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.