H.B. No. 2300




AN ACT
relating to the authority of metropolitan rapid transit authorities to use a hybrid delivery system for certain construction projects. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 451, Transportation Code, is amended by adding Subchapter Q to read as follows:
SUBCHAPTER Q. HYBRID DELIVERY SYSTEM FOR CERTAIN CONSTRUCTION PROJECTS
Sec. 451.801. DEFINITIONS. In this subchapter: (1) "Civil works components" means: (A) underground utilities; (B) paving; (C) drainage; (D) structures, including elevated platforms and bridges; (E) components related to vehicular traffic; (F) primary power distribution systems; (G) transfer stations, depots, and other architectural features, including related mechanical, electrical, and plumbing systems; and (H) all other aspects of a project not defined as system components. (2) "System components" means the components of a transit system that are related directly to system operations, including rolling stock, tracks, guideway systems, and special signal and communications systems. (3) "Design development" means drawings and other documents that are: (A) approximately 30 percent complete; and (B) sufficient to fix and describe the size and character of the project as to civil work, architectural systems, structural systems, mechanical and electrical systems, materials, equipment, and technology, including schematic layouts and conceptual design criteria. (4) "Facility" means a single transit project: (A) with a proposed cost of more than $100 million; or (B) as identified in a referendum approved by the voters. (5) "Facility provider" means a partnership, corporation, joint venture, consortium, special purchase company, or other legal entity or team responsible for: (A) providing and installing the system components for a facility; and (B) constructing the associated civil works components. (6) "Hybrid delivery system" means the alternative procurement procedure provided by this subchapter. Sec. 451.802. APPLICABILITY. This subchapter applies only to an authority in which the principal municipality has a population of more than 1.2 million. Sec. 451.803. USE PERMITTED. Notwithstanding any other law, an authority may use a hybrid delivery system for construction of a facility as provided by this subchapter. Sec. 451.804. SELECTION OF ENGINEER OR TEAM. (a) An authority shall select an engineer or an engineering and architecture team for the design of the civil works components of the facility. The authority shall select an engineer or team in accordance with Section 2254.004, Government Code. (b) A selected engineer or team shall comply with Chapter 1001, Occupations Code. (c) The authority shall enter into a contract with the selected engineer or team to provide planning and design development services and an estimate of final design costs. The contract may also include construction management. Sec. 451.805. REQUEST FOR PROPOSALS. After the completion of design development documents by the engineer or team, the authority shall issue requests for proposals from facility providers. The request for proposals shall include general information on the project site, project scope, budget, schedule, system criteria, selection criteria, and any other information that may assist potential facility providers in submitting proposals for the project. Sec. 451.806. EVALUATION OF PROPOSALS. (a) For each proposal submitted by a facility provider in response to a request for proposals, the authority shall evaluate: (1) the provider's experience and qualifications; (2) the provider's technical competence and capability to perform; (3) the provider's past performance, including past performance of members of the provider's team; (4) proposed technology; (5) feasibility of implementing the project as proposed; (6) costing methodology; and (7) other information submitted on the basis of the selection criteria stated in the request for proposals. (b) The authority shall rank two to four facility providers that best meet the selection criteria. Sec. 451.807. SELECTION OF FACILITY PROVIDER. (a) The authority shall select the facility provider that submits the proposal that offers the best value for the authority on the basis of the published selection criteria and price. (b) The authority shall first attempt to negotiate a contract with the first-ranked provider in the order of the ranking established under Section 451.806(b). The authority and the engineer or team selected under Section 451.804 may discuss with the selected provider options for a scope or time modification and any price change associated with the modification before finalizing a contract with the selected provider. If the authority is unable to negotiate a contract with the selected provider, the authority shall end negotiations with the selected provider in writing and proceed to negotiate a contract with the next provider in the order of the ranking established under Section 451.806(b) until a contract is entered into or all proposals are rejected. Sec. 451.808. FINAL DESIGN CONTRACTS. (a) In consultation with the selected facility provider, the authority shall negotiate with the engineer or team selected under Section 451.804 on the: (1) scope of work and fees associated with final design of the civil works components; and (2) integration of system components and civil works components of the facility. (b) A contract for final design shall be incorporated into the authority's contract with the selected facility provider. Any subsequent changes to a contract with the engineer or team must be approved by the facility provider and the authority. (c) In a contract with a selected facility provider, the authority shall provide a mechanism under which issues of design quality, quality assurance, code compliance, value engineering, or life cycle costing may be communicated directly by the engineer or team to the facility provider and the authority with the intent of seeking the authority's approval of proposed action. (d) The selected facility provider's oversight of the engineer or team is limited to: (1) design management; (2) coordination of the civil works components; (3) integration of the design of system components into the civil works; and (4) the acceptance of items listed under Subdivisions (1)-(3) with regard to the facility provider's assumption of responsibility for contract compliance, performance warranties and guarantees, and other risk-related items as stipulated in the contract between the selected facility provider and the authority. (e) Fees associated with the items listed in Subsection (d) may not exceed eight percent of final design fees unless otherwise amended by the engineer or team through allocation of a portion of the engineer or team fee to the selected facility provider for specialty design assistance. Sec. 451.809. USE OF OTHER PROFESSIONAL SERVICES. (a) If the authority performs periodic audits of its construction materials, the authority, independent of the selected facility provider, shall contract for the inspection and testing of construction materials and other verification testing services necessary for the acceptance of the facility by the authority. (b) A contract under Subsection (a) does not alleviate the selected facility provider's responsibility to provide the services described by Subsection (a) under a contract entered into under this subchapter. (c) A contract described by Subsection (a) and any additional contract for engineering or architecture services entered into by the selected facility provider for the design and construction of the facility must be entered into in accordance with Section 2254.004, Government Code. Sec. 451.810. CONSTRUCTION WORK SUBCONTRACTED. (a) The authority may require that the selected facility provider publicly advertise for and receive bids or proposals from trade contractors or subcontractors for the construction of civil works components of the facility. (b) The selected facility provider may submit a bid or proposal for the work described in Subsection (a) in the same manner as other trade contractors or subcontractors. Sec. 451.811. LOCAL PREFERENCE. To the maximum extent permitted by law, the authority shall use vendors and providers of services with an established office in the principal municipality. Sec. 451.812. EXPIRATION. This subchapter expires on August 31, 2015. SECTION 2. Section 451.110(a), Transportation Code, is amended to read as follows: (a) Except as provided by Subsection (c) and by Subchapter Q, a board may not contract for the construction of an improvement or the purchase of any property, except through competitive bidding after notice of the contract proposal. The notice must be published in a newspaper of general circulation in the area in which the authority is located at least once each week for two consecutive weeks before the date set for receiving the bids. The first notice must be published at least 15 days before the date set for receiving bids. SECTION 3. Section 451.111(a), Transportation Code, is amended to read as follows: (a) Except as provided by Subchapter Q, unless [Unless] the posting requirement in Subsection (b) is satisfied, a board may not let a contract that is: (1) for more than $25,000; and (2) for: (A) the purchase of real property; or (B) consulting or professional services. SECTION 4. This Act takes effect September 1, 2005. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2300 was passed by the House on May 13, 2005, by a non-record vote. ______________________________ Chief Clerk of the House I certify that H.B. No. 2300 was passed by the Senate on May 25, 2005, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor