Senate File 442 - Introduced SENATE FILE 442 BY COURNOYER A BILL FOR An Act related to guaranteed maximum price contracts. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2340XS (2) 90 ec/rn

S.F. 442 Section 1. Section 26A.3, subsection 3, paragraph a, 1 subparagraphs (1) and (2), Code 2023, are amended to read as 2 follows: 3 (1) The governmental entity shall prepare a request for 4 statements of qualifications. The request shall include 5 general information on the project site, project scope, 6 schedule, selection criteria, selection process, and the time 7 and place for receipt of statements of qualifications. The 8 selection process shall include an interview phase, minimum 9 qualification thresholds for a contractor advancing to 10 the interview phase, and a requirement that at least three 11 contractors who meet the minimum qualification threshold 12 shall advance to the interview phase. Selection criteria and 13 general information included in the request for statements 14 of qualifications may be developed in coordination with 15 the engineer, landscape architect, or architect selected or 16 designated by the governmental entity as provided under this 17 section . 18 (2) Selection criteria may shall include the contractor’s 19 experience undertaking projects of similar size and scope 20 in either the public or private sector, past performance, 21 safety record, proposed personnel, and proposed methodology. 22 Selection criteria shall include experience in both the public 23 and the private sector. Selection criteria shall not include 24 specific delivery methods, including guaranteed maximum price 25 projects. In addition, selection criteria shall not include 26 training, testing, or other certifications that may only 27 be obtained through organized labor affiliations or other 28 limited-membership organizations. 29 Sec. 2. Section 26A.3, subsection 3, paragraph c, Code 2023, 30 is amended to read as follows: 31 c. The governmental entity shall receive, publicly open, and 32 read aloud the names of the contractors submitting statements 33 of qualifications. Within forty-five days after the date of 34 opening the statements of qualifications submissions, the 35 -1- LSB 2340XS (2) 90 ec/rn 1/ 4

S.F. 442 governmental entity shall conduct interviews of contractors as 1 required by the selection process and evaluate each proposal 2 or statement of qualifications submission in relation to the 3 criteria set forth in the request. 4 Sec. 3. Section 26A.3, subsection 4, paragraph a, Code 2023, 5 is amended to read as follows: 6 a. After considering the statements of qualifications and 7 completing the interview phase as specified in the request of 8 qualifications , the governmental entity shall issue a request 9 for proposals to each contractor who meets the qualifications 10 which shall include selection and evaluation criteria. Each 11 contractor issued a request for proposals shall be permitted to 12 submit a proposal and each proposal submitted shall include the 13 construction manager-at-risk’s proposed fees fee methodology 14 and personnel schedule required to manage the requirements 15 of the contract. Except as provided by this paragraph, 16 fee-based selection of the construction manager-at-risk shall 17 be prohibited . The request for proposals shall be subject to 18 the requirements of section 73A.28 and the same limitations 19 applied to selection criteria for the request for statements of 20 qualifications in this chapter . 21 Sec. 4. Section 26A.3, subsection 5, paragraph a, 22 unnumbered paragraph 1, Code 2023, is amended to read as 23 follows: 24 If the estimated total cost of trade contract work and 25 materials packages is in excess of the adjusted competitive 26 bid threshold established in section 314.1B , the construction 27 manager-at-risk shall advertise for competitive bids, receive 28 bids, prepare bid analyses, and award contracts to qualified 29 firms on trade contract work and materials packages in 30 accordance with the competitive bidding requirements of chapter 31 26 and all of the following: 32 Sec. 5. Section 26A.3, subsection 5, paragraph a, 33 subparagraphs (1) and (2), Code 2023, are amended by striking 34 the subparagraphs and inserting in lieu thereof the following: 35 -2- LSB 2340XS (2) 90 ec/rn 2/ 4

S.F. 442 (1) A firm that is prequalified with the state department of 1 transportation pursuant to section 314.1 shall be considered 2 as a qualified firm and shall be allowed to submit a bid 3 for purposes of work related to parking lots, streets, site 4 development, or bridge structure components. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill concerns the process for entering into a 9 guaranteed maximum price contract as provided in Code chapter 10 26A. 11 The bill provides, as part of the selection process of a 12 construction manager-at-risk, that a request for statements 13 of qualifications shall include information on the selection 14 process, which shall include an interview phase, minimum 15 qualification thresholds for a contractor advancing to 16 the interview phase, and a requirement that at least three 17 contractors who meet the minimum qualification threshold shall 18 advance to the interview phase. The bill further provides 19 that the interview phase be conducted and completed prior to 20 issuing a request for proposals from each qualified contractor. 21 The bill also provides that selection criteria relating to 22 the contractor’s experience, past performance, safety record, 23 proposed personnel, and proposed methodology shall be required 24 to be included in the selection criteria. 25 The bill provides that each proposal submitted by a 26 contractor shall include the construction manager-at-risk’s 27 proposed fee methodology and personnel schedule required to 28 manage the requirements of the contract. Current law only 29 requires the construction manager to include proposed fees. In 30 addition, except as provided in the bill relating to proposed 31 fee methodology, the bill provides that fee-based selection of 32 the construction manager-at-risk shall be prohibited. 33 The bill also provides that the construction 34 manager-at-risk, in awarding contracts for work on the 35 -3- LSB 2340XS (2) 90 ec/rn 3/ 4

S.F. 442 project, shall follow the competitive bidding requirements 1 provided in Code chapter 26 and not a request for statements of 2 qualifications process. 3 -4- LSB 2340XS (2) 90 ec/rn 4/ 4