SB 729 Modifies provisions relating to political subdivision contract bidding
Sponsor: McKenna
LR Number: 4025S.01I Fiscal Note: 4025-01N.ORG
Committee: Jobs, Economic Development and Local Government
Last Action: 2/3/2010 - SCS Voted Do Pass S Jobs, Economic Development and Local Government Committee (4025S.03C) Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2010

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SCS/SB 729 - This act modifies provisions relating to political subdivision contract bidding.

POLITICAL SUBDIVISION CONSTRUCTION BIDDING STANDARDS

This act creates the "Political Subdivision Construction Bidding Standards Act". Except for certain violations, this act does not apply to political subdivisions that have specific state or local competitive bidding requirements that are equivalent or stricter than the ones contained in this act. If a political subdivision is not covered by a specific federal, state, or local law that is equivalent or stricter in its requirements, it shall comply with the advertising and bidding requirements outlined in this act when soliciting bids and awarding contracts of $6,000 or more.

Contract for construction shall be advertised in advance of the acceptance of bids. Bids shall be advertised through publication in a central repository developed by the office of administration or for a minimum of two days in an area newspaper, with the first ad appearing at least 30 days in advance of the stated deadline for acceptance of bids. The office of administration shall develop the repository and procedures for bids to be placed in the repository by January 1, 2011. Ads and solicitations must include the project name, submission deadline, and the time, date, and location of where the bids shall be received and opened. Political subdivisions shall not be required to comply with these advertising requirements until the office of administration develops such central repository at no cost to the state.

Unless otherwise specified by law, a contract shall be awarded to the lowest and best bidder. However, the political subdivision may reject the low bidder based on the bidder's failure to provide a performance or payment bond, nonperformance on previous contracts, or other reasons specified as to the bidder's inability to adequately perform the contract.

Under no circumstances shall construction contracts for any political subdivision be awarded in violation of certain requirements, including opening bids in advance of the advertising deadline, accepting bids that are unwritten, accepting bids after the advertised deadline, and failing to hold bids confidential.

A person submitting a bid, or who would have submitted a bid except for violations, may seek equitable relief and monetary damages for monetary losses.

Electronic bidding shall be allowed if it meets the standards of confidentiality. Nothing in this section shall require acceptance of a bid which exceeds the amount estimated by the political subdivision for the contract. Also, political subdivisions may award contracts without competitive bidding when there is an immediate public danger, to prevent loss to property, or to prevent or restore essential public services. Under such circumstances, the political subdivision must produce a written public record documenting the need to contract without competitive bidding.

METROPOLITAN SEWER DISTRICT DESIGN-BUILD CONTRACTS

This act authorizes the metropolitan sewer district (MSD) to enter into design-build contracts for projects that exceed $1,000,000. MSD shall establish a written procedure for prequalifying contractors before they will be allowed to make a proposal on a project. MSD shall adopt procedures for the design-build contracting process and is authorized to issue a request for proposals to a maximum of five contractors who are prequalified. MSD may require approval of any person performing subcontract work on the project.

Before the prequalification process, MSD must advertise in a manner outlined by the act. If it fails to receive at least two submissions from prequalified contractors, MSD shall readvertise. MSD shall have the ability to reject all submissions and proposals.

This act outlines the process by which MSD will accept proposals and award contracts. The contract shall be awarded to the contractor representing the best overall value to the district in terms of quality, technical skill, and cost. MSD shall pay a reasonable stipend to prequalified contractors who submit a proposal but are not rewarded the contract.

The payment bond requirements of Section 107.170 shall apply to design-build projects. All persons furnishing services are deemed to be covered by the payment bond. However, the performance bond for the contractor does not need to cover the design services as long as the contractor, or its subcontractors providing design services, carry professional liability insurance in an amount established by MSD in the request for proposals.

Any person providing architectural, engineering, or land surveying services for the contractor on the project shall be licensed or authorized by the state to provide such services. MSD shall retain an architect or engineer to assist and perform certain contract administration functions for the project. Such architect or engineer cannot act as the contractor on such project.

Any contractor that enters into a design-build contract with MSD is exempt from the requirement that such person hold a certificate of registration or authority if the architectural, engineering, or land surveying services are performed through subcontracts with properly licensed or authorized persons and are not performed by the contractor or its employees.

This act is similar to provisions of SS/SCS/HB 1290 (2010), HB 2031 (2010), HB 2218 (2010), HCS/SS/SCS/SB 580 (2010), HCS/SB 716 (2010), and HCS/SCS/SB 887 (2010).

SUSAN HENDERSON MOORE