Bill Text: IA SSB1213 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to alternative project delivery contract methods for government entities.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-02-26 - Subcommittee Meeting: 02/27/2019 4:30PM Senate Lobbyist Lounge. [SSB1213 Detail]
Download: Iowa-2019-SSB1213-Introduced.html
Senate
Study
Bill
1213
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
SMITH)
A
BILL
FOR
An
Act
relating
to
alternative
project
delivery
contract
1
methods
for
government
entities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
26.17
Alternative
project
delivery
1
contracts.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“Alternative
project
delivery
contract”
means
either
a
5
design-build
or
construction
manager-at-risk
contract.
6
b.
“Construction
manager-at-risk”
means
a
sole
7
proprietorship,
partnership,
corporation,
or
other
legal
entity
8
that
acts
as
a
consultant
to
the
government
entity
in
the
9
development
and
design
phases
and
then
assumes
the
risk
for
10
the
construction,
rehabilitation,
alteration,
or
repair
of
a
11
project
at
the
contracted
fixed
or
guaranteed
maximum
price,
12
similar
to
a
general
contractor
during
the
construction
phase.
13
A
project
using
a
construction
manager-at-risk
does
not
include
14
the
construction,
reconstruction,
or
improvement
of
a
highway,
15
bridge,
or
culvert.
16
c.
“Design-build”
means
a
project
delivery
method
subject
to
17
a
two
or
three-phase
selection
process
for
which
the
design
and
18
construction
services
are
furnished
under
one
contract.
19
d.
“Design-build
contract”
means
a
contract
between
20
a
government
entity
and
a
design-builder
to
furnish
the
21
architecture,
engineering,
and
related
services
as
required
for
22
a
given
public
project,
and
to
furnish
the
labor,
materials,
23
and
other
construction
services
for
the
same
public
project.
24
A
design-build
contract
may
be
conditioned
upon
subsequent
25
refinements
in
scope
and
price,
and
may
permit
the
government
26
entity
to
make
changes
in
the
scope
of
the
project
without
27
invalidating
the
design-build
contract.
28
e.
“Design-build
project”
means
the
design,
construction,
29
alteration,
addition,
remodeling,
or
improvement
of
any
30
buildings,
infrastructure,
or
facilities
under
contract
with
a
31
government
entity.
“Design-build
project”
does
not
include
a
32
project
for
the
construction,
reconstruction,
or
improvement
of
33
a
highway,
bridge,
or
culvert.
34
f.
“Design-builder”
means
any
individual,
partnership,
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joint
venture,
or
corporation
subject
to
a
best-value
or
1
qualification-based
selection
that
offers
to
provide
or
2
provides
design
services
and
general
contracting
services
3
through
a
design-build
contract
in
which
services
within
4
the
scope
of
the
practice
of
professional
architecture
or
5
engineering
are
performed
respectively
by
a
licensed
architect
6
or
licensed
engineer
and
in
which
services
within
the
scope
of
7
general
contracting
are
performed
by
a
general
contractor
or
8
other
legal
entity
that
furnishes
architecture
or
engineering
9
services
and
construction
services
either
directly
or
through
10
subcontracts
or
joint
ventures.
11
g.
“Design
criteria
consultant”
means
a
person,
corporation,
12
partnership,
or
other
legal
entity
that
meets
any
of
the
13
following
requirements:
14
(1)
Is
duly
licensed
and
authorized
to
practice
15
architecture
within
the
state
of
Iowa.
16
(2)
Has
a
design-build
professional
certification
or
equal
17
training
to
be
a
design
criteria
consultant.
18
(3)
In
the
case
of
an
engineered
project,
is
duly
licensed
19
as
a
professional
engineer
within
the
state
of
Iowa
within
20
the
discipline
of
the
specific
design-build
project,
and
is
21
employed
by
or
contracted
by
the
government
entity
to
assist
22
the
government
entity
in
the
development
of
project
design
23
criteria,
requests
for
proposals,
and
any
additional
services
24
requested
by
the
government
entity
to
represent
its
interests
25
in
relation
to
a
project.
26
h.
“Design
criteria
package”
means
the
performance-oriented
27
program,
scope,
and
specifications
for
the
design-build
project
28
sufficient
to
permit
a
design-builder
to
prepare
a
response
to
29
a
government
entity’s
request
for
proposals
for
a
design-build
30
project,
which
may
include
capacity,
durability,
standards,
31
ingress
and
egress
requirements,
performance
requirements,
32
description
of
the
site,
surveys,
soil
and
environmental
33
information
concerning
the
site,
interior
space
requirements,
34
material
quality
standards,
design
and
construction
schedules,
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site
development
requirements,
provisions
for
utilities,
1
storm
water
retention
and
disposal,
parking
requirements,
2
applicable
governmental
code
requirements,
preliminary
designs
3
for
the
project
or
portions
thereof,
and
other
criteria
for
the
4
intended
use
of
the
project.
5
i.
“Government
entity”
means
the
same
as
“governmental
6
entity”
defined
in
section
26.2
including,
for
the
purpose
of
7
this
section,
the
state
board
of
regents.
8
j.
“Proposal”
means
an
offer
by
a
design-builder
in
response
9
to
a
request
for
proposals
to
enter
into
a
design-build
10
contract.
11
k.
“Request
for
proposals”
means
the
document
by
which
12
a
government
entity
solicits
proposals
for
a
design-build
13
contract.
14
l.
“Stipend”
means
a
payment
to
a
design-builder
who
did
not
15
score
the
highest
number
of
points
at
the
conclusion
of
phase
16
three
of
the
best-value
selection
process
to
defray
the
cost
of
17
participating
in
phase
two
of
the
selection
process,
and
for
18
the
use
of
any
intellectual
properties
obtained.
19
2.
Notwithstanding
any
other
law
to
the
contrary,
a
20
government
entity
shall
be
authorized
to
enter
into
an
21
alternative
project
delivery
contract.
22
3.
Construction
manager-at-risk
contracts.
23
a.
A
government
entity
shall
publicly
disclose
its
intent
to
24
use
the
construction
manager-at-risk
method
and
its
selection
25
criteria
at
least
one
week
prior
to
publishing
the
request
26
for
proposals
and
request
for
statements
of
qualifications.
27
The
government
entity
shall
publish
its
request
for
proposals
28
and
statements
of
qualifications.
Before
or
concurrently
29
with
selecting
a
construction
manager-at-risk,
the
government
30
entity
shall
select
or
designate
an
engineer
or
architect
31
who
shall
prepare
the
construction
documents
for
the
project
32
and
who
shall
comply
with
all
state
laws,
as
applicable.
If
33
the
engineer
or
architect
is
not
a
full-time
employee
of
the
34
government
entity,
the
government
entity
shall
select
the
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engineer
or
architect
on
a
basis
of
demonstrated
competence
and
1
qualifications.
The
government
entity’s
engineer
or
architect
2
for
a
project
may
not
serve,
alone
or
in
combination
with
3
another,
as
the
construction
manager-at-risk.
This
paragraph
4
does
not
prohibit
a
government
entity’s
engineer
or
architect
5
from
providing
customary
construction-phase
services
under
6
the
engineer’s
or
architect’s
original
professional
service
7
agreement
in
accordance
with
applicable
licensing
laws.
8
b.
The
government
entity
may
provide
or
contract
for,
9
independently
of
the
construction
manager-at-risk,
inspection
10
services,
testing
of
construction
materials,
engineering,
and
11
verification
of
testing
services
necessary
for
acceptance
of
12
the
project
by
the
government
entity.
13
c.
The
government
entity
shall
select
the
construction
14
manager-at-risk
in
a
two-phase
process.
15
(1)
Phase
one.
The
government
entity
shall
prepare
a
16
request
for
statements
of
qualifications
for
the
first
phase.
17
The
request
shall
include
general
information
on
the
project
18
site,
project
scope,
schedule,
selection
criteria,
the
time
19
and
place
for
receipt
of
statements
of
qualifications,
and
20
other
information
that
may
assist
the
government
entity
in
its
21
selection
of
a
construction
manager-at-risk.
The
selection
22
criteria
may
include
the
construction
manager-at-risk’s
23
experience,
past
performance,
safety
record,
proposed
personnel
24
and
methodology,
and
other
appropriate
factors
that
demonstrate
25
the
capability
of
the
construction
manager-at-risk.
The
26
government
entity
shall
not
request
fees
or
prices
in
phase
27
one.
28
(2)
Phase
two.
In
phase
two,
the
government
entity
29
shall
issue
a
request
for
proposals.
The
government
entity
30
may
request
that
no
more
than
five
nor
fewer
than
two
31
construction
managers-at-risk,
selected
solely
on
the
basis
32
of
qualifications,
provide
additional
information,
including
33
the
construction
manager-at-risk’s
project
proposal,
proposed
34
fee,
and
its
price
for
fulfilling
the
general
conditions.
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Qualifications
shall
account
for
a
minimum
of
forty
percent
1
of
the
evaluation.
Cost
shall
account
for
a
maximum
of
sixty
2
percent
of
the
evaluation.
3
d.
For
each
phase,
the
government
entity
shall
receive,
4
publicly
open,
and
read
aloud
the
names
of
the
construction
5
managers
submitting
proposals
or
statements
of
qualifications,
6
respectively.
Within
forty-five
days
after
the
date
of
opening
7
the
proposals
or
statements
of
qualification
submissions,
the
8
government
entity
or
its
representative
shall
evaluate
and
rank
9
each
proposal
or
statement
of
qualifications
submission
in
10
relation
to
the
criteria
set
forth
in
the
applicable
request.
11
e.
The
government
entity
or
its
representative
shall
12
select
the
construction
manager-at-risk
that
submits
the
13
proposal
that
offers
the
best
value
for
the
government
entity
14
based
on
the
published
selection
criteria
and
on
its
ranking
15
evaluation.
The
government
entity
or
its
representative
16
shall
first
attempt
to
negotiate
a
contract
with
the
selected
17
construction
manager-at-risk.
If
the
government
entity
or
its
18
representative
is
unable
to
negotiate
a
satisfactory
contract
19
with
the
selected
construction
manager-at-risk,
the
government
20
entity
or
its
representative
shall,
formally
and
in
writing,
21
end
negotiations
with
that
construction
manager-at-risk
and
22
proceed
to
negotiate
with
the
next
construction
manager-at-risk
23
in
the
order
of
the
selection
ranking
until
a
contract
24
is
reached
or
negotiations
with
all
ranked
construction
25
managers-at-risk
end.
26
f.
The
selected
construction
manager-at-risk
shall
publicly
27
advertise
and
receive
bids
or
proposals
from
trade
contractors
28
or
subcontractors
for
the
performance
of
all
major
elements
of
29
the
work
other
than
the
minor
work
that
may
be
included
in
the
30
general
conditions.
A
construction
manager-at-risk
submits
31
its
sealed
bid
or
sealed
proposal
in
the
same
manner
as
all
32
other
trade
contractors
or
subcontractors.
All
sealed
bids
33
or
proposals
shall
be
submitted
at
the
time
and
location
as
34
specified
in
the
advertisement
for
bids
or
proposals
and
shall
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be
publicly
opened
and
the
identity
of
each
bidder
and
their
1
bid
amount
shall
be
read
aloud.
2
g.
The
construction
manager-at-risk
and
the
government
3
entity
or
its
representative
shall
review
all
trade
contractor,
4
subcontractor,
or
construction
manager-at-risk
bids
or
5
proposals
in
a
manner
that
does
not
disclose
the
contents
of
6
the
bid
or
proposal
during
the
selection
process
to
a
person
7
not
employed
by
the
construction
manager-at-risk,
engineer,
8
architect,
or
government
entity
involved
with
the
project.
If
9
the
construction
manager-at-risk
submitted
bids
or
proposals,
10
the
government
entity
shall
determine
if
the
construction
11
manager-at-risk’s
bid
or
proposal
offers
the
best
value
for
the
12
government
entity.
After
all
proposals
have
been
evaluated
and
13
clarified,
the
award
of
all
contracts
shall
be
made
public.
14
h.
If
the
construction
manager-at-risk
reviews,
evaluates,
15
and
recommends
to
the
government
entity
a
bid
or
proposal
from
16
a
trade
contractor
or
subcontractor
but
the
government
entity
17
requires
another
bid
or
proposal
to
be
accepted,
the
government
18
entity
shall
compensate
the
construction
manager-at-risk
by
19
a
change
in
price,
time,
or
guaranteed
maximum
cost
for
any
20
additional
cost
and
risk
that
the
construction
manager-at-risk
21
may
incur
because
of
the
government
entity’s
requirement
that
22
another
bid
or
proposal
be
accepted.
23
i.
If
a
selected
trade
contractor
materially
defaults
in
the
24
performance
of
its
work
or
fails
to
execute
a
contract
with
a
25
construction
manager-at-risk
after
being
selected
in
accordance
26
with
this
subsection,
the
construction
manager-at-risk
may
27
itself,
without
advertising,
fulfill
the
contract
requirements
28
or
select
a
replacement
trade
contractor
to
fulfill
the
29
contract
requirements.
30
4.
In
soliciting
proposals
for
a
design-build
contract,
31
a
government
entity
shall
determine
the
scope
and
level
of
32
detail
required
to
permit
design-builders
to
submit
proposals
33
in
accordance
with
the
request
for
proposals
given
the
nature
34
of
the
project.
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5.
In
soliciting
proposals
for
a
design-build
contract,
a
1
design
criteria
consultant
shall
be
employed
or
retained
by
2
the
government
entity
to
assist
in
preparation
of
the
design
3
criteria
package
and
request
for
proposals
and
perform
any
4
other
additional
service
necessary
to
the
project.
The
design
5
criteria
consultant
may
also
evaluate
construction
regarding
6
adherence
of
the
design
criteria.
The
design
criteria
7
consultant
may
not
submit
a
proposal
or
furnish
design
or
8
construction
services
for
the
design-build
contract
for
which
9
its
services
were
sought.
10
6.
A
government
entity
shall
publicly
disclose
its
intent
to
11
solicit
proposals
for
a
design-build
contract
and
its
project
12
design
criteria
package
in
the
same
manner
that
it
would
post
13
notice
for
the
competitive
bidding
process
in
section
26.3.
14
7.
In
soliciting
proposals
for
a
design-build
contract,
a
15
government
entity
shall
establish
in
the
request
for
proposals
16
a
time,
place,
and
other
specific
instructions
for
the
receipt
17
of
proposals.
Proposals
not
submitted
in
strict
accordance
18
with
the
instructions
may
be
subject
to
rejection.
Minor
19
irregularities
may
be
waived
by
the
government
entity.
20
8.
A
request
for
proposals
shall
be
prepared
for
each
21
design-build
contract
and
shall
contain,
at
minimum,
the
22
following
elements:
23
a.
The
procedures
to
be
followed
for
submitting
proposals,
24
the
criteria
for
evaluating
proposals
and
their
relative
25
weight,
and
the
procedure
for
making
awards.
26
b.
The
proposed
terms
and
conditions
for
the
design-build
27
contract,
if
available.
28
c.
The
design
criteria
package.
29
d.
A
description
of
the
drawings,
specifications,
or
other
30
information
to
be
submitted
with
the
proposal,
with
guidance
31
as
to
the
form
and
level
of
completeness
of
the
drawings,
32
specifications,
or
other
information
that
will
be
acceptable.
33
e.
A
schedule
for
planned
commencement
and
completion
of
the
34
design-build
contract,
if
available.
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f.
Budget
limits
for
the
design-build
contract,
if
any.
1
g.
Requirements
including
any
available
ratings
for
2
performance
bonds,
payment
bonds,
and
insurance,
if
any.
3
h.
The
amount
of
the
stipend,
if
any,
that
will
be
4
available.
5
i.
Any
other
information
that
the
government
entity
in
6
its
discretion
chooses
to
request
including
but
not
limited
7
to
surveys,
soil
reports,
drawings
of
existing
structures,
8
environmental
studies,
photographs,
references
to
public
9
records,
or
affirmative
action
and
minority
business
enterprise
10
requirements
consistent
with
state
and
federal
law.
11
9.
A
government
entity
seeking
to
enter
a
design-build
12
contract
shall
solicit
design-build
proposals
either
by
13
using
a
three-phase,
best-value
process
or
a
two-phase,
14
qualifications-based
process.
15
a.
A
three-phase,
best-value
selection
process
shall
be
16
conducted
as
follows:
17
(1)
Phase
one.
Request
for
statements
of
qualifications
of
18
design-builders.
19
(a)
The
government
entity
shall
review
submitted
statements
20
of
the
qualifications
and
assign
points
to
each
in
accordance
21
with
this
section
and
as
set
out
in
the
instructions
of
the
22
request
for
qualifications.
23
(b)
All
design-builders
shall
submit
a
statement
of
24
qualifications
that
shall
include
but
not
be
limited
to:
25
(i)
Demonstrated
ability
to
perform
projects
comparable
in
26
design,
scope,
and
complexity.
27
(ii)
References
of
owners
for
whom
design-build
projects,
28
construction
projects,
or
design
projects
have
been
performed.
29
(iii)
Qualifications
of
personnel
who
will
manage
the
30
design
and
construction
aspects
of
the
project.
31
(iv)
The
names
and
qualifications
of
the
primary
design
32
consultants
and
the
primary
trade
contractors
with
whom
the
33
design-builder
proposes
to
subcontract
or
joint
venture.
The
34
design-builder
may
not
replace
an
identified
contractor,
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subcontractor,
design
consultant,
or
subconsultant
without
the
1
written
approval
of
the
government
entity.
2
(c)
The
government
entity
shall
evaluate
the
qualifications
3
of
all
the
design-builders
who
submitted
statements
of
4
qualifications
in
accordance
with
the
instructions
of
the
5
request
for
qualifications.
Qualified
design-builders
6
selected
by
the
government
entity
may
proceed
to
phase
two
7
of
the
selection
process.
The
evaluation
shall
narrow
the
8
number
of
qualified
design-builders
submitting
statements
of
9
qualifications
to
not
fewer
than
two
nor
more
than
five.
Under
10
no
circumstances
shall
price
or
fees
be
a
part
of
the
request
11
for
statements
of
qualifications
criteria.
Design-builders
may
12
be
interviewed
in
either
phase
one
or
phase
two
of
the
process.
13
Points
assigned
in
phase
one
of
the
evaluation
process
shall
14
not
carry
forward
to
phase
two
or
phase
three
of
the
process.
15
All
qualified
design-builders
shall
be
ranked
on
points
given
16
in
phases
two
and
three
only.
17
(d)
Once
no
fewer
than
two
and
no
more
than
five
qualified
18
design-builders
have
been
selected,
the
government
entity
shall
19
issue
its
request
for
proposals
and
provide
the
design-builders
20
a
specified
amount
of
time
in
which
to
concurrently
assemble
21
phase
two
and
phase
three
proposals.
22
(2)
Phase
two.
Solicitation
of
technical
proposals,
23
including
conceptual
design
for
the
project.
24
(a)
A
design-builder
shall
submit
its
design
for
the
project
25
to
the
level
of
detail
required
for
the
proposal
along
with
26
such
other
information
the
government
entity
requests,
which
27
may
include
a
schedule,
qualifications,
and
experience.
28
(b)
The
ability
of
the
design-builder
to
meet
the
schedule
29
for
completing
a
project
as
specified
by
the
government
entity
30
may
be
considered
as
an
element
of
evaluation
in
phase
two.
31
(c)
Under
no
circumstances
shall
the
design
proposal
32
contain
any
reference
to
the
cost
of
the
proposal.
33
(d)
The
submitted
designs
shall
be
evaluated
and
assigned
34
points
in
accordance
with
the
requirements
of
the
request
for
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proposals.
Phase
two
shall
account
for
not
less
than
forty
1
percent
and
no
more
than
sixty
percent
of
the
total
point
score
2
as
specified
in
the
request
for
proposals.
3
(3)
Phase
three.
Proposal
of
construction
costs.
4
(a)
The
government
entity
shall
invite
the
selected
5
design-builders
to
participate
in
phase
three.
The
6
design-builders
shall
provide
a
fixed
cost
of
design
and
7
construction.
The
proposal
shall
be
accompanied
by
bid
8
security
and
any
other
items,
such
as
statements
of
minority
9
participation,
as
required
by
the
request
for
proposals.
10
(b)
Cost
proposals
shall
be
submitted
in
accordance
with
11
the
instructions
in
the
request
for
proposals.
The
government
12
entity
shall
reject
any
proposal
that
is
not
submitted
within
13
the
required
time
frame.
Phase
three
shall
account
for
not
14
less
than
forty
percent
and
no
more
than
sixty
percent
of
the
15
total
point
score
as
specified
in
the
request
for
proposals.
16
(c)
Proposals
for
phase
two
and
phase
three
shall
be
17
submitted
concurrently
at
the
time
and
place
specified
in
the
18
request
for
proposals,
but
in
separate
envelopes
or
other
means
19
of
submission.
The
phase
three
cost
proposals
shall
be
opened
20
and
read
aloud
only
after
phase
two
design
proposals
have
been
21
evaluated
and
assigned
points,
ranked
in
order,
and
posted.
22
Cost
proposals
shall
be
opened
and
read
aloud
at
the
time
and
23
place
specified
in
the
request
for
proposals.
At
the
same
time
24
and
place,
the
evaluation
team
shall
make
public
its
scoring
25
of
phase
two.
Cost
proposals
shall
be
evaluated
in
accordance
26
with
the
requirements
of
the
request
for
proposals.
27
(d)
If
the
government
entity
determines
that
it
is
not
in
28
the
best
interest
of
the
government
entity
to
proceed
with
the
29
project
pursuant
to
the
proposal
offered
by
the
design-builder
30
with
the
highest
total
number
of
points,
the
government
entity
31
shall
reject
all
proposals.
In
this
event,
all
design-builders
32
with
lower
point
totals
in
phases
two
and
three
shall
receive
33
a
stipend
and
the
responsive
design-builder
with
the
highest
34
point
total
shall
receive
an
amount
equal
to
two
times
the
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stipend.
If
the
government
entity
decides
to
award
the
1
project,
the
responsive
design-builder
with
the
highest
point
2
total
shall
be
awarded
the
contract.
3
(e)
As
an
inducement
to
qualified
design-builders,
the
4
government
entity
shall
pay
a
stipend,
the
amount
of
which
5
shall
be
established
in
the
request
for
proposals,
to
each
6
design-builder
who
submitted
a
proposal
but
was
not
accepted.
7
Such
stipend
shall
be
no
less
than
one-half
of
one
percent
8
of
the
total
project
budget.
Upon
payment
of
the
stipend
to
9
such
a
design-builder,
the
government
entity
shall
acquire
10
a
nonexclusive
right
to
use
the
design
submitted
by
the
11
design-builder,
and
the
design-builder
shall
have
no
further
12
liability
for
the
use
of
the
design
by
the
government
entity
in
13
any
manner.
If
the
design-builder
desires
to
retain
all
rights
14
and
interests
in
the
design
proposed,
the
design-builder
shall
15
forfeit
the
stipend.
16
b.
A
two-phase,
qualifications-based
selection
process
shall
17
be
conducted
as
follows:
18
(1)
Phase
one.
Request
for
statements
of
qualifications
of
19
design-builders.
20
(a)
The
government
entity
must
prepare
a
request
for
21
statements
of
qualifications.
The
request
shall
include
22
general
information
on
the
project
site,
project
scope,
23
schedule,
selection
criteria,
the
time
and
place
for
receipt
24
of
statements
of
qualifications,
and
other
information
25
that
may
assist
the
government
entity
in
its
selection
of
a
26
design-builder.
27
(b)
The
government
entity
shall
state
the
selection
28
criteria
in
the
request
for
statements
of
qualifications.
The
29
selection
criteria
may
include
the
design-builder’s
experience,
30
past
performance,
safety
record,
proposed
personnel
and
31
methodology,
and
other
appropriate
factors
that
demonstrate
the
32
capability
of
the
design-builder.
33
(c)
Selection
criteria
will
be
ranked
and
assigned
points
34
for
each
category.
Point
assignments
shall
be
included
as
a
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part
of
the
request
for
statements
of
qualifications.
1
(d)
The
government
entity
shall
not
request
fees
or
prices
2
in
phase
one.
Any
submissions
with
disclosed
fees
or
prices
3
will
be
disqualified
and
removed
from
consideration.
4
(2)
Phase
two.
Negotiations.
5
(a)
Negotiations
shall
be
conducted,
beginning
with
the
6
design-builder
ranked
first.
If
a
contract
satisfactory
7
and
advantageous
to
the
government
entity
can
be
negotiated
8
at
a
price
considered
fair
and
reasonable
and
pursuant
to
9
contractual
terms
and
conditions
acceptable
to
the
government
10
entity,
the
award
shall
be
made
to
that
design-builder.
11
(b)
In
the
event
that
a
contract
cannot
be
negotiated
12
with
the
design-builder
ranked
first,
negotiations
with
that
13
design-builder
shall
be
formally
terminated.
The
government
14
entity
shall
conduct
negotiations
with
the
next-highest-ranked
15
design-builder
and
continue
this
process
until
a
contract
can
16
be
negotiated
that
meets
the
terms
of
subparagraph
division
(a)
17
of
this
subparagraph.
18
Sec.
2.
Section
262.34,
subsection
1,
Code
2019,
is
amended
19
to
read
as
follows:
20
1.
a.
When
the
estimated
cost
of
construction,
repairs,
21
or
improvement
of
buildings
or
grounds
under
charge
of
the
22
state
board
of
regents,
including
construction,
renovation,
or
23
repairs
by
a
private
party
of
a
property
to
be
lease-purchased
24
by
the
board
,
exceeds
one
hundred
thousand
dollars,
the
board
25
shall
advertise
for
bids
for
the
contemplated
improvement
or
26
construction
and
shall
let
the
work
to
the
lowest
responsible
27
bidder.
However,
if
in
the
judgment
of
the
board
bids
received
28
are
not
acceptable,
the
board
may
reject
all
bids
and
proceed
29
with
the
construction,
repair,
or
improvement
by
a
method
as
30
the
board
may
determine.
All
plans
and
specifications
for
31
repairs
or
construction,
together
with
bids
on
the
plans
or
32
specifications,
shall
be
filed
by
the
board
and
be
open
for
33
public
inspection.
All
bids
submitted
under
this
section
shall
34
be
accompanied
by
a
deposit
of
money,
a
certified
check,
or
a
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credit
union
certified
share
draft
in
an
amount
as
the
board
1
may
prescribe.
2
b.
The
state
board
of
regents
may
proceed
with
a
3
construction,
repair,
or
improvement
by
using
an
alternative
4
project
delivery
contract
in
accordance
with
the
provisions
of
5
section
26.17.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
Currently,
most
government
entities
must
use
a
competitive
10
bidding
process
for
a
construction
project
when
that
project
11
is
estimated
to
cost
at
least
as
much
as
a
threshold
defined
12
in
Code
section
26.3.
This
bill
allows
a
government
entity
to
13
use
an
alternative
project
delivery
contract
in
circumstances
14
that
normally
require
the
government
entity
to
use
competitive
15
bidding
procedures.
The
bill
defines
a
government
entity
to
16
include
the
state
board
of
regents.
17
The
bill
creates
two
types
of
alternative
project
delivery
18
contracts,
each
with
specified
requirements.
The
first
19
alternative
is
the
construction
manager-at-risk
contract.
If
a
20
government
entity
opts
to
use
a
construction
manager-at-risk
21
contract,
the
government
entity
shall
select
an
engineer
22
or
architect
to
prepare
the
construction
documents
for
23
the
project.
That
engineer
or
architect
cannot
serve
as
24
the
construction
manager-at-risk.
The
government
entity
25
shall
use
a
two-phase
process
in
selecting
the
construction
26
manager-at-risk.
The
first
phase
shall
include
a
request
for
27
qualifications
and
the
government
entity’s
selection
criteria.
28
The
government
entity
may
select
at
least
two
but
no
more
29
than
five
of
the
construction
managers-at-risk
who
submitted
30
qualifications
to
participate
in
the
second
phase,
based
solely
31
on
the
qualifications
of
those
construction
managers-at-risk.
32
In
phase
two,
the
construction
managers-at-risk
that
the
33
government
entity
selects
will
provide
additional
information,
34
including
the
project
proposal,
costs,
and
fees.
The
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government
entity
shall
rank
the
construction
managers-at-risk
1
in
a
manner
in
which
qualifications
account
for
at
least
40
2
percent
of
the
evaluation
and
cost
accounts
for
no
more
than
60
3
percent
of
the
evaluation.
The
government
entity
shall
select
4
the
construction
manager-at-risk
that
offers
the
best
value
5
based
on
the
evaluation
criteria.
If
the
two
parties
do
not
6
reach
an
agreement,
the
government
entity
shall
proceed
with
7
the
next
highest-ranked
construction
manager-at-risk
and
follow
8
this
process
until
the
government
entity
reaches
a
contract
9
with
a
construction
manager-at-risk.
The
selected
construction
10
manager-at-risk
shall
advertise
for
and
receive
sealed
bids
11
for
proposals
from
trade
contractors
or
subcontractors
and
12
publicly
review
those
bids
with
the
government
entity
in
a
13
manner
that
does
not
disclose
the
contents
of
the
bid
or
14
proposal
during
the
selection
process
to
a
person
not
employed
15
by
the
construction
manager-at-risk,
engineer,
architect,
or
16
government
entity
involved
with
the
project.
The
construction
17
manager-at-risk
will
select
a
bid
in
consultation
with
the
18
government
entity.
19
The
second
type
of
alternative
project
delivery
method
is
20
the
design-build
contract,
which
can
select
design-builders
in
21
either
a
three-phase
or
two-phase
process.
In
the
three-phase
22
process,
the
government
entity
shall
first
request
statements
23
of
qualifications
from
design-builders.
The
government
24
entity
shall
select
at
least
two
but
no
more
than
five
25
qualified
design-builders
to
move
on
to
phases
two
and
three.
26
In
the
second
phase,
the
government
entity
shall
solicit
27
technical
proposals
and
conceptual
designs
from
the
remaining
28
design-builders.
The
government
entity
shall
pay
a
stipend
29
to
any
design-builder
that
participates
in
phase
two
but
30
whose
contract
the
entity
does
not
select.
The
third
phase
31
involves
the
design-builders
submitting
construction
costs.
32
The
government
entity
shall
award
points
for
each
proposal.
If
33
the
government
entity
chooses
to
award
a
contract,
it
shall
34
award
the
contract
to
the
design-builder
with
the
highest
point
35
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15
S.F.
_____
total.
1
If
the
government
entity
uses
the
two-phase
process,
the
2
government
entity
will
request
qualifications
and
include
3
its
selection
criteria.
The
government
entity
will
rank
the
4
qualifications
of
a
design-builder.
In
the
second
phase,
the
5
government
entity
shall
negotiate
with
the
highest-ranked
6
design-builder.
If
the
two
parties
cannot
agree
to
a
contract
7
with
terms
and
conditions
acceptable
to
the
government
8
entity,
those
negotiations
shall
be
formally
terminated
9
and
the
government
entity
shall
negotiate
with
the
next
10
highest-ranked
design-builder.
That
process
shall
continue
11
until
the
government
entity
can
negotiate
a
contract
with
a
12
design-builder
with
terms
and
conditions
acceptable
to
the
13
government
entity.
14
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88
js/rn
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15