SF 442 (LSB 2340XS (2) 90)

SENATE FILE 442

BY  COURNOYER

A BILL FOR

An Act related to guaranteed maximum price contracts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 26A.3, subsection 3, paragraph a, subparagraphs (1) and (2), Code 2023, are amended to read as follows:
   (1)  The governmental entity shall prepare a request for statements of qualifications. The request shall include general information on the project site, project scope, schedule, selection criteria, selection process, and the time and place for receipt of statements of qualifications.  The selection process shall include an interview phase, minimum qualification thresholds for a contractor advancing to the interview phase, and a requirement that at least three contractors who meet the minimum qualification threshold shall advance to the interview phase. Selection criteria and general information included in the request for statements of qualifications may be developed in coordination with the engineer, landscape architect, or architect selected or designated by the governmental entity as provided under this section.
   (2)  Selection criteria may shall include the contractor’s experience undertaking projects of similar size and scope in either the public or private sector, past performance, safety record, proposed personnel, and proposed methodology. Selection criteria shall include experience in both the public and the private sector. Selection criteria shall not include specific delivery methods, including guaranteed maximum price projects. In addition, selection criteria shall not include training, testing, or other certifications that may only be obtained through organized labor affiliations or other limited-membership organizations.
    Sec. 2.  Section 26A.3, subsection 3, paragraph c, Code 2023, is amended to read as follows:
   c.  The governmental entity shall receive, publicly open, and read aloud the names of the contractors submitting statements of qualifications. Within forty-five days after the date of opening the statements of qualifications submissions, the governmental entity shall conduct interviews of contractors as required by the selection process and evaluate each proposal or statement of qualifications submission in relation to the criteria set forth in the request.
    Sec. 3.  Section 26A.3, subsection 4, paragraph a, Code 2023, is amended to read as follows:
   a.  After considering the statements of qualifications and completing the interview phase as specified in the request of qualifications, the governmental entity shall issue a request for proposals to each contractor who meets the qualifications which shall include selection and evaluation criteria. Each contractor issued a request for proposals shall be permitted to submit a proposal and each proposal submitted shall include the construction manager-at-risk’s proposed fees fee methodology and personnel schedule required to manage the requirements of the contract. Except as provided by this paragraph, fee-based selection of the construction manager-at-risk shall be prohibited. The request for proposals shall be subject to the requirements of section 73A.28 and the same limitations applied to selection criteria for the request for statements of qualifications in this chapter.
    Sec. 4.  Section 26A.3, subsection 5, paragraph a, unnumbered paragraph 1, Code 2023, is amended to read as follows:
   If the estimated total cost of trade contract work and materials packages is in excess of the adjusted competitive bid threshold established in section 314.1B, the construction manager-at-risk shall advertise for competitive bids, receive bids, prepare bid analyses, and award contracts to qualified firms on trade contract work and materials packages in accordance with the competitive bidding requirements of chapter 26 and all of the following:
    Sec. 5.  Section 26A.3, subsection 5, paragraph a, subparagraphs (1) and (2), Code 2023, are amended by striking the subparagraphs and inserting in lieu thereof the following:
   (1)  A firm that is prequalified with the state department of transportation pursuant to section 314.1 shall be considered as a qualified firm and shall be allowed to submit a bid for purposes of work related to parking lots, streets, site development, or bridge structure components.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill concerns the process for entering into a guaranteed maximum price contract as provided in Code chapter 26A.
   The bill provides, as part of the selection process of a construction manager-at-risk, that a request for statements of qualifications shall include information on the selection process, which shall include an interview phase, minimum qualification thresholds for a contractor advancing to the interview phase, and a requirement that at least three contractors who meet the minimum qualification threshold shall advance to the interview phase. The bill further provides that the interview phase be conducted and completed prior to issuing a request for proposals from each qualified contractor. The bill also provides that selection criteria relating to the contractor’s experience, past performance, safety record, proposed personnel, and proposed methodology shall be required to be included in the selection criteria.
   The bill provides that each proposal submitted by a contractor shall include the construction manager-at-risk’s proposed fee methodology and personnel schedule required to manage the requirements of the contract. Current law only requires the construction manager to include proposed fees. In addition, except as provided in the bill relating to proposed fee methodology, the bill provides that fee-based selection of the construction manager-at-risk shall be prohibited.
   The bill also provides that the construction manager-at-risk, in awarding contracts for work on the project, shall follow the competitive bidding requirements provided in Code chapter 26 and not a request for statements of qualifications process.