HOUSE BILL NO. 5654

April 23, 2024, Introduced by Reps. O'Neal, Haadsma, Scott, Farhat and McKinney and referred to the Committee on Regulatory Reform.

A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending section 237b (MCL 18.1237b), as added by 2002 PA 504.

the people of the state of michigan enact:

Sec. 237b. (1) The Except as otherwise provided in subsection (2), for proposed projects of the department and state agencies, the selection of architects for architectural services, professional engineers for engineering services, professional surveyors for land surveying services, and qualified firms shall must be made in accordance with competitive, qualifications-based selection processes and procedures for the type of professional service, required as determined by the department.

(2) From January 1, 2025 to December 31, 2032, the following procedures must be used for the selection of architects for architectural services, professional engineers for engineering services, professional surveyors for land surveying services, and qualified firms for proposed projects of the department and state agencies where the estimated cost for the services is $250,000.00 or more:

(a) The department or state agency must publish a notice requesting a statement of interest in the proposed project by any qualified firm, along with a statement of qualifications and performance data from that qualified firm. The published notice must state the general scope and nature of the proposed project for which services are required and must include contact information for a representative of the department or state agency who can provide further details of the proposed project.

(b) In procuring architectural services, engineering services, or land surveying services for a proposed project, the department or state agency shall evaluate the statements of interest, statements of qualifications, and performance data submitted by qualified firms. In evaluating a qualified firm for the proposed project, the department or state agency shall consider all of the following:

(i) Qualifications of the qualified firm.

(ii) Ability of the professional personnel of the qualified firm.

(iii) Past record and experience of the qualified firm.

(iv) Any other qualifications-based factors that the department or state agency determines are applicable.

(c) The department or state agency may conduct discussions with and require presentations by any qualified firm being considered to provide the required architectural services, engineering services, or land surveying services for the proposed project.

(d) Based on the evaluations, discussions, and presentations described in this subsection, the department or state agency shall select those qualified firms considered the most highly qualified to provide the required architectural services, engineering services, or land surveying services for the proposed project. The department or state agency shall rank those qualified firms selected in order based on the qualifications set forth in this section.

(e) The department or state agency shall enter into contract negotiations with the highest-ranked qualified firm as determined under subdivision (d) at compensation that the department or state agency determines to be fair and reasonable. The department or state agency shall take into account the estimated value, scope, complexity, and professional nature of the services to be rendered.

(f) If the department or state agency is unable to negotiate a satisfactory contract with the highest-ranked qualified firm, negotiations with that qualified firm must be formally terminated. The department or state agency shall begin negotiations with the next most highly ranked qualified firm and continue until an agreement is reached or the process is terminated.

(g) If the department or state agency is unable to negotiate a satisfactory contract with any of the selected qualified firms, the department or state agency must reevaluate the architectural services, engineering services, or land surveying services requested, including the estimated value, scope, complexity, and fee requirements.

(h) The department or state agency may waive the requirements of this subsection if the department or state agency determines that an emergency situation exists and a qualified firm must be selected in an expeditious manner.

(3) Each January 1 between 2026 and 2033, the department shall submit a report to the legislature that includes all of the following information for the immediately preceding year:

(a) A summary of whether qualified firms that were selected for contracts under subsection (2) offered new ideas, technology, materials, construction techniques, or other innovations.

(b) A summary of whether projects contracted for under subsection (2) were completed on schedule or otherwise met scheduled deadlines.

(c) A summary of whether projects contracted for under subsection (2) stayed on budget.

(d) An analysis of whether there was greater collaboration between the department or state agency, as applicable, and the qualified firm to reduce misunderstandings and project risk compared to projects contracted for under subsection (1).

(e) An indication of whether design documents of projects contracted for under subsection (2) are considered to be at a high level.

(4) As used in this section:

(a) "Architectural services" means the practice of architecture, as that term is defined in section 2001 of the occupational code, 1980 PA 299, MCL 339.2001.

(b) "Engineering services" means the practice of professional engineering, as that term is defined in section 2001 of the occupational code, 1980 PA 299, MCL 339.2001.

(c) "Land surveying services" means the practice of professional surveying, as that term is defined in section 2001 of the occupational code, 1980 PA 299, MCL 339.2001.

(d) "Qualified firm" means a sole proprietorship, partnership, corporation, or limited liability company through which a person licensed as an architect, professional engineer, or professional surveyor under article 20 of the occupational code, 1980 PA 299, MCL 339.2001 to 339.2014, offers or provides architectural services, engineering services, or land surveying services to the public.