H.F. 195 Section 1. NEW SECTION . 26.17 Alternative project delivery 1 contracts. 2 1. As used in this section, unless the context otherwise 3 requires: 4 a. “Alternative project delivery contract” means either a 5 design-build or construction manager-at-risk contract. 6 b. “Bridging criteria professional” means a person, 7 corporation, partnership, or other legal entity that is 8 employed by or contracted by a government entity to assist 9 the government entity in the development of project design 10 criteria, requests for proposals, and any additional services 11 requested by the government entity to represent its interests 12 in relation to a project and who meets either of the following 13 requirements: 14 (1) Is duly licensed to practice architecture within the 15 state and can demonstrate specific knowledge of the project 16 type where alternative project delivery services are being 17 sought. 18 (2) Is duly licensed as a professional engineer within the 19 state and can demonstrate specific knowledge of the project 20 type where alternative project delivery services are being 21 sought. 22 c. “Construction manager-at-risk” means a sole 23 proprietorship, partnership, corporation, or other legal entity 24 that acts as a consultant to the government entity in the 25 development and design phases and then assumes the risk for 26 the construction, rehabilitation, alteration, or repair of a 27 project at the contracted fixed or guaranteed maximum price, 28 similar to a general contractor during the construction phase. 29 A project using a construction manager-at-risk does not include 30 the construction, reconstruction, or improvement of a highway, 31 bridge, or culvert. 32 d. “Design-build” means a project delivery method subject to 33 a two or three-phase selection process for which the design and 34 construction services are furnished under one contract. 35 -1- LSB 1557YH (3) 89 jda/rn 1/ 16

H.F. 195 e. “Design-build contract” means a contract between 1 a government entity and a design-builder to furnish the 2 architecture of record, engineering of record, and related 3 services as required for a given public project, and to 4 furnish the labor, materials, and other construction services 5 for the same public project. A design-build contract may be 6 conditioned upon subsequent refinements in scope and price, and 7 may permit the government entity to make changes in the scope 8 of the project without invalidating the design-build contract. 9 f. “Design-build project” means the design, construction, 10 alteration, addition, remodeling, or improvement of any 11 buildings, infrastructure, or facilities under contract with a 12 government entity. “Design-build project” does not include a 13 project for the construction, reconstruction, or improvement of 14 a highway, bridge, or culvert. 15 g. “Design-builder” means any individual, partnership, 16 joint venture, or corporation subject to a best-value or 17 qualification-based selection that offers to provide or 18 provides design services and general contracting services 19 through a design-build contract in which services within 20 the scope of the practice of professional architecture or 21 engineering are performed respectively by a licensed architect 22 or licensed engineer and in which services within the scope of 23 general contracting are performed by a general contractor or 24 other legal entity that furnishes architecture or engineering 25 services and construction services either directly or through 26 subcontracts or joint ventures. 27 h. “Design bridging criteria package” means the 28 performance-oriented program, scope, design, and performance 29 specifications for the design-build project sufficient to 30 permit a design-builder to prepare a response to a government 31 entity’s request for proposals for a design-build project. 32 i. “Government entity” means the same as “governmental 33 entity” defined in section 26.2 including, for the purpose of 34 this section, the state board of regents. 35 -2- LSB 1557YH (3) 89 jda/rn 2/ 16

H.F. 195 j. “Proposal” means an offer by a design-builder in response 1 to a request for proposals to enter into a design-build 2 contract. 3 k. “Request for proposals” means the document by which 4 a government entity solicits proposals for a design-build 5 contract. 6 l. “Stipend” means a payment to a design-builder who did not 7 score the highest number of points at the conclusion of phase 8 three of the best-value selection process to defray the cost of 9 participating in phase two of the selection process, and for 10 the use of any intellectual properties obtained. 11 2. Notwithstanding any other law to the contrary, a 12 government entity shall be authorized to enter into an 13 alternative project delivery contract. 14 3. Construction manager-at-risk contracts. 15 a. A government entity shall publicly disclose its intent to 16 use the construction manager-at-risk method and its selection 17 criteria at least one week prior to publishing the request 18 for proposals and request for statements of qualifications. 19 The government entity shall publish its request for proposals 20 and statements of qualifications. Before or concurrently 21 with selecting a construction manager-at-risk, the government 22 entity shall select or designate an engineer or architect 23 who shall prepare the construction documents for the project 24 and who shall comply with all state laws, as applicable. If 25 the engineer or architect is not a full-time employee of the 26 government entity, the government entity shall select the 27 engineer or architect on a basis of demonstrated competence and 28 qualifications. The government entity’s engineer or architect 29 for a project may not serve, alone or in combination with 30 another, as the construction manager-at-risk. This paragraph 31 does not prohibit a government entity’s engineer or architect 32 from providing customary construction-phase services under 33 the engineer’s or architect’s original professional service 34 agreement in accordance with applicable licensing laws. 35 -3- LSB 1557YH (3) 89 jda/rn 3/ 16

H.F. 195 b. The government entity may provide or contract for, 1 independently of the construction manager-at-risk, inspection 2 services, testing of construction materials, engineering, and 3 verification of testing services necessary for acceptance of 4 the project by the government entity. 5 c. The government entity shall select the construction 6 manager-at-risk in a two-phase process. 7 (1) Phase one. The government entity shall prepare a 8 request for statements of qualifications for the first phase. 9 The request shall include general information on the project 10 site, project scope, schedule, selection criteria, the time 11 and place for receipt of statements of qualifications, and 12 other information that may assist the government entity in its 13 selection of a construction manager-at-risk. The selection 14 criteria may include the construction manager-at-risk’s 15 experience, past performance, safety record, proposed personnel 16 and methodology, and other appropriate factors that demonstrate 17 the capability of the construction manager-at-risk. The 18 government entity shall not request fees or prices in phase 19 one. 20 (2) Phase two. In phase two, the government entity 21 shall issue a request for proposals. The government entity 22 may request that no more than five nor fewer than two 23 construction managers-at-risk, selected solely on the basis 24 of qualifications, provide additional information, including 25 the construction manager-at-risk’s project proposal, proposed 26 fee, its price for fulfilling the general conditions, and its 27 distribution plan for sharing any cost savings after completion 28 of said project. Qualifications shall account for a minimum 29 of forty percent of the evaluation. Cost shall account for a 30 maximum of sixty percent of the evaluation. 31 d. For each phase, the government entity shall receive, 32 publicly open, and read aloud the names of the construction 33 managers submitting proposals or statements of qualifications, 34 respectively. Within forty-five days after the date of opening 35 -4- LSB 1557YH (3) 89 jda/rn 4/ 16

H.F. 195 the proposals or statements of qualification submissions, the 1 government entity or its representative shall evaluate and rank 2 each proposal or statement of qualifications submission in 3 relation to the criteria set forth in the applicable request. 4 e. The government entity or its representative shall 5 select the construction manager-at-risk that submits the 6 proposal that offers the best value for the government entity 7 based on the published selection criteria and on its ranking 8 evaluation. The government entity or its representative 9 shall first attempt to negotiate a contract with the selected 10 construction manager-at-risk. If the government entity or its 11 representative is unable to negotiate a satisfactory contract 12 with the selected construction manager-at-risk, the government 13 entity or its representative shall, formally and in writing, 14 end negotiations with that construction manager-at-risk and 15 proceed to negotiate with the next construction manager-at-risk 16 in the order of the selection ranking until a contract 17 is reached or negotiations with all ranked construction 18 managers-at-risk end. 19 f. The selected construction manager-at-risk shall publicly 20 advertise and receive bids or proposals from trade contractors 21 or subcontractors for the performance of all major elements of 22 the work other than the minor work that may be included in the 23 general conditions. A construction manager-at-risk submits 24 its sealed bid or sealed proposal in the same manner as all 25 other trade contractors or subcontractors. All sealed bids 26 or proposals shall be submitted at the time and location as 27 specified in the advertisement for bids or proposals and shall 28 be publicly opened and the identity of each bidder and their 29 bid amount shall be read aloud. 30 g. The construction manager-at-risk and the government 31 entity or its representative shall review all trade contractor, 32 subcontractor, or construction manager-at-risk bids or 33 proposals in a manner that does not disclose the contents of 34 the bid or proposal during the selection process to a person 35 -5- LSB 1557YH (3) 89 jda/rn 5/ 16

H.F. 195 not employed by the construction manager-at-risk, engineer, 1 architect, or government entity involved with the project. If 2 the construction manager-at-risk submitted bids or proposals, 3 the government entity shall determine if the construction 4 manager-at-risk’s bid or proposal offers the best value for the 5 government entity. After all proposals have been evaluated and 6 clarified, the award of all contracts shall be made public. 7 h. If the construction manager-at-risk reviews, evaluates, 8 and recommends to the government entity a bid or proposal from 9 a trade contractor or subcontractor but the government entity 10 requires another bid or proposal to be accepted, the government 11 entity shall compensate the construction manager-at-risk by 12 a change in price, time, or guaranteed maximum cost for any 13 additional cost and risk that the construction manager-at-risk 14 may incur because of the government entity’s requirement that 15 another bid or proposal be accepted. 16 i. If a selected trade contractor materially defaults in the 17 performance of its work or fails to execute a contract with a 18 construction manager-at-risk after being selected in accordance 19 with this subsection, the construction manager-at-risk may 20 itself, without advertising, fulfill the contract requirements 21 or select a replacement trade contractor to fulfill the 22 contract requirements. 23 4. In soliciting proposals for a design-build contract, 24 a government entity shall determine the scope and level of 25 detail required to permit design-builders to submit proposals 26 in accordance with the request for proposals given the nature 27 of the project. 28 5. a. A bridging criteria professional may be retained by 29 the government entity as the government entity’s representative 30 to advise the government entity on design-build matters. The 31 use of the bridging criteria professional shall be strictly 32 to guide and administer the government’s needs through the 33 process. The bridging criteria professional shall have 34 demonstrated sufficient previous experience in rules and 35 -6- LSB 1557YH (3) 89 jda/rn 6/ 16

H.F. 195 procedures specific to the design-build process. The bridging 1 criteria professional shall, along with the government 2 entity, be authorized to make recommendations or influence 3 the acceptance of any material, process, or procedure used 4 during the design and construction processes in accordance 5 with the criteria established for the project for the purpose 6 of evaluating compliance of the work. The bridging criteria 7 professional may be employed or contracted by the government 8 entity to act on behalf of the government entity for the sole 9 purpose of administrative procedures and may not be connected 10 in any means to the design-build team. The duration of 11 bridging criteria professional services, prior to the issuance 12 of a design-build contract, may begin when establishing 13 the government entity’s program requirements through design 14 development if the complexity of the project with the 15 governmental entity merits this level of bridging information. 16 b. The design bridging criteria package developed by the 17 bridging criteria professional, which may include preliminary 18 designs for the project, may extend to the design development 19 level of detail, including design expectations, capacity, 20 durability, standards, ingress and egress requirements, 21 international building code considerations, performance 22 requirements, the government entity’s operational expectations, 23 requirements for interior and exterior spaces, material and 24 building system quality standards, and design and construction 25 schedule timelines. Longevity of materials and system 26 performance requirements shall be identified in the design 27 bridging criteria package to identify materials and systems 28 that have the potential to exceed the length of time the 29 project is funded. The design bridging criteria package may 30 include site development requirements, description of the 31 site, surveys, soil and environmental information concerning 32 the site, provisions for utilities, storm water retention 33 and disposal, parking requirements, requirements related 34 to applicable local laws, local permitting requirements, 35 -7- LSB 1557YH (3) 89 jda/rn 7/ 16

H.F. 195 preliminary designs for the project or portions thereof, and 1 other criteria for the intended use of the project. 2 6. A government entity shall publicly disclose its intent to 3 solicit proposals for a design-build contract and its project 4 design bridging criteria package in the same manner that it 5 would post notice for the competitive bidding process in 6 section 26.3. 7 7. In soliciting proposals for a design-build contract, a 8 government entity shall establish in the request for proposals 9 a time, place, and other specific instructions for the receipt 10 of proposals. Proposals not submitted in strict accordance 11 with the instructions may be subject to rejection. Minor 12 irregularities may be waived by the government entity. 13 8. A request for proposals shall be prepared for each 14 design-build contract and shall contain, at minimum, the 15 following elements: 16 a. The procedures to be followed for submitting proposals, 17 the criteria for evaluating proposals and their relative 18 weight, and the procedure for making awards. 19 b. The proposed terms and conditions for the design-build 20 contract, if available. 21 c. The design bridging criteria package. 22 d. A description of the drawings, specifications, or other 23 information to be submitted with the proposal, with guidance 24 as to the form and level of completeness of the drawings, 25 specifications, or other information that will be acceptable. 26 e. A schedule for planned commencement and completion of the 27 design-build contract, if available. 28 f. Budget limits for the design-build contract, if any. 29 g. Requirements including any available ratings for 30 performance bonds, payment bonds, and insurance, if any. 31 h. If using a three-phase, best-value selection process, the 32 amount of the stipend that will be available. 33 i. Any other information that the government entity in 34 its discretion chooses to request including but not limited 35 -8- LSB 1557YH (3) 89 jda/rn 8/ 16

H.F. 195 to surveys, soil reports, drawings of existing structures, 1 environmental studies, photographs, references to public 2 records, or affirmative action and minority business enterprise 3 requirements consistent with state and federal law. 4 9. A government entity seeking to enter a design-build 5 contract shall solicit design-build proposals either by 6 using a three-phase, best-value process or a two-phase, 7 qualifications-based process. 8 a. When solicitations require a three-phase, best-value 9 selection process, the process shall be conducted as follows: 10 (1) Phase one. Request for statements of qualifications of 11 design-builders. 12 (a) The government entity shall review submitted statements 13 of the qualifications and assign points to each in accordance 14 with this section and as set out in the instructions of the 15 request for qualifications. 16 (b) All design-builders shall submit a statement of 17 qualifications that shall include but not be limited to: 18 (i) Demonstrated ability to perform projects comparable in 19 design, scope, and complexity. 20 (ii) References of owners for whom design-build projects, 21 construction projects, or design projects have been performed. 22 (iii) Qualifications of personnel who will manage the 23 design and construction aspects of the project. 24 (iv) The names and qualifications of the primary design 25 consultants and the primary trade contractors with whom the 26 design-builder proposes to subcontract or joint venture. The 27 design-builder may not replace an identified contractor, 28 subcontractor, design consultant, or subconsultant without the 29 written approval of the government entity. 30 (c) The government entity shall evaluate the qualifications 31 of all the design-builders who submitted statements of 32 qualifications in accordance with the instructions of the 33 request for qualifications. Qualified design-builders 34 selected by the government entity may proceed to phase two 35 -9- LSB 1557YH (3) 89 jda/rn 9/ 16

H.F. 195 of the selection process. The evaluation shall narrow the 1 number of qualified design-builders submitting statements of 2 qualifications to not fewer than two nor more than five. Under 3 no circumstances shall price or fees be a part of the request 4 for statements of qualifications criteria. Design-builders may 5 be interviewed in either phase one or phase two of the process. 6 Points assigned in phase one of the evaluation process shall 7 not carry forward to phase two or phase three of the process. 8 All qualified design-builders shall be ranked on points given 9 in phases two and three only. 10 (d) Once no fewer than two and no more than five qualified 11 design-builders have been selected, the government entity shall 12 issue its request for proposals and provide the design-builders 13 a specified amount of time in which to concurrently assemble 14 phase two and phase three proposals. 15 (2) Phase two. Solicitation of technical proposals, 16 including conceptual design for the project. 17 (a) A design-builder shall submit its design for the project 18 to the level of detail required for the proposal along with 19 such other information the government entity requests, which 20 may include a schedule, qualifications, and experience. 21 (b) The ability of the design-builder to meet the schedule 22 for completing a project as specified by the government entity 23 may be considered as an element of evaluation in phase two. 24 (c) Under no circumstances shall the design proposal 25 contain any reference to the cost of the proposal. 26 (d) The submitted designs shall be evaluated and assigned 27 points in accordance with the requirements of the request for 28 proposals. Phase two shall account for not less than forty 29 percent and no more than sixty percent of the total point score 30 as specified in the request for proposals. 31 (3) Phase three. Proposal of construction costs. 32 (a) The government entity shall invite the selected 33 design-builders to participate in phase three. The 34 design-builders shall provide a fixed cost of design and 35 -10- LSB 1557YH (3) 89 jda/rn 10/ 16

H.F. 195 construction. The proposal shall be accompanied by bid 1 security and any other items, such as statements of minority 2 participation, as required by the request for proposals. 3 (b) Cost proposals shall be submitted in accordance with 4 the instructions in the request for proposals. The government 5 entity shall reject any proposal that is not submitted within 6 the required time frame. Phase three shall account for not 7 less than forty percent and no more than sixty percent of the 8 total point score as specified in the request for proposals. 9 (c) Proposals for phase two and phase three shall be 10 submitted concurrently at the time and place specified in the 11 request for proposals, but in separate envelopes or other means 12 of submission. The phase three cost proposals shall be opened 13 and read aloud only after phase two design proposals have been 14 evaluated and assigned points, ranked in order, and posted. 15 Cost proposals shall be opened and read aloud at the time and 16 place specified in the request for proposals. At the same time 17 and place, the evaluation team shall make public its scoring 18 of phase two. Cost proposals shall be evaluated in accordance 19 with the requirements of the request for proposals. 20 (d) If the government entity determines that it is not in 21 the best interest of the government entity to proceed with the 22 project pursuant to the proposal offered by the design-builder 23 with the highest total number of points, the government entity 24 shall reject all proposals. In this event, all design-builders 25 with lower point totals in phases two and three shall receive 26 a stipend and the responsive design-builder with the highest 27 point total shall receive an amount equal to two times the 28 stipend. If the government entity decides to award the 29 project, the responsive design-builder with the highest point 30 total shall be awarded the contract. 31 (e) As an inducement to qualified design-builders, the 32 government entity shall pay a stipend, the amount of which 33 shall be established in the request for proposals, to each 34 design-builder who submitted a proposal but was not accepted. 35 -11- LSB 1557YH (3) 89 jda/rn 11/ 16

H.F. 195 Such stipend shall be no less than one-half of one percent 1 of the total project budget. Upon payment of the stipend to 2 such a design-builder, the government entity shall acquire 3 a nonexclusive right to use the design submitted by the 4 design-builder, and the design-builder shall have no further 5 liability for the use of the design by the government entity in 6 any manner. If the design-builder desires to retain all rights 7 and interests in the design proposed, the design-builder shall 8 forfeit the stipend. 9 b. When solicitations require a two-phase, 10 qualifications-based selection process, the process shall be 11 conducted as follows: 12 (1) Phase one. Request for statements of qualifications of 13 design-builders. 14 (a) The government entity must prepare a request for 15 statements of qualifications. The request shall include 16 general information on the project site, project scope, 17 schedule, selection criteria, the time and place for receipt 18 of statements of qualifications, and other information 19 that may assist the government entity in its selection of a 20 design-builder. 21 (b) The government entity shall state the selection 22 criteria in the request for statements of qualifications. The 23 selection criteria may include the design-builder’s experience, 24 past performance, safety record, proposed personnel and 25 methodology, and other appropriate factors that demonstrate the 26 capability of the design-builder. 27 (c) Selection criteria will be ranked and assigned points 28 for each category. Point assignments shall be included as a 29 part of the request for statements of qualifications. 30 (d) The government entity shall not request fees or prices 31 in phase one. Any submissions with disclosed fees or prices 32 will be disqualified and removed from consideration. 33 (2) Phase two. Negotiations. 34 (a) Negotiations shall be conducted, beginning with the 35 -12- LSB 1557YH (3) 89 jda/rn 12/ 16

H.F. 195 design-builder ranked first. If a contract satisfactory 1 and advantageous to the government entity can be negotiated 2 at a price considered fair and reasonable and pursuant to 3 contractual terms and conditions acceptable to the government 4 entity, the award shall be made to that design-builder. 5 (b) In the event that a contract cannot be negotiated 6 with the design-builder ranked first, negotiations with that 7 design-builder shall be formally terminated. The government 8 entity shall conduct negotiations with the next-highest-ranked 9 design-builder and continue this process until a contract can 10 be negotiated that meets the terms of subparagraph division (a) 11 of this subparagraph. 12 Sec. 2. Section 262.34, subsection 1, Code 2021, is amended 13 to read as follows: 14 1. a. When the estimated cost of construction, repairs, 15 or improvement of buildings or grounds under charge of the 16 state board of regents, including construction, renovation, or 17 repairs by a private party of a property to be lease-purchased 18 by the board, exceeds one hundred thousand dollars, the board 19 shall advertise for bids for the contemplated improvement or 20 construction and shall let the work to the lowest responsible 21 bidder. However, if in the judgment of the board bids received 22 are not acceptable, the board may reject all bids and proceed 23 with the construction, repair, or improvement by a method as 24 the board may determine. All plans and specifications for 25 repairs or construction, together with bids on the plans or 26 specifications, shall be filed by the board and be open for 27 public inspection. All bids submitted under this section shall 28 be accompanied by a deposit of money, a certified check, or a 29 credit union certified share draft in an amount as the board 30 may prescribe. 31 b. The state board of regents may proceed with a 32 construction, repair, or improvement by using an alternative 33 project delivery contract in accordance with the provisions of 34 section 26.17. 35 -13- LSB 1557YH (3) 89 jda/rn 13/ 16

H.F. 195 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill concerns public construction bidding. 4 The bill allows a government entity to use an alternative 5 project delivery contract in circumstances that normally 6 require the government entity to use competitive bidding 7 procedures. Currently, most government entities must use 8 a competitive bidding process for a construction project 9 when that project is estimated to cost at least as much as a 10 threshold defined in Code section 26.3. The bill defines a 11 government entity to include the state board of regents. 12 The bill creates two types of alternative project delivery 13 contracts, each with specified requirements. The first 14 alternative is the construction manager-at-risk contract. If a 15 government entity opts to use a construction manager-at-risk 16 contract, the government entity shall select an engineer 17 or architect to prepare the construction documents for 18 the project. That engineer or architect cannot serve as 19 the construction manager-at-risk. The government entity 20 shall use a two-phase process in selecting the construction 21 manager-at-risk. The first phase shall include a request for 22 qualifications and the government entity’s selection criteria. 23 The government entity may select at least two but no more 24 than five of the construction managers-at-risk who submitted 25 qualifications to participate in the second phase, based solely 26 on the qualifications of those construction managers-at-risk. 27 In phase two, the construction managers-at-risk that the 28 government entity selects will provide additional information, 29 including the project proposal, costs, and fees. The 30 government entity shall rank the construction managers-at-risk 31 in a manner in which qualifications account for at least 40 32 percent of the evaluation and cost accounts for no more than 60 33 percent of the evaluation. The government entity shall select 34 the construction manager-at-risk that offers the best value 35 -14- LSB 1557YH (3) 89 jda/rn 14/ 16

H.F. 195 based on the evaluation criteria. If the two parties do not 1 reach an agreement, the government entity shall proceed with 2 the next highest-ranked construction manager-at-risk and follow 3 this process until the government entity reaches a contract 4 with a construction manager-at-risk. The selected construction 5 manager-at-risk shall advertise for and receive sealed bids 6 for proposals from trade contractors or subcontractors and 7 publicly review those bids with the government entity in a 8 manner that does not disclose the contents of the bid or 9 proposal during the selection process to a person not employed 10 by the construction manager-at-risk, engineer, architect, or 11 government entity involved with the project. The construction 12 manager-at-risk will select a bid in consultation with the 13 government entity. 14 The second type of alternative project delivery method is 15 the design-build contract, which allows for the selection of 16 design-builders in either a three-phase or two-phase process. 17 Under the design-build process, a government entity may retain 18 a bridging criteria professional to advise the government 19 entity on design-build matters. In the three-phase process, 20 the government entity shall first request statements of 21 qualifications from design-builders. The government entity 22 shall select at least two but no more than five qualified 23 design-builders to move on to phases two and three. In 24 the second phase, the government entity shall solicit 25 technical proposals and conceptual designs from the remaining 26 design-builders. The government entity shall pay a stipend 27 to any design-builder that participates in phase two but 28 whose contract the entity does not select. The third phase 29 involves the design-builders submitting construction costs. 30 The government entity shall award points for each proposal. If 31 the government entity chooses to award a contract, it shall 32 award the contract to the design-builder with the highest point 33 total. 34 If the government entity uses the two-phase process, the 35 -15- LSB 1557YH (3) 89 jda/rn 15/ 16

H.F. 195 government entity will request qualifications and include 1 its selection criteria. The government entity will rank the 2 qualifications of a design-builder. In the second phase, the 3 government entity shall negotiate with the highest-ranked 4 design-builder. If the two parties cannot agree to a contract 5 with terms and conditions acceptable to the government 6 entity, those negotiations shall be formally terminated 7 and the government entity shall negotiate with the next 8 highest-ranked design-builder. That process shall continue 9 until the government entity can negotiate a contract with a 10 design-builder with terms and conditions acceptable to the 11 government entity. 12 -16- LSB 1557YH (3) 89 jda/rn 16/ 16