Senate File 183 H-8076 Amend Senate File 183, as passed by the Senate, as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 26.2, Code 2022, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 01. “Construction manager” means a sole 6 proprietorship, partnership, corporation, or other legal 7 entity that acts as a consultant to a governmental entity 8 in the development, design, or construction phase of a 9 public improvement that has not been retained as a design 10 professional. 11 Sec. 2. Section 26.2, subsection 2, Code 2022, is amended 12 to read as follows: 13 2. “Governmental entity” means the state, political 14 subdivisions of the state, public school corporations, and all 15 officers, boards, or commissions empowered by law to enter 16 into contracts for the construction of public improvements, 17 excluding the state board of regents and the state department 18 of transportation. 19 Sec. 3. Section 26.4, Code 2022, is amended to read as 20 follows: 21 26.4 Exemptions from competitive Competitive bids and 22 quotations —— applicability . 23 1. Architectural, landscape architectural, or engineering 24 design services procured for a public improvement are not 25 subject to sections 26.3 and 26.14 . 26 2. A construction manager is subject to sections 26.3 27 and 26.14 and services provided by a construction manager 28 must be competitively bid as part of a contract for a public 29 improvement. 30 Sec. 4. Section 26.7, Code 2022, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 4. The notice to bidders may require the 33 bidder to file with the governmental entity a statement showing 34 the bidder’s financial standing, equipment, and experience in 35 -1- SF 183.3356 (3) 89 ec/rn 1/ 13 #1.

the execution of like or similar work. 1 Sec. 5. Section 26.9, Code 2022, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 3. Notwithstanding subsection 1, a 4 governmental entity may reject a bid if the governmental entity 5 determines that the bidder has not performed in accordance with 6 the terms of another contract for a public improvement awarded 7 by a governmental entity to the bidder. Prior to rejecting 8 a bid, the governmental entity must make a specific finding 9 on the bidder’s nonperformance and provide the bidder with 10 the opportunity to respond to the alleged nonperformance at a 11 public hearing. 12 Sec. 6. NEW SECTION . 26.21 Alternative project delivery 13 contracts. 14 1. As used in this section, unless the context otherwise 15 requires: 16 a. “Alternative project delivery contract” means a 17 design-build contract subject to the requirements of this 18 section. 19 b. “Best value” means the highest overall value to the 20 governmental entity-based factors that are limited to price, 21 quality, design, technical solutions, past performance, and 22 workmanship. 23 c. “Bridging criteria professional” means a person, 24 corporation, partnership, or other legal entity that is 25 employed by or contracted by a governmental entity to assist 26 the governmental entity in the development of project design 27 criteria, requests for proposals, and any additional services 28 requested by the governmental entity to represent its interests 29 in relation to a project and who meets either of the following 30 requirements: 31 (1) Is duly licensed to practice architecture within the 32 state and can demonstrate specific knowledge of the project 33 type where alternative project delivery services are being 34 sought. 35 -2- SF 183.3356 (3) 89 ec/rn 2/ 13

(2) Is duly licensed as a professional engineer within the 1 state and can demonstrate specific knowledge of the project 2 type where alternative project delivery services are being 3 sought. 4 d. “Design-build” means a project delivery method subject 5 to a two-phase, best-value, or low-bid design-build selection 6 process for which the design and construction services are 7 furnished under one contract. 8 e. “Design-build contract” means a contract between a 9 governmental entity and a design-builder to furnish the 10 architecture of record, engineering of record, and related 11 services as required for a given public project, and to 12 furnish the labor, materials, and other construction services 13 for the same public project. A design-build contract may be 14 conditioned upon subsequent refinements in scope and price, and 15 may permit the governmental entity to make changes in the scope 16 of the project without invalidating the design-build contract. 17 f. “Design-build project” means the design, construction, 18 alteration, addition, remodeling, or improvement of any 19 buildings, infrastructure, or facilities under contract with a 20 governmental entity. “Design-build project” does not include a 21 project for the construction, reconstruction, or improvement of 22 a highway, bridge, or culvert. 23 g. “Design-builder” means any individual, partnership, joint 24 venture, or corporation subject to a two-phase, best-value, or 25 low-bid design-build selection process that offers to provide 26 or provides design services and general contracting services 27 through a design-build contract in which services within 28 the scope of the practice of professional architecture or 29 engineering are performed respectively by a licensed architect 30 or licensed engineer and in which services within the scope of 31 general contracting are performed by a general contractor or 32 other legal entity that furnishes architecture or engineering 33 services and construction services either directly or through 34 subcontracts or joint ventures. 35 -3- SF 183.3356 (3) 89 ec/rn 3/ 13

h. “Design bridging criteria package” means the 1 performance-oriented program, scope, design, and performance 2 specifications for a design-build project sufficient to permit 3 a design-builder to prepare a response to a governmental 4 entity’s request for proposals for a design-build project. 5 i. “Low-bid design-build selection process” means the process 6 used by a governmental entity seeking to enter a design-build 7 contract as outlined in subsection 8, paragraph “b” . 8 j. “Low-bid design-build threshold” means the greater of 9 five million dollars or the adjusted low-bid cost threshold 10 established in section 314.1B. 11 k. “Proposal” means an offer by a design-builder in response 12 to a request for proposals to enter into a design-build 13 contract. 14 l. “Request for proposals” means the document by which 15 a governmental entity solicits proposals for a design-build 16 contract. 17 m. “Stipend” means a payment to a design-builder who did 18 not have the lowest adjusted score at the conclusion of the 19 two-phase, best-value selection process to defray the cost of 20 participating in the two-phase, best-value selection process, 21 and for the use of any intellectual properties obtained. 22 n. “Two-phase, best-value selection process” means the 23 process used by a governmental entity seeking to enter a 24 design-build contract as outlined in subsection 8, paragraph 25 “a” . 26 o. “Two-phase, best-value threshold” means the greater of 27 twenty-five million dollars or the adjusted best-value cost 28 threshold established in section 314.1B. 29 2. Notwithstanding any other law to the contrary, a 30 governmental entity shall be authorized to enter into an 31 alternative project delivery contract for a public improvement 32 subject to the requirements of this section. 33 3. In soliciting proposals for a design-build contract, 34 a governmental entity shall determine the scope and level of 35 -4- SF 183.3356 (3) 89 ec/rn 4/ 13

detail required to permit design-builders to submit proposals 1 in accordance with the request for proposals given the nature 2 of the project. 3 4. a. A bridging criteria professional may be retained 4 by the governmental entity as the governmental entity’s 5 representative to advise the governmental entity on 6 design-build matters. The retention of the bridging criteria 7 professional shall be exclusively to guide and administer 8 the governmental entity’s interests through the process. 9 The bridging criteria professional shall have demonstrated 10 sufficient previous experience in rules and procedures 11 specific to the design-build process. The bridging criteria 12 professional shall, along with the governmental entity, be 13 authorized to make recommendations or influence the acceptance 14 of any material, process, or procedure used during the design 15 and construction processes in accordance with the criteria 16 established for the project for the purpose of evaluating 17 compliance of the work. The bridging criteria professional 18 may be employed or contracted by the governmental entity to 19 act on behalf of the governmental entity for the sole purpose 20 of administrative procedures and shall not be connected in 21 any means to a design-build team responding to the request 22 for proposal. The duration of bridging criteria professional 23 services, prior to the issuance of a design-build contract, 24 may begin when establishing the governmental entity’s program 25 requirements through design development if the complexity of 26 the project with the governmental entity merits this level of 27 bridging information. 28 b. (1) The design bridging criteria package shall include 29 preliminary designs for the project. 30 (2) Longevity of materials and system performance 31 requirements shall be identified in the design bridging 32 criteria package to identify materials and systems that have 33 the potential to exceed the length of time the project is 34 funded. 35 -5- SF 183.3356 (3) 89 ec/rn 5/ 13

(3) The design bridging criteria package shall also include 1 preliminary civil and landscape drawings including outline 2 specification showing technical site engineering and storm 3 water detention, topographic survey and existing conditions 4 information, and preliminary geotechnical and environmental 5 reports; tabular and architectural drawings of program elements 6 indicating the room types, sizes, and typical furnishings 7 to include desired building room adjacencies and functional 8 organizational requirements; any electrical, mechanical, 9 structural, plumbing, heating, ventilating, air conditioning, 10 fire protection, life safety, or security systems serving 11 the building, to include outline specifications with project 12 description including general description of systems and 13 finishes; schematic level code review summary; and local 14 permitting requirements. 15 (4) The design bridging criteria package may extend 16 to the schematic design level of detail, including design 17 expectations, capacity, durability, standards, ingress 18 and egress requirements, international building code 19 considerations, performance requirements, the governmental 20 entity’s operational expectations, requirements for interior 21 and exterior spaces, material and building system quality 22 standards, and design and construction schedule timelines. 23 However, if the low-bid design-build selection process is used, 24 the design bridging criteria package shall be extended to 25 include the provisions described in this subparagraph. 26 5. A governmental entity shall publicly disclose its intent 27 to solicit proposals for a design-build contract and its 28 project design bridging criteria package in the same manner 29 that it would post notice for the competitive bidding process 30 in section 26.3. 31 6. In soliciting proposals for a design-build contract, 32 a governmental entity shall establish in the request for 33 proposals a time, place, and other specific instructions for 34 the receipt of proposals. Proposals not submitted in strict 35 -6- SF 183.3356 (3) 89 ec/rn 6/ 13

accordance with the instructions may be subject to rejection. 1 Minor irregularities may be waived by the governmental entity. 2 7. A request for proposals shall be prepared for each 3 design-build contract and shall contain, at minimum, the 4 following elements: 5 a. The procedures to be followed for submitting proposals, 6 the criteria for evaluating proposals and their relative 7 weight, and the procedure for making awards. 8 b. The proposed terms and conditions for the design-build 9 contract, if available. 10 c. The design bridging criteria package. 11 d. A description of the drawings, specifications, or other 12 information to be submitted with the proposal, with guidance 13 as to the form and level of completeness of the drawings, 14 specifications, or other information that will be acceptable. 15 e. A schedule for planned commencement and completion of the 16 design-build contract, if available. 17 f. Budget limits for the design-build contract, if any. 18 g. Requirements including any available ratings for 19 performance bonds, payment bonds, and insurance, if any. 20 h. If using a two-phase, best-value selection process, 21 the amount of the stipend that will be available and that 22 responsive bidders shall submit a technical proposal and a 23 sealed price proposal. 24 i. If using a low-bid design-build selection process, scope 25 of work, plans, and specifications, the required bid form, the 26 contract completion date or construction days, a design-build 27 evaluation plan identifying the evaluation criteria along with 28 corresponding standards, a description of what constitutes a 29 nonresponsive proposal, and a provision that responsive bidders 30 must submit their design-build technical and sealed price 31 proposals simultaneously. 32 j. Any other information that the governmental entity 33 chooses to request limited to surveys, soil reports, drawings 34 of existing structures, environmental studies, photographs, a 35 -7- SF 183.3356 (3) 89 ec/rn 7/ 13

firm’s experience as a contractor inclusive of projects in all 1 delivery methods, references to public records, or affirmative 2 action and minority business enterprise requirements consistent 3 with state and federal law. 4 8. A governmental entity seeking to enter into a 5 design-build contract shall solicit design-build proposals 6 either by using a two-phase, best-value, or a low-bid 7 design-build selection process subject to the requirements 8 of this chapter. A two-phase, best-value selection process 9 may be used only if the estimated total cost of the public 10 improvement exceeds the two-phase, best-value threshold. The 11 low-bid design-build selection process may be used only if the 12 estimated total cost of the public improvement exceeds the 13 low-bid design-build threshold. 14 a. When solicitations require a two-phase, best-value 15 selection process, the selection process shall be conducted and 16 a design-build contract awarded as follows: 17 (1) In phase one, the governmental entity or bridging 18 criteria professional on behalf of the governmental entity 19 shall score the technical proposals using the selection 20 criteria in the request for proposals. The governmental entity 21 or bridging criteria professional shall then submit a technical 22 proposal score for each design-builder. The governmental 23 entity or bridging criteria professional shall reject any 24 proposal it deems nonresponsive. 25 (2) In phase two, the governmental entity shall announce 26 the technical proposal score for each design-builder and 27 shall publicly open the sealed price proposals for each 28 design-builder and shall determine an adjusted score for each 29 proposal as follows: 30 (a) If a time factor is not included with the selection 31 criteria in the requests for proposals, the governmental 32 entity shall obtain the adjusted score by dividing each 33 design-builder’s price by the technical score that the 34 governmental entity or bridging criteria professional has given 35 -8- SF 183.3356 (3) 89 ec/rn 8/ 13

to that design-builder. 1 (b) If a time factor is included with the selection criteria 2 in the requests for proposals, the governmental entity may 3 adjust the design-builder’s price using a value of the time 4 factor established by the governmental entity. The value of 5 the time factor must be expressed as a value per day. The 6 adjustment must be based on the total time value which is the 7 design-builder’s total number of days to complete the project 8 multiplied by the time factor. The time-adjusted price is the 9 total time value plus the bid amount. This adjustment shall 10 only be used for selection purposes and must not affect the 11 governmental entity’s liquidated damages schedule or incentive 12 or disincentive program. An adjusted score will then be 13 obtained by dividing each design-builder’s time-adjusted price 14 by the technical score that the governmental entity or bridging 15 criteria professional has given the design-builder. 16 (3) Unless all proposals are rejected, the governmental 17 entity shall award the contract to the responsive and 18 responsible design-builder with the lowest adjusted score as 19 determined pursuant to this paragraph. The governmental entity 20 shall reserve the right to reject all proposals. 21 (4) As an inducement to qualified design-builders, the 22 governmental entity shall pay a stipend, the amount of which 23 shall be established in the request for proposals, to each 24 design-builder who submitted a proposal but was not accepted. 25 Such stipend shall be no less than one-half of one percent 26 of the total project budget. Upon payment of the stipend to 27 such a design-builder, the governmental entity shall acquire 28 a nonexclusive right to use the design submitted by the 29 design-builder, and the design-builder shall have no further 30 liability for the use of the design by the governmental entity 31 in any manner. If the design-builder desires to retain all 32 rights and interests in the design proposed, the design-builder 33 shall forfeit the stipend. 34 b. When solicitations require a low-bid design-build 35 -9- SF 183.3356 (3) 89 ec/rn 9/ 13

selection process, the selection process shall be conducted and 1 a design-build contract awarded as follows: 2 (1) The governmental entity shall develop evaluation 3 criteria based on the goals and risks identified for the 4 project. The criteria shall be evaluated on either a scored 5 or a pass or fail basis. To the extent possible, evaluation 6 criteria should have a measurable standard against which 7 responsiveness will be measured on a pass or fail basis. 8 (2) The governmental entity shall first review technical 9 proposals to determine which proposals are responsive to 10 the evaluation criteria in the request for proposals. All 11 responsive proposals meeting the minimum standards shall 12 advance to opening the price proposals. Design-build bidders 13 not meeting the minimum standards shall have their sealed price 14 proposals returned. 15 (3) Following review and evaluation of the technical 16 proposal, the governmental entity shall then open and 17 review the price proposals from the responsive bidders. The 18 governmental entity shall award the contract to the bidder that 19 submits a responsive proposal with the lowest price, if the 20 proposal meets or exceeds all material request for proposals 21 requirements as determined by the governmental entity. To be 22 responsive, the technical proposal must meet or exceed the 23 requirements specified in the request for proposals. 24 9. A governmental entity or the state department of 25 transportation shall not be authorized to enter into an 26 alternative project delivery contract for projects relating to 27 highway, bridge, or culvert construction. 28 Sec. 7. Section 262.56, Code 2022, is amended to read as 29 follows: 30 262.56 Authorization —— contracts —— title. 31 Subject to and in accordance with the provisions of this 32 subchapter the state board of regents is hereby authorized 33 to undertake and carry out any project as defined in section 34 262.55 at the state university of Iowa, Iowa state university 35 -10- SF 183.3356 (3) 89 ec/rn 10/ 13

of science and technology, and the university of northern 1 Iowa and to operate, control, maintain and manage student 2 residence halls and dormitories, including dining and other 3 incidental facilities, and additions to such buildings at each 4 of said institutions. All contracts for the construction, 5 reconstruction, completion, equipment, improvement, repair or 6 remodeling of any buildings, additions or facilities shall be 7 let in accordance with the provisions of section 262.34 26.3 . 8 The title to all real estate acquired under the provisions of 9 this subchapter and the improvements erected thereon shall be 10 taken and held in the name of the state of Iowa. The board 11 is authorized to rent the rooms in such residence halls and 12 dormitories to the students, officers, guests and employees 13 of said institutions at such rates, fees or rentals as will 14 provide a reasonable return upon the investment, but which will 15 in any event produce net rents, profits and income sufficient 16 to insure the payment of the principal of and interest on all 17 bonds or notes issued to pay any part of the cost of any project 18 and refunding bonds or notes issued pursuant to the provisions 19 of this subchapter . 20 Sec. 8. Section 262A.4, Code 2022, is amended to read as 21 follows: 22 262A.4 Authorization of general assembly and governor. 23 Subject to and in accordance with the provisions of this 24 chapter , the state board of regents after authorization by a 25 constitutional majority of each house of the general assembly 26 and approval by the governor may undertake and carry out any 27 project as defined in this chapter at the institutions now or 28 hereafter under the jurisdiction of the board. The state board 29 of regents is authorized to operate, control, maintain, and 30 manage buildings and facilities and additions to such buildings 31 and facilities at each of said institutions. All contracts 32 for the construction, reconstruction, completion, equipment, 33 improvement, repair or remodeling of any buildings, additions, 34 or facilities shall be let in accordance with the provisions 35 -11- SF 183.3356 (3) 89 ec/rn 11/ 13

of section 262.34 26.3 . The title to all real estate acquired 1 under the provisions of this chapter and the improvements 2 erected thereon shall be taken and held in the name of the 3 state of Iowa. 4 Sec. 9. Section 263A.2, Code 2022, is amended to read as 5 follows: 6 263A.2 Authorization of general assembly and governor. 7 Subject to and in accordance with the provisions of this 8 chapter , the state board of regents may undertake and carry out 9 any project as defined in this chapter at the state university 10 of Iowa. The state board of regents is authorized to operate, 11 control, maintain, and manage buildings and facilities and 12 additions to such buildings and facilities at said institution. 13 All contracts for the construction, reconstruction, completion, 14 equipment, improvement, repair, or remodeling of any buildings, 15 additions, or facilities shall be let in accordance with the 16 provisions of section 262.34 26.3 . The title to all real 17 estate acquired under the provisions of this chapter and the 18 improvements erected thereon shall be taken and held in the 19 name of the state of Iowa. 20 Sec. 10. Section 314.1, subsection 2, Code 2022, is amended 21 to read as follows: 22 2. Notwithstanding any other provision of law to the 23 contrary, a public improvement that involves the construction, 24 reconstruction, or improvement of a highway, bridge, or culvert 25 and that has a cost in excess of the applicable threshold 26 in section 73A.18 , 262.34 , 297.7 , 309.40 , 310.14 , or 313.10 , 27 as modified by the bid threshold subcommittee pursuant to 28 section 314.1B , shall be advertised and let for bid, except 29 such public improvements that involve emergency work pursuant 30 to section 309.40A , 313.10 , or 384.103, subsection 2 . For a 31 city having a population of fifty thousand or less, a public 32 improvement that involves the construction, reconstruction, or 33 improvement of a highway, bridge, or culvert that has a cost 34 in excess of twenty-five thousand dollars, as modified by the 35 -12- SF 183.3356 (3) 89 ec/rn 12/ 13

bid threshold subcommittee pursuant to section 314.1B , shall be 1 advertised and let for bid, excluding emergency work. However, 2 a public improvement that has an estimated total cost to a 3 city in excess of a threshold of fifty thousand dollars, as 4 modified by the bid threshold subcommittee pursuant to section 5 314.1B , and that involves the construction, reconstruction, or 6 improvement of a highway, bridge, or culvert that is under the 7 jurisdiction of a city with a population of more than fifty 8 thousand, shall be advertised and let for bid. Cities required 9 to competitively bid highway, bridge, or culvert work shall 10 do so in compliance with the contract letting procedures of 11 sections 26.3 through 26.12 . 12 Sec. 11. Section 314.1B, subsection 2, Code 2022, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . f. Beginning July 1, 2023, the subcommittee 15 shall make adjustments to the low-bid design-build threshold 16 as defined in section 26.21 and the two-phase, best-value 17 threshold as defined in section 26.21 for vertical 18 infrastructure in accordance with the methodology of paragraph 19 “b” . 20 Sec. 12. REPEAL. Section 262.34, Code 2022, is repealed. 21 Sec. 13. EFFECTIVE DATE. This Act, being deemed of 22 immediate importance, takes effect upon enactment. 23 Sec. 14. APPLICABILITY. This Act applies to public 24 improvement contracts entered into on or after the effective 25 date of this Act. > 26 ______________________________ DEYOE of Story ______________________________ MOMMSEN of Clinton -13- SF 183.3356 (3) 89 ec/rn 13/ 13