By Truan                                               S.B. No. 155
         77R309 MI-F                           
                                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 improvement projects and 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     IMPROVEMENT PROJECTS OR 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 improvement project or 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 or facility and may
1-21     include, as appropriate, the legal description of the site, survey
1-22     information concerning the site, interior space requirements,
1-23     special material requirements, material quality standards,
1-24     conceptual criteria for the project or facility, special equipment
 2-1     requirements, cost or budget estimates, time schedules, quality
 2-2     assurance and quality control requirements, site development
 2-3     requirements, applicable codes and ordinances, provisions for
 2-4     utilities, parking requirements, or any other requirement, as
 2-5     applicable.
 2-6           (b)  A municipality may use the design-build method for the
 2-7     construction, rehabilitation, alteration, or repair of a public
 2-8     building project and associated site work that has a total
 2-9     projected cost of $50 million or more. A municipality may not use
2-10     the design-build method for a separate public road, highway bridge,
2-11     or utility project.  In using that method and in entering into a
2-12     contract for the services of a design-build firm, the contracting
2-13     municipality and the design-build firm shall follow the procedures
2-14     provided by this section.
2-15           (c)  The municipality may designate an engineer or architect
2-16     to act as its representative.  If the municipality's engineer or
2-17     architect is not a full-time employee of the municipality, any
2-18     engineer or architect designated shall be selected on the basis of
2-19     demonstrated competence and qualifications in accordance with
2-20     Subchapter A, Chapter 2254, Government Code.
2-21           (d)  The municipality shall prepare a request for
2-22     qualifications that includes general information on the project
2-23     site, project scope, budget, special systems, selection criteria,
2-24     and other information that may assist potential design-build firms
2-25     in submitting proposals for the project or facility.  The
2-26     municipality shall also prepare the design criteria package that
2-27     includes more detailed information on the project or facility.  If
 3-1     the preparation of the design criteria package requires engineering
 3-2     or architectural services that constitute the practice of
 3-3     engineering within the meaning of The Texas Engineering Practice
 3-4     Act (Article 3271a, Vernon's Texas Civil Statutes) or the practice
 3-5     of architecture within the meaning of Chapter 478, Acts of the 45th
 3-6     Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas
 3-7     Civil Statutes), those services shall be provided in accordance
 3-8     with the applicable law.
 3-9           (e)  The municipality shall evaluate proposals and select a
3-10     design-build firm in two phases:
3-11                 (1)  In phase one, the municipality shall evaluate each
3-12     offeror's experience, technical competence, and capability to
3-13     perform, the past performance of the offeror's team and members of
3-14     the team, and other appropriate factors submitted by the team or
3-15     firm in response to the request for qualifications, except that
3-16     cost-related or price-related evaluation factors are not permitted.
3-17     Each offeror must certify to the municipality that each engineer or
3-18     architect that is a member of its team was selected based on
3-19     demonstrated competence and qualifications.  The municipality shall
3-20     qualify a maximum of five potential offerors to submit additional
3-21     information regarding technical proposals, implementation, and
3-22     costing methodologies in response to a formal request for proposals
3-23     based on the design criteria package.
3-24                 (2)  In phase two, the municipality shall evaluate
3-25     offerors on the basis of demonstrated competence and
3-26     qualifications, considerations of the safety and long-term
3-27     durability of the project, the feasibility of implementing the
 4-1     project or facility as proposed, the ability of the offeror to meet
 4-2     schedules, costing methodology, or other factors as appropriate.
 4-3     The municipality may not require offerors to submit detailed
 4-4     engineering or architectural design as part of the proposal. The
 4-5     municipality shall select the design-build firm that submits the
 4-6     proposal offering the best value for the municipality.
 4-7           (f)  Following selection of a design-build firm under
 4-8     Subsection (e), that firm's engineers or architects shall complete
 4-9     the design, submitting all design elements for review and
4-10     determination of scope compliance by the municipality's engineer or
4-11     architect before or concurrently with construction.
4-12           (g)  An engineer shall have responsibility for compliance
4-13     with the engineering design requirements and all other applicable
4-14     requirements of The Texas Engineering Practice Act (Article 3271a,
4-15     Vernon's Texas Civil Statutes).  An architect shall have
4-16     responsibility for compliance with the requirements of Chapter 478,
4-17     Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
4-18     Vernon's Texas Civil Statutes).
4-19           (h)  The municipality shall provide or contract for,
4-20     independent of the design-build firm, the inspection services, the
4-21     testing of construction materials engineering, and the verification
4-22     testing services necessary for acceptance of the project or
4-23     facility by the municipality.  The municipality shall select those
4-24     services for which it contracts in accordance with Section
4-25     2254.004, Government Code.
4-26           (i)  The design-build firm shall supply a signed and sealed
4-27     set of construction documents for the project or facility to the
 5-1     municipality at the conclusion of construction.
 5-2           (j)  A payment or performance bond is not required for, and
 5-3     may not provide coverage for, the portion of a design-build
 5-4     contract under this section that includes design services only.
 5-5           SECTION 2.  Section 252.022(a), Local Government Code, is
 5-6     amended to read as follows:
 5-7           (a)  This chapter does not apply to an expenditure for:
 5-8                 (1)  a procurement made because of a public calamity
 5-9     that requires the immediate appropriation of money to relieve the
5-10     necessity of the municipality's residents or to preserve the
5-11     property of the municipality;
5-12                 (2)  a procurement necessary to preserve or protect the
5-13     public health or safety of the municipality's residents;
5-14                 (3)  a procurement necessary because of unforeseen
5-15     damage to public machinery, equipment, or other property;
5-16                 (4)  a procurement for personal, professional, or
5-17     planning services;
5-18                 (5)  a procurement for work that is performed and paid
5-19     for by the day as the work progresses;
5-20                 (6)  a purchase of land or a right-of-way;
5-21                 (7)  a procurement of items that are available from
5-22     only one source, including:
5-23                       (A)  items that are available from only one
5-24     source because of patents, copyrights, secret processes, or natural
5-25     monopolies;
5-26                       (B)  films, manuscripts, or books;
5-27                       (C)  gas, water, and other utility services;
 6-1                       (D)  captive replacement parts or components for
 6-2     equipment;
 6-3                       (E)  books, papers, and other library materials
 6-4     for a public library that are available only from the persons
 6-5     holding exclusive distribution rights to the materials; and
 6-6                       (F)  management services provided by a nonprofit
 6-7     organization to a municipal museum, park, zoo, or other facility to
 6-8     which the organization has provided significant financial or other
 6-9     benefits;
6-10                 (8)  a purchase of rare books, papers, and other
6-11     library materials for a public library;
6-12                 (9)  paving drainage, street widening, and other public
6-13     improvements, or related matters, if at least one-third of the cost
6-14     is to be paid by or through special assessments levied on property
6-15     that will benefit from the improvements;
6-16                 (10)  a public improvement project, already in
6-17     progress, authorized by the voters of the municipality, for which
6-18     there is a deficiency of funds for completing the project in
6-19     accordance with the plans and purposes authorized by the voters;
6-20                 (11)  a payment under a contract by which a developer
6-21     participates in the construction of a public improvement as
6-22     provided by Subchapter C, Chapter 212;
6-23                 (12)  personal property sold:
6-24                       (A)  at an auction by a state licensed
6-25     auctioneer;
6-26                       (B)  at a going out of business sale held in
6-27     compliance with Subchapter F, Chapter 17, Business & Commerce Code;
 7-1                       (C)  by a political subdivision of this state,
 7-2     state agency of this state, or an entity of the federal government;
 7-3     or
 7-4                       (D)  under an interlocal contract for cooperative
 7-5     purchasing administered by a regional planning commission
 7-6     established under Chapter 391;
 7-7                 (13)  services performed by blind or severely disabled
 7-8     persons;
 7-9                 (14)  goods purchased by a municipality for subsequent
7-10     retail sale by the municipality;  [or]
7-11                 (15)  electricity; or
7-12                 (16)  a contract let under a purchasing method
7-13     authorized by Section 252.051.
7-14           SECTION 3.  This Act takes effect September 1, 2001. The
7-15     changes in law made by this Act apply only to a contract for which
7-16     requests for qualifications are distributed or published on or
7-17     after that date.