House Study Bill 203 HOUSE FILE BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON MASCHER) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act establishing alternative project delivery procedures for 2 certain public projects undertaken by political subdivisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1733HC 83 5 md/nh/14 PAG LIN 1 1 SUBCHAPTER I 1 2 ALTERNATIVE PROJECT DELIVERY 1 3 Section 1. NEW SECTION. 26A.1 SHORT TITLE. 1 4 This chapter shall be known and may be cited as the "Iowa 1 5 Alternative Project Delivery Act". 1 6 Sec. 2. NEW SECTION. 26A.2 DEFINITIONS. 1 7 As used in this chapter, unless the context clearly 1 8 indicates otherwise: 1 9 1. "Alternative project delivery" means a method of 1 10 procuring and delivering design and construction services 1 11 through an integrated comprehensive design and construction 1 12 process, including all procedures, actions, sequences of 1 13 events, contractual relations, obligations, interrelations, 1 14 and various forms of agreement all aimed at the successful 1 15 completion of the design and construction of a public project, 1 16 whereby a construction manager or design=builder is selected 1 17 according to a qualifications=based or best value selection. 1 18 2. "Best value selection" means the selection of a 1 19 construction manager or a design=builder based upon a 1 20 combination of project cost, qualifications, and other 1 21 factors. 1 22 3. "Construction documents" means the drawings, 1 23 specifications, technical submissions, and other documents 1 24 upon which a construction project is based. 1 25 4. "Construction management contract" means a contract 1 26 whereby a political subdivision acquires from a construction 1 27 manager a series of preconstruction services and a financial 1 28 obligation to carry out construction for a specified cost or 1 29 guaranteed maximum cost agreement. A construction manager is 1 30 not responsible for professional architectural services, as 1 31 defined in section 544A.16, for a public project if such 1 32 services are contracted for independent of the construction 1 33 management contract. 1 34 5. "Construction management services" means an alternative 1 35 project delivery method whereby services are provided by a 2 1 construction manager which has entered into a construction 2 2 management contract with a political subdivision to be the 2 3 construction manager for a public project for the compensation 2 4 and schedule specified in the contract, which is to hold the 2 5 trade contracts or subcontracts and execute the work for a 2 6 project in a manner similar to a general contractor, and which 2 7 is required to solicit competitive bids for the trade packages 2 8 or subcontracts developed for the public project and to enter 2 9 into the trade contracts or subcontracts for the public 2 10 project with the lowest responsible bidder. Construction 2 11 management services may include but are not limited to 2 12 scheduling, value analysis, system analysis, constructability 2 13 reviews, progress document reviews, subcontractor involvement 2 14 and prequalification, subcontractor bonding policy, budgeting 2 15 and price guarantees, and construction coordination. 2 16 6. "Construction manager" means an individual, 2 17 partnership, joint venture, corporation, or other legal entity 2 18 that utilizes skill and knowledge of general contracting to 2 19 perform preconstruction services and that competitively 2 20 procures and contracts with specialty contractors, assuming 2 21 the responsibility and the risk for construction delivery 2 22 within a specified cost and schedule. 2 23 7. "Construction services" means the process of planning, 2 24 acquiring, building, equipping, altering, repairing, 2 25 improving, or demolishing any structure or appurtenance 2 26 thereto, including facilities, utilities, or other 2 27 improvements to real property, but excluding highways, roads, 2 28 bridges, dams, or stand=alone parking lots. 2 29 8. "Design professional" means an individual, partnership, 2 30 joint venture, corporation, or other legal entity that is 2 31 engaged in the business of providing professional design 2 32 services. A design professional shall be licensed to practice 2 33 architecture, engineering, or landscape architecture, or be 2 34 registered to practice interior design in this state. 2 35 9. "Design=build services" means a method of alternative 3 1 project delivery for which both design and construction 3 2 services are provided under one contract. "Design=build 3 3 services" may include architecture, engineering, and related 3 4 design services required for a given project and the labor, 3 5 materials, and other construction services for the project. 3 6 10. "Design=builder" means an individual, partnership, 3 7 joint venture, corporation, or other legal entity that 3 8 furnishes design=build services, whether by itself or through 3 9 subcontracts. 3 10 11. "Estimated total cost" means the estimated total cost 3 11 to a political subdivision to construct a public project, 3 12 including the cost of labor, materials, equipment, supplies, 3 13 and fees. 3 14 12. "Fee" means an amount, in excess of actual materials 3 15 costs, paid to a construction manager or design=builder for 3 16 services provided. 3 17 13. "General conditions" means work associated with the 3 18 on=site management of administrative personnel, equipment, and 3 19 utilities, including incidental work and minor field labor 3 20 associated with a construction project. 3 21 14. "Guaranteed maximum cost" means the cost of the 3 22 project as defined in the contract between the political 3 23 subdivision and the construction manager or between the 3 24 political subdivision and the design=builder. 3 25 15. "Political subdivision" means a public body or 3 26 corporation other than the state or a state agency that has 3 27 power to levy or certify a tax or sum of money to be collected 3 28 by taxation. 3 29 16. "Preconstruction services" means a series of services 3 30 including but not limited to design review, scheduling, 3 31 estimating, cost control, value engineering, constructability 3 32 evaluation, and preparation and coordination of bid packages. 3 33 17. "Public project" means a project under the control of 3 34 a political subdivision that is paid for in whole or in part 3 35 with funds of the political subdivision, including a building 4 1 or improvement constructed or operated jointly with any other 4 2 public or private agency. A "public project" may include 4 3 planning, acquiring, designing, building, equipping, altering, 4 4 repairing, improving, or demolishing any structure or 4 5 appurtenance thereto, including facilities, utilities, or 4 6 other improvements to any real property owned by the political 4 7 subdivision, but excluding highways, roads, bridges, dams, or 4 8 stand=alone parking lots. However, a parking lot included as 4 9 part of the site work of a public project may be included as 4 10 part of a construction management contract or a design=build 4 11 services contract. Parking ramps and parking garages are not 4 12 considered to be parking lots and may be a "public project" 4 13 constructed utilizing alternative project delivery methods. 4 14 18. "Qualifications=based selection" means a selection 4 15 process based on both a qualitative component and a cost 4 16 component that is specific to fees, expenses related to 4 17 general conditions, and self=performed services. 4 18 19. "Qualified professional" means an individual, 4 19 partnership, joint venture, corporation, or other legal entity 4 20 that has obtained professional licensure or who has 4 21 significant professional experience in a field related to a 4 22 proposed public project. 4 23 20. "Selection committee" means a group of individuals 4 24 appointed by the governing body of a political subdivision for 4 25 the purpose of selecting a construction manager or a 4 26 design=builder for a specific public project. A selection 4 27 committee shall have three, five, or seven members. An 4 28 individual shall not serve on a selection committee if the 4 29 individual has a pecuniary, equitable, or other interest in 4 30 the public project or conditions exist that would interfere 4 31 with the individual's ability to properly discharge the duties 4 32 of the selection committee. 4 33 21. "User delay value" means the estimated daily costs 4 34 that a political subdivision may incur as a result of 4 35 inability to enter into possession, occupancy, or use of a 5 1 building or structure. 5 2 Sec. 3. NEW SECTION. 26A.3 AUTHORIZATION. 5 3 Notwithstanding chapter 26, 73A, or 573, or any other 5 4 provision of law to the contrary, a political subdivision may 5 5 utilize the alternative project delivery procedures under this 5 6 chapter to procure construction management services or 5 7 design=build services related to the completion of a public 5 8 project. 5 9 Sec. 4. NEW SECTION. 26A.4 PUBLIC NOTICE. 5 10 For each alternative project delivery method for a public 5 11 project under this chapter, a political subdivision shall 5 12 publish public notices as follows: 5 13 1. The notice shall be published at least once, not less 5 14 than fifteen and not more than forty=five days before the date 5 15 for filing submissions, if applicable, in a newspaper 5 16 published at least once weekly and having general circulation 5 17 in the geographic area served by the political subdivision. 5 18 2. The notice may also be published in a relevant 5 19 contractor organization publication and a relevant contractor 5 20 plan room service with statewide circulation, provided that a 5 21 notice is posted on an internet website sponsored by either 5 22 the political subdivision or a statewide association that 5 23 represents the political subdivision. 5 24 Sec. 5. NEW SECTION. 26A.5 PUBLIC RECORDS. 5 25 Each proposal received by a political subdivision under 5 26 this chapter, together with the name of the proposer, after 5 27 award or letting of the contract, is subject to public 5 28 inspection upon request. The political subdivision shall, 5 29 within five days after award or letting of the contract, 5 30 publish notice of the name of the successful proposer 5 31 including the proposer's phase II and phase III scores and 5 32 adjusted final score received pursuant to the selection 5 33 process under subchapter II, III, or IV. In addition, such 5 34 notice shall include the names of all proposers whose 5 35 proposals were not selected, together with the proposers' 6 1 phase II and phase III scores and the final adjusted score for 6 2 each. 6 3 Sec. 6. NEW SECTION. 26A.6 PROHIBITION ON PROVIDING 6 4 FINANCING. 6 5 The construction manager or design=builder executing the 6 6 construction or design of a public project utilizing an 6 7 alternative project delivery method under this chapter shall 6 8 not provide any financing, funding, or facility operations for 6 9 the public project. 6 10 SUBCHAPTER II 6 11 CONSTRUCTION MANAGEMENT 6 12 PROJECT DELIVERY 6 13 Sec. 7. NEW SECTION. 26A.11 CONSTRUCTION MANAGEMENT 6 14 PROJECTS. 6 15 Construction management alternative project delivery 6 16 procedures shall be conducted as provided in this subchapter. 6 17 Sec. 8. NEW SECTION. 26A.12 SELECTION COMMITTEE. 6 18 1. When in the judgment of the governing body of a 6 19 political subdivision it is necessary to use construction 6 20 management services, the governing body of the political 6 21 subdivision shall establish a selection committee for the 6 22 purpose of selecting a construction manager for the public 6 23 project. Prior to completion of the construction documents 6 24 for the public project, and as early as during the schematic 6 25 design phase, the construction manager shall be selected. The 6 26 political subdivision shall determine the scope and level of 6 27 detail required to permit qualified construction managers to 6 28 submit proposals according to the request for qualifications 6 29 and the request for proposals, given the nature of the public 6 30 project. The request for qualifications and the request for 6 31 proposals shall specify the selection criteria and scoring 6 32 methodology used in the evaluation and selection process. 6 33 2. A qualified professional shall be employed or retained 6 34 by the political subdivision to assist the selection committee 6 35 in the selection of a construction manager. The qualified 7 1 professional may be an employee of the political subdivision, 7 2 the design professional employed or retained under subsection 7 3 3, or an individual retained specifically to assist the 7 4 political subdivision on the public project. 7 5 3. The political subdivision shall employ a design 7 6 professional to design the public project, prepare the 7 7 construction documents for the project, and provide 7 8 administrative services in connection with the design of the 7 9 project. The design professional shall be selected and its 7 10 contract negotiated pursuant to a competitive bidding process. 7 11 Sec. 9. NEW SECTION. 26A.13 SELECTION PROCESS == GENERAL 7 12 PROCEDURE. 7 13 The political subdivision shall solicit proposals under 7 14 this subchapter pursuant to a three=phase, 7 15 qualifications=based selection process. 7 16 1. Phase I of the selection process includes publication 7 17 of a request for qualifications by the political subdivision, 7 18 review of the statements of qualifications, and the selection 7 19 of a minimum of two but not more than five construction 7 20 managers to advance to phase II. 7 21 2. Phase II includes a request for proposals and the 7 22 receipt of proposals from those construction managers selected 7 23 during phase I. 7 24 3. Phase III includes an interview with each construction 7 25 manager that submits a proposal during phase II, evaluation of 7 26 each proposal by the selection committee, and selection of a 7 27 construction manager for the public project. 7 28 Sec. 10. NEW SECTION. 26A.14 PHASE I == REQUEST FOR 7 29 QUALIFICATIONS, STATEMENT, EVALUATION, AND SELECTION. 7 30 1. During phase I the political subdivision shall publish 7 31 notice of a request for qualifications pursuant to the 7 32 requirements of section 26A.4. The political subdivision 7 33 shall specify in the request for qualifications a time, place, 7 34 and other specific instructions for the receipt of the 7 35 statements of qualifications. A statement of qualifications 8 1 not submitted according to the instructions shall be rejected 8 2 and returned to the construction manager. 8 3 2. Each construction manager shall submit a statement of 8 4 qualifications that includes but is not limited to the 8 5 following information: 8 6 a. Similar project experience. 8 7 b. Experience in the construction management method of 8 8 alternative project delivery. 8 9 c. References from design professionals and owners from 8 10 previous projects. 8 11 d. A description of the construction manager's project 8 12 management approach. 8 13 e. The construction manager's experience modification 8 14 rating and a description of the construction manager's safety 8 15 plan. 8 16 f. A description of the construction manager's experience 8 17 and philosophy towards sustainable design and construction. 8 18 g. Bonding capacity. Construction managers submitting a 8 19 statement of qualifications shall be capable of providing a 8 20 bond according to the requirements of chapter 573 and shall 8 21 include evidence of such bonding capacity with their statement 8 22 of qualifications. If a construction manager fails to include 8 23 evidence of bonding capacity, that construction manager shall 8 24 be deemed unqualified for selection under phase I. 8 25 3. The selection committee shall evaluate and score each 8 26 statement of qualifications received according to the 8 27 predetermined selection criteria and scoring methodology that 8 28 were specified in the instructions of the request for 8 29 qualifications. The cost or fees associated with a project 8 30 shall not be considered by the selection committee when 8 31 evaluating a statement of qualifications. 8 32 4. The selection committee shall select a minimum of two 8 33 and a maximum of five qualified construction managers, who 8 34 have the best and most relevant qualifications to perform the 8 35 services required of the public project, to participate in 9 1 phase II of the selection process. Scores assigned in the 9 2 phase I evaluation process shall not carry forward to phase 9 3 II. If two qualified construction managers cannot be 9 4 identified, the selection process shall cease. The selection 9 5 committee shall have discretion to disqualify any construction 9 6 manager that lacks the minimum qualifications required to 9 7 perform the work. 9 8 Sec. 11. NEW SECTION. 26A.15 PHASE II == REQUEST FOR 9 9 PROPOSALS. 9 10 During phase II of the selection process, each construction 9 11 manager selected during phase I shall be given a request for 9 12 proposal. Each construction manager shall submit more 9 13 detailed responses and a proposal that includes but is not 9 14 limited to the following information: 9 15 1. Resumes of proposed project personnel. 9 16 2. An overview of preconstruction services and 9 17 construction services to be provided. 9 18 3. An overview of construction control processes. 9 19 4. A proposed construction safety plan. 9 20 5. Project=specific sustainability proposals and 9 21 recommendations. 9 22 6. Fees and costs, including detailed estimates of general 9 23 conditions and preconstruction costs, and fees for overhead 9 24 and profit including fees for overhead and profit for 9 25 self=performed construction services, if applicable. General 9 26 conditions and preconstruction estimates shall include 9 27 quantities and unit prices to illustrate how estimated total 9 28 costs were calculated. 9 29 Sec. 12. NEW SECTION. 26A.16 PHASE III == PROPOSAL 9 30 REVIEW, SELECTION, AND NEGOTIATION. 9 31 Phase III of the selection process shall be conducted as 9 32 follows: 9 33 1. After the deadline for submission of proposals has 9 34 passed, the selection committee shall interview each 9 35 construction manager that has submitted a proposal 10 1 individually, allowing each construction manager to present 10 2 their proposed team members, qualifications, and project plan, 10 3 and to answer questions from the selection committee. 10 4 Interview scores shall not account for more than fifty percent 10 5 of the total evaluation criteria. 10 6 2. The selection committee shall score each construction 10 7 manager based on the proposal criteria and weighting factors 10 8 identified by the political subdivision in the request for 10 9 qualifications and the request for proposals. The political 10 10 subdivision shall proceed to negotiate with and attempt to 10 11 enter into a preconstruction contract with the construction 10 12 manager receiving the highest score to serve as the 10 13 construction manager for the public project. If the political 10 14 subdivision is unable to negotiate a satisfactory contract 10 15 with the construction manager with the highest total score, 10 16 negotiations with that construction manager shall be 10 17 terminated and the political subdivision shall undertake 10 18 negotiations with the construction manager receiving the 10 19 second highest score. If negotiations cannot be successfully 10 20 completed with the construction manager receiving the second 10 21 highest score, the contract shall not be awarded. 10 22 3. If the selection committee determines that it is not in 10 23 the best interest of the political subdivision to proceed with 10 24 the public project pursuant to the proposals offered, the 10 25 selection committee shall recommend that the political 10 26 subdivision reject all proposals. If all proposals are 10 27 rejected, the political subdivision may solicit new statements 10 28 of qualifications and proposals using different design or 10 29 budget criteria. 10 30 Sec. 13. NEW SECTION. 26A.17 CONTRACT == PERFORMANCE OF 10 31 CERTAIN SERVICES. 10 32 1. The contract to perform construction management 10 33 services for a public project shall be prepared by the 10 34 political subdivision and entered into between the political 10 35 subdivision and the construction manager performing such 11 1 construction management services at the cessation of the 11 2 design process. The contract shall include the fee structure 11 3 submitted by the construction manager in its proposal. 11 4 Following completion of construction documents and all 11 5 subcontractor bidding, the construction manager shall provide 11 6 the political subdivision with a guaranteed maximum price. 11 7 2. a. Those portions or subcontracts of the public 11 8 project with an estimated cost greater than ten percent of the 11 9 estimated total cost of the public project may be accomplished 11 10 using any alternative project delivery selection process under 11 11 this chapter. 11 12 b. For portions or subcontracts of the public project with 11 13 an estimated cost of ten percent or less of the estimated 11 14 total cost of the project, contracts shall be let to the 11 15 lowest responsible bidder pursuant to applicable requirements 11 16 of law other than this chapter. The political subdivision may 11 17 allow the construction manager to self=perform construction 11 18 services if the construction manager submits a bid proposal 11 19 under the same conditions as all other competitive bidders. 11 20 All bid proposals submitted by the construction manager for 11 21 self=performance shall be opened simultaneously and evaluated 11 22 in the presence of a representative of the political 11 23 subdivision. 11 24 SUBCHAPTER III 11 25 DESIGN=BUILD PROJECT DELIVERY 11 26 BEST VALUE SELECTION 11 27 Sec. 14. NEW SECTION. 26A.21 DESIGN=BUILD PROJECT 11 28 DELIVERY == BEST VALUE SELECTION. 11 29 Design=build alternative project delivery procedures 11 30 utilizing the best value selection method for selection of a 11 31 design=builder shall be conducted as provided in this 11 32 subchapter. 11 33 Sec. 15. NEW SECTION. 26A.22 SELECTION COMMITTEE. 11 34 1. When in the judgment of the governing body of a 11 35 political subdivision it is necessary to use design=build 12 1 services pursuant to a best value selection process, the 12 2 governing body of the political subdivision shall establish a 12 3 selection committee for the purpose of selecting a 12 4 design=builder for the public project. The political 12 5 subdivision shall determine the scope and level of detail 12 6 required to permit qualified design=builders to submit 12 7 proposals according to the request for qualifications and the 12 8 request for proposals given the nature of the public project. 12 9 The request for qualifications and the request for proposals 12 10 shall specify the selection criteria and scoring methodology 12 11 used in the evaluation and selection process. 12 12 2. A qualified professional shall be employed or retained 12 13 by the political subdivision to assist the selection committee 12 14 in the selection of a design=builder. The qualified 12 15 professional may be a current employee of the political 12 16 subdivision or an individual retained specifically to assist 12 17 the political subdivision on the public project. A qualified 12 18 professional employed or retained by the political subdivision 12 19 may not submit a statement of qualifications or a design=build 12 20 proposal for the public project. 12 21 Sec. 16. NEW SECTION. 26A.23 BEST VALUE SELECTION 12 22 PROCESS == GENERAL PROCEDURE. 12 23 The political subdivision shall solicit proposals under 12 24 this subchapter pursuant to a three=phase, best value 12 25 selection process. 12 26 1. Phase I of the selection process includes publication 12 27 of a request for qualifications by the political subdivision, 12 28 review of the statements of qualifications, and the selection 12 29 of a minimum of two but not more than five design=builders to 12 30 advance to phase II. 12 31 2. Phase II includes a request for proposals and the 12 32 receipt of proposals from those design=builders selected 12 33 during phase I. 12 34 3. Phase III includes submission of a cost and schedule 12 35 proposal from each design=builder, evaluation of each proposal 13 1 received during phase II and of the cost and schedule proposal 13 2 by the selection committee, and selection of a design=builder 13 3 for the public project. 13 4 Sec. 17. NEW SECTION. 26A.24 PHASE I == REQUEST FOR 13 5 QUALIFICATIONS, STATEMENT, EVALUATION, AND SELECTION. 13 6 1. During phase I of the selection process, the political 13 7 subdivision shall publish notice of a request for 13 8 qualifications pursuant to the requirements of section 26A.4. 13 9 The political subdivision shall specify in the request for 13 10 qualifications a time, place, and other specific instructions 13 11 for the receipt of statements of qualifications. A statement 13 12 of qualifications not submitted according to the instructions 13 13 shall be rejected and returned to the design=builder. 13 14 2. Each design=builder shall submit a statement of 13 15 qualifications that includes but is not limited to the 13 16 following information: 13 17 a. Demonstrated ability to perform projects comparable in 13 18 design, scope, and complexity. 13 19 b. References of owners for whom design=build projects 13 20 have been performed. 13 21 c. Qualifications of personnel who will manage the design 13 22 and construction aspects of the public project. 13 23 d. The names and qualifications of the primary design 13 24 consultants and contractors with whom the design=builder 13 25 proposes to subcontract. The design=builder may not replace 13 26 an identified contractor or consultant without the written 13 27 approval of the political subdivision. 13 28 e. Bonding capacity. Design=builders submitting a 13 29 statement of qualifications shall be capable of providing a 13 30 bond according to the requirements of chapter 573, and shall 13 31 include evidence of such bonding capacity with their statement 13 32 of qualifications. If a design=builder fails to include 13 33 evidence of bonding capacity, that design=builder shall be 13 34 deemed unqualified for selection under phase I. 13 35 3. The selection committee shall evaluate and score each 14 1 statement of qualifications received according to the 14 2 predetermined selection criteria and scoring methodology that 14 3 were specified in the instructions of the request for 14 4 qualifications. The cost or fees associated with a public 14 5 project shall not be considered by the selection committee 14 6 when evaluating a statement of qualifications. 14 7 4. The selection committee shall select a minimum of two 14 8 and a maximum of five design=builders who have the highest 14 9 scores to proceed to phase II. Scores assigned in the phase I 14 10 evaluation process shall not carry forward to phase II. The 14 11 selection committee shall have discretion to disqualify any 14 12 design=builder that lacks the minimum qualifications required 14 13 to perform the work. If two qualified design=builders cannot 14 14 be identified, the design=builder selection process shall 14 15 cease. If all design=builders are rejected, the political 14 16 subdivision may solicit new proposals using different design 14 17 and budget criteria. 14 18 Sec. 18. NEW SECTION. 26A.25 PHASE II == REQUEST FOR 14 19 PROPOSALS. 14 20 1. During phase II of the selection process, each 14 21 design=builder selected during phase I shall be given a 14 22 request for proposals. The political subdivision shall 14 23 specify in the request for proposals a time, place, and other 14 24 specific instructions for the receipt of proposals. A 14 25 proposal not submitted according to the instructions shall be 14 26 rejected and returned to the design=builder. The request for 14 27 proposals shall include but is not limited to the following 14 28 information: 14 29 a. The criteria for evaluation of proposals and their 14 30 relative weight, and the procedures for making awards. 14 31 b. The proposed terms and conditions for the design=build 14 32 contract. 14 33 c. The design criteria package. 14 34 d. A description of the drawings, specifications, or other 14 35 information to be submitted with the proposal, with guidance 15 1 as to the form and level of completeness of the drawings, 15 2 specifications, or other information that will be acceptable. 15 3 e. A schedule for planned commencement and completion of 15 4 the design=build contract. 15 5 f. Budget limits for the design=build contract, if any. 15 6 g. Requirements, including any available ratings for 15 7 performance bonds, payment bonds, and insurance. 15 8 h. Requirements relating to trade packages or subcontracts 15 9 that may be procured by the design=builder. Trade packages or 15 10 subcontracts which the design=builder chooses to include in 15 11 their proposal shall be identified by company name in the 15 12 proposal. Trade packages or subcontracts chosen for inclusion 15 13 by the design=builder must have an estimated cost greater than 15 14 ten percent of the estimated total cost of the public project 15 15 with the exception of work to be self=performed by the 15 16 design=builder. For all other trade packages or subcontracts, 15 17 except work to be self=performed by the design=builder, the 15 18 political subdivision shall advertise for public competitive 15 19 bids as required by other applicable law. 15 20 i. Any other information that the political subdivision in 15 21 its discretion chooses to supply including without limitation, 15 22 surveys, soil reports, drawings of existing structures, 15 23 environmental studies, photographs, or references to public 15 24 records. 15 25 2. Each design=builder selected during phase I shall 15 26 submit a proposal to the selection committee. 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 selection committee shall evaluate and score each proposal 15 30 according to the requirements of the request for proposals. 15 31 Sec. 19. NEW SECTION. 26A.26 PHASE III == COST AND 15 32 SCHEDULE PROPOSALS == REVIEW OF PROPOSALS. 15 33 Phase III of the selection process shall be conducted as 15 34 follows: 15 35 1. Each design=builder that submitted a proposal in 16 1 response to the request for proposals during phase II, shall 16 2 also provide the selection committee with a cost and schedule 16 3 proposal. A proposal submitted under section 26A.25 and the 16 4 cost and schedule proposal may be submitted sequentially or 16 5 concurrently, according to the requirements of the request for 16 6 proposals. Failure to submit a cost and schedule proposal 16 7 according to the delivery requirements of the request for 16 8 proposals shall be grounds to reject the proposal. 16 9 2. The cost and schedule proposal shall include all of the 16 10 following: 16 11 a. A guaranteed maximum price for the public project. 16 12 b. A bid security pursuant to chapter 573. 16 13 c. A proposed contract time, in calendar days, for 16 14 completing the public project. If the proposed contract time 16 15 is an element of evaluation, the request for proposals shall 16 16 specify a user delay value for each proposed calendar day 16 17 identified in the proposal. 16 18 d. Any other information required by the request for 16 19 proposals. 16 20 3. The cost and schedule proposals shall be opened only 16 21 after all proposals submitted under section 26A.25 have been 16 22 evaluated and scored. The cost and schedule proposals shall 16 23 be opened and read aloud at the time and place specified in 16 24 the request for proposals. At the same time and place that 16 25 the cost and schedule proposals are opened, the selection 16 26 committee shall make public its scoring of the proposals 16 27 submitted under section 26A.25. Cost and schedule proposals 16 28 shall be evaluated and scored according to the requirements of 16 29 the request for proposals. 16 30 4. Scores received during phase I of the selection process 16 31 shall not carry forward. All qualified design=builders shall 16 32 be ranked on scores given in phases II and III only. The 16 33 phase II and phase III scores shall be combined to determine a 16 34 total score. 16 35 5. The selection committee shall select the design=builder 17 1 receiving the highest total score based on the proposal 17 2 criteria and weighting factors identified by the political 17 3 subdivision in the request for proposals. The political 17 4 subdivision shall proceed to negotiate with and attempt to 17 5 enter into a preconstruction contract with the selected 17 6 design=builder to serve as the design=builder for the public 17 7 project. If the political subdivision is unable to negotiate 17 8 a satisfactory contract with the selected design=builder, 17 9 negotiations with that design=builder shall be terminated, and 17 10 the political subdivision shall undertake negotiations with 17 11 the design=builder receiving the second highest score. If 17 12 negotiations cannot be successfully completed with the 17 13 design=builder receiving the second highest score, the 17 14 contract shall not be awarded. 17 15 6. If the selection committee determines that it is not in 17 16 the best interest of the political subdivision to proceed with 17 17 the public project pursuant to the proposals offered, the 17 18 selection committee shall recommend that the political 17 19 subdivision reject all proposals. If all proposals are 17 20 rejected, the political subdivision may solicit new statements 17 21 of qualifications and proposals using different design or 17 22 budget criteria. 17 23 7. As an inducement to qualified design=builders, the 17 24 political subdivision may pay a stipend, the amount of which 17 25 shall be established in the request for proposals, to each 17 26 design=builder who participates in phase II and phase III, but 17 27 is not selected as the design=builder for the public project. 17 28 SUBCHAPTER IV 17 29 DESIGN=BUILD PROJECT DELIVERY 17 30 QUALIFICATIONS=BASED SELECTION 17 31 Sec. 20. NEW SECTION. 26A.31 DESIGN=BUILD PROJECT 17 32 DELIVERY == QUALIFICATIONS=BASED SELECTION. 17 33 Design=build alternative project delivery procedures 17 34 utilizing the qualifications=based selection method for 17 35 selection of a design=builder shall be conducted as provided 18 1 in this subchapter. 18 2 Sec. 21. NEW SECTION. 26A.32 SELECTION COMMITTEE. 18 3 1. When in the judgment of the governing body of a 18 4 political subdivision it is necessary to use design=build 18 5 services pursuant to a qualifications=based selection process, 18 6 the governing body of the political subdivision shall 18 7 establish a selection committee for the purpose of selecting a 18 8 design=builder for the public project. The political 18 9 subdivision shall determine the scope and level of detail 18 10 required to permit qualified design=builders to submit 18 11 proposals according to the request for qualifications and 18 12 request for proposals given the nature of the public project. 18 13 The request for qualifications and the request for proposals 18 14 shall specify the selection criteria and scoring methodology 18 15 used in the evaluation and selection process. 18 16 2. A qualified professional shall be employed or retained 18 17 by the political subdivision to assist the selection committee 18 18 in the selection of the design=builder. The qualified 18 19 professional may be a current employee of the political 18 20 subdivision or an individual retained specifically to assist 18 21 the political subdivision on the public project. A qualified 18 22 professional employed or retained by the political subdivision 18 23 may not submit a statement of qualifications or a design=build 18 24 proposal for the public project. 18 25 Sec. 22. NEW SECTION. 26A.33 QUALIFICATIONS=BASED 18 26 SELECTION PROCESS == GENERAL PROCEDURE. 18 27 The political subdivision shall solicit proposals under 18 28 this subchapter pursuant to a three=phase, 18 29 qualifications=based selection process. 18 30 1. Phase I of the selection process includes publication 18 31 of a request for qualifications by the political subdivision, 18 32 review of the statements of qualifications, and the selection 18 33 of a minimum of two but not more than five design=builders to 18 34 advance to phase II. 18 35 2. Phase II includes a request for proposals and the 19 1 receipt of proposals from those design=builders selected 19 2 during phase I. 19 3 3. Phase III includes an interview with each 19 4 design=builder that submits a proposal during phase II, 19 5 evaluation of each proposal by the selection committee, and 19 6 selection of a design=builder for the public project. 19 7 Sec. 23. NEW SECTION. 26A.34 PHASE I == REQUEST FOR 19 8 QUALIFICATIONS, STATEMENT, EVALUATION, AND SELECTION. 19 9 1. During phase I of the selection process, the political 19 10 subdivision shall publish notice of a request for 19 11 qualifications pursuant to the requirements of section 26A.4. 19 12 The political subdivision shall specify in the request for 19 13 qualifications a time, place, and other specific instructions 19 14 for the receipt of statements of qualifications. A statement 19 15 of qualifications not submitted according to the instructions 19 16 shall be rejected and returned to the design=builder. 19 17 2. Each design=builder shall submit a statement of 19 18 qualifications that includes but is not limited to the 19 19 following information: 19 20 a. Demonstrated ability to perform projects comparable in 19 21 design, scope, and complexity. 19 22 b. References of owners for whom design=build projects 19 23 have been performed. 19 24 c. Qualifications of personnel who will manage the design 19 25 and construction aspects of the public project. 19 26 d. The names and qualifications of the primary design 19 27 consultants and contractors with whom the design=builder 19 28 proposes to subcontract. The design=builder may not replace 19 29 an identified contractor or consultant without the written 19 30 approval of the political subdivision. 19 31 e. Bonding capacity. Design=builders submitting a 19 32 statement of qualifications shall be capable of providing a 19 33 bond according to the requirements of chapter 573, and shall 19 34 include evidence of such bonding capacity with their statement 19 35 of qualifications. If a design=builder fails to include 20 1 evidence of bonding capacity, that design=builder shall be 20 2 deemed unqualified for selection under phase I. 20 3 3. The selection committee shall evaluate and score each 20 4 statement of qualifications received according to the 20 5 predetermined selection criteria and scoring methodology. The 20 6 cost or fees associated with a public project shall not be 20 7 considered by the selection committee when evaluating a 20 8 statement of qualifications. 20 9 4. The selection committee shall select a minimum of two 20 10 and a maximum of five design=builders who have the highest 20 11 scores to proceed to phase II. Scores assigned in the phase I 20 12 evaluation process shall not carry forward to phase II. The 20 13 selection committee shall have discretion to disqualify any 20 14 design=builder that lacks the minimum qualifications required 20 15 to perform the work. If two qualified design=builders cannot 20 16 be identified, the design=builder selection process shall 20 17 cease. If all design=builders are rejected, the political 20 18 subdivision may solicit new proposals using different design 20 19 and budget criteria. 20 20 Sec. 24. NEW SECTION. 26A.35 PHASE II == REQUEST FOR 20 21 PROPOSALS. 20 22 During phase II of the selection process, each 20 23 design=builder selected during phase I shall be given a 20 24 request for proposal. Each design=builder shall submit more 20 25 detailed responses and a proposal that includes but is not 20 26 limited to the following information: 20 27 1. Resumes of proposed project personnel. 20 28 2. An overview of preconstruction services and 20 29 construction services to be provided. 20 30 3. An overview of construction control processes. 20 31 4. A proposed construction safety plan. 20 32 5. Project=specific sustainability proposals and 20 33 recommendations. 20 34 6. Fees and costs, including detailed estimates of general 20 35 conditions and preconstruction costs, and fees for overhead 21 1 and profit including fees for overhead and profit for 21 2 self=performed design or construction services, if applicable. 21 3 General conditions and preconstruction estimates shall include 21 4 quantities and unit prices to illustrate how estimated total 21 5 costs were calculated. 21 6 Sec. 25. NEW SECTION. 26A.36 PHASE III == PROPOSAL 21 7 REVIEW, SELECTION, AND NEGOTIATION. 21 8 Phase III of the selection process shall be conducted as 21 9 follows: 21 10 1. After the deadline for submission of proposals has 21 11 passed, the selection committee shall interview each 21 12 design=builder that has submitted a proposal individually, 21 13 allowing each design=builder to present their proposed team 21 14 members, qualifications, and project plan, and to answer 21 15 questions from the selection committee. Interview scores 21 16 shall not account for more than fifty percent of the total 21 17 evaluation criteria. 21 18 2. The selection committee shall score each design=builder 21 19 based on the proposal criteria and weighting factors 21 20 identified by the political subdivision in the request for 21 21 qualifications and the request for proposals. The political 21 22 subdivision shall proceed to negotiate with and attempt to 21 23 enter into a preconstruction contract with the design=builder 21 24 receiving the highest total score to serve as the 21 25 design=builder for the public project. If the political 21 26 subdivision is unable to negotiate a satisfactory contract 21 27 with the design=builder with the highest total score, 21 28 negotiations with that design=builder shall be terminated and 21 29 the political subdivision shall undertake negotiations with 21 30 the design=builder receiving the second highest total score. 21 31 If negotiations cannot be successfully completed with the 21 32 design=builder receiving the second highest score, the 21 33 contract shall not be awarded. 21 34 3. If the selection committee determines that it is not in 21 35 the best interest of the political subdivision to proceed with 22 1 the public project pursuant to the proposals offered, the 22 2 selection committee shall recommend that the political 22 3 subdivision reject all proposals. If all proposals are 22 4 rejected, the political subdivision may solicit new statements 22 5 of qualifications and proposals using different design or 22 6 budget criteria. 22 7 Sec. 26. NEW SECTION. 26A.37 CONTRACT == PERFORMANCE OF 22 8 CERTAIN SERVICES. 22 9 1. The contract to perform design=build services for a 22 10 public project shall be prepared by the political subdivision 22 11 and entered into between the political subdivision and the 22 12 design=builder selected by the selection committee. The 22 13 contract shall include the fee structure submitted by the 22 14 design=builder in its proposal. Following completion of 22 15 construction documents and all subcontractor bidding, the 22 16 design=builder shall provide the political subdivision with a 22 17 guaranteed maximum price. 22 18 2. a. Those portions or subcontracts of the public 22 19 project with an estimated cost greater than ten percent of the 22 20 estimated total cost of the public project may be accomplished 22 21 using any alternative project delivery selection process under 22 22 this chapter. 22 23 b. For portions or subcontracts of the public project with 22 24 an estimated cost of ten percent or less of the estimated 22 25 total cost of the public project, contracts shall be let to 22 26 the lowest responsible bidder pursuant to applicable 22 27 requirements of law other than this chapter. The political 22 28 subdivision may allow the design=builder to self=perform 22 29 design or construction services if the design=builder submits 22 30 a bid proposal under the same conditions as all other 22 31 competitive bidders. All bid proposals submitted by the 22 32 design=builder for self=performance shall be opened 22 33 simultaneously and evaluated in the presence of a 22 34 representative of the political subdivision. 22 35 EXPLANATION 23 1 This bill establishes a new Code chapter 26A that provides 23 2 alternative project delivery procedures for political 23 3 subdivisions. The bill defines "political subdivision" to 23 4 mean a public body or corporation other than the state or a 23 5 state agency that has power to levy or certify a tax or sum of 23 6 money to be collected by taxation. 23 7 The bill provides that, notwithstanding any other provision 23 8 of law to the contrary, a political subdivision may utilize 23 9 the three alternative project delivery procedures under new 23 10 Code chapter 26A to procure construction management services 23 11 or design=build services, as defined in the bill, related to 23 12 the completion of a public project. Under the bill, a public 23 13 project means a project under the control of the political 23 14 subdivision that is paid for in whole or in part with funds of 23 15 the political subdivision and may include planning, acquiring, 23 16 designing, building, equipping, altering, repairing, 23 17 improving, or demolishing any structure or appurtenance 23 18 thereto, including facilities, utilities, or other 23 19 improvements to any real property owned by the political 23 20 subdivision, but excluding highways, roads, bridges, dams, or 23 21 stand=alone parking lots. 23 22 Subchapter I of new Code chapter 26A specifies publication 23 23 requirements for public notices provided by the political 23 24 subdivision during the alternative project delivery procedures 23 25 and provides that certain documents and information related to 23 26 the alternative project delivery procedures must be made 23 27 available for public inspection after the award or letting of 23 28 the contract. 23 29 The three alternative project delivery procedures 23 30 established in the bill are for construction management 23 31 project delivery, design=build best value project delivery, 23 32 and design=build qualifications=based project delivery. For 23 33 each of the three alternative project delivery procedures, the 23 34 political subdivision is required to appoint a selection 23 35 committee and the selection procedure is conducted in three 24 1 phases. The bill also requires the political subdivision to 24 2 employ or retain a qualified professional to assist the 24 3 selection committee in the selection of a construction manager 24 4 or design=builder, as applicable. 24 5 Subchapter II of new Code chapter 26A provides the 24 6 requirements and procedures for construction management 24 7 project delivery. Phase I includes publication of a request 24 8 for qualifications, review of the statements of qualifications 24 9 received, and the selection of a minimum of two but not more 24 10 than five construction managers to advance to phase II. Phase 24 11 II includes a request for proposals and the receipt of 24 12 proposals from those construction managers selected during 24 13 phase I. Phase III includes an interview with each 24 14 construction manager that submits a proposal during phase II, 24 15 evaluation of each proposal by the selection committee, and 24 16 selection of a construction manager for the public project. 24 17 Subchapter III of new Code chapter 26A provides the 24 18 requirements and procedures for design=build best value 24 19 project delivery. Phase I includes publication of a request 24 20 for qualifications, review of the statements of qualifications 24 21 received, and the selection of a minimum of two but not more 24 22 than five design=builders to advance to phase II. Phase II 24 23 includes a request for proposals and the receipt of proposals 24 24 from those design=builders selected during phase I. Phase III 24 25 includes submission of a cost and schedule proposal from each 24 26 design=builder, evaluation of each design proposal submitted 24 27 under phase II and cost and schedule proposal by the selection 24 28 committee, and selection of a design=builder for the public 24 29 project. 24 30 Subchapter IV of new Code chapter 26A provides the 24 31 requirements and procedures for design=build 24 32 qualifications=based project delivery. Phase I includes 24 33 publication of a request for qualifications, review of the 24 34 statements of qualifications received, and the selection of a 24 35 minimum of two but not more than five design=builders to 25 1 advance to phase II. Phase II includes a request for 25 2 proposals and the receipt of proposals from those 25 3 design=builders selected during phase I. Phase III includes 25 4 an interview with each design=builder that submits a proposal 25 5 during phase II, evaluation of each proposal by the selection 25 6 committee, and selection of a design=builder for the public 25 7 project. 25 8 LSB 1733HC 83 25 9 md/nh/14