House File 778 - Introduced HOUSE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 203) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act establishing a pilot program for alternative project 2 delivery procedures for public projects undertaken by certain 3 governmental entities. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1733HV 83 6 md/nh/14 PAG LIN 1 1 SUBCHAPTER I 1 2 ALTERNATIVE PUBLIC PROJECT DELIVERY PILOT PROGRAM 1 3 Section 1. NEW SECTION. 26A.1 DEFINITIONS. 1 4 As used in this chapter, unless the context clearly 1 5 indicates otherwise: 1 6 1. "Alternative project delivery" means procuring and 1 7 delivering design and construction services for a public 1 8 project according to one of the selection procedures outlined 1 9 in subchapters II through IV. 1 10 2. "Construction documents" means the drawings, 1 11 specifications, technical submissions, and other documents 1 12 upon which a construction project is based. 1 13 3. "Construction management services" means an alternative 1 14 project delivery method whereby services are provided by a 1 15 construction manager in a manner similar to a general 1 16 contractor, and which requires the construction manager to 1 17 solicit competitive bids for the trade packages or 1 18 subcontracts developed for the public project and to enter 1 19 into the trade contracts or subcontracts for the public 1 20 project. Construction management services may include but are 1 21 not limited to scheduling, value analysis, system analysis, 1 22 constructability reviews, progress document reviews, 1 23 subcontractor involvement and prequalification, subcontractor 1 24 bonding policy, budgeting and price guarantees, and 1 25 construction coordination. 1 26 4. "Construction manager" means an individual, 1 27 partnership, joint venture, corporation, or other legal entity 1 28 that utilizes skill and knowledge of general contracting to 1 29 perform construction management services and preconstruction 1 30 services, competitively procures and contracts with specialty 1 31 contractors or subcontractors, and assumes the responsibility 1 32 and the risk for construction delivery within a specified cost 1 33 and schedule. 1 34 5. "Construction services" means the process of planning, 1 35 building, equipping, altering, repairing, improving, or 2 1 demolishing any structure or appurtenance thereto, including 2 2 facilities, utilities, or other improvements to real property, 2 3 but excluding highways, roads, bridges, dams, or stand=alone 2 4 parking lots. 2 5 6. "Criteria consultant" means an individual employed or 2 6 retained by the governmental entity to assist in the 2 7 preparation of a request for qualifications and a request for 2 8 proposals. A criteria consultant shall have professional 2 9 licensure or significant professional experience in a field 2 10 related to the proposed public project. 2 11 7. "Design professional" means an individual, partnership, 2 12 joint venture, corporation, or other legal entity that is 2 13 engaged in the business of providing professional design 2 14 services. A design professional shall be licensed to practice 2 15 architecture, engineering, or landscape architecture, or be 2 16 registered to practice interior design in this state. 2 17 8. "Design=build services" means a method of alternative 2 18 project delivery for which both design and construction 2 19 services are provided under one contract. "Design=build 2 20 services" may include architecture, engineering, and related 2 21 design services required for a given project and the labor, 2 22 materials, and other construction services for the project. 2 23 9. "Design=builder" means an individual, partnership, 2 24 joint venture, corporation, or other legal entity that 2 25 furnishes design=build services, whether by itself or through 2 26 subcontracts. 2 27 10. "Estimated total cost" means the estimated total cost 2 28 to a governmental entity to construct a public project, 2 29 including the cost of labor, materials, equipment, supplies, 2 30 and fees. 2 31 11. "Governmental entity" means the department of 2 32 administrative services, a school district, a public hospital, 2 33 or an institution under the control of the state board of 2 34 regents. 2 35 12. "Guaranteed maximum cost" means the total cost of the 3 1 project as defined in the public project contract between the 3 2 governmental entity and the construction manager or between 3 3 the governmental entity and the design=builder. 3 4 13. "Preconstruction services" means a series of services 3 5 including but not limited to design review, scheduling, 3 6 estimating, cost control, value engineering, constructability 3 7 evaluation, and preparation and coordination of bid packages. 3 8 14. "Public project" means a project under the control of 3 9 a governmental entity that is paid for in whole or in part 3 10 with funds of the governmental entity, including a building or 3 11 improvement constructed or operated jointly with any other 3 12 public or private agency that has an estimated total cost of 3 13 more than one hundred thousand dollars. A "public project" 3 14 may include planning, acquiring, designing, building, 3 15 equipping, altering, repairing, improving, or demolishing any 3 16 structure or appurtenance thereto, including facilities, 3 17 utilities, or other improvements to any real property owned by 3 18 the governmental entity, but excluding highways, roads, 3 19 bridges, dams, or stand=alone parking lots. However, a 3 20 parking lot included as part of the site work of a public 3 21 project may be included as part of a construction management 3 22 contract or a design=build services contract. Parking ramps 3 23 and parking garages are not considered to be parking lots and 3 24 may be a "public project" constructed utilizing alternative 3 25 project delivery methods. 3 26 15. "Selection plan" means a resolution adopted by a 3 27 governmental entity that specifies criteria and scoring 3 28 methodology relating to the selection of a construction 3 29 manager or a design=builder for a public project. 3 30 Sec. 2. NEW SECTION. 26A.2 ALTERNATIVE PROJECT DELIVERY 3 31 COMMISSION. 3 32 1. An alternative project delivery commission is 3 33 established consisting of nine members. 3 34 2. Members of the commission shall consist of all of the 3 35 following: 4 1 a. One member appointed by the state board of regents. 4 2 b. One member appointed by the director of the department 4 3 of administrative services. 4 4 c. One member appointed by the Iowa association of school 4 5 boards. 4 6 d. One member appointed by the Iowa state building and 4 7 construction trades council. 4 8 e. One member appointed by the Iowa chapter of the 4 9 American institute of architects. 4 10 f. One member appointed by the American council of 4 11 engineering companies of Iowa. 4 12 g. One member appointed by the Iowa chapter of the 4 13 design=build institute of America. 4 14 h. One member appointed by the master builders of Iowa. 4 15 i. One member appointed by the mechanical contractors 4 16 association of Iowa. 4 17 3. Each member of the commission shall serve until January 4 18 15, 2012, or until the member resigns. A vacancy on the 4 19 commission shall be filled in the same manner as the original 4 20 appointment. 4 21 4. The member appointed by the state board of regents 4 22 shall serve as the chairperson of the commission. 4 23 5. Meetings of the commission may be called by the 4 24 chairperson or by a majority of the members. 4 25 6. A majority of the members of the commission constitutes 4 26 a quorum. Any action taken by the commission must be adopted 4 27 by the affirmative vote of a majority of its membership. 4 28 7. A member shall not vote on a matter before the 4 29 commission if the individual has a pecuniary, equitable, or 4 30 other interest in the matter or conditions exist that would 4 31 interfere with the member's ability to properly discharge the 4 32 member's duties. 4 33 8. Members of the commission shall be reimbursed for 4 34 actual and necessary expenses incurred while engaged in their 4 35 official duties from fees collected by the commission under 5 1 section 26A.3, subsection 5. 5 2 9. The duties of the commission shall include all of the 5 3 following: 5 4 a. Administer the alternative project delivery pilot 5 5 program created under section 26A.3. 5 6 b. Prepare and file with the governor and the general 5 7 assembly on or before January 15, 2012, a report detailing the 5 8 activities of the commission and summarizing each public 5 9 project selected for inclusion in the alternative project 5 10 delivery pilot program, including information related to cost 5 11 savings to the governmental entity, if any. 5 12 c. Adopt policies and procedures to carry out any duty 5 13 specified in this chapter. 5 14 Sec. 3. NEW SECTION. 26A.3 ALTERNATIVE PROJECT DELIVERY 5 15 PILOT PROGRAM. 5 16 1. The alternative project delivery commission shall 5 17 administer an alternative project delivery pilot program 5 18 consistent with the requirements of this chapter. The purpose 5 19 of the pilot program is to determine whether alternative 5 20 project delivery methods are financially beneficial and 5 21 efficient for governmental entities in undertaking public 5 22 projects. 5 23 2. The pilot program shall consist of no more than ten 5 24 public projects selected by the commission and undertaken by 5 25 governmental entities using an alternative project delivery 5 26 method authorized under subchapters II through IV. The 5 27 selection of public projects for inclusion in the pilot 5 28 program shall be completed no later than November 1, 2010. 5 29 3. A governmental entity that is interested in undertaking 5 30 a public project using alternative project delivery methods 5 31 shall submit an application to the commission detailing the 5 32 nature of the project and specifying an alternative project 5 33 delivery method. Each application shall be on a form 5 34 prescribed by the commission and may include additional 5 35 materials requested by the commission. 6 1 4. The commission shall review each application and shall 6 2 select those public projects for inclusion in the pilot 6 3 program which are best suited to accomplish the purposes of 6 4 the pilot program. 6 5 5. A governmental entity that has been selected to 6 6 participate in the pilot program shall pay a fee to the 6 7 commission in the amount of one=tenth of one percent of the 6 8 estimated total cost of the public project. Fees collected by 6 9 the commission shall be used for the purposes specified in 6 10 section 26A.2, subsection 8. Moneys in excess of the amount 6 11 required under section 26A.2, subsection 8, shall be remitted 6 12 to the governmental entities no later than June 30, 2011. 6 13 6. The commission shall monitor the selection process for 6 14 each public project selected for inclusion in the pilot 6 15 program and may require the governmental entity to provide 6 16 periodic updates on the public project following selection of 6 17 a construction manager or design=builder for the public 6 18 project. 6 19 7. Notwithstanding any other provision of law to the 6 20 contrary, a governmental entity may utilize the alternative 6 21 project delivery procedures under this chapter to procure 6 22 construction management services or design=build services 6 23 related to the completion of a public project. 6 24 Sec. 4. NEW SECTION. 26A.4 PUBLIC NOTICE. 6 25 For each alternative project delivery method under this 6 26 chapter, a governmental entity shall publish public notices as 6 27 follows: 6 28 1. The notice shall be published at least once, not less 6 29 than fifteen and not more than forty=five days before the date 6 30 for filing submissions, if applicable, in a newspaper 6 31 published at least once weekly and having general circulation 6 32 in the geographic area served by the governmental entity. 6 33 2. The notice may also be published in a relevant 6 34 contractor organization publication and a relevant contractor 6 35 plan room service with statewide circulation, provided that a 7 1 notice is posted on an internet site sponsored by either the 7 2 governmental entity or a statewide association that represents 7 3 the governmental entity. 7 4 3. In addition to relevant information regarding the 7 5 public project, the notice shall specify the alternative 7 6 project delivery method to be used for the public project. 7 7 Sec. 5. NEW SECTION. 26A.5 PUBLIC RECORDS. 7 8 Each proposal received by a governmental entity under this 7 9 chapter, together with the name of the proposer, after award 7 10 or letting of the contract, is subject to public inspection 7 11 upon request. The governmental entity shall, within five days 7 12 after award or letting of the contract, publish notice of the 7 13 name of the successful proposer including the proposer's 7 14 scores received pursuant to the selection process under 7 15 subchapter II, III, or IV. In addition, such notice shall 7 16 include the names of all proposers whose proposals were not 7 17 selected, together with each proposer's scores. 7 18 Sec. 6. NEW SECTION. 26A.6 PROHIBITION ON PROVIDING 7 19 FINANCING. 7 20 The construction manager or design=builder executing the 7 21 construction or design of a public project utilizing an 7 22 alternative project delivery method under this chapter shall 7 23 not provide any financing, funding, or facility operations for 7 24 the public project. 7 25 Sec. 7. NEW SECTION. 26A.7 REPEAL. 7 26 This chapter is repealed June 30, 2012. 7 27 SUBCHAPTER II 7 28 CONSTRUCTION MANAGEMENT 7 29 PROJECT DELIVERY 7 30 Sec. 8. NEW SECTION. 26A.12 APPLICATION TO THE 7 31 COMMISSION. 7 32 1. When in the judgment of the governing body of a 7 33 governmental entity it is desirable to use construction 7 34 management services for the completion of a public project, 7 35 the governmental entity shall prepare a selection plan and 8 1 submit an application to the alternative project delivery 8 2 commission pursuant to section 26A.3, subsection 3. If the 8 3 public project is selected by the alternative project delivery 8 4 commission for inclusion in the pilot program, the 8 5 governmental entity shall select a construction manager in 8 6 accordance with the procedures of this subchapter. 8 7 2. A criteria consultant shall be employed or retained to 8 8 assist the governmental entity in preparing a request for 8 9 qualifications and a request for proposals. The criteria 8 10 consultant may be an employee of the governmental entity, the 8 11 design professional employed or retained under subsection 3, 8 12 or an individual retained specifically to assist the 8 13 governmental entity with the public project. The request for 8 14 qualifications and the request for proposals shall specify the 8 15 selection criteria and scoring methodology included in the 8 16 selection plan. The criteria consultant shall also assist the 8 17 governmental entity in selecting a construction manager. A 8 18 criteria consultant employed or retained by the governmental 8 19 entity shall not submit a statement of qualifications or a 8 20 proposal for the public project. 8 21 3. The governmental entity shall employ a design 8 22 professional to design the public project, prepare the 8 23 construction documents for the project, and provide 8 24 administrative services in connection with the design of the 8 25 project. The services provided by the design professional 8 26 shall be considered architectural, landscape architectural, or 8 27 engineering design services as provided in section 26.4. 8 28 Sec. 9. NEW SECTION. 26A.13 SELECTION PROCESS == GENERAL 8 29 PROCEDURE. 8 30 The governmental entity shall select a construction manager 8 31 for a public project pursuant to a two=phase selection 8 32 process. 8 33 1. Phase I of the selection process includes publication 8 34 of a request for qualifications by the governmental entity, 8 35 review of the statements of qualifications, and the selection 9 1 of a minimum of two but not more than five construction 9 2 managers to advance to phase II. 9 3 2. Phase II includes a request for proposals, the receipt 9 4 of proposals from those construction managers selected during 9 5 phase I, an interview with each construction manager that 9 6 submits a proposal, evaluation of each proposal, and selection 9 7 of a construction manager for the public project. 9 8 Sec. 10. NEW SECTION. 26A.14 PHASE I == REQUEST FOR 9 9 QUALIFICATIONS, STATEMENT, EVALUATION, AND SELECTION. 9 10 1. During phase I, the governmental entity shall publish 9 11 notice of a request for qualifications pursuant to the 9 12 requirements of section 26A.4. The request for qualifications 9 13 shall specify a time, place, and other specific instructions 9 14 for the submission of the statements of qualifications. A 9 15 statement of qualifications not submitted according to the 9 16 instructions shall be rejected and returned to the 9 17 construction manager. 9 18 2. Each construction manager shall submit a statement of 9 19 qualifications that includes but is not limited to the 9 20 following information: 9 21 a. Similar project experience, including experience in the 9 22 construction management method of alternative project 9 23 delivery. 9 24 b. Qualifications of proposed project personnel. 9 25 c. References from similar projects. 9 26 d. The construction manager's experience modification 9 27 rating and a description of the construction manager's safety 9 28 plan. 9 29 e. Bonding capacity. Construction managers submitting a 9 30 statement of qualifications shall be capable of providing a 9 31 bond according to the requirements of chapter 573 and shall 9 32 include evidence of such bonding capacity with their statement 9 33 of qualifications. If a construction manager fails to include 9 34 evidence of bonding capacity, the construction manager shall 9 35 be deemed unqualified for selection under phase I. 10 1 f. Other information requested by the governmental entity 10 2 in accordance with the selection plan. 10 3 3. The governmental entity shall evaluate and score each 10 4 statement of qualifications received according to the 10 5 predetermined selection criteria and scoring methodology 10 6 specified in the request for qualifications. The cost or fees 10 7 associated with a public project shall not be considered by 10 8 the governmental entity when evaluating a statement of 10 9 qualifications. 10 10 4. The governmental entity shall select a minimum of two 10 11 and a maximum of five construction managers, who have the 10 12 highest scores to proceed to phase II of the selection 10 13 process. Scores assigned in the phase I evaluation process 10 14 shall not carry forward to phase II. If two qualified 10 15 construction managers cannot be identified, the selection 10 16 process shall cease. The governmental entity shall have 10 17 discretion to disqualify any construction manager that lacks 10 18 the minimum qualifications required to perform the 10 19 construction management services for the public project. 10 20 Sec. 11. NEW SECTION. 26A.15 PHASE II == REQUEST FOR 10 21 PROPOSALS, PROPOSAL REVIEW, SELECTION, AND NEGOTIATION. 10 22 1. During phase II, each construction manager selected 10 23 during phase I shall be given a request for proposal. The 10 24 request for proposal shall include but is not limited to the 10 25 following information: 10 26 a. The procedures to be followed in submitting proposals 10 27 and information relating to construction manager interviews 10 28 under subsection 2. 10 29 b. The selection criteria and scoring methodology for the 10 30 proposals. 10 31 c. Information related to the requirements, 10 32 specifications, budget, and schedule for the public project, 10 33 including requirements and specifications for design services, 10 34 preconstruction services, and construction services. 10 35 d. The proposed terms and conditions for the public 11 1 project contract. 11 2 e. Other information requested by the governmental entity 11 3 in accordance with the selection plan. 11 4 2. After the deadline for submission of proposals has 11 5 passed, the governmental entity shall interview each 11 6 construction manager that has submitted a proposal 11 7 individually, allowing each construction manager to present 11 8 the construction manager's proposed team members, 11 9 qualifications, and proposal, and to answer questions from the 11 10 governmental entity. 11 11 3. The governmental entity shall score each construction 11 12 manager's proposal based on the selection criteria and scoring 11 13 methodology specified in the request for proposals. The 11 14 governmental entity shall proceed to negotiate with and 11 15 attempt to enter into an interim construction contract with 11 16 the construction manager receiving the highest score to serve 11 17 as the construction manager for the public project. If the 11 18 governmental entity is unable to negotiate a satisfactory 11 19 contract with the construction manager with the highest score, 11 20 negotiations with that construction manager shall be 11 21 terminated and the governmental entity shall undertake 11 22 negotiations with the construction manager receiving the 11 23 second highest score. If negotiations cannot be successfully 11 24 completed with the construction manager receiving the second 11 25 highest score, the contract for the public project shall not 11 26 be awarded. 11 27 4. If the governmental entity determines that it is not in 11 28 its best interest to proceed with the public project pursuant 11 29 to the proposals offered, the governmental entity shall reject 11 30 all proposals. If all proposals are rejected, the 11 31 governmental entity may solicit new statements of 11 32 qualifications and proposals using different design or budget 11 33 criteria. 11 34 Sec. 12. NEW SECTION. 26A.16 CONTRACT == PERFORMANCE OF 11 35 CERTAIN SERVICES. 12 1 1. Following completion of construction documents and all 12 2 subcontractor bidding, the construction manager shall provide 12 3 the governmental entity with a guaranteed maximum cost which 12 4 shall be included in the contract for construction management 12 5 services. The contract to perform construction management 12 6 services for a public project shall be prepared by the 12 7 governmental entity and entered into between the governmental 12 8 entity and the construction manager. 12 9 2. Portions or subcontracts of the public project shall be 12 10 let to the lowest responsible bidder pursuant to applicable 12 11 requirements of law other than this chapter. The governmental 12 12 entity may allow the construction manager to self=perform 12 13 construction services if the construction manager submits a 12 14 bid proposal under the same conditions as all other 12 15 competitive bidders. All bid proposals submitted by the 12 16 construction manager for self=performance shall be opened 12 17 simultaneously and evaluated in the presence of a 12 18 representative of the governmental entity. 12 19 SUBCHAPTER III 12 20 DESIGN=BUILD PROJECT DELIVERY 12 21 BEST VALUE SELECTION 12 22 Sec. 13. NEW SECTION. 26A.22 APPLICATION TO THE 12 23 COMMISSION. 12 24 1. When in the judgment of the governing body of a 12 25 governmental entity it is desirable to use design=build 12 26 services pursuant to a best value selection process for the 12 27 completion of a public project, the governmental entity shall 12 28 prepare a selection plan and submit an application to the 12 29 alternative project delivery commission pursuant to section 12 30 26A.3, subsection 3. If the public project is selected by the 12 31 alternative project delivery commission for inclusion in the 12 32 pilot program, the governmental entity shall select a 12 33 design=builder in accordance with the procedures of this 12 34 subchapter. 12 35 2. A criteria consultant shall be employed or retained to 13 1 assist the governmental entity in preparing a request for 13 2 qualifications and a request for proposals. The criteria 13 3 consultant may be an employee of the governmental entity or an 13 4 individual retained specifically to assist the governmental 13 5 entity with the public project. The request for 13 6 qualifications and the request for proposals shall specify the 13 7 selection criteria and scoring methodology included in the 13 8 selection plan. The criteria consultant shall also assist the 13 9 governmental entity in selecting a design=builder. A criteria 13 10 consultant employed or retained by the governmental entity 13 11 shall not submit a statement of qualifications or a proposal 13 12 for the public project. 13 13 Sec. 14. NEW SECTION. 26A.23 BEST VALUE SELECTION 13 14 PROCESS == GENERAL PROCEDURE. 13 15 The governmental entity shall select a design=builder for a 13 16 public project pursuant to a two=phase selection process. 13 17 1. Phase I of the selection process includes publication 13 18 of a request for qualifications by the governmental entity, 13 19 review of the statements of qualifications, and the selection 13 20 of a minimum of two but not more than five design=builders to 13 21 advance to phase II. 13 22 2. Phase II includes a request for proposals, the receipt 13 23 of proposals from those design=builders selected during phase 13 24 I, including a separate cost and schedule proposal, an 13 25 interview with each design=builder that submits a proposal, 13 26 evaluation of each proposal, and selection of a design=builder 13 27 for the public project. 13 28 Sec. 15. NEW SECTION. 26A.24 PHASE I == REQUEST FOR 13 29 QUALIFICATIONS, STATEMENT, EVALUATION, AND SELECTION. 13 30 1. During phase I, the governmental entity shall publish 13 31 notice of a request for qualifications pursuant to the 13 32 requirements of section 26A.4. The governmental entity shall 13 33 specify in the request for qualifications a time, place, and 13 34 other specific instructions for the submission of the 13 35 statements of qualifications. A statement of qualifications 14 1 not submitted according to the instructions shall be rejected 14 2 and returned to the design=builder. 14 3 2. Each design=builder shall submit a statement of 14 4 qualifications that includes but is not limited to the 14 5 following information: 14 6 a. Similar project experience, including experience in the 14 7 design=build method of alternative project delivery. 14 8 b. Qualifications of proposed project personnel. 14 9 c. References from similar projects. 14 10 d. The design=builder's experience modification rating and 14 11 a description of the design=builder's safety plan. 14 12 e. Bonding capacity. Design=builders submitting a 14 13 statement of qualifications shall be capable of providing a 14 14 bond according to the requirements of chapter 573 and shall 14 15 include evidence of such bonding capacity with their statement 14 16 of qualifications. If a design=builder fails to include 14 17 evidence of bonding capacity, the design=builder shall be 14 18 deemed unqualified for selection under phase I. 14 19 f. Other information requested by the governmental entity 14 20 in accordance with the selection plan. 14 21 3. The governmental entity shall evaluate and score each 14 22 statement of qualifications received according to the 14 23 predetermined selection criteria and scoring methodology that 14 24 were specified in the request for qualifications. The cost or 14 25 fees associated with a public project shall not be considered 14 26 by the governmental entity when evaluating a statement of 14 27 qualifications. 14 28 4. The governmental entity shall select a minimum of two 14 29 and a maximum of five design=builders who have the highest 14 30 scores to proceed to phase II. Scores assigned during phase I 14 31 shall not carry forward to phase II. The governmental entity 14 32 shall have discretion to disqualify any design=builder that 14 33 lacks the minimum qualifications required to perform the 14 34 design=build services for the public project. If two 14 35 qualified design=builders cannot be identified, the selection 15 1 process shall cease. If all design=builders are rejected, the 15 2 governmental entity may solicit new proposals using different 15 3 design and budget criteria. 15 4 Sec. 16. NEW SECTION. 26A.25 PHASE II == REQUEST FOR 15 5 PROPOSALS, PROPOSAL REVIEW, SELECTION, AND NEGOTIATION. 15 6 1. During phase II, each design=builder selected during 15 7 phase I shall be given a request for proposals. The request 15 8 for proposals shall include but is not limited to the 15 9 following information: 15 10 a. The procedures to be followed in submitting proposals 15 11 and information relating to design=builder interviews under 15 12 subsection 2. 15 13 b. The selection criteria and scoring methodology for the 15 14 proposals. 15 15 c. Information related to the requirements, 15 16 specifications, budget, and schedule for the public project, 15 17 including requirements and specifications for design services, 15 18 preconstruction services, and construction services. 15 19 d. The proposed terms and conditions for the public 15 20 project contract. 15 21 e. The requirements for the submission of a separate cost 15 22 and schedule proposal. 15 23 f. Other information requested by the governmental entity 15 24 in accordance with the selection plan. 15 25 2. Each design=builder selected during phase I shall 15 26 submit a proposal to the governmental entity. Each proposal 15 27 submitted under this section shall not contain references to 15 28 costs associated with work contained in the proposal. The 15 29 governmental entity shall evaluate and score each proposal 15 30 according to the selection criteria and scoring methodology 15 31 specified in the request for proposals. 15 32 3. Each design=builder selected during phase I shall also 15 33 provide the governmental entity with a separate cost and 15 34 schedule proposal. A proposal submitted under subsection 2 15 35 and the cost and schedule proposal may be submitted 16 1 sequentially or concurrently, according to the requirements of 16 2 the request for proposals. Failure to submit a cost and 16 3 schedule proposal according to the delivery requirements of 16 4 the request for proposals shall be grounds to reject the 16 5 proposal. 16 6 4. The cost and schedule proposal shall include all of the 16 7 following: 16 8 a. A guaranteed maximum cost for the public project. 16 9 b. A bid security pursuant to chapter 573. 16 10 c. A proposed contract time, in calendar days, for 16 11 completing the public project. 16 12 d. Any other information required by the request for 16 13 proposals. 16 14 5. After the deadline for submission of proposals has 16 15 passed, the governmental entity shall interview each 16 16 design=builder that has submitted a proposal individually, 16 17 allowing each design=builder to present the design=builder's 16 18 proposed team members, qualifications, and proposal, and to 16 19 answer questions from the governmental entity. 16 20 6. The cost and schedule proposals submitted under 16 21 subsection 3 shall be opened only after all proposals 16 22 submitted under subsection 2 have been evaluated and scored 16 23 and after completion of all design=builder interviews under 16 24 subsection 5. At the same time and place that the cost and 16 25 schedule proposals are opened, the governmental entity shall 16 26 make public its scoring of the proposals submitted under 16 27 subsection 2. Cost and schedule proposals shall be evaluated 16 28 and scored according to selection criteria and scoring 16 29 methodology specified in the request for proposals. 16 30 7. The governmental entity shall select the design=builder 16 31 receiving the highest score based on the selection criteria 16 32 and scoring methodology specified in the request for 16 33 proposals. The governmental entity shall proceed to negotiate 16 34 with and attempt to enter into a contract with the selected 16 35 design=builder to serve as the design=builder for the public 17 1 project. If the governmental entity is unable to negotiate a 17 2 satisfactory contract with the selected design=builder, 17 3 negotiations with that design=builder shall be terminated, and 17 4 the governmental entity shall undertake negotiations with the 17 5 design=builder receiving the second highest score. If 17 6 negotiations cannot be successfully completed with the 17 7 design=builder receiving the second highest score, the 17 8 contract shall not be awarded. 17 9 8. If the governmental entity determines that it is not in 17 10 its best interest to proceed with the public project pursuant 17 11 to the proposals offered, the governmental entity shall reject 17 12 all proposals. If all proposals are rejected, the 17 13 governmental entity may solicit new statements of 17 14 qualifications and proposals using different design or budget 17 15 criteria. 17 16 9. As an inducement to qualified design=builders, the 17 17 governmental entity may pay a stipend, the amount of which 17 18 shall be established in the request for proposals, to each 17 19 design=builder who participates in phase II, but is not 17 20 selected as the design=builder for the public project. 17 21 SUBCHAPTER IV 17 22 DESIGN=BUILD PROJECT DELIVERY 17 23 QUALIFICATIONS=BASED SELECTION 17 24 Sec. 17. NEW SECTION. 26A.32 APPLICATION TO THE 17 25 COMMISSION. 17 26 1. When in the judgment of the governing body of a 17 27 governmental entity it is desirable to use design=build 17 28 services pursuant to a qualifications=based selection process 17 29 for the completion of a public project, the governmental 17 30 entity shall prepare a selection plan and submit an 17 31 application to the alternative project delivery commission 17 32 pursuant to section 26A.3, subsection 3. If the public 17 33 project is selected by the alternative project delivery 17 34 commission for inclusion in the pilot program, the 17 35 governmental entity shall select a design=builder in 18 1 accordance with the procedures of this subchapter. 18 2 2. A criteria consultant shall be employed or retained to 18 3 assist the governmental entity in preparing a request for 18 4 qualifications and a request for proposals. The criteria 18 5 consultant may be an employee of the governmental entity or an 18 6 individual retained specifically to assist the governmental 18 7 entity with the public project. The request for 18 8 qualifications and the request for proposals shall specify the 18 9 selection criteria and scoring methodology included in the 18 10 selection plan. The criteria consultant shall also assist the 18 11 governmental entity in selecting a design=builder. A criteria 18 12 consultant employed or retained by the governmental entity 18 13 shall not submit a statement of qualifications or a proposal 18 14 for the public project. 18 15 Sec. 18. NEW SECTION. 26A.33 QUALIFICATIONS=BASED 18 16 SELECTION PROCESS == GENERAL PROCEDURE. 18 17 The governmental entity shall select a design=builder for a 18 18 public project pursuant to a two=phase selection process. 18 19 1. Phase I of the selection process includes publication 18 20 of a request for qualifications by the governmental entity, 18 21 review of the statements of qualifications, and the selection 18 22 of a minimum of two but not more than five design=builders to 18 23 advance to phase II. 18 24 2. Phase II includes a request for proposals, the receipt 18 25 of proposals from those design=builders selected during phase 18 26 I, an interview with each design=builder that submits a 18 27 proposal, evaluation of each proposal, and selection of a 18 28 design=builder for the public project. 18 29 Sec. 19. NEW SECTION. 26A.34 PHASE I == REQUEST FOR 18 30 QUALIFICATIONS, STATEMENT, EVALUATION, AND SELECTION. 18 31 1. During phase I, the governmental entity shall publish 18 32 notice of a request for qualifications pursuant to the 18 33 requirements of section 26A.4. The request for qualifications 18 34 shall specify a time, place, and other specific instructions 18 35 for the submission of statements of qualifications. A 19 1 statement of qualifications not submitted according to the 19 2 instructions shall be rejected and returned to the 19 3 design=builder. 19 4 2. Each design=builder shall submit a statement of 19 5 qualifications that includes but is not limited to the 19 6 following information: 19 7 a. Similar project experience, including experience in the 19 8 design=build method of alternative project delivery. 19 9 b. Qualifications of proposed project personnel. 19 10 c. References from similar projects. 19 11 d. The design=builder's experience modification rating and 19 12 a description of the design=builder's safety plan. 19 13 e. Bonding capacity. Design=builders submitting a 19 14 statement of qualifications shall be capable of providing a 19 15 bond according to the requirements of chapter 573 and shall 19 16 include evidence of such bonding capacity with their statement 19 17 of qualifications. If a design=builder fails to include 19 18 evidence of bonding capacity, the design=builder shall be 19 19 deemed unqualified for selection under phase I. 19 20 f. Other information requested by the governmental entity 19 21 in accordance with the selection plan. 19 22 3. The governmental entity shall evaluate and score each 19 23 statement of qualifications received according to the 19 24 selection criteria and scoring methodology specified in the 19 25 request for qualifications. The cost or fees associated with 19 26 a public project shall not be considered by the governmental 19 27 entity when evaluating a statement of qualifications. 19 28 4. The governmental entity shall select a minimum of two 19 29 and a maximum of five design=builders who have the highest 19 30 scores to proceed to phase II. Scores assigned during phase I 19 31 shall not carry forward to phase II. The governmental entity 19 32 shall have discretion to disqualify any design=builder that 19 33 lacks the minimum qualifications required to perform the 19 34 design=build services for the public project. If two 19 35 qualified design=builders cannot be identified, the 20 1 design=builder selection process shall cease. If all 20 2 design=builders are rejected, the governmental entity may 20 3 solicit new statements of qualifications and proposals using 20 4 different design and budget criteria. 20 5 Sec. 20. NEW SECTION. 26A.35 PHASE II == REQUEST FOR 20 6 PROPOSALS, PROPOSAL REVIEW, SELECTION, AND NEGOTIATION. 20 7 1. During phase II, each design=builder selected during 20 8 phase I shall be given a request for proposals. The request 20 9 for proposals shall include but is not limited to the 20 10 following information: 20 11 a. The procedures to be followed in submitting proposals 20 12 and information relating to design=builder interviews under 20 13 subsection 2. 20 14 b. The selection criteria and scoring methodology for the 20 15 proposals. 20 16 c. Information related to the requirements, 20 17 specifications, budget, and schedule for the public project, 20 18 including requirements and specifications for design services, 20 19 preconstruction services, and construction services. 20 20 d. The proposed terms and conditions for the public 20 21 project contract. 20 22 e. Other information requested by the governmental entity 20 23 in accordance with the selection plan. 20 24 2. After the deadline for submission of proposals has 20 25 passed, the governmental entity shall interview each 20 26 design=builder that has submitted a proposal individually, 20 27 allowing each design=builder to present the design=builder's 20 28 proposed team members, qualifications, and proposal, and to 20 29 answer questions from the governmental entity. 20 30 3. The governmental entity shall score each proposal based 20 31 on the selection criteria and scoring methodology specified in 20 32 the request for proposals. The governmental entity shall 20 33 proceed to negotiate with and attempt to enter into an interim 20 34 design=build contract with the design=builder receiving the 20 35 highest score to serve as the design=builder for the public 21 1 project. If the governmental entity is unable to negotiate a 21 2 satisfactory contract with the design=builder with the highest 21 3 total score, negotiations with that design=builder shall be 21 4 terminated and the governmental entity shall undertake 21 5 negotiations with the design=builder receiving the second 21 6 highest score. If negotiations cannot be successfully 21 7 completed with the design=builder receiving the second highest 21 8 score, the contract shall not be awarded. 21 9 4. If the governmental entity determines that it is not in 21 10 its best interest to proceed with the public project pursuant 21 11 to the proposals offered, the governmental entity shall reject 21 12 all proposals. If all proposals are rejected, the 21 13 governmental entity may solicit new statements of 21 14 qualifications and proposals using different design or budget 21 15 criteria. 21 16 Sec. 21. NEW SECTION. 26A.36 CONTRACT == PERFORMANCE OF 21 17 CERTAIN SERVICES. 21 18 1. Following completion of construction documents and all 21 19 subcontractor bidding, the design=builder shall provide the 21 20 governmental entity with a guaranteed maximum cost which shall 21 21 be included in the contract for design=build services. The 21 22 contract to perform design=build services shall be prepared by 21 23 the governmental entity and entered into between the 21 24 governmental entity and the design=builder. 21 25 2. Portions or subcontracts of the public project shall be 21 26 let to the lowest responsible bidder pursuant to applicable 21 27 requirements of law other than this chapter. The governmental 21 28 entity may allow the design=builder to self=perform design or 21 29 construction services if the design=builder submits a bid 21 30 proposal under the same conditions as all other competitive 21 31 bidders. All bid proposals submitted by the design=builder 21 32 for self=performance shall be opened simultaneously and 21 33 evaluated in the presence of a representative of the 21 34 governmental entity. 21 35 EXPLANATION 22 1 This bill establishes a new Code chapter 26A that creates 22 2 an alternative project delivery commission and an alternative 22 3 project delivery pilot program. 22 4 Subchapter I of new Code chapter 26A establishes an 22 5 alternative project delivery commission consisting of nine 22 6 members, one member appointed by each of the following: the 22 7 state board of regents; the director of the department of 22 8 administrative services; the Iowa association of school 22 9 boards; the Iowa state building and construction trades 22 10 council; the Iowa chapter of the American institute of 22 11 architects; the American council of engineering companies of 22 12 Iowa; the Iowa chapter of the design=build institute of 22 13 America; the master builders of Iowa; and the mechanical 22 14 contractors association of Iowa. The bill establishes quorum, 22 15 meeting, voting, and conflict of interest requirements for the 22 16 commission, designates the member appointed by the board of 22 17 regents as the commission chairperson, and authorizes the 22 18 commission to adopt policies and procedures to carry out the 22 19 duties of the commission. Members of the commission shall be 22 20 reimbursed for their necessary and actual expenses from fees 22 21 paid by the governmental entities participating in the 22 22 alternative project delivery pilot program. 22 23 Subchapter I also establishes an alternative project 22 24 delivery pilot program under the authority of the alternative 22 25 project delivery commission. The purpose of the pilot program 22 26 is to determine whether alternative project delivery methods 22 27 are financially beneficial and efficient for governmental 22 28 entities in completing public projects. The bill defines 22 29 "governmental entity" as the department of administrative 22 30 services, a school district, a public hospital, or an 22 31 institution under the control of the state board of regents. 22 32 Subchapter I limits the pilot program to no more than 10 22 33 public projects, as defined in the bill. The commission is 22 34 responsible for selecting the public projects for inclusion in 22 35 the pilot program based on applications submitted by the 23 1 governmental entities. The commission must select the public 23 2 projects no later than November 1, 2010. Each of the 10 23 3 public projects must be completed using one of the three 23 4 alternative project delivery methods established in the bill. 23 5 The commission is required to prepare and file a report with 23 6 the governor and the general assembly on or before January 15, 23 7 2012. The report is required to detail the activities of the 23 8 commission and provide a summary of each public project in the 23 9 pilot program, including information related to cost savings 23 10 to the governmental entity, if any. 23 11 Subchapter I also specifies publication requirements for 23 12 public notices provided by the governmental entity during the 23 13 alternative project delivery procedures and provides that 23 14 certain documents and information related to the alternative 23 15 project delivery procedures must be made available for public 23 16 inspection after the award or letting of the contract. 23 17 Subchapters II, III, and IV of new Code chapter 26A 23 18 establish three alternative project delivery procedures for 23 19 use by the governmental entities selected for inclusion in the 23 20 pilot program. For each of the three alternative project 23 21 delivery procedures, the governmental entity is required to 23 22 employ or retain a criteria consultant to assist in the 23 23 preparation of a request for qualifications and a request for 23 24 proposals. Each of the alternative project delivery 23 25 procedures is conducted in two phases. 23 26 Subchapter II of new Code chapter 26A provides the 23 27 requirements and procedures for construction management 23 28 project delivery and for the selection of a construction 23 29 manager. Under subchapter II, the governmental entity is 23 30 required to employ a design professional to design the public 23 31 project and prepare the construction documents for the public 23 32 project. Phase I of the construction manager selection 23 33 process includes publication of a request for qualifications 23 34 by the governmental entity, review of the statements of 23 35 qualifications, and the selection of a minimum of two but not 24 1 more than five construction managers to advance to phase II. 24 2 Phase II includes a request for proposals, the receipt of 24 3 proposals from those construction managers selected during 24 4 phase I, an interview with each construction manager that 24 5 submits a proposal, evaluation of each proposal, and selection 24 6 of a construction manager for the public project. 24 7 Subchapter III of new Code chapter 26A provides the 24 8 requirements and procedures for design=build best value 24 9 project delivery and for the selection of a design=builder. 24 10 Phase I of the design=builder selection process includes 24 11 publication of a request for qualifications by the 24 12 governmental entity, review of the statements of 24 13 qualifications, and the selection of a minimum of two but not 24 14 more than five design=builders to advance to phase II. Phase 24 15 II includes a request for proposals, the receipt of proposals 24 16 from those design=builders selected during phase I, including 24 17 a separate cost and schedule proposal, an interview with each 24 18 design=builder that submits a proposal, evaluation of each 24 19 proposal, and selection of a design=builder for the public 24 20 project. 24 21 Subchapter IV of new Code chapter 26A provides the 24 22 requirements and procedures for design=build 24 23 qualifications=based project delivery and for the selection of 24 24 a design=builder. Phase I of the design=builder selection 24 25 process includes publication of a request for qualifications 24 26 by the governmental entity, review of the statements of 24 27 qualifications, and the selection of a minimum of two but not 24 28 more than five design=builders to advance to phase II. Phase 24 29 II includes a request for proposals, the receipt of proposals 24 30 from those design=builders selected during phase I, an 24 31 interview with each design=builder that submits a proposal, 24 32 evaluation of each proposal, and selection of a design=builder 24 33 for the public project. 24 34 LSB 1733HV 83 24 35 md/nh/14