By Madla                                               S.B. No. 110
         77R443 BDH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to use of the design-build method for construction or
 1-3     repair projects by the Texas Department of Criminal Justice.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter B, Chapter 495, Government Code, is
 1-6     amended by adding Section 495.025 to read as follows:
 1-7           Sec. 495.025.  DESIGN-BUILD CONTRACTS FOR FACILITIES. (a)  In
 1-8     this section:
 1-9                 (1)  "Architect" means an individual registered as an
1-10     architect under Chapter 478, Acts of the 45th Legislature, Regular
1-11     Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).
1-12                 (2)  "Contractor" in the context of a contract for the
1-13     construction, rehabilitation, alteration, or repair of a facility
1-14     means a sole proprietorship, partnership, corporation, or other
1-15     legal entity that assumes the risk for constructing,
1-16     rehabilitating, altering, or repairing all or part of the facility
1-17     at the contracted price.
1-18                 (3)  "Design-build contract" means a single contract
1-19     with a design-build firm for the design and construction of a
1-20     facility.
1-21                 (4)  "Design-build firm" means a partnership,
1-22     corporation, or other legal entity or team that includes an
1-23     engineer or architect and builder qualified to engage in building
1-24     construction in Texas.
 2-1                 (5)  "Design criteria package" means a set of documents
 2-2     that provides sufficient information to permit a design-build firm
 2-3     to prepare a response to the department's request for
 2-4     qualifications and any additional information requested, including
 2-5     criteria for selection. The design criteria package must specify
 2-6     criteria the department considers necessary to describe the project
 2-7     and may include, as appropriate, the legal description of the site,
 2-8     survey information concerning the site, interior space
 2-9     requirements, special material requirements, material quality
2-10     standards, conceptual criteria for the project, special equipment
2-11     requirements, cost or budget estimates, time schedules, quality
2-12     assurance and quality control requirements, site development
2-13     requirements, applicable codes and ordinances, provisions for
2-14     utilities, parking requirements, or any other requirement, as
2-15     applicable.
2-16                 (6)  "Engineer" means an individual registered as a
2-17     professional engineer under The Texas Engineering Practice Act
2-18     (Article 3271a, Vernon's Texas Civil Statutes).
2-19                 (7)  "Facility" means real property, including
2-20     buildings and associated structures, infrastructure, and improved
2-21     or unimproved land.
2-22           (b)  The department may use the design-build method for the
2-23     construction, rehabilitation, alteration, or repair of a facility.
2-24     In using that method and in entering into a contract for the
2-25     services of a design-build firm, the department and the
2-26     design-build firm shall follow the procedures provided by this
2-27     section.
 3-1           (c)  The department may designate an engineer or architect to
 3-2     act as its representative in administering this section with regard
 3-3     to a project.  If the department's engineer or architect is not a
 3-4     full-time employee of the department, any engineer or architect
 3-5     designated shall be selected on the basis of demonstrated
 3-6     competence and qualifications in accordance with Subchapter A,
 3-7     Chapter 2254, Government Code.
 3-8           (d)  The department shall prepare a request for
 3-9     qualifications that includes general information on the project
3-10     site, project scope, budget, special systems, selection criteria,
3-11     and other information that may assist potential design-build firms
3-12     in submitting proposals for the project.  The department shall also
3-13     prepare a design criteria package for the project.  If the
3-14     preparation of the design criteria package requires engineering or
3-15     architectural services that constitute the practice of engineering
3-16     under The Texas Engineering Practice Act (Article 3271a, Vernon's
3-17     Texas Civil Statutes) or the practice of architecture under Chapter
3-18     478, Acts of the 45th Legislature, Regular Session, 1937 (Article
3-19     249a, Vernon's Texas Civil Statutes), those services must be
3-20     provided in accordance with the applicable law.
3-21           (e)  The department shall evaluate statements of
3-22     qualifications and select a design-build firm in two phases as
3-23     provided by Subsections (f) and (g).
3-24           (f)  In phase one, the department shall prepare a request for
3-25     qualifications and evaluate each offeror's experience, technical
3-26     competence, and capability to perform, the past performance of the
3-27     offeror's team and members of the team, and other appropriate
 4-1     factors submitted by the team or firm in response to the request
 4-2     for qualifications, except that the department may not consider
 4-3     cost-related or price-related evaluation factors.  Each offeror
 4-4     must certify to the department that each engineer or architect that
 4-5     is a member of its team was selected based on demonstrated
 4-6     competence and qualifications.  The department shall qualify not
 4-7     more than five offerors to submit additional information and, if
 4-8     the department chooses, to interview for final selection.
 4-9           (g)  In phase two, the department shall evaluate the
4-10     information submitted by the offerors on the basis of the selection
4-11     criteria stated in the request for qualifications and the results
4-12     of any interview.  The department may request additional
4-13     information regarding demonstrated competence and qualifications,
4-14     considerations of the safety and long-term durability of the
4-15     project, the feasibility of implementing the project as proposed,
4-16     the ability of the offeror to meet schedules, costing methodology,
4-17     or other factors as appropriate.  The department may not require
4-18     offerors to submit detailed engineering or architectural designs as
4-19     part of the proposal.  The department shall rank each proposal
4-20     submitted on the basis of the criteria set forth in the request for
4-21     qualifications.  The department shall select the design-build firm
4-22     that submits the proposal offering the best value for the
4-23     department on the basis of the published selection criteria and on
4-24     its ranking evaluations.  The department shall first attempt to
4-25     negotiate a contract with the selected offeror.  If the department
4-26     is unable to negotiate a satisfactory contract with the selected
4-27     offeror, the department shall formally and in writing end
 5-1     negotiations with that offeror and proceed to negotiate with the
 5-2     next offeror in the order of the selection ranking until a contract
 5-3     is entered into or negotiations with all ranked offerors end.
 5-4           (h)  Following selection of a design-build firm under
 5-5     Subsection (g), the firm's engineers or architects shall complete
 5-6     the design, submitting all design elements for review and
 5-7     determination of scope compliance to the department or department's
 5-8     engineer or architect before or concurrently with construction.
 5-9           (i)  In carrying out a project under a design-build contract:
5-10                 (1)  an engineer must be assigned responsibility for
5-11     compliance with the engineering design requirements and all other
5-12     applicable requirements of The Texas Engineering Practice Act
5-13     (Article 3271a, Vernon's Texas Civil Statutes); and
5-14                 (2)  an architect must be assigned responsibility for
5-15     compliance with the requirements of Chapter 478, Acts of the 45th
5-16     Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas
5-17     Civil Statutes).
5-18           (j)  The department shall provide or contract for,
5-19     independently of the design-build firm, the inspection services,
5-20     the testing of construction materials engineering, and the
5-21     verification testing services necessary for acceptance of the
5-22     facility by the department.  The department shall select those
5-23     services for which it contracts in accordance with Section
5-24     2254.004, Government Code.
5-25           (k)  The design-build firm shall supply a signed and sealed
5-26     set of construction documents for the project to the department at
5-27     the conclusion of construction.
 6-1           (l)  A design-build contract under this section is governed
 6-2     by Chapter 2253, Government Code, except that a payment or
 6-3     performance bond is not required for and may not provide coverage
 6-4     for the portion of a design-build contract under this section that
 6-5     includes design services only.  If a fixed contract amount or
 6-6     guaranteed maximum price has not been determined at the time a
 6-7     design-build contract is awarded, the performance bond and payment
 6-8     bond must each be in an amount equal to the project budget, as
 6-9     specified in the design criteria package.  The design-build firm
6-10     shall deliver the bonds to the department not later than the 10th
6-11     day after the date the design-build firm executes the contract
6-12     unless the design-build firm furnishes a bid bond or other
6-13     financial security acceptable to the department to ensure that the
6-14     design-build firm will furnish the required performance and payment
6-15     bonds when a guaranteed maximum price is established.
6-16           SECTION 2. This Act takes effect September 1, 2001.  The
6-17     change in law made by this Act applies only to a contract for which
6-18     requests for bids, proposals, or qualifications are published or
6-19     distributed on or after that date.