L.R. NO. 1327-02
BILL NO. SB 320
SUBJECT: Contracts and Contractors; State Departments
TYPE: Original
Net Effect on All State Funds
FUND AFFECTED
FY 2002
FY 2003
FY 2004 General Revenue
Unknown to
(Unknown)
Unknown to
(Unknown)
Unknown to
(Unknown)
Total Estimated
Unknown to
(Unknown)
Unknown to
(Unknown)
Unknown to
(Unknown)
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
ASSUMPTION
Officials from the Department of Transportation and the Office of Secretary of State assume this proposal would have no fiscal impact on their agencies.
Officials from the Office of Administration - Division of Design and Construction (COA) assume they would incur annual costs of approximately $100,000. This would be the worst case scenario if five qualified proposers would participate in the bid of one Design-Build project, if each proposer is responsive, if the design-build proposer does not desire to retain all rights and interest in their design and the stipend paid to each proposer is approximately $25,000 (maximum foreseeable amount).
Oversight assumes that combining the design and construction of a facility into one contract may affect the total cost of the project. Savings could be realized since one "design-builder" is responsible for the total project, and Division of Design and Construction (D&C) would not have to contract out the design and construction functions separately. However, Oversight further assumes there may be additional costs associated with this proposal, as it requires D&C to pay a stipend to each unsuccessful proposer in return for their rights in the design. Because design-builders may choose to forfeit this fee to retain the rights to their design, the costs for these fees cannot be estimated.
FISCAL IMPACT - State Government FY 2002 FY 2003 FY 2004
(10 Mo.)
GENERAL REVENUE
Savings - Due to design-build contracts Unknown Unknown Unknown
Costs - Stipend for rights to designs (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT Unknown to Unknown to Unknown to
ON GENERAL REVENUE (Unknown) (Unknown) (Unknown)
FISCAL IMPACT - Local Government FY 2002 FY 2003 FY 2004
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
This proposal may affect small businesses as it may decrease the number of businesses capable of bidding on both the design and construction of a facility.
DESCRIPTION
This bill authorizes the Division of Design and Construction to enter into "design-build" contracts for the development of state buildings as pilot projects. The Division may use the design-build process for up to four projects with a projected cost of $5 million or less and four projects with a cost of more than $5 million. The Director must submit annual progress reports to the General Assembly.
The Director of the Division of Design and Construction may determine that a design-build procurement process is necessary for any particular project based upon criteria set out in the bill. The Division may hire a consultant to prepare proposals, review documents, decide disputes and make inspections. Design-build proposals are evaluated by a team composed of two
representatives of the Division, two representatives of the agency that is to use the finished building and a chairman appointed by the Director of the Division.
Design-build proposals must be advertised and this bill specifies the requirements that a request for proposal must meet.
Proposals may be solicited in three phases: Phase I involves soliciting of qualifications so that design-builders may be pre-qualified. The top five qualifiers will be asked to participate in Phase II, in which they submit their design for the project. In Phase III, the design-build contractors shall submit cost proposals. The phases shall be weighted. Phase II shall account for no more than 50 percent of the total point score. Phase III shall account for not less than fifty percent of the total point score. In evaluating the cost proposals, the low bidder will be awarded the total number of points assigned to be awarded in Phase III. For other bidders, cost points will be calculated by reducing the maximum points available in Phase III by 2 percent or more for each percentage point of the low bid by which the bidder exceeds the low bid.
The Division shall pay a stipend to qualified proposers who submit responsive bids that are not accepted and the state shall have the right to use the design so submitted. The authority to enter into the design-build pilot projects terminates December 31, 2004.
DESCRIPTION (continued)
This legislation is not federally mandated, would not duplicate any other program, and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Transportation
Office of Secretary of State
Office of Administration - Division of Design and Construction
Jeanne Jarrett, CPA
Director
February 19, 2001