By Shapleigh                                           S.B. No. 227
         77R2296 MI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of a municipality or county to use a
 1-3     design-build contract for transportation projects.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle C, Title 6, Transportation Code, is
 1-6     amended by adding Chapter 258 to read as follows:
 1-7               CHAPTER 258.  DESIGN-BUILD CONTRACTS FOR COUNTY
 1-8                           TRANSPORTATION PROJECTS
 1-9           Sec. 258.001.  DEFINITIONS. In this chapter:
1-10                 (1)  "Design-build contract" means a single contract
1-11     with a design-build firm for the design and construction of a
1-12     transportation project.
1-13                 (2)  "Design-build firm" means a partnership,
1-14     corporation, or other legal entity or team that includes an
1-15     engineer and a builder qualified to engage in the construction of a
1-16     road, bridge, or other transportation project in this state.
1-17                 (3)  "Design criteria package" means a set of documents
1-18     that provides sufficient information to permit a design-build firm
1-19     to prepare a response to a county's request for proposals.  The
1-20     design criteria package must specify criteria the county considers
1-21     necessary to describe the project and may include, as appropriate,
1-22     the legal description of the site, survey information concerning
1-23     the site, special material requirements, material quality
1-24     standards, conceptual criteria for the project, 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, or any other
 2-4     requirement, as applicable.
 2-5           Sec. 258.002.  AUTHORITY TO USE DESIGN-BUILD METHOD. A county
 2-6     may use the design-build method for the construction or repair of a
 2-7     transportation project and associated site work that has a total
 2-8     projected cost of $250 million or more. In using that method and in
 2-9     entering into a contract for the services of a design-build firm,
2-10     the contracting county and the design-build firm shall follow the
2-11     procedures provided by this chapter.
2-12           Sec. 258.003.  DESIGNATION OF ENGINEER. (a)  The county may
2-13     designate an engineer to act as its representative.
2-14           (b)  If the county's engineer is not a full-time employee of
2-15     the county, any engineer designated shall be selected on the basis
2-16     of demonstrated competence and qualifications in accordance with
2-17     Subchapter A, Chapter 2254, Government Code.
2-18           Sec. 258.004.  REQUEST FOR QUALIFICATIONS; DESIGN CRITERIA
2-19     PACKAGE. (a)  The county shall prepare a request for qualifications
2-20     that includes general information on the project site, project
2-21     scope, budget, special systems, selection criteria, and other
2-22     information that may assist potential design-build firms in
2-23     submitting proposals for the project.
2-24           (b)  The county shall also prepare a design criteria package
2-25     that includes more detailed information on the project.  If the
2-26     preparation of the design criteria package requires engineering
2-27     services that constitute the practice of engineering within the
 3-1     meaning of The Texas Engineering Practice Act (Article 3271a,
 3-2     Vernon's Texas Civil Statutes), those services shall be provided in
 3-3     accordance with that Act.
 3-4           Sec. 258.005.  SELECTION OF DESIGN-BUILD FIRM. (a)  The
 3-5     county shall evaluate proposals and select a design-build firm in
 3-6     two phases.
 3-7           (b)  In phase one, the county shall evaluate each offeror's
 3-8     experience, technical competence, and capability to perform, the
 3-9     past performance of the offeror's team and members of the team, and
3-10     other appropriate factors submitted by the team or firm in response
3-11     to the request for qualifications, except that cost-related or
3-12     price-related evaluation factors are not permitted. Each offeror
3-13     must certify to the county that each engineer that is a member of
3-14     its team was selected based on demonstrated competence and
3-15     qualifications.  The county shall qualify a maximum of five
3-16     potential offerors to submit additional information regarding
3-17     technical proposals, implementation, and costing methodologies in
3-18     response to a formal request for proposals based on the design
3-19     criteria package.
3-20           (c)  In phase two, the county shall evaluate offerors on the
3-21     basis of demonstrated competence and qualifications, considerations
3-22     of the safety and long-term durability of the project, the
3-23     feasibility of implementing the project as proposed, the ability of
3-24     the offeror to meet schedules, costing methodology, or other
3-25     factors as appropriate.  The county may not require offerors to
3-26     submit detailed engineering design as part of the proposal. The
3-27     county shall select the design-build firm that submits the proposal
 4-1     offering the best value for the county.
 4-2           Sec. 258.006.  SUBMISSION OF DESIGN. (a)  Following selection
 4-3     of a design-build firm under Section 258.005, that firm's engineers
 4-4     shall complete the design, submitting all design elements for
 4-5     review and determination of scope compliance by the county's
 4-6     engineer before or concurrently with construction.
 4-7           (b)  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).
4-11           Sec. 258.007.  INSPECTIONS AND TESTING. The county shall
4-12     provide or contract for, independent of the design-build firm, the
4-13     inspection services, the testing of construction materials
4-14     engineering, and the verification testing services necessary for
4-15     acceptance of the project by the county.  The county shall select
4-16     those services for which it contracts in accordance with Section
4-17     2254.004, Government Code.
4-18           Sec. 258.008.  CONSTRUCTION DOCUMENTS. The design-build firm
4-19     shall supply a signed and sealed set of construction documents for
4-20     the project to the county at the conclusion of construction.
4-21           Sec. 258.009.  NO BOND REQUIRED FOR DESIGN SERVICES. A
4-22     payment or performance bond is not required for, and may not
4-23     provide coverage for, the portion of a design-build contract under
4-24     this chapter that includes design services only.
4-25           SECTION 2.  Chapter 311, Transportation Code, is amended by
4-26     adding Subchapter F to read as follows:
4-27             SUBCHAPTER F.  DESIGN-BUILD CONTRACTS FOR MUNICIPAL
 5-1                           TRANSPORTATION PROJECTS
 5-2           Sec. 311.121.  DEFINITIONS. In this subchapter:
 5-3                 (1)  "Design-build contract" means a single contract
 5-4     with a design-build firm for the design and construction of a
 5-5     transportation project.
 5-6                 (2)  "Design-build firm" means a partnership,
 5-7     corporation, or other legal entity or team that includes an
 5-8     engineer and a builder qualified to engage in the construction of a
 5-9     road, bridge, or other transportation project in this state.
5-10                 (3)  "Design criteria package" means a set of documents
5-11     that provides sufficient information to permit a design-build firm
5-12     to prepare a response to a municipality's request for proposals.
5-13     The design criteria package must specify criteria the municipality
5-14     considers necessary to describe the project and may include, as
5-15     appropriate, the legal description of the site, survey information
5-16     concerning the site, special material requirements, material
5-17     quality standards, conceptual criteria for the project, special
5-18     equipment requirements, cost or budget estimates, time schedules,
5-19     quality assurance and quality control requirements, site
5-20     development requirements, applicable codes and ordinances, or any
5-21     other requirement, as applicable.
5-22           Sec. 311.122.  AUTHORITY TO USE DESIGN-BUILD METHOD. A
5-23     municipality may use the design-build method for the construction
5-24     or repair of a transportation project and associated site work that
5-25     has a total projected cost of $250 million or more. In using that
5-26     method and in entering into a contract for the services of a
5-27     design-build firm, the contracting municipality and the
 6-1     design-build firm shall follow the procedures provided by this
 6-2     subchapter.
 6-3           Sec. 311.123.  DESIGNATION OF ENGINEER. (a)  The municipality
 6-4     may designate an engineer to act as its representative.
 6-5           (b)  If the municipality's engineer is not a full-time
 6-6     employee of the municipality, any engineer designated shall be
 6-7     selected on the basis of demonstrated competence and qualifications
 6-8     in accordance with Subchapter A, Chapter 2254, Government Code.
 6-9           Sec. 311.124.  REQUEST FOR QUALIFICATIONS; DESIGN CRITERIA
6-10     PACKAGE. (a)  The municipality shall prepare a request for
6-11     qualifications that includes general information on the project
6-12     site, project scope, budget, special systems, selection criteria,
6-13     and other information that may assist potential design-build firms
6-14     in submitting proposals for the project.
6-15           (b)  The municipality shall also prepare a design criteria
6-16     package that includes more detailed information on the project.  If
6-17     the preparation of the design criteria package requires engineering
6-18     services that constitute the practice of engineering within the
6-19     meaning of The Texas Engineering Practice Act (Article 3271a,
6-20     Vernon's Texas Civil Statutes), those services shall be provided in
6-21     accordance with that Act.
6-22           Sec. 311.125.  SELECTION OF DESIGN-BUILD FIRM. (a)  The
6-23     municipality shall evaluate proposals and select a design-build
6-24     firm in two phases.
6-25           (b)  In phase one, the municipality shall evaluate each
6-26     offeror's experience, technical competence, and capability to
6-27     perform, the past performance of the offeror's team and members of
 7-1     the team, and other appropriate factors submitted by the team or
 7-2     firm in response to the request for qualifications, except that
 7-3     cost-related or price-related evaluation factors are not permitted.
 7-4     Each offeror must certify to the municipality that each engineer
 7-5     that is a member of its team was selected based on demonstrated
 7-6     competence and qualifications.  The municipality shall qualify a
 7-7     maximum of five potential offerors to submit additional information
 7-8     regarding technical proposals, implementation, and costing
 7-9     methodologies in response to a formal request for proposals based
7-10     on the design criteria package.
7-11           (c)  In phase two, the municipality shall evaluate offerors
7-12     on the basis of demonstrated competence and qualifications,
7-13     considerations of the safety and long-term durability of the
7-14     project, the feasibility of implementing the project as proposed,
7-15     the ability of the offeror to meet schedules, costing methodology,
7-16     or other factors as appropriate.  The municipality may not require
7-17     offerors to submit detailed engineering design as part of the
7-18     proposal. The municipality shall select the design-build firm that
7-19     submits the proposal offering the best value for the municipality.
7-20           Sec. 311.126.  SUBMISSION OF DESIGN. (a)  Following selection
7-21     of a design-build firm under Section 311.125, that firm's engineers
7-22     or architects shall complete the design, submitting all design
7-23     elements for review and determination of scope compliance by the
7-24     municipality's engineer before or concurrently with construction.
7-25           (b)  An engineer shall have responsibility for compliance
7-26     with the engineering design requirements and all other applicable
7-27     requirements of The Texas Engineering Practice Act (Article 3271a,
 8-1     Vernon's Texas Civil Statutes).
 8-2           Sec. 311.127.  INSPECTIONS AND TESTING. The municipality
 8-3     shall provide or contract for, independent of the design-build
 8-4     firm, the inspection services, the testing of construction
 8-5     materials engineering, and the verification testing services
 8-6     necessary for acceptance of the project by the municipality.  The
 8-7     municipality shall select those services for which it contracts in
 8-8     accordance with Section 2254.004, Government Code.
 8-9           Sec. 311.128.  CONSTRUCTION DOCUMENTS. The design-build firm
8-10     shall supply a signed and sealed set of construction documents for
8-11     the project to the municipality at the conclusion of construction.
8-12           Sec. 311.129.  NO BOND REQUIRED FOR DESIGN SERVICES. A
8-13     payment or performance bond is not required for, and may not
8-14     provide coverage for, the portion of a design-build contract under
8-15     this subchapter that includes design services only.
8-16           SECTION 3.  Section 252.022(a), Local Government Code, is
8-17     amended to read as follows:
8-18           (a)  This chapter does not apply to an expenditure for:
8-19                 (1)  a procurement made because of a public calamity
8-20     that requires the immediate appropriation of money to relieve the
8-21     necessity of the municipality's residents or to preserve the
8-22     property of the municipality;
8-23                 (2)  a procurement necessary to preserve or protect the
8-24     public health or safety of the municipality's residents;
8-25                 (3)  a procurement necessary because of unforeseen
8-26     damage to public machinery, equipment, or other property;
8-27                 (4)  a procurement for personal, professional, or
 9-1     planning services;
 9-2                 (5)  a procurement for work that is performed and paid
 9-3     for by the day as the work progresses;
 9-4                 (6)  a purchase of land or a right-of-way;
 9-5                 (7)  a procurement of items that are available from
 9-6     only one source, including:
 9-7                       (A)  items that are available from only one
 9-8     source because of patents, copyrights, secret processes, or natural
 9-9     monopolies;
9-10                       (B)  films, manuscripts, or books;
9-11                       (C)  gas, water, and other utility services;
9-12                       (D)  captive replacement parts or components for
9-13     equipment;
9-14                       (E)  books, papers, and other library materials
9-15     for a public library that are available only from the persons
9-16     holding exclusive distribution rights to the materials; and
9-17                       (F)  management services provided by a nonprofit
9-18     organization to a municipal museum, park, zoo, or other facility to
9-19     which the organization has provided significant financial or other
9-20     benefits;
9-21                 (8)  a purchase of rare books, papers, and other
9-22     library materials for a public library;
9-23                 (9)  paving drainage, street widening, and other public
9-24     improvements, or related matters, if at least one-third of the cost
9-25     is to be paid by or through special assessments levied on property
9-26     that will benefit from the improvements;
9-27                 (10)  a public improvement project, already in
 10-1    progress, authorized by the voters of the municipality, for which
 10-2    there is a deficiency of funds for completing the project in
 10-3    accordance with the plans and purposes authorized by the voters;
 10-4                (11)  a payment under a contract by which a developer
 10-5    participates in the construction of a public improvement as
 10-6    provided by Subchapter C, Chapter 212;
 10-7                (12)  personal property sold:
 10-8                      (A)  at an auction by a state licensed
 10-9    auctioneer;
10-10                      (B)  at a going out of business sale held in
10-11    compliance with Subchapter F, Chapter 17, Business & Commerce Code;
10-12                      (C)  by a political subdivision of this state,
10-13    state agency of this state, or an entity of the federal government;
10-14    or
10-15                      (D)  under an interlocal contract for cooperative
10-16    purchasing administered by a regional planning commission
10-17    established under Chapter 391;
10-18                (13)  services performed by blind or severely disabled
10-19    persons;
10-20                (14)  goods purchased by a municipality for subsequent
10-21    retail sale by the municipality; [or]
10-22                (15)  electricity; or
10-23                (16)  a contract made under a purchasing method
10-24    authorized by Subchapter F, Chapter 311, Transportation Code.
10-25          SECTION 4. Section 262.024(a), Local Government Code, is
10-26    amended to read as follows:
10-27          (a)  A contract for the purchase of any of the following
 11-1    items is exempt from the requirement established by Section 262.023
 11-2    if the commissioners court by order grants the exemption:
 11-3                (1)  an item that must be purchased in a case of public
 11-4    calamity if it is necessary to make the purchase promptly to
 11-5    relieve the necessity of the citizens or to preserve the property
 11-6    of the county;
 11-7                (2)  an item necessary to preserve or protect the
 11-8    public health or safety of the residents of the county;
 11-9                (3)  an item necessary because of unforeseen damage to
11-10    public property;
11-11                (4)  a personal or professional service;
11-12                (5)  any individual work performed and paid for by the
11-13    day, as the work progresses, provided that no individual is
11-14    compensated under this subsection for more than 20 working days in
11-15    any three month period;
11-16                (6)  any land or right-of-way;
11-17                (7)  an item that can be obtained from only one source,
11-18    including:
11-19                      (A)  items for which competition is precluded
11-20    because of the existence of patents, copyrights, secret processes,
11-21    or monopolies;
11-22                      (B)  films, manuscripts, or books;
11-23                      (C)  electric power, gas, water, and other
11-24    utility services; and
11-25                      (D)  captive replacement parts or components for
11-26    equipment;
11-27                (8)  an item of food;
 12-1                (9)  personal property sold:
 12-2                      (A)  at an auction by a state licensed
 12-3    auctioneer;
 12-4                      (B)  at a going out of business sale held in
 12-5    compliance with Subchapter F, Chapter 17, Business & Commerce Code;
 12-6    or
 12-7                      (C)  by a political subdivision of this state, a
 12-8    state agency of this state, or an entity of the federal government;
 12-9    [or]
12-10                (10)  any work performed under a contract for community
12-11    and economic development made by a county under Section 381.004; or
12-12                (11)  work performed or items purchased under a
12-13    contract made under Chapter 258, Transportation Code.
12-14          SECTION 5. This Act takes effect September 1, 2001.  The
12-15    changes in law made by this Act apply only to a contract for which
12-16    requests for qualifications are distributed or published on or
12-17    after that date.