By: Creighton	H.B. No. 3203

	A BILL TO BE ENTITLED
	AN ACT
	relating to design-build procedures for certain civil works
	projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 2267.353, Government Code, as added by
	Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
	Session, 2011, is amended to read as follows:
	Sec. 2267.353.  CONTRACTS FOR CIVIL WORKS PROJECTS:
	DESIGN-BUILD. [(a)]  A governmental entity may use the
	design-build method for the construction, rehabilitation,
	alteration, or repair of a civil works project.  In using this
	method and in entering into a contract for the services of a
	design-build firm, the contracting governmental entity and the
	design-build firm shall follow the procedures provided by this
	subchapter.
	[(b)     A contract for a project under this subchapter may
	cover only a single integrated project.   A governmental entity may
	not enter into a contract for aggregated projects at multiple
	locations.     For purposes of this subsection:
	[(1)     if a metropolitan transit authority created under
	Chapter 451, Transportation Code, enters into a contract for a
	project involving a bus rapid transit system created under Chapter
	451, Transportation Code, the bus rapid transit system is a single
	integrated project; and
	[(2)     a water treatment plant, including a desalination
	plant, that includes treatment facilities, well fields, and
	pipelines is a single integrated project.
	[(c)     A governmental entity shall use the following criteria
	as a minimum basis for determining the circumstances under which
	the design-build method is appropriate for a project:
	[(1)     the extent to which the entity can adequately
	define the project requirements;
	[(2)     the time constraints for the delivery of the
	project;
	[(3)     the ability to ensure that a competitive
	procurement can be held; and
	[(4)     the capability of the entity to manage and
	oversee the project, including the availability of experienced
	personnel or outside consultants who are familiar with the
	design-build method of project delivery.
	[(d)     A governmental entity shall make a formal finding on
	the criteria described by Subsection (c) before preparing a request
	for qualifications under Section 2267.357.]
	SECTION 2.  Section 2267.357, Government Code, as added by
	Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
	Session, 2011, is amended to read as follows:
	Sec. 2267.357.  REQUEST FOR PROPOSALS OR QUALIFICATIONS.
	(a)  The governmental entity shall select the design-build firm in a
	one-step or two-step process.  The governmental entity shall
	prepare a single request for proposals, in the case of a one-step
	process, or an initial request for qualifications, in the case of a
	two-step process, that includes a statement of whether the
	selection process is a one-step or two-step process and:
	(1)  information on the civil works project site;
	(2)  project scope;
	(3)  project budget;
	(4)  project schedule;
	(5)  criteria for selection under Section 2267.359 and
	the weighting of the criteria; and
	(6)  other information that may assist potential
	design-build firms in submitting proposals for the project.
	(b)  The governmental entity shall also prepare a design
	criteria package as described by Section 2267.358.
	(c)  If a one-step process is used, the governmental entity
	shall include the design criteria package in the request for
	proposals.  If a two-step process is used, the governmental entity
	may not request, as part of the offeror's response to the request
	for qualifications, the offeror's technical proposal or cost
	proposal.
	SECTION 3.  Section 2267.359, Government Code, as added by
	Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
	Session, 2011, is amended by amending Subsections (a) and (c) to
	read as follows:
	(a)  The governmental entity shall receive proposals, in the
	case of a one-step process, or responses to a request for
	qualifications, in the case of a two-step process, and shall
	evaluate each offeror's experience, technical competence, and
	capability to perform, the past performance of the offeror's team
	and members of the team, project approach, cost methodology, and
	other appropriate factors submitted by the team or firm in response
	to the request for proposals or qualifications, except that the
	governmental entity may not evaluate any cost-related or
	price-related [evaluation] factors, other than the offeror's cost
	methodology [are not permitted at this stage]. If a one-step
	process is used, the governmental entity shall also evaluate, for
	each offeror, the results of each offeror's interview, if the
	governmental entity included the results of an interview process in
	the selection criteria.
	(c)  If a two-step process is used, the [The] governmental
	entity shall, in accordance with the applicable evaluation criteria
	established in Subsection (a), qualify five or fewer offerors to:
	(1)  submit additional information, including the
	offeror's cost proposal and technical proposal as required by
	Section 2267.361; and
	(2)  submit to an interview, if the governmental entity
	included the results of an interview process in the selection
	criteria [entity chooses, to interview for final selection].
	SECTION 4.  Section 2267.360, Government Code, as added by
	Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
	Session, 2011, is amended to read as follows:
	Sec. 2267.360.  SELECTION OF DESIGN-BUILD FIRM.  If a
	one-step process is used, the governmental entity shall select the
	design-build firm after evaluating the offeror's responses to the
	request for proposals, in accordance with Section 2267.359(a) and
	the governmental entity's selection criteria, as stated in the
	request for proposals.  If a two-step process is used, the [The]
	governmental entity shall select a design-build firm using a
	combination of technical and cost proposals as provided by Section
	2267.361.
	SECTION 5.  The heading of Section 2267.361, Government
	Code, as added by Chapter 1129 (H.B. 628), Acts of the 82nd
	Legislature, Regular Session, 2011, is amended to read as follows:
	Sec. 2267.361.  PROCEDURES FOR SELECTION OF DESIGN-BUILD
	FIRM UNDER TWO-STEP PROCESS [COMBINATION OF TECHNICAL AND COST
	PROPOSALS].
	SECTION 6.  Section 2267.361, Government Code, as added by
	Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
	Session, 2011, is amended by amending Subsections (a) and (e) to
	read as follows:
	(a)  A governmental entity shall request proposals from
	design-build firms identified under Section 2267.359(c).  A firm
	must submit a proposal not later than the 180th day after the date
	the governmental entity makes a public request for the proposals
	from the selected firms.  The request for proposals must include:
	(1)  a design criteria package;
	(2)  if the project site is identified, a geotechnical
	baseline report or other information that provides the design-build
	firm minimum geotechnical design parameters to submit a proposal;
	(3)  detailed instructions for preparing both a cost
	proposal and a [the] technical proposal and the items to be
	included, including a description of the form and level of
	completeness of drawings expected; and
	(4)  the [relative weighting of the technical and price
	proposals and the] formula by which the proposals will be evaluated
	and ranked.
	(e)  The governmental entity shall first open, evaluate, and
	score each responsive technical proposal submitted on the basis of
	the criteria described in the request for proposals and assign
	points on the basis of the formula [weighting] specified in the
	request for proposals.  The governmental entity may reject as
	nonresponsive any firm that makes a significant change to the
	composition of its firm as initially submitted.  The governmental
	entity shall subsequently open, evaluate, and score the cost
	proposals from firms that submitted a responsive technical proposal
	and assign points on the basis of the formula [weighting] specified
	in the request for proposals.  The governmental entity shall select
	the design-build firm in accordance with the formula provided in
	the request for proposals.
	SECTION 7.  Section 2267.362, Government Code, as added by
	Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
	Session, 2011, is amended to read as follows:
	Sec. 2267.362.  NEGOTIATION.  After selecting the
	highest-ranked design-build firm under Section 2267.360, for a
	one-step process, or Section 2267.361, for a two-step process, the
	governmental entity shall first attempt to negotiate a contract
	with the selected firm.  If the governmental entity is unable to
	negotiate a satisfactory contract with the selected firm, the
	entity shall, formally and in writing, end all negotiations with
	that firm and proceed to negotiate with the next firm in the order
	of the selection ranking until a contract is reached or
	negotiations with all ranked firms end.
	SECTION 8.  Section 2267.364(c), Government Code, as added
	by Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
	Session, 2011, is amended to read as follows:
	(c)  The governmental entity may offer an unsuccessful
	design-build firm that submits a response to the entity's request
	for additional information under Section 2267.361 a stipend for
	preliminary engineering costs associated with the development of
	the proposal.  The stipend must be [one-half of one percent of the
	contract amount and must be] specified in the initial request for
	proposals.  If the offer is accepted and paid, the governmental
	entity may make use of any work product contained in the proposal,
	including the techniques, methods, processes, and information
	contained in the proposal.  The use by the governmental entity of
	any design element contained in an unsuccessful proposal is at the
	sole risk and discretion of the entity and does not confer liability
	on the recipient of the stipend under this subsection.
	SECTION 9.  Sections 2267.352 and and 2267.354, Government
	Code, as added by Chapter 1129 (H.B. 628), Acts of the 82nd
	Legislature, Regular Session, 2011, are repealed.
	SECTION 10.  This Act takes effect immediately if it
	receives a vote of two-thirds of all the members elected to each
	house, as provided by Section 39, Article III, Texas Constitution.
	If this Act does not receive the vote necessary for immediate
	effect, this Act takes effect September 1, 2013.