The municipality
8-11     shall first attempt to negotiate a contract with the selected
8-12     offeror.  The municipality and its engineer or architect may
8-13     discuss with the selected offeror options for a scope or time
8-14     modification and any price change associated with the modification.
8-15     If the municipality is unable to negotiate a contract with the
8-16     selected offeror, the municipality shall, formally and in writing,
8-17     end negotiations with that offeror and proceed to the next offeror
8-18     in the order of the selection ranking until a contract is reached
8-19     or all proposals are rejected.
8-20           (g)  In determining best value for the municipality, the
8-21     municipality is not restricted to considering price alone, but may
8-22     consider any other factor stated in the selection criteria.
8-23           Sec. 252.117.  CONTRACTS FOR FACILITIES: CONSTRUCTION
8-24     MANAGER-AGENT.  (a)  A municipality may use the construction
8-25     manager-agent method for the construction, rehabilitation,
8-26     alteration, or repair of a facility.  In using that method and in
8-27     entering into a contract for the services of a construction
 9-1     manager-agent, a municipality shall follow the procedures
 9-2     prescribed by this section.
 9-3           (b)  A construction manager-agent is a sole proprietorship,
 9-4     partnership, corporation, or other legal entity that provides
 9-5     consultation to the municipality regarding construction,
 9-6     rehabilitation, alteration, or repair of the facility. A
 9-7     municipality using the construction manager-agent method may, under
 9-8     the contract between the municipality and the construction
 9-9     manager-agent, require the construction manager-agent to provide
9-10     administrative personnel, equipment necessary to perform duties
9-11     under this section, and on-site management and other services
9-12     specified in the contract.  A construction manager-agent represents
9-13     the municipality in a fiduciary capacity.
9-14           (c)  Before or concurrently with selecting a construction
9-15     manager-agent, the municipality shall select or designate an
9-16     engineer or architect who shall prepare the construction documents
9-17     for the project and who has full responsibility for complying with
9-18     The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
9-19     Civil Statutes) or Chapter 478, Acts of the 45th Legislature,
9-20     Regular Session, 1937 (Article 249a, Vernon's Texas Civil
9-21     Statutes), as applicable.  If the engineer or architect is not a
9-22     full-time employee of the municipality, the municipality shall
9-23     select the engineer or architect on the basis of demonstrated
9-24     competence and qualifications as provided by Section 2254.004,
9-25     Government Code.  The municipality's engineer or architect may not
9-26     serve, alone or in combination with another person, as the
9-27     construction manager-agent unless the engineer or architect is
 10-1    hired to serve as the construction manager-agent under a separate
 10-2    or concurrent procurement conducted in accordance with this
 10-3    subchapter.  This subsection does not prohibit the municipality's
 10-4    engineer or architect from providing customary construction phase
 10-5    services under the engineer's or architect's original professional
 10-6    service agreement in accordance with applicable licensing laws.
 10-7          (d)  A municipality shall select a construction manager-agent
 10-8    on the basis of demonstrated competence and qualifications in the
 10-9    same manner as provided for the selection of engineers or
10-10    architects under Section 2254.004, Government Code.
10-11          (e)  A municipality using the construction manager-agent
10-12    method shall procure, in accordance with applicable law, a general
10-13    contractor, trade contractors, or subcontractors who will serve as
10-14    the prime contractor for their specific portion of the work.
10-15          (f)  The municipality or the construction manager-agent shall
10-16    procure in accordance with Section 2254.004, Government Code, all
10-17    of the testing of construction materials engineering, the
10-18    inspection services, and the verification testing services
10-19    necessary for acceptance of the facility by the municipality.
10-20          Sec. 252.118.  CONTRACTS FOR FACILITIES:  CONSTRUCTION
10-21    MANAGER-AT-RISK.  (a)  A municipality may use the construction
10-22    manager-at-risk method for the construction, rehabilitation,
10-23    alteration, or repair of a facility.  In using that method and in
10-24    entering into a contract for the services of a construction
10-25    manager-at-risk, a municipality shall follow the procedures
10-26    prescribed by this section.
10-27          (b)  A construction manager-at-risk is a sole proprietorship,
 11-1    partnership, corporation, or other legal entity that assumes the
 11-2    risk for construction, rehabilitation, alteration, or repair of a
 11-3    facility at the contracted price as a general contractor and
 11-4    provides consultation to the municipality regarding construction
 11-5    during and after the design of the facility.
 11-6          (c)  Before or concurrently with selecting a construction
 11-7    manager-at-risk, the municipality shall select or designate an
 11-8    engineer or architect who shall prepare the construction documents
 11-9    for the project and who has full responsibility for complying with
11-10    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
11-11    Civil Statutes) or Chapter 478, Acts of the 45th Legislature,
11-12    Regular Session, 1937 (Article 249a, Vernon's Texas Civil
11-13    Statutes), as applicable.  If the engineer or architect is not a
11-14    full-time employee of the municipality, the municipality shall
11-15    select the engineer or architect on the basis of demonstrated
11-16    competence and qualifications as provided by Section 2254.004,
11-17    Government Code.  The municipality's engineer, architect, or
11-18    construction manager-agent for a project may not serve, alone or in
11-19    combination with another, as the construction manager-at-risk
11-20    unless the engineer or architect is hired to serve as the
11-21    construction manager-at-risk under a separate or concurrent
11-22    procurement conducted in accordance with this subchapter.
11-23          (d)  The municipality shall provide or contract for,
11-24    independently of the construction manager-at-risk, the inspection
11-25    services, the testing of construction materials engineering, and
11-26    the verification testing services necessary for acceptance of the
11-27    facility by the municipality.  The municipality shall select those
 12-1    services for which it contracts in accordance with Section
 12-2    2254.004, Government Code.
 12-3          (e)  The municipality shall select the construction
 12-4    manager-at-risk in either a one-step or two-step process.  The
 12-5    municipality shall prepare a request for proposals, in the case of
 12-6    a one-step process, or a request for qualifications, in the case of
 12-7    a two-step process, that includes general information on the
 12-8    project site, project scope, schedule, selection criteria,
 12-9    estimated budget, and the time and place for receipt of proposals
12-10    or qualifications, as applicable, and other information that may
12-11    assist the municipality in its selection of a construction
12-12    manager-at-risk.  The municipality shall state the selection
12-13    criteria in the request for proposals or qualifications, as
12-14    applicable.  The selection criteria may include the offeror's
12-15    experience, past performance, safety record, proposed personnel and
12-16    methodology, and other appropriate factors that demonstrate the
12-17    capability of the construction manager-at-risk.  If a one-step
12-18    process is used, the municipality may request, as part of the
12-19    offeror's proposal, proposed fees and prices for fulfilling the
12-20    general conditions.  If a two-step process is used, the
12-21    municipality may not request fees or prices in step one.  In step
12-22    two, the municipality may request that five or fewer offerors,
12-23    selected solely on the basis of qualifications, provide additional
12-24    information, including the construction manager-at-risk's proposed
12-25    fee and its price for fulfilling the general conditions.
12-26          (f)  At each step, the municipality shall receive, publicly
12-27    open, and read aloud the names of the offerors.  At the appropriate
 13-1    step, the municipality shall also read aloud the fees and prices,
 13-2    if any, stated in each proposal as the proposal is opened.  Not
 13-3    later than the 45th day after the date of opening the proposals,
 13-4    the municipality shall evaluate and rank each proposal submitted in
 13-5    relation to the criteria set forth in the request for proposals.
 13-6          (g)  The municipality shall select the offeror that submits
 13-7    the proposal that offers the best value for the municipality based
 13-8    on the published selection criteria and on its ranking evaluation.
 13-9    The municipality shall first attempt to negotiate a contract with
13-10    the selected offeror.  If the municipality is unable to negotiate a
13-11    satisfactory contract with the selected offeror, the municipality
13-12    shall, formally and in writing, end negotiations with that offeror
13-13    and proceed to negotiate with the next offeror in the order of the
13-14    selection ranking until a contract is reached or negotiations with
13-15    all ranked offerors end.
13-16          (h)  A construction manager-at-risk shall publicly advertise,
13-17    as prescribed for a governmental entity by Section 271.025, and
13-18    receive bids or proposals from trade contractors or subcontractors
13-19    for the performance of all major elements of the work other than
13-20    the minor work that may be included in the general conditions.  A
13-21    construction manager-at-risk may seek to perform portions of the
13-22    work itself if the construction manager-at-risk submits its bid or
13-23    proposal for those portions of the work in the same manner as all
13-24    other trade contractors or subcontractors and if the municipality
13-25    determines that the construction manager-at-risk's bid or proposal
13-26    provides the best value for the municipality.
13-27          (i)  The construction manager-at-risk and the municipality or
 14-1    its representative shall review all trade contractor or
 14-2    subcontractor bids or proposals in a manner that does not disclose
 14-3    the contents of the bid or proposal during the selection process to
 14-4    a person not employed by the construction manager-at-risk,
 14-5    engineer, architect, or municipality.  All bids or proposals shall
 14-6    be made public after the award of the contract or not later than
 14-7    the seventh day after the date of final selection of bids or
 14-8    proposals, whichever is later.
 14-9          (j)  If the construction manager-at-risk reviews, evaluates,
14-10    and recommends to the municipality a bid or proposal from a trade
14-11    contractor or subcontractor but the municipality requires another
14-12    bid or proposal to be accepted, the municipality shall compensate
14-13    the construction manager-at-risk by a change in price, time, or
14-14    guaranteed maximum cost for any additional cost and risk that the
14-15    construction manager-at-risk may incur because of the
14-16    municipality's requirement that another bid or proposal be
14-17    accepted.
14-18          (k)  If a selected trade contractor or subcontractor defaults
14-19    in the performance of its work or fails to execute a subcontract
14-20    after being selected in accordance with this section, the
14-21    construction manager-at-risk may, without advertising, fulfill the
14-22    contract requirements itself or select a replacement trade
14-23    contractor or subcontractor to fulfill the contract requirements.
14-24          (l)  If a fixed contract amount or guaranteed maximum price
14-25    has not been determined at the time the contract is awarded, the
14-26    penal sums of the performance and payment bonds delivered to the
14-27    municipality must each be in an amount equal to the project budget,
 15-1    as specified in the request for qualifications.  The construction
 15-2    manager shall deliver the bonds not later than the 10th day after
 15-3    the date the construction manager executes the contract unless the
 15-4    construction manager furnishes a bid bond or other financial
 15-5    security acceptable to the municipality to ensure that the
 15-6    construction manager will furnish the required performance and
 15-7    payment bonds when a guaranteed maximum price is established.
 15-8          Sec. 252.119.  DESIGN-BUILD CONTRACTS FOR FACILITIES.  (a)  A
 15-9    municipality may use the design-build method for the construction,
15-10    rehabilitation, alteration, or repair of a facility.  In using that
15-11    method and in entering into a contract for the services of a
15-12    design-build firm, the contracting municipality and the
15-13    design-build firm shall follow the procedures provided by this
15-14    section.
15-15          (b)  The municipality shall designate an engineer or
15-16    architect to act as its representative.  If the municipality's
15-17    engineer or architect is not a full-time employee of the
15-18    municipality, any engineer or architect designated shall be
15-19    selected on the basis of demonstrated competence and qualifications
15-20    in accordance with Subchapter A, Chapter 2254, Government Code.
15-21          (c)  The municipality shall prepare a request for
15-22    qualifications that includes general information on the project
15-23    site, project scope, budget, special systems, selection criteria,
15-24    and other information that may assist potential design-build firms
15-25    in submitting proposals for the project.  The municipality shall
15-26    also prepare a design criteria package that includes more detailed
15-27    information on the project.  If the preparation of the design
 16-1    criteria package requires engineering or architectural services
 16-2    that constitute the practice of engineering within the meaning of
 16-3    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
 16-4    Civil Statutes) or the practice of architecture within the meaning
 16-5    of Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
 16-6    (Article 249a, Vernon's Texas Civil Statutes), those services shall
 16-7    be provided in accordance with the applicable law.
 16-8          (d)  The municipality shall evaluate statements of
 16-9    qualifications and select a design-build firm in two phases:
16-10                (1)  In phase one, the municipality shall prepare a
16-11    request for qualifications and evaluate each offeror's experience,
16-12    technical competence, and capability to perform, the past
16-13    performance of the offeror's team and members of the team, and
16-14    other appropriate factors submitted by the team or firm in response
16-15    to the request for qualifications, except that cost-related or
16-16    price-related evaluation factors are not permitted.  Each offeror
16-17    must certify to the municipality that each engineer or architect
16-18    that is a member of its team was selected based on demonstrated
16-19    competence and qualifications.  The municipality shall qualify a
16-20    maximum of five offerors to submit additional information and, if
16-21    the municipality chooses, to interview for final selection.
16-22                (2)  In phase two, the municipality shall evaluate the
16-23    information submitted by the offerors on the basis of the selection
16-24    criteria stated in the request for qualifications and the results
16-25    of an interview.  The municipality may request additional
16-26    information regarding demonstrated competence and qualifications,
16-27    considerations of the safety and long-term durability of the
 17-1    project, the feasibility of implementing the project as proposed,
 17-2    the ability of the offeror to meet schedules, costing methodology,
 17-3    or other factors as appropriate.  The municipality may not require
 17-4    offerors to submit detailed engineering or architectural designs as
 17-5    part of the proposal.  The municipality shall rank each proposal
 17-6    submitted on the basis of the criteria set forth in the request for
 17-7    qualifications.  The municipality shall select the design-build
 17-8    firm that submits the proposal offering the best value for the
 17-9    municipality on the basis of the published selection criteria and
17-10    on its ranking evaluations.  The municipality shall first attempt
17-11    to negotiate a contract with the selected offeror.  If the
17-12    municipality is unable to negotiate a satisfactory contract with
17-13    the selected offeror, the municipality shall, formally and in
17-14    writing, end negotiations with that offeror and proceed to
17-15    negotiate with the next offeror in the order of the selection
17-16    ranking until a contract is reached or negotiations with all ranked
17-17    offerors end.
17-18          (e)  Following selection of a design-build firm under
17-19    Subsection (d), that firm's engineers or architects shall complete
17-20    the design, submitting all design elements for review and
17-21    determination of scope compliance to the municipality or the
17-22    municipality's engineer or architect before or concurrently with
17-23    construction.
17-24          (f)  An engineer shall have responsibility for compliance
17-25    with the engineering design requirements and all other applicable
17-26    requirements of The Texas Engineering Practice Act (Article 3271a,
17-27    Vernon's Texas Civil Statutes). An architect shall have
 18-1    responsibility for compliance with the requirements of Chapter 478,
 18-2    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
 18-3    Vernon's Texas Civil Statutes).
 18-4          (g)  The municipality shall provide or contract for,
 18-5    independently of the design-build firm, the inspection services,
 18-6    the testing of construction materials engineering, and the
 18-7    verification testing services necessary for acceptance of the
 18-8    facility by the governmental entity.  The municipality shall select
 18-9    those services for which it contracts in accordance with Section
18-10    2254.004, Government Code.
18-11          (h)  The design-build firm shall supply a signed and sealed
18-12    set of construction documents for the project to the municipality
18-13    at the conclusion of construction.
18-14          (i)  A payment or performance bond is not required for, and
18-15    may not provide coverage for, the portion of a design-build
18-16    contract under this section that includes design services only.  If
18-17    a fixed contract amount or guaranteed maximum price has not been
18-18    determined at the time a design-build contract is awarded, the
18-19    penal sums of the performance and payment bonds delivered to the
18-20    municipality must each be in an amount equal to the project budget,
18-21    as specified in the design criteria package.  The design-build firm
18-22    shall deliver the bonds not later than the 10th day after the date
18-23    the design-build firm executes the contract unless the design-build
18-24    firm furnishes a bid bond or other financial security acceptable to
18-25    the municipality to ensure that the design-build firm will furnish
18-26    the required performance and payment bonds when a guaranteed
18-27    maximum price is established.
 19-1          Sec. 252.120.  JOB ORDER CONTRACTS FOR FACILITIES
 19-2    CONSTRUCTION OR REPAIR.  (a)  A municipality may award job order
 19-3    contracts for the minor construction, repair, rehabilitation, or
 19-4    alteration of a facility if the work is of a recurring nature but
 19-5    the delivery times are indefinite and indefinite quantities and
 19-6    orders are awarded substantially on the basis of predescribed and
 19-7    prepriced tasks.
 19-8          (b)  The municipality may establish contractual unit prices
 19-9    for a job order contract by:
19-10                (1)  specifying one or more published construction unit
19-11    price books and the applicable divisions or line items; or
19-12                (2)  providing a list of work items and requiring the
19-13    offerors to bid or propose one or more coefficients or multipliers
19-14    to be applied to the price book or work items as the price
19-15    proposal.
19-16          (c)  The municipality shall advertise for, receive, and
19-17    publicly open sealed proposals for job order contracts.
19-18          (d)  The municipality may require offerors to submit
19-19    additional information besides rates, including experience, past
19-20    performance, and proposed personnel and methodology.
19-21          (e)  The municipality may award job order contracts to one or
19-22    more job order contractors in connection with each solicitation of
19-23    bids or proposals.
19-24          (f)  An order for a job or project under the job order
19-25    contract must be signed by the municipality's representative and
19-26    the contractor.  The order may be a fixed price, lump-sum contract
19-27    based substantially on contractual unit pricing applied to
 20-1    estimated quantities or may be a unit price order based on the
 20-2    quantities and line times delivered.
 20-3          (g)  The contractor shall provide payment and performance
 20-4    bonds, if required by law, based on the amount or estimated amount
 20-5    of any order.
 20-6          (h)  The base term of a job order contract is for the period
 20-7    and with any renewal options that the municipality sets forth in
 20-8    the request for proposals. If the municipality fails to advertise
 20-9    that term, the base term may not exceed two years and is not
20-10    renewable without further advertisement and solicitation of
20-11    proposals.
20-12          (i)  If a job order contract or an order issued under the
20-13    contract requires engineering or architectural services that
20-14    constitute the practice of engineering within the meaning of The
20-15    Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
20-16    Statutes) or the practice of architecture within the meaning of
20-17    Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
20-18    (Article 249a, Vernon's Texas Civil Statutes), those services shall
20-19    be provided in accordance with applicable law.
20-20          SECTION 4.  Section 2254.002(1), Government Code, is amended
20-21    to read as follows:
20-22                (1)  "Governmental entity" means:
20-23                      (A)  a state agency or department;
20-24                      (B)  a district, authority, county, municipality,
20-25    or other political subdivision of the state; [or]
20-26                      (C)  a local government corporation or another
20-27    entity created by or acting on behalf of a political subdivision;
 21-1    or
 21-2                      (D)  a publicly owned utility.
 21-3          SECTION 5.  The changes in law made by this Act apply only to
 21-4    a contract for which requests for bids, requests for proposals, or
 21-5    requests for qualifications are published or distributed after
 21-6    September 1, 2001.
 21-7          SECTION 6.  This Act takes effect September 1, 2001.