State Government Administration Committee

Filed: 4/21/2004

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 7019

2     AMENDMENT NO. ______. Amend House Bill 7019 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 1. Short title. This Act may be cited as the
5 Design-Build Procurement Act.
 
6     Section 5. Legislative policy. It is the intent of the
7 General Assembly that State construction agencies be allowed to
8 use the design-build delivery method for public projects if it
9 is shown to be in the State's best interest for that particular
10 project. It shall be the policy of State construction agencies
11 in the procurement of design-build services to publicly
12 announce all requirements for design-build services and to
13 procure these services on the basis of demonstrated competence
14 and qualifications and with due regard for the principles of
15 competitive selection.
16     A State construction agency shall, prior to issuing
17 requests for proposals, promulgate and publish procedures for
18 the solicitation and award of contracts pursuant to this Act.
19     A State construction agency shall, for each public project
20 or projects permitted under this Act, make a written
21 determination, including a description as to the particular
22 advantages of the design-build procurement method, that it is
23 in the best interests of this State to enter into a
24 design-build contract for the project or projects. In making

 

 

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1 that determination, the following factors shall be considered:
2         (1) The probability that the design-build procurement
3 method will be in the best interests of the State by
4 providing a material savings of time or cost over the
5 design-bid-build or other delivery system.
6         (2) The type and size of the project and its
7 suitability to the design-build procurement method.
8         (3) The ability of the State construction agency to
9 define and provide comprehensive scope and performance
10 criteria for the project.
11     The State construction agency shall within 15 days after
12 the initial determination provide an advisory copy to the
13 Procurement Policy Board and maintain the full record of
14 determination for 5 years.
 
15     Section 10. Definitions. As used in this Act:
16     "State construction agency" means and includes those
17 agencies as defined in Section 1-15.25 of the Illinois
18 Procurement Code, but does not mean State institutions of
19 higher learning, the boards of trustees of State institutions
20 of higher learning, community colleges and community college
21 districts subject to the Public Community College Act, the
22 boards of trustees of community college districts subject to
23 the Public Community College Act, and the Illinois Community
24 College Board.
25     "Delivery system" means the design and construction
26 approach used to develop and construct a project.
27     "Design-bid-build" means the traditional delivery system
28 used on public projects in this State that incorporates the
29 Architectural, Engineering, and Land Surveying Qualification
30 Based Selection Act (30 ILCS 535/) and the principles of
31 competitive selection in the Illinois Procurement Code (30 ILCS
32 500/).
33     "Design-build" means a delivery system that provides

 

 

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1 responsibility within a single contract for the furnishing of
2 architecture, engineering, land surveying and related services
3 as required, and the labor, materials, equipment, and other
4 construction services for the project.
5     "Design-build contract" means a contract for a public
6 project under this Act between a State construction agency and
7 a design-build entity to furnish architecture, engineering,
8 land surveying, and related services as required, and to
9 furnish the labor, materials, equipment, and other
10 construction services for the project. The design-build
11 contract may be conditioned upon subsequent refinements in
12 scope and price and may allow the State construction agency to
13 make modifications in the project scope without invalidating
14 the design-build contract.
15     "Design-build entity" means any individual, sole
16 proprietorship, firm, partnership, joint venture, corporation,
17 professional corporation, or other entity that proposes to
18 design and construct any public project under this Act. A
19 design-build entity and associated design-build professionals
20 shall conduct themselves in accordance with the laws of this
21 State and the related provisions of the Illinois Administrative
22 Code, as referenced by the licensed design professionals Acts
23 of this State.
24     "Design professional" means any individual, sole
25 proprietorship, firm, partnership, joint venture, corporation,
26 professional corporation, or other entity that offers services
27 under the Illinois Architecture Practice Act of 1989 (225 ILCS
28 305/), the Professional Engineering Practice Act of 1989 (225
29 ILCS 325/), the Structural Engineering Licensing Act of 1989
30 (225 ILCS 340/), or the Illinois Professional Land Surveyor Act
31 of 1989 (225 ILCS 330/).
32     "Evaluation criteria" means the requirements for the
33 separate phases of the selection process as defined in this Act
34 and may include the specialized experience, technical

 

 

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1 qualifications and competence, capacity to perform, past
2 performance, experience with similar projects, assignment of
3 personnel to the project, and other appropriate factors. Price
4 may not be used as a factor in the evaluation of Phase I
5 proposals.
6     "Proposal" means the offer to enter into a design-build
7 contract as submitted by a design-build entity in accordance
8 with this Act.
9     "Request for proposal" means the document used by a State
10 construction agency to solicit proposals for a design-build
11 contract.
12     "Scope and performance criteria" means the requirements
13 for the public project, including but not limited to, the
14 intended usage, capacity, size, scope, quality and performance
15 standards, life-cycle costs, and other programmatic criteria
16 that are expressed in performance-oriented and quantifiable
17 specifications and drawings that can be reasonably inferred and
18 are suited to allow a design-build entity to develop a
19 proposal.
20     "State institutions of higher learning" means the
21 University of Illinois, Southern Illinois University, Chicago
22 State University, Eastern Illinois University, Governors State
23 University, Illinois State University, Northeastern Illinois
24 University, Northern Illinois University, and Western Illinois
25 University.
 
26     Section 15. Solicitation of proposals.
27     (a) A State construction agency that elects to use the
28 design-build delivery method must issue a notice of intent to
29 receive requests for proposals for the project at least 14 days
30 before issuing the request for the proposal. The State
31 construction agency must publish the advance notice in the
32 official procurement bulletin of the State or the professional
33 services bulletin of the State construction agency, if any. The

 

 

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1 agency is encouraged to use publication of the notice in
2 related construction industry service publications. A brief
3 description of the proposed procurement must be included in the
4 notice. The State construction agency must provide a copy of
5 the request for proposal to any party requesting a copy.
6     (b) The request for proposal shall be prepared for each
7 project and must contain, without limitation, the following
8 information:
9         (1) The State construction agency that will award the
10 design-build contract.
11         (2) A preliminary schedule for the completion of the
12 contract.
13         (3) The proposed budget for the project, the source of
14 funds, and the currently available funds at the time the
15 request for proposal is submitted.
16         (4) Prequalification criteria for design-build
17 entities wishing to submit proposals. The State
18 construction agency shall include, at a minimum, its normal
19 prequalification, licensing, registration, and other
20 requirements, but nothing contained herein precludes the
21 use of additional prequalification criteria by the State
22 construction agency.
23         (5) Material requirements of the contract, including
24 but not limited to, the proposed terms and conditions,
25 required performance and payment bonds, insurance,
26 affirmative action, and workforce requirements, if any.
27         (6) The performance criteria.
28         (7) The evaluation criteria for each phase of the
29 solicitation.
30         (8) The number of entities that will be considered for
31 the technical and cost evaluation phase.
32     (c) The State construction agency may include any other
33 relevant information that it chooses to supply. The
34 design-build entity shall be entitled to rely upon the accuracy

 

 

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1 of this documentation in the development of its proposal.
2     (d) The date that proposals are due must be at least 21
3 calendar days after the date of the issuance of the request for
4 proposal. In the event the cost of the project is estimated to
5 exceed $10 million, then the proposal due date must be at least
6 28 calendar days after the date of the issuance of the request
7 for proposal. The State construction agency shall include in
8 the request for proposal a minimum of 30 days to develop the
9 Phase II submissions after the selection of entities from the
10 Phase I evaluation is completed.
 
11     Section 20. Development of scope and performance criteria.
12     (a) The State construction agency shall develop, with the
13 assistance of a licensed design professional, a request for
14 proposal, which shall include scope and performance criteria.
15 The scope and performance criteria must be in sufficient detail
16 and contain adequate information to reasonably apprise the
17 qualified design-build entities of the State construction
18 agency's overall programmatic needs and goals, including
19 criteria and preliminary design plans, general budget
20 parameters, schedule, and delivery requirements.
21     (b) Each request for proposal shall also include a
22 description of the level of design to be provided in the
23 proposals. This description must include the scope and type of
24 renderings, drawings, and specifications that, at a minimum,
25 will be required by the State construction agency to be
26 produced by the design-build entities.
27     (c) The scope and performance criteria shall be prepared by
28 a design professional who is an employee of the State
29 construction agency, or the State construction agency may
30 contract with an independent design professional selected
31 under the Architectural, Engineering and Land Surveying
32 Qualification Based Selection Act (30 ILCS 535/) to provide
33 these services.

 

 

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1     (d) The design professional that prepares the scope and
2 performance criteria is prohibited from participating in any
3 design-build entity proposal for the project.
 
4     Section 25. Selection Committee.
5     (a) Each State construction agency that elects to use the
6 design-build delivery method shall establish a committee to
7 evaluate and select the design-build entity. The committee,
8 under the discretion of the State construction agency, shall
9 consist of 3, 5, or 7 members and shall include at least one
10 licensed design professional and one member of the public. The
11 public member may not be employed or associated with any firm
12 holding a contract with the State construction agency and shall
13 be nominated by design or construction industry associations.
14 The selection committee may be designated for a set term or for
15 the particular project subject to the request for proposal.
16     (b) The members of the selection committee must certify for
17 each request for proposal that no conflict of interest exists
18 between the members and the design-build entities submitting
19 proposals. If a conflict exists, the member must be replaced
20 before any review of proposals.
 
21     Section 30. Procedures for Selection.
22     (a) The State construction agency must use a two-phase
23 procedure for the selection of the successful design-build
24 entity. Phase I of the procedure will evaluate and shortlist
25 the design-build entities based on qualifications, and Phase II
26 will evaluate the technical and cost proposals.
27     (b) The State construction agency shall include in the
28 request for proposal the evaluating factors to be used in Phase
29 I. These factors are in addition to any prequalification
30 requirements of design-build entities that the agency has set
31 forth. Each request for proposal shall establish the relative
32 importance assigned to each evaluation factor and subfactor,

 

 

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1 including any weighting of criteria to be employed by the State
2 construction agency. The State construction agency must
3 maintain a record of the evaluation scoring to be disclosed in
4 event of a protest regarding the solicitation.
5     The State construction agency shall include the following
6 criteria in every Phase I evaluation of design-build entities:
7 (1) experience of personnel; (2) successful experience with
8 similar project types; (3) financial capability; (4)
9 timeliness of past performance; (5) experience with similarly
10 sized projects; (6) successful reference checks of the firm;
11 and (7) commitment to assign personnel for the duration of the
12 project and qualifications of the entity's consultants. The
13 State construction agency may include any additional relevant
14 criteria in Phase I that it deems necessary for a proper
15 qualification review.
16     The State construction agency may not consider any
17 design-build entity for evaluation or award if the entity has
18 any pecuniary interest in the project or has other
19 relationships or circumstances, including but not limited to,
20 long-term leasehold, mutual performance, or development
21 contracts with the State construction agency, that may give the
22 design-build entity a financial or tangible advantage over
23 other design-build entities in the preparation, evaluation, or
24 performance of the design-build contract or that create the
25 appearance of impropriety.
26     Upon completion of the qualifications evaluation, the
27 State construction agency shall create a shortlist of the most
28 highly qualified design-build entities. The State construction
29 agency, in its discretion, is not required to shortlist the
30 maximum number of entities as identified for Phase II
31 evaluation, provided however, no less than 2 design-build
32 entities nor more than 6 are selected to submit Phase II
33 proposals.
34     The State construction agency shall notify the entities

 

 

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1 selected for the shortlist in writing. This notification shall
2 commence the period for the preparation of the Phase II
3 technical and cost evaluations. The State construction agency
4 must allow sufficient time for the shortlist entities to
5 prepare their Phase II submittals considering the scope and
6 detail requested by the State agency.
7     (c) The State construction agency shall include in the
8 request for proposal the evaluating factors to be used in the
9 technical and cost submission components of Phase II. Each
10 request for proposal shall establish, for both the technical
11 and cost submission components of Phase II, the relative
12 importance assigned to each evaluation factor and subfactor,
13 including any weighting of criteria to be employed by the State
14 construction agency. The State construction agency must
15 maintain a record of the evaluation scoring to be disclosed in
16 event of a protest regarding the solicitation.
17     The State construction agency shall include the following
18 criteria in every Phase II technical evaluation of design-build
19 entities: (1) compliance with objectives of the project; (2)
20 compliance of proposed services to the request for proposal
21 requirements; (3) quality of products or materials proposed;
22 (4) quality of design parameters; (5) design concepts; (6)
23 innovation in meeting the scope and performance criteria; and
24 (7) constructability of the proposed project. The State
25 construction agency may include any additional relevant
26 technical evaluation factors it deems necessary for proper
27 selection.
28     The State construction agency shall include the following
29 criteria in every Phase II cost evaluation: the total project
30 cost, the construction costs, and the time of completion. The
31 State construction agency may include any additional relevant
32 technical evaluation factors it deems necessary for proper
33 selection. The total project cost criteria weighing factor (i)
34 shall be set forth in the request for proposal for the Illinois

 

 

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1 Department of Transportation and the Illinois State Toll
2 Highway Authority and (ii) shall be at least 25% for all other
3 State construction agencies.
4     The State construction agency shall directly employ or
5 retain a licensed design professional to evaluate the technical
6 and cost submissions to determine if the technical submissions
7 are in accordance with generally accepted industry standards.
8     Upon completion of the technical submissions and cost
9 submissions evaluation, the State construction agency may
10 award the design-build contract to the highest overall ranked
11 entity.
 
12     Section 35. Small projects. In any case where the total
13 overall cost of the project is estimated to be less than $10
14 million, the State construction agency may combine the
15 two-phase procedure for selection described in Section 30 into
16 one combined step, provided that all the requirements of
17 evaluation are performed in accordance with Section 30.
 
18     Section 40. Submission of proposals. Proposals must be
19 properly identified and sealed. Proposals may not be reviewed
20 until after the deadline for submission has passed as set forth
21 in the request for proposals. All design-build entities
22 submitting proposals shall be disclosed after the deadline for
23 submission, and all design-build entities who are selected for
24 Phase II evaluation shall also be disclosed at the time of that
25 determination.
26     Proposals shall include a bid bond in the form and security
27 as designated in the request for proposals. Proposals shall
28 also contain a separate sealed envelope with the cost
29 information within the overall proposal submission. Proposals
30 shall include a list of all design professionals and other
31 entities as defined in Section 30-30 of the Illinois
32 Procurement Code to which any work may be subcontracted during

 

 

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1 the performance of the contract. Any entity that will perform
2 any of the 5 subdivisions of work defined in Section 30-30 of
3 the Illinois Procurement Code must meet prequalification
4 standards of the State construction agency.
5     Proposals must meet all material requirements of the
6 request for proposal or they may be rejected as non-responsive.
7 The State construction agency shall have the right to reject
8 any and all proposals.
9     The drawings and specifications of the proposal shall
10 remain the property of the design-build entity.
11     The State construction agency shall review the proposals
12 for compliance with the performance criteria and evaluation
13 factors.
14     Proposals may be withdrawn prior to evaluation for any
15 cause. After evaluation begins by the State construction
16 agency, clear and convincing evidence of error is required for
17 withdrawal.
 
18     Section 45. Award. The State construction agency may award
19 the contract to the highest overall ranked entity. Notice of
20 award shall be made in writing. Unsuccessful entities shall
21 also be notified in writing. The State construction agency may
22 not request a best and final offer after the receipt of
23 proposals. The State construction agency may negotiate with the
24 selected design-build entity after award but prior to contract
25 execution for the purpose of securing better terms than
26 originally proposed, provided that the salient features of the
27 request for proposal are not diminished.
 
28     Section 50. Administrative Procedure Act. The Illinois
29 Administrative Procedure Act (5 ILCS 100/) applies to all
30 administrative rules and procedures of the State construction
31 agency under this Act except that nothing herein shall be
32 construed to render any prequalification or other

 

 

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1 responsibility criteria as a "license" or "licensing" under
2 that Act.
 
3     Section 53. Federal requirements. In the procurement of
4 design-build contracts, State construction agencies shall
5 comply with federal law and regulations and take all necessary
6 steps to adapt their rules, policies, and procedures to remain
7 eligible for federal aid.
 
8     Section 900. The Illinois Procurement Code is amended by
9 changing Section 30-30 as follows:
 
10     (30 ILCS 500/30-30)
11     Sec. 30-30. Contracts in excess of $250,000. For building
12 construction contracts in excess of $250,000, separate
13 specifications shall be prepared for all equipment, labor, and
14 materials in connection with the following 5 subdivisions of
15 the work to be performed:
16         (1) plumbing;
17         (2) heating, piping, refrigeration, and automatic
18 temperature control systems, including the testing and
19 balancing of those systems;
20         (3) ventilating and distribution systems for
21 conditioned air, including the testing and balancing of
22 those systems;
23         (4) electric wiring; and
24         (5) general contract work.
25     The specifications must be so drawn as to permit separate
26 and independent bidding upon each of the 5 subdivisions of
27 work. All contracts awarded for any part thereof shall award
28 the 5 subdivisions of work separately to responsible and
29 reliable persons, firms, or corporations engaged in these
30 classes of work. The contracts, at the discretion of the
31 construction agency, may be assigned to the successful bidder

 

 

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1 on the general contract work or to the successful bidder on the
2 subdivision of work designated by the construction agency
3 before the bidding as the prime subdivision of work, provided
4 that all payments will be made directly to the contractors for
5 the 5 subdivisions of work upon compliance with the conditions
6 of the contract. A contract may be let for one or more
7 buildings in any project to the same contractor. The
8 specifications shall require, however, that unless the
9 buildings are identical, a separate price shall be submitted
10 for each building. The contract may be awarded to the lowest
11 responsible bidder for each or all of the buildings included in
12 the specifications.
13     The requirements of this Section do not apply to the
14 construction of an Emergency Operations Center for the Illinois
15 Emergency Management Agency if (i) the majority of the funding
16 for the project is from federal funds, (ii) the bid of the
17 successful bidder identifies the name of the subcontractor, if
18 any, and the bid proposal costs for each of the 5 subdivisions
19 of work set forth in this Section, and (iii) the contract
20 entered into with the successful bidder provides that no
21 identified subcontractor may be terminated without the written
22 consent of the Capital Development Board.
23 (Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
24     Section 995. Severability. The provisions of this Act are
25 severable under Section 1.31 of the Statute on Statutes.
 
26     Section 999. Effective date. This Act takes effect upon
27 becoming law.".