LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 25, 2001
  
  
          TO:  Honorable Bill Ratliff, Lieutenant Governor
               Honorable James E. "Pete" Laney, Speaker of the House
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB510  by Armbrister (Relating to the procurement methods
               a political subdivision or a related entity may use.),
               Conference Committee Report
  
**************************************************************************
*  No fiscal implication to the State is anticipated.                    *
**************************************************************************
  
Local Government Impact
  
Under the provisions of the bill, a political subdivision or related
entity would be authorized to use a design-build contract as an option
for having a building or facility, as defined in the bill, constructed or
leased if the political subdivision were to determine that design-build
procedures would offer the best value.

Based on a sampling of political subdivisions, it is anticipated that
providing political subdivisions with the option to utilize design-build
procedures would result in a savings on project costs. The City of
Kilgore, for example, estimated being able to save between 15 percent to
18 percent on project costs.  Savings would vary by political
subdivision depending on the number of projects for which design-build
would be used and the size of the project.
  
  
Source Agencies:   
LBB Staff:         JK, DB