Bill Text: MN SF1147 | 2011-2012 | 87th Legislature | Engrossed


Bill Title: Transportation projects construction manager/general contractor contracts authority

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2012-02-15 - Withdrawn and re-referred to Transportation [SF1147 Detail]

Download: Minnesota-2011-SF1147-Engrossed.html

1.1A bill for an act
1.2relating to transportation; providing for construction manager/general contractor
1.3contracts; requiring a report;amending Minnesota Statutes 2010, section 13.72,
1.4subdivision 1, by adding a subdivision; proposing coding for new law in
1.5Minnesota Statutes, chapter 161.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2010, section 13.72, subdivision 1, is amended to read:
1.8    Subdivision 1. Estimates for construction projects. An estimate of the cost
1.9of a construction project of the Minnesota Department of Transportation prepared by
1.10department employees is nonpublic data and is not available to the public from the time
1.11of final design until the project is awarded, except that the department may share a cost
1.12estimate with a construction manager/general contractor with whom the department is
1.13negotiating a contract under sections 161.3207 to 161.3209.

1.14    Sec. 2. Minnesota Statutes 2010, section 13.72, is amended by adding a subdivision to
1.15read:
1.16    Subd. 17. Construction manager/general contractor data. (a) When the
1.17commissioner of transportation undertakes a transportation project pursuant to a
1.18construction manager/general contractor contract, as defined in section 161.3207,
1.19subdivision 5, and:
1.20(1) solicits a request for qualifications (RFQ), as defined in section 161.3207,
1.21subdivision 11, then:
1.22(i) the statement of qualifications scoring methodology, identifying information
1.23concerning members of the technical review committee, and statement of qualifications
1.24evaluations are classified as protected nonpublic data; and
2.1(ii) the statement of qualifications submitted by a potential construction
2.2manager/general contractor, as defined by section 161.3207, subdivision 4, are nonpublic
2.3data;
2.4(2) announces the short list of qualified construction managers/general contractors,
2.5then the statement of qualifications scoring methodology and the statement of
2.6qualifications evaluations become public;
2.7(3) solicits a request for proposals (RFP), as defined in section 161.3207, subdivision
2.810, then:
2.9(i) the proposals submitted by a potential construction manager/general contractor
2.10are nonpublic data; and
2.11(ii) the proposal scoring methodology, identifying information concerning members
2.12of the technical review committee, and proposal evaluations are protected nonpublic
2.13data; and
2.14(4) ranks the proposals, as required by section 161.3209, subdivision 2, paragraph
2.15(b), clause (3), then:
2.16(i) the proposal evaluation score, or rank, becomes public;
2.17(ii) the proposal evaluations, other than the score, or rank, that is made public in item
2.18(i); the proposal scoring methodology; and identifying information concerning members
2.19of the technical review committee remain protected nonpublic data until completion of the
2.20evaluation process; and
2.21(iii) the statement of qualifications and proposals submitted by a potential
2.22construction manager/general contractor remains nonpublic data until completion of the
2.23evaluation process.
2.24(b) If all responses to a request for proposals are rejected before completing the
2.25evaluation process, all data, other than that data made public under this subdivision,
2.26retains its classification until a resolicitation of the request for proposals results in
2.27completion of the evaluation process or a determination is made to abandon the project. If
2.28a resolicitation of proposals does not occur within one year of the announcement of the
2.29request for proposals, the remaining data become public.
2.30(c) For purposes of this subdivision, "completion of the evaluation process" means
2.31that the commissioner of transportation has completed negotiating the preconstruction
2.32services contract with the selected construction manager/general contractor.

2.33    Sec. 3. [161.3207] CONSTRUCTION MANAGER/GENERAL CONTRACTOR
2.34CONTRACTS; DEFINITIONS.
3.1    Subdivision 1. Scope. The terms used in sections 161.3207 to 161.3209 have the
3.2meanings given them in this section.
3.3    Subd. 2. Acceptance. "Acceptance" means an action of the commissioner
3.4authorizing the execution of a construction manager/general contractor contract.
3.5    Subd. 3. Commissioner. "Commissioner" means the commissioner of
3.6transportation.
3.7    Subd. 4. Construction manager/general contractor. "Construction
3.8manager/general contractor" means a proprietorship, partnership, limited liability
3.9partnership, joint venture, corporation, any type of limited liability company, professional
3.10corporation, or any legal entity selected by the commissioner to act as a construction
3.11manager to manage the construction process, which includes, but is not limited to,
3.12responsibility for the price, schedule, and workmanship of preconstruction services or the
3.13construction performed according to section 161.3209, or both.
3.14    Subd. 5. Construction manager/general contractor contract. "Construction
3.15manager/general contractor contract" means a contract for construction of a project
3.16between a construction manager/general contractor and the commissioner, which
3.17must include terms providing for a price, construction schedule, and workmanship of
3.18the construction performed. The construction manager/general contractor contract
3.19may include provisions for incremental price contracts for specific work packages,
3.20additional work performed, contingencies, or other contract provisions that will allow the
3.21commissioner to negotiate time and cost changes to the contract.
3.22    Subd. 6. Past performance; experience. "Past performance" or "experience" does
3.23not include the exercise or assertion of a person's legal rights.
3.24    Subd. 7. Preconstruction services. "Preconstruction services" means all
3.25non-construction-related services that a construction manager/general contractor is
3.26allowed to perform before execution of a construction manager/general contractor contract
3.27or work package.
3.28    Subd. 8. Preconstruction services contract. "Preconstruction services contract"
3.29means a contract under which a construction manager/general contractor is paid on the
3.30basis of the actual cost to perform the work specified in the contract plus an amount for
3.31overhead and profit for all preconstruction services.
3.32    Subd. 9. Project. "Project" means any project selected by the commissioner as a
3.33construction manager/general contractor project under section 161.3208.
3.34    Subd. 10. Request for proposals; RFP. "Request for proposals" or "RFP" means
3.35the document or publication soliciting proposals for a construction manager/general
3.36contractor contract.
4.1    Subd. 11. Request for qualifications; RFQ. "Request for qualifications" or "RFQ"
4.2means a document or publication used to prequalify and short-list potential construction
4.3managers/general contractors.
4.4    Subd. 12. Work package. "Work package" means the scope of work for a defined
4.5portion of a project. A defined portion includes construction services on any project
4.6aspect, including procuring materials or services.

4.7    Sec. 4. [161.3208] CONSTRUCTION MANAGER/GENERAL CONTRACTOR
4.8AUTHORITY.
4.9    Subdivision 1. Selection authority; limitation. Notwithstanding sections 16C.25,
4.10161.32, and 161.321, or any other law to the contrary, the commissioner may select a
4.11construction manager/general contractor as provided in section 161.3209, and award a
4.12construction manager/general contractor contract.
4.13    Subd. 2. Determination. Final determination to use a construction manager/general
4.14contractor contracting procedure may be made only by the commissioner.
4.15    Subd. 3. Cancellation. The solicitation of construction manager/general contractor
4.16requests for qualifications or proposals does not obligate the commissioner to enter into a
4.17construction manager/general contractor contract. In accordance with the stated criteria
4.18and subcriteria for evaluating qualifications or proposals, the commissioner may accept
4.19or reject any or all responses received as a result of the request. The solicitation of
4.20proposals may be canceled at any time at the commissioner's sole discretion if cancellation
4.21is considered to be in the public's best interest. If the commissioner rejects all responses
4.22or cancels the solicitation for proposals, the commissioner may resolicit a request for
4.23proposals using the same or different requirements.
4.24    Subd. 4. Reporting. The commissioner shall notify the chairs and ranking minority
4.25members of the senate and house of representatives committees with jurisdiction over
4.26transportation policy and transportation finance each time the commissioner decides to
4.27use the construction manager/general contractor method of procurement and explain why
4.28that method was chosen.

4.29    Sec. 5. [161.3209] CONSTRUCTION MANAGER/GENERAL CONTRACTOR;
4.30PROCEDURES.
4.31    Subdivision 1. Solicitation of proposals. If the commissioner determines that
4.32a construction manager/general contractor method of procurement is appropriate for
4.33a project, the commissioner shall establish a two-phase procedure for awarding the
4.34construction manager/general contractor contract, as described in subdivisions 2 and 3.
5.1    Subd. 2. Phase 1 - request for proposals. (a) The commissioner shall prepare
5.2of have prepared an RFP for each construction manager/general contractor contract as
5.3provided in this section. The RFP must contain, at a minimum, the following elements:
5.4(1) the minimum qualifications of the construction manager/general contractor;
5.5(2) the procedures for submitting proposals and the criteria for evaluation of
5.6qualifications and the relative weight for each criteria;
5.7(3) the form of the contract to be awarded;
5.8(4) the scope of intended construction work;
5.9(5) a listing of the types of preconstruction services that will be required;
5.10(6) an anticipated schedule for commencing and completing the project;
5.11(7) any applicable budget limits for the project;
5.12(8) the requirements for insurance, statutorily required performance, and payment
5.13bonds;
5.14(9) the requirements that the construction manager/general contractor provide a
5.15letter from a surety or insurance company stating that the construction manager/general
5.16contractor is capable of obtaining a performance bond and payment bond covering the
5.17estimated contract cost;
5.18(10) the method for how construction manager/general contractor fees for the
5.19preconstruction services contract will be negotiated;
5.20(11) a statement that past performance or experience does not include the exercise
5.21or assertion of a person's legal rights; and
5.22(12) any other information desired by the commissioner.
5.23(b) Before receiving any responses to the RFP:
5.24(1) The commissioner shall appoint a technical review committee of at least five
5.25individuals, of which one is a Department of Transportation manager who is also a
5.26licensed professional engineer in Minnesota.
5.27(2) The technical review committee shall evaluate the construction manager/general
5.28contractor proposals according to criteria and subcriteria published in the RFP and
5.29procedures established by the commissioner. If the commissioner does not receive at least
5.30two proposals from construction managers, the commissioner may:
5.31(i) solicit new proposals;
5.32(ii) revise the RFP and thereafter solicit new proposals using the revised RFP;
5.33(iii) select another allowed procurement method; or
5.34(iv) reject all proposals.
6.1(3) The technical review committee shall evaluate the responses to the request
6.2for proposals and rank the construction manager/general contractor using the elements
6.3described in paragraph (a).
6.4(c) Unless all proposals are rejected, the commissioner shall conduct contract
6.5negotiations for a preconstruction services contract with the construction manager/general
6.6contractor with the highest ranking. If the construction manager/general contractor with
6.7the highest ranking declines or is unable to reach an agreement, the commissioner may
6.8begin contract negotiations with the next highest ranked construction manager/general
6.9contractor.
6.10(d) Before issuing the RFP, the commissioner may elect to issue a request for
6.11qualifications (RFQ) and short-list the most highly qualified construction managers/general
6.12contractors. The RFQ must include the procedures for submitting statements of
6.13qualification, the criteria for evaluation of qualifications, and the relative weight for each
6.14criterion. The statements of qualifications must be evaluated by the technical review
6.15committee.
6.16    Subd. 3. Phase 2 - construction manager/general contractor contract. (a) Before
6.17conducting any construction-related services, the commissioner shall:
6.18(1) conduct an independent cost estimate for the project or each work package; and
6.19(2) conduct contract negotiations with the construction manager/general contractor
6.20to develop a construction manager/general contractor contract. This contract must include
6.21a minimum construction manager/general contractor self-performing requirement of 30
6.22percent of the negotiated cost. Items designated in the construction manager/general
6.23contractor contract as specialty items may be subcontracted and the cost of any specialty
6.24item performed under the subcontract will be deducted from the cost before computing the
6.25amount of work required to be performed by the contractor.
6.26(b) If the construction manager/general contractor and the commissioner are unable
6.27to negotiate a contract, the commissioner may use other contract procurement processes or
6.28may readvertise the construction manager/general contractor contract. The construction
6.29manager/general contractor may not (1) bid on the project if advertised under section
6.30161.32 or (2) join a design-build team if advertised under sections 161.3410 to 161.3428.

6.31    Sec. 6. REPORT.
6.32    Subdivision 1. Submission of report. The commissioner shall report on experience
6.33with and evaluation of the construction manager/general contractor method of contracting
6.34authorized in Minnesota Statutes, sections 161.3207 to 161.3209. The report must be
6.35submitted to the chairs and ranking minority members of the legislative committees
7.1with jurisdiction over transportation policy or transportation finance and in compliance
7.2with Minnesota Statutes, sections 3.195 and 3.197. The report must be submitted no
7.3later than three months following completion of five projects in which the construction
7.4manager/general contractor method was utilized.
7.5    Subd. 2. Content of report. The report must include: (1) a description of
7.6circumstances of any projects as to which construction manager/general contractor
7.7requests for qualifications or requests for proposals were solicited, followed by a
7.8cancellation of the solicitation; (2) a description of projects as to which construction
7.9manager/general contractor method was utilized; (3) a comparison of project cost estimates
7.10with final project costs; (4) evaluation of the construction manager/general contractor
7.11method of procurement with respect to implications for project cost, use of innovative
7.12techniques, completion time, and obtaining maximum value; (5) recommendations as
7.13to continued use of the program and desired modifications to the program; and (6)
7.14recommended legislation to continue, discontinue, or modify the program.

7.15    Sec. 7. EFFECTIVE DATE.
7.16Sections 1 to 6 are effective the day following final enactment and expire one year
7.17following submission of the report under section 6.
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