102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2981

 

Introduced 1/5/2022, by Sen. Donald P. DeWitte

 

SYNOPSIS AS INTRODUCED:
 
New Act
20 ILCS 2705/2705-233 new
20 ILCS 3501/825-108 new
30 ILCS 500/1-10.5 new
30 ILCS 550/1.9 new
30 ILCS 570/2.8 new
30 ILCS 575/2.8 new
605 ILCS 10/11.2 new
735 ILCS 30/15-5-48 new
820 ILCS 130/2  from Ch. 48, par. 39s-2

    Creates the Innovations for Transportation Infrastructure Act. Contains a statement of legislative policy. Adds provisions governing: authorization of project delivery methods; preconditions to commencement of procurement; procurement; evaluation and selection of proposals; project records; confidentiality; public disclosure; design-build contracts; construction manager/general contractor contracts; funding and financing; minority, disadvantaged, and women-owned businesses; labor agreements; acquisition of property; federal requirements; powers of the Department of Transportation and the Illinois State Toll Highway Authority; and rulemaking. Makes corresponding changes in the Department of Transportation Law of the Civil Administrative Code of Illinois; Illinois Finance Authority Act; the Illinois Procurement Code; the Public Construction Bond Act; the Employment of Illinois Workers on Public Works Act; the Business Enterprise for Minorities, Women, and Persons with Disabilities Act; the Toll Highway Act; the Eminent Domain Act; and the Prevailing Wage Act. Provides that the provisions of the Act are severable. Effective immediately.


LRB102 21866 RAM 30987 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2981LRB102 21866 RAM 30987 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Innovations for Transportation Infrastructure Act.
 
6    Section 5. Legislative policy.
7    (a) It is the public policy of the State of Illinois to
8promote the development of infrastructure projects that serve
9the needs of the public.
10    (b) The design-build project delivery method and
11Construction Manager/General Contractor project delivery
12method and use of Alternative Technical Concepts have the
13potential to capture private sector innovation and safely
14deliver infrastructure projects on more predictable schedules
15and budgets. Earlier completion and lower cost for projects
16are possible with the ability to shift or share risks with the
17private sector that are generally retained by the public in
18the conventional design-bid-build project delivery method.
19    (c) It is the intent of the General Assembly that the
20Department of Transportation and the Illinois State Toll
21Highway Authority may evaluate and use Alternative Technical
22Concepts proposed by bidders and proposers and to use the
23design-build project delivery method and Construction

 

 

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1Manager/General Contractor project delivery method.
2    (d) It is the intent of this Act to use design
3professionals, construction companies, and workers from this
4State, reflecting the diversity of the State's businesses and
5workforce, to the greatest extent possible.
6    (e) The powers granted in this Act are in addition to any
7other powers authorized under applicable law.
 
8    Section 10. Definitions. As used in this Act:
9    "Alternative Technical Concepts" means a proposed
10deviation from the contract technical requirements set forth
11in the procurement documents for a transportation facility
12that offers a solution that is equal to or better than the
13requirements in the procurement documents.
14    "Authority" means the Illinois State Toll Highway
15Authority.
16    "Best value" means any selection process in which
17proposals contain both price and qualitative components and
18award is based upon a combination of price, qualitative
19concepts, and other factors.
20    "Chief procurement officer" means the chief procurement
21officer for the Transportation Agency.
22    "Construction Manager/General Contractor" means a proposer
23that has entered into a Construction Manager/General
24Contractor contract under this Act.
25    "Construction Manager/General Contractor contract" means a

 

 

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1two-phase contract between the Transportation Agency and a
2Construction Manager/General Contractor that includes a first
3phase addressing preconstruction services and a second phase
4addressing the construction of the transportation facility.
5    "Construction Manager/General Contractor project delivery
6method" means a method of procurement and contracting that
7makes a Construction Manager/General Contractor who enters
8into a contract with the Transportation Agency responsible for
9certain preconstruction services and then, if the parties
10reach agreement on key terms, responsible for construction of
11the transportation facility.
12    "Department" means the Illinois Department of
13Transportation.
14    "Design-bid-build project delivery method" means the
15traditional method of procuring and contracting for design
16services and construction services used separately in this
17State that incorporates the Architectural, Engineering, and
18Land Surveying Qualifications Based Selection Act and the
19principles of competitive bidding under the Illinois
20Procurement Code.
21    "Design-build contract" means a contract between the
22Transportation Agency and a design-builder under which the
23design-builder agrees to furnish architectural, surveying,
24engineering, construction, and related services for a
25transportation facility, and may include, but is not limited
26to, the progressive design-build project delivery method.

 

 

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1    "Design-build project delivery method" means a method of
2procurement and contracting that provides responsibility
3within a single contract between the Transportation Agency and
4a design-builder for the furnishing of architectural,
5surveying, engineering, construction, and related services for
6a transportation facility.
7    "Design-builder" means a proposer that has entered into a
8design-build contract with the Transportation Agency under
9this Act.
10    "Evaluation Committee" means the committee assembled to
11evaluate and score statements of qualifications and proposals.
12    "Evaluation criteria" means the standards and requirements
13established by the Transportation Agency against which the
14qualifications and proposals of a proposer will be assessed
15during the procurement of a design-build contract or
16Construction Manager/General Contractor contract, as
17applicable.
18    "Executive Director" means the Executive Director of the
19Illinois State Toll Highway Authority.
20    "Metropolitan planning organization" means a metropolitan
21planning organization under 23 U.S.C. 134 whose metropolitan
22planning area boundaries are partially or completely within
23this State.
24    "Preconstruction services" means all
25non-construction-related services that a Construction
26Manager/General Contractor is required to perform during the

 

 

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1first phase of a Construction Manager/General Contractor
2contract, and may include, but is not limited to, giving
3advice to the Transportation Agency regarding scheduling, work
4sequencing, cost engineering, constructability, cost
5estimating, and risk identification.
6    "Progressive design-build project delivery method" is a
7type of design-build project delivery method that consists of
82 phases, with the first phase including budget-level design
9development, preconstruction services, and negotiation of a
10contract price (either lump sum or guaranteed minimum price).
11After completion of the first phase, the second phase is
12begun. The second phase consists of final design,
13construction, and commissioning of the project.
14    "Proposal" means a proposer's response to a request for
15proposals.
16    "Proposer" means any individual, sole proprietorship,
17firm, partnership, joint venture, corporation, professional
18corporation, or other entity legally established to conduct
19business in this State that proposes to be the design-builder
20or Construction Manager/General Contractor for any
21transportation facility under this Act.
22    "Qualifications" means a statement of qualifications
23submitted by a proposer in response to a request for
24qualifications.
25    "Request for proposals" means the document issued by the
26Transportation Agency to solicit proposals and describe the

 

 

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1procurement process for a design-build contract or
2Construction Manager/General Contractor contract in accordance
3with the design-build project delivery method or the
4Construction Manager/General Contractor project delivery
5method, as applicable.
6    "Request for qualifications" means the document issued by
7the Transportation Agency in the first phase of a two-phase
8procurement to solicit qualifications from proposers in
9accordance with the design-build project delivery method or
10the Construction Manager/General Contractor project delivery
11method, as applicable.
12    "Scope and performance requirements" means the activities,
13constructed elements, and standards of performance the
14Transportation Agency requires the design-builder or the
15Construction Manager/General Contractor to comply with in the
16development of the transportation facility, and may include,
17but is not limited to, the intended usage, capacity, size,
18scope, quality and performance standards, life-cycle costs,
19preliminary engineering, design, and other requirements as
20developed and determined by the Transportation Agency.
21    "Secretary" means the Secretary of the Illinois Department
22of Transportation.
23    "Transportation Agency" means the Illinois Department of
24Transportation or the Illinois State Toll Highway Authority.
25    "Transportation facility" means any new or existing
26facility or group of facilities that are the subject of a

 

 

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1design-build contract or a Construction Manager/General
2Contractor contract, and includes highways, roads, bridges,
3tunnels, overpasses, bus ways, guideways, ferries, airports or
4other aviation facilities, public transportation facilities,
5vehicle parking facilities, port facilities, rail facilities,
6stations, hubs, terminals, intermodal facilities, transit
7facilities, or similar facilities used for the transportation
8of persons or goods, together with any buildings, structures,
9parking areas, appurtenances, intelligent transportation
10systems, and other property or facilities related to the
11operation or maintenance of these facilities.
 
12    Section 15. Authorization of project delivery methods.
13    (a) Notwithstanding any other law, and as authority
14supplemental to its existing powers, the Transportation
15Agency, in accordance with this Act, may use the design-build
16project delivery method for transportation facilities if the
17capital costs for transportation facilities delivered
18utilizing the design-build project delivery method or
19Construction Manager/General Contractor project delivery
20method or Alternative Technical Concepts in a design-bid-build
21project delivery method do not: (i) for transportation
22facilities delivered by the Department, exceed $400 million of
23contracts awarded during the Department's multi-year highway
24improvement program for any 5-year period; or (ii) for
25transportation facilities delivered by the Authority, exceed

 

 

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120% of the Authority's annual improvement program. The
2Transportation Agency shall make this calculation before
3commencing the procurement. Notwithstanding any other law, and
4as authority supplemental to its existing powers, the
5Department, in accordance with this Act, may use the
6Construction Manager/General Contractor project delivery
7method for up to 2 transportation facilities. Before
8commencing a procurement under this Act for either a
9design-build contract or a Construction Manager/General
10Contractor contract, the Transportation Agency shall first
11undertake an analysis and make a written determination that it
12is in the best interests of this State to use the selected
13delivery method for that transportation facility. The analysis
14and determination shall discuss the design-build project
15delivery method or Construction Manager/General Contractor
16project delivery method's impact on the anticipated schedule,
17completion date, and project costs. The best interests of the
18State analysis shall be made available to the public.
19    (b) The Transportation Agency shall report to the General
20Assembly annually for the first 5 years after the effective
21date of this Act on the progress of procurements and
22transportation facilities procured under this Act.
 
23    Section 20. Preconditions to commencement of procurement.
24    If the Transportation Agency determines to use the
25design-build project delivery method or the Construction

 

 

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1Manager/General Contractor project delivery method for a
2particular transportation facility, the Transportation Agency
3may not commence a procurement for the transportation facility
4until the Transportation Agency has satisfied the following
5requirements:
6    (1) the Transportation Agency does one of the following:
7        (A) the Transportation Agency includes the
8    transportation facility in the Transportation Agency's
9    respective multi-year highway improvement program and
10    designates it as a design-build project delivery method
11    project or Construction Manager/General Contractor
12    project;
13        (B) the Transportation Agency issues a notice of
14    intent to receive qualifications, that includes a
15    description of the proposed procurement and transportation
16    facility, at least 28 days before the issuance of the
17    request for qualifications, and for a Department-issued
18    notice of intent publishes the notice in the Illinois
19    Transportation Procurement Bulletin and for an
20    Authority-issued notice of intent publishes the notice in
21    the Illinois Procurement Bulletin; or
22        (C) for a single-phase procurement authorized under
23    subsection (a) of Section 25 of this Act, the
24    Transportation Agency issues a notice of intent to receive
25    proposals, that includes a description of the proposed
26    procurement and transportation facility, at least 14 days

 

 

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1    before the issuance of the request for proposals, and for
2    a Department-issued notice of intent publishes the notice
3    in the Illinois Transportation Procurement Bulletin and
4    for an Authority-issued notice of intent publishes the
5    notice in the Illinois Procurement Bulletin; and
6    (2) the Transportation Agency uses its best efforts to
7ensure that the transportation facility is consistent with the
8regional plan in existence at the time of any metropolitan
9planning organization in which the boundaries of the
10transportation facility is located, or any other
11publicly-approved plan.
 
12    Section 25. Procurement process.
13    (a) The Transportation Agency may solicit a proposer with
14which to enter into a design-build contract or Construction
15Manager/General Contractor contract, as applicable, by using,
16without limitation, one or more requests for qualifications, a
17shortlisting of the most highly qualified proposers, requests
18for proposals, and negotiations. The Transportation Agency
19shall use a two-phase procurement for a design-build contract
20to select the successful proposer, except that the
21Transportation Agency may use a single-phase procurement if
22the transportation facility is estimated to cost less than
23$5,000,000 or the Secretary or the Executive Director makes a
24written determination that the Transportation Agency may use a
25single-phase procurement for a particular transportation

 

 

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1facility. In a two-phase procurement, the Transportation
2Agency shall use the first phase to evaluate and shortlist the
3most highly qualified proposers based on a proposer's
4qualifications, and then use the second phase to evaluate and
5select a proposer based on proposals submitted by the
6shortlisted proposers. During the first phase of a two-phase
7procurement, the Transportation Agency shall not consider
8price proposals to make its shortlist decision. In a
9single-phase procurement, the Transportation Agency shall
10solicit proposers with a request for proposals, and shall
11evaluate and select a proposer based on those proposals.
12    (b) The request for qualifications may contain any terms
13deemed appropriate by the Transportation Agency including,
14without limitation, the following:
15        (1) a description of the anticipated scope of work for
16    the transportation facility;
17        (2) a requirement that the proposer identify certain
18    key personnel, and for design-build contracts certain key
19    firms, the experience of the personnel and firms, and the
20    conditions on which identified personnel and firms can be
21    replaced;
22        (3) the evaluation criteria for the qualifications and
23    the relative importance of those criteria; these
24    evaluation criteria may address, without limitation, the
25    proposer's technical and financial qualifications, such as
26    specialized experience, technical competence, capability

 

 

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1    to perform, financial capacity, the proposer's workload,
2    local office presence, past performance including the
3    proposer's safety record and record of utilization of
4    business enterprises, including disadvantaged business
5    enterprises, and any other qualifications-based factors;
6        (4) the Transportation Agency's prequalification,
7    licensing, and registration requirements, including any
8    requirements from the Professional Engineering Practice
9    Act of 1989, the Illinois Architecture Practice Act of
10    1989, the Structural Engineering Practice Act of 1989, and
11    the Illinois Professional Land Surveyor Act of 1989,
12    except that nothing contained herein precludes the
13    Transportation Agency's use of additional prequalification
14    criteria or pass-fail evaluation factors addressing
15    minimum levels of technical experience or financial
16    capabilities;
17        (5) a requirement that the proposer provide references
18    or contact information for persons who can attest to the
19    past performance of the proposer, including with respect
20    to successful project delivery, subcontracting, labor
21    relations, diverse business utilization, workforce
22    diversity, and compliance with contract requirements;
23        (6) the maximum number of proposers the Transportation
24    Agency will shortlist to submit proposals; and
25        (7) any other relevant information the Transportation
26    Agency deems appropriate.

 

 

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1    (c) Upon completion of the qualifications evaluation, the
2Transportation Agency shall, based on the evaluation criteria
3set forth in the request for qualifications, create a
4shortlist of the most highly qualified proposers. The
5Transportation Agency shall shortlist no more than 5 and no
6fewer than 2 of the most highly qualified proposers.
7Notwithstanding other provisions of this subsection (c), the
8Transportation Agency may shortlist fewer than 2 proposers if
9the Secretary or the Executive Director makes a finding that
10an emergency situation justifies the limited shortlisting and
11fewer than 2 proposers meet any applicable prequalification or
12pass-fail requirements set forth in the request for
13qualifications.
14    (d) The request for proposals may contain any terms deemed
15appropriate by the Transportation Agency including, without
16limitation, the following:
17        (1) the form and amount of required bid security;
18        (2) the terms of the design-build contract or
19    Construction Manager/General Contractor contract,
20    including, but not limited to, scope and performance
21    requirements, schedule or completion date requirements,
22    subcontractor requirements, payment and performance
23    security requirements, and insurance requirements;
24        (3) the requirements for the technical component of
25    the proposal, including a description of the level of
26    design, scope and type of renderings, drawings, and

 

 

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1    specifications to be provided in the proposals;
2        (4) the requirements for the price component of the
3    proposal, which for Construction Manager/General
4    Contractor contracts may include a requirement for the
5    proposer to submit a lump sum price for the direct costs to
6    perform the required preconstruction services and
7    percentage mark-up on those direct costs;
8        (5) the evaluation criteria for the proposals,
9    including technical criteria, innovation, and schedule,
10    and the relative importance of those criteria, as the
11    Transportation Agency deems appropriate;
12        (6) a process for the Transportation Agency to review
13    and accept Alternative Technical Concepts;
14        (7) requirements regarding utilization of business
15    enterprises, including disadvantaged business
16    enterprises, and workforce development, including a
17    description of utilization and workforce diversity plans
18    and certifications to be provided in the proposals;
19        (8) requirements regarding the proposer's
20    qualifications; and
21        (9) any other relevant information the Transportation
22    Agency deems appropriate.
23    (e) Before the proposers' submittal of proposals, the
24Transportation Agency may conduct confidential meetings and
25exchange confidential information with proposers to promote
26understanding of the request for proposals, review Alternative

 

 

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1Technical Concepts, or discuss other issues related to the
2procurement.
3    (f) The date proposals are due must be at least 28 calendar
4days after the date the Transportation Agency first issues the
5request for proposals.
6    (g) The Transportation Agency may offer to pay a stipend
7in an amount and on the terms and conditions determined by the
8Transportation Agency and as set forth in the request for
9proposals to: (1) all shortlisted proposers if the
10Transportation Agency cancels the procurement before the due
11date for proposals; or (2) each unsuccessful proposer that
12submits a responsive proposal; or (3) each member of the
13proposer team that incurs costs in the preparation of the
14proposal. The Transportation Agency may pay a stipend only to
15those proposers who grant to the Transportation Agency the
16right to use any work product contained in the unsuccessful
17proposer's proposal and other proposal-related submissions or,
18if the Transportation Agency cancels the procurement before
19the due date for proposals, any work product developed before
20cancellation, including technologies, techniques, methods,
21processes, and information contained in the recipient's design
22for the transportation facility.
23    (h) The Transportation Agency shall, as appropriate
24depending on whether the transportation facility includes
25building facilities, directly employ or retain a professional
26engineer or engineers licensed in this State or a licensed

 

 

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1architect or architects, or both engineers licensed in this
2State and licensed architects, to prepare the scope and assist
3in the evaluation of the proposals' technical submissions
4under a design-build project delivery method. The professional
5engineers and licensed architects performing these services
6are generally precluded from participating in the procurement
7of the transportation facility at issue as a member of a
8proposer team.
9    (i) The Transportation Agency has the right to reject any
10and all qualifications or proposals, including, but not
11limited to, the right to reject any qualifications or
12proposals as non-responsive, if, in the Transportation
13Agency's sole discretion, the qualifications or proposals do
14not meet all material requirements of the request for
15qualifications or request for proposals, as appropriate. The
16Transportation Agency shall not consider a proposal that does
17not include:
18        (1) the proposer's plan to comply with requirements
19    established by the Transportation Agency regarding
20    utilization of business enterprises, including
21    disadvantaged business enterprises; or
22        (2) bid security in the form and amount designated in
23    the request for proposals.
24    (j) The Transportation Agency shall consult with the
25appropriate chief procurement officer on the design-build
26project delivery method and the Construction Manager/General

 

 

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1Contractor project delivery method procurement processes, and
2the Secretary or the Executive Director, in consultation with
3the chief procurement officer, shall determine which
4procedures to adopt and apply to the design-build project
5delivery method and Construction Manager/General Contractor
6project delivery method procurement processes in order to
7ensure an open, transparent, and efficient process that
8accomplishes the purposes of this Act.
9    (k) To ensure taxpayer accountability, the Transportation
10Agency shall independently procure an owner's representative
11or construction manager to provide design reviews,
12constructability reviews, value engineering, construction
13acceptance, oversight of utility relocations, stakeholder
14coordination, independent quality assurance surveys,
15independent material testing, documentation of construction,
16public involvement management, risk mitigation, and oversight
17of construction activities including construction management,
18maintenance of traffic, and permit compliance. The firm must
19be prequalified in Construction Inspection. The payment for
20this work would be based on a lump sum method of compensation.
 
21    Section 30. Evaluation committee.
22    (a) The Transportation Agency shall establish one or more
23evaluation committees to assist in selecting a design-builder
24and a Construction Manager/General Contractor. The
25Transportation Agency, in its sole discretion, shall determine

 

 

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1the appropriate size and composition of the evaluation
2committee; however, at least half of the committee must be
3licensed design professionals.
4    (b) The Transportation Agency may establish an evaluation
5committee for a set term or for the procurement of a particular
6transportation facility.
7    (c) Once the Transportation Agency identifies the
8proposers for a transportation facility, each member of an
9evaluation committee must certify that no conflict of interest
10exists between the member and the proposers. If the
11Transportation Agency, after consultation with the chief
12procurement officer, determines that an actual conflict
13exists, the member shall not participate on the evaluation
14committee for that procurement and the Transportation Agency
15shall appoint a replacement member on either a permanent or a
16temporary basis.
 
17    Section 35. Procedures for selection.
18    (a) The Transportation Agency shall review, evaluate,
19score, and rank proposals and determine which proposal offers
20the best value to the public based on the evaluation criteria
21set forth in the request for proposals. The Transportation
22Agency shall award the contract based on this determination.
23Notwithstanding other provisions of this Section, if for any
24reason the proposer awarded the contract is unable or
25unwilling to execute the contract, including the failure of

 

 

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1the proposer and the Transportation Agency to successfully
2complete negotiations, if any, of the contract, the
3Transportation Agency may award the contract to the proposer
4whose proposal the Transportation Agency determines offers the
5public the next best value.
6    (b) After a response to a request for qualifications or a
7request for proposals has been submitted as provided in
8Section 25, a design-builder shall not replace, remove, or
9otherwise modify any firm identified as a member of the
10proposer team unless authorized to do so by the Transportation
11Agency.
 
12    Section 40. Project records; confidentiality; public
13disclosure.
14    (a) The Transportation Agency shall maintain all written
15decisions, qualification and proposal evaluations, scoring
16documents, selection evaluations, proposals, and procurement
17documents in a procurement file maintained by the
18Transportation Agency.
19    (b) A proposer may identify those portions of a proposal
20or other submission that the proposer considers to be trade
21secrets or confidential, commercial, financial, or proprietary
22information. Confidential and proprietary information,
23including trade secrets, shall be exempt from disclosure only
24if the proposer does the following:
25        (1) requests exclusion from disclosure upon submission

 

 

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1    of the information or other materials for which protection
2    is sought;
3        (2) identifies the data or other materials for which
4    protection is sought;
5        (3) states the statutory or regulatory basis for the
6    protection;
7        (4) fully complies with the federal Freedom of
8    Information Act and any other applicable provisions of
9    State law, including, but not limited to, the Freedom of
10    Information Act, with respect to information the proposer
11    contends should be exempt from disclosure; and
12        (5) certifies if the information is in accordance with
13    the protection of the Illinois Trade Secrets Act.
14    (c) Notwithstanding any other provision of law, in order
15to properly balance the need to maximize competition under
16this Act with the need to create a transparent procurement
17process, the qualifications, proposals, and other information
18and documents submitted by proposers and the Transportation
19Agency's evaluation records shall not be subject to release or
20disclosure by the Transportation Agency until execution of the
21design-build contract or Construction Manager/General
22Contractor contract, as applicable. If the Transportation
23Agency terminates the procurement for a transportation
24facility, the exemption from release or disclosure under this
25Section shall remain in place until the Transportation Agency
26re-procures the transportation facility and has entered into a

 

 

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1design-build contract or Construction Manager/General
2Contractor contract, as applicable. However, this exemption
3shall lapse if the Transportation Agency does not commence the
4re-procurement of the transportation facility within 5 years
5of the termination.
 
6    Section 45. Design-build contract. A design-build contract
7may include any provisions the Transportation Agency
8determines are necessary or appropriate, including, but not
9limited to, provisions regarding the following:
10        (1) compensation or payments to the design-builder;
11        (2) grounds for termination of the design-build
12    contract, including the Transportation Agency's right to
13    terminate for convenience;
14        (3) liability for damages and nonperformance;
15        (4) events of default and the rights and remedies
16    available to the design-builder and the Transportation
17    Agency in the event of a default or delay;
18        (5) the identification of any technical specifications
19    that the design-builder must comply with when developing
20    plans or performing construction work;
21        (6) the procedures for review and approval of the
22    design-builder's plans;
23        (7) required performance and payment security;
24        (8) the terms and conditions of indemnification and
25    minimum insurance requirements; and

 

 

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1        (9) any other terms and conditions the Transportation
2    Agency deems necessary.
 
3    Section 50. Construction Manager/General Contractor
4contract.
5    (a) The Construction Manager/General Contractor contract
6shall divide the Construction Manager/General Contractor
7services into 2 phases. The first phase shall address
8preconstruction services and the procedures the parties shall
9follow to finalize the contract terms for the second phase.
10The second phase shall address the Construction
11Manager/General Contractor's construction of the
12transportation facility for a lump sum or a guaranteed maximum
13price.
14    (b) A Construction Manager/General Contractor contract
15shall include provisions regarding the following:
16        (1) the Construction Manager/General Contractor's
17    provision of preconstruction services during the first
18    phase of the contract, including the Construction
19    Manager/General Contractor's compensation for those
20    services;
21        (2) a requirement that, during the first phase of the
22    contract, the Construction Manager/General Contractor
23    shall use a competitive bidding process to procure
24    subcontracts for at least the minimum percentage of
25    construction work specified in the request for proposals,

 

 

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1    provided that:
2            (A) compliance with this requirement shall be
3        based on an estimated cost for the construction work
4        approved by the Transportation Agency before the start
5        of the competitive bidding process; and
6            (B) the Construction Manager/General Contractor
7        may not use subcontracts with its wholly or partially
8        owned subsidiaries, parent companies, or affiliates to
9        satisfy this obligation;
10        (3) the process the Transportation Agency and the
11    Construction Manager/General Contractor shall use to
12    determine a lump sum or guaranteed maximum price for the
13    construction work, including a requirement that the
14    Transportation Agency conduct an independent cost estimate
15    for the construction work; and
16        (4) grounds for termination of the Construction
17    Manager/General Contractor contract, including the
18    Transportation Agency's right to terminate the contract
19    and not proceed with the construction phase of the project
20    if the Transportation Agency and the Construction
21    Manager/General Contractor are unable to negotiate a lump
22    sum or guaranteed maximum price for the construction work.
23    (c) In addition to the provisions under subsection (b) of
24this Section, a Construction Manager/General Contractor
25contract may include any other provisions the Transportation
26Agency determines are necessary or appropriate, including, but

 

 

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1not limited to, provisions regarding the following:
2        (1) liability for damages and nonperformance;
3        (2) events of default and the rights and remedies
4    available to the Construction Manager/General Contractor
5    and the Transportation Agency in the event of a default or
6    delay;
7        (3) the identification of any technical specifications
8    that the Construction Manager/General Contractor must
9    comply with when aiding the Transportation Agency with
10    developing plans or performing construction work;
11        (4) required performance and payment security for the
12    construction phase of the contract;
13        (5) the terms and conditions of indemnification and
14    minimum insurance requirements; and
15        (6) any other terms and conditions the Transportation
16    Agency deems necessary.
17    (d) If the Construction Manager/General Contractor
18contract is terminated for any reason, the Transportation
19Agency, in its sole discretion, may readvertise the
20Construction Manager/General Contractor contract under this
21Act or use any other authorized procurement method to complete
22the transportation facility or any portion of the
23transportation facility. Once the contract is terminated, the
24Transportation Agency may use any work product developed by
25the Construction Manager/General Contractor to complete the
26transportation facility.
 

 

 

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1    Section 55. Funding and financing.
2    (a) The Transportation Agency may use any lawful source of
3funding and financing to compensate a design-builder and
4Construction Manager/General Contractor for work and services
5performed under a design-build contract or Construction
6Manager/General Contractor contract, as applicable, and the
7Transportation Agency may combine federal, State, local, and
8private funds to finance a transportation facility.
9    (b) Subject to appropriation by the General Assembly of
10the required amounts, the Transportation Agency may obligate
11and make expenditures of funds as and when needed to satisfy
12its payment obligations under a design-build contract or
13Construction Manager/General Contractor contract.
 
14    Section 56. Utilization requirements.
15    (a) Design-builder and Construction Manager/General
16Contractor projects shall comply with Section 2-105 of the
17Illinois Human Rights Act and all applicable laws and rules
18that establish standards and procedures for the utilization of
19minority, disadvantaged, and women-owned businesses,
20including, but not limited to, the Business Enterprise for
21Minorities, Women, and Persons with Disabilities Act. Each
22design-build contract and Construction Manager/General
23Contractor contract shall include remedies for a contractor's
24failure to comply with commitments made in the proposal or

 

 

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1utilization plan, including, without limitation, failure to
2cooperate in providing information regarding compliance or
3termination of any subcontractor identified in the utilization
4plan without the consent of the Transportation Agency. Such
5remedies may include termination of the contract, imposition
6of a penalty in an amount equivalent to any profit or cost
7savings accruing to the contractor as a result of the
8violation, or any other remedy available to the Transportation
9Agency at law or in equity.
10    (b) For the purposes of this Section, aspirational goals
11compliant with the Business Enterprise for Minorities, Women,
12and Persons with Disabilities Act shall be established
13separately for construction-related professional services and
14shall be consistent with the Transportation Agency's
15methodology for design-bid-build contracts. As used in this
16Section, "construction-related professional services" means
17those services within the scope of the practice of
18architecture, professional engineering, structural
19engineering, or land surveying, as defined in the Illinois
20Architecture Practice Act of 1989, the Professional
21Engineering Practice Act of 1989, the Illinois Professional
22Land Surveyor Act of 1989, or the Illinois Structural
23Engineering Practice Act of 1989.
 
24    Section 57. Labor.
25    (a) A contract or agreement under this Act shall require

 

 

SB2981- 27 -LRB102 21866 RAM 30987 b

1the design-builder or Construction Manager/General Contractor,
2and all subcontractors, to comply with Section 30-22 of the
3Illinois Procurement Code as it applies to responsible bidders
4and to present satisfactory evidence of that compliance to the
5Transportation Agency, unless the transportation project is
6federally funded and the application of those requirements
7would jeopardize the receipt or use of federal funds in
8support of the transportation project.
9    (b) A contract or agreement under this Act shall require
10the design-builder or Construction Manager/General Contractor
11to enter into a project labor agreement used by the
12Transportation Agency.
13    (c) This Section does not apply to construction-related
14professional services. As used in this Section,
15"construction-related professional services" means those
16services within the scope of the practice of architecture,
17professional engineering, structural engineering, or land
18surveying, as defined in the Illinois Architecture Practice
19Act of 1989, the Professional Engineering Practice Act of
201989, the Illinois Professional Land Surveyor Act of 1989, or
21the Illinois Structural Engineering Practice Act of 1989.
 
22    Section 60. Acquisition of property and related
23agreements. The Transportation Agency may exercise any and all
24powers of condemnation or eminent domain, including quick-take
25powers, to acquire lands or estates or interests in land for a

 

 

SB2981- 28 -LRB102 21866 RAM 30987 b

1transportation facility under this Act to the extent the
2Transportation Agency finds that the action serves the public
3purpose of this Act and deems the action appropriate in the
4exercise of its powers under this Act. In addition, the
5Transportation Agency and a design-builder or Construction
6Manager/General Contractor may enter into leases, licenses,
7easements, and other grants of property interests that the
8Transportation Agency determines are necessary to deliver a
9transportation facility under this Act.
 
10    Section 65. Federal requirements. In the procurement of
11design-build contracts and Construction Manager/General
12Contractor contracts, the Transportation Agency shall, to the
13extent applicable, comply with federal law and regulations and
14take all necessary steps to adapt its rules, policies, and
15procedures to remain eligible for federal aid.
 
16    Section 70. Powers. The powers granted to the
17Transportation Agency under this Act, including the power to
18procure and enter into design-build contracts and Construction
19Manager/General Contractor contracts, shall be liberally
20construed to accomplish its purpose, are in addition to any
21existing powers of the Transportation Agency, and shall not
22affect or impair any other powers authorized under applicable
23law.
 

 

 

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1    Section 75. Rulemaking.
2    (a) The Illinois Administrative Procedure Act applies to
3all administrative rules and procedures of the Transportation
4Agency under this Act, except that nothing in this Act shall be
5construed to render any prequalification or other
6responsibility criteria as a "license" or "licensing" under
7that Act.
8    (b) The appropriate chief procurement officer, in
9consultation with the Transportation Agency, may adopt rules
10to carry out the provisions of this Act.
 
11    Section 80. Repeal. This Act is repealed on July 1, 2032.
 
12    Section 905. The Department of Transportation Law of the
13Civil Administrative Code of Illinois is amended by adding
14Section 2705-233 as follows:
 
15    (20 ILCS 2705/2705-233 new)
16    Sec. 2705-233. Innovations for Transportation
17Infrastructure Act. The Department may exercise all powers
18granted to it under the Innovations for Transportation
19Infrastructure Act, including, but not limited to, the power
20to enter into all contracts or agreements necessary or
21incidental to the performance of its powers under that Act,
22and powers related to any transportation facility implemented
23under that Act.
 

 

 

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1    Section 910. The Illinois Finance Authority Act is amended
2by adding Section 825-108 as follows:
 
3    (20 ILCS 3501/825-108 new)
4    Sec. 825-108. Transportation project financing. For the
5purpose of financing a transportation facility undertaken
6under the Innovations for Transportation Infrastructure Act,
7the Authority may apply for an allocation of tax-exempt bond
8financing authorization provided by subsection (m) of Section
9142 of the United States Internal Revenue Code, as well as
10financing available under any other federal law or program.
 
11    Section 915. The Illinois Procurement Code is amended by
12adding Section 1-10.5 as follows:
 
13    (30 ILCS 500/1-10.5 new)
14    Sec. 1-10.5. Alternative Technical Concepts.
15    (a) For the purposes of this Section, "Alternative
16Technical Concepts" and "design-bid-build project delivery
17method" have the meanings ascribed to those terms in the
18Innovations for Transportation Infrastructure Act.
19    (b) Notwithstanding subsection (b) of Section 1-10 of this
20Code, the Department of Transportation may allow bidders and
21proposers to submit Alternative Technical Concepts in their
22bids and proposals, if the Department determines that the

 

 

SB2981- 31 -LRB102 21866 RAM 30987 b

1Alternative Technical Concepts provide an equal or better
2solution than the underlying technical requirements applicable
3to the work. Notwithstanding the foregoing, for projects the
4Department delivers using the design-bid-build project
5delivery method, the Department shall use the Alternative
6Technical Concepts process for no more than 3 projects. If the
7Department allows bidders or proposers for a particular
8contract to submit Alternative Technical Concepts, the
9Department shall describe the process for submission and
10evaluation of Alternative Technical Concepts in the
11procurement documents for that contract, including the
12potential use of confidential meetings and the exchange of
13confidential information with bidders and proposers to review
14and discuss potential or proposed Alternative Technical
15Concepts.
 
16    Section 920. The Public Construction Bond Act is amended
17by adding Section 1.9 as follows:
 
18    (30 ILCS 550/1.9 new)
19    Sec. 1.9. Design-build contracts and Construction
20Manager/General Contractor contracts. This Act applies to any
21design-build contract or Construction Manager/General
22Contractor contract entered into under the Innovations for
23Transportation Infrastructure Act.
 

 

 

SB2981- 32 -LRB102 21866 RAM 30987 b

1    Section 925. The Employment of Illinois Workers on Public
2Works Act is amended by adding Section 2.8 as follows:
 
3    (30 ILCS 570/2.8 new)
4    Sec. 2.8. Design-build and Construction Manager/General
5Contractor contracts. This Act applies to any design-build
6contracts and Construction Manager/General Contractor
7contracts entered into under the Innovations for
8Transportation Infrastructure Act.
 
9    Section 930. The Business Enterprise for Minorities,
10Women, and Persons with Disabilities Act is amended by adding
11Section 2.8 as follows:
 
12    (30 ILCS 575/2.8 new)
13    Sec. 2.8. Design-build and Construction Manager/General
14Contractor contracts. This Act applies to any design-build
15contracts and Construction Manager/General Contractor
16contracts entered into under the Innovations for
17Transportation Infrastructure Act.
 
18    Section 935. The Toll Highway Act is amended by adding
19Section 11.2 as follows:
 
20    (605 ILCS 10/11.2 new)
21    Sec. 11.2. Innovations for Transportation Infrastructure

 

 

SB2981- 33 -LRB102 21866 RAM 30987 b

1Act. The Authority may exercise all powers granted to it under
2the Innovations for Transportation Infrastructure Act,
3including, but not limited to, the power to enter into all
4contracts or agreements necessary to perform its powers under
5that Act, and any powers related to a transportation facility
6implemented under that Act.
 
7    Section 940. The Eminent Domain Act is amended by adding
8Section 15-5-48 as follows:
 
9    (735 ILCS 30/15-5-48 new)
10    Sec. 15-5-48. Eminent domain powers in new Acts. The
11following provisions of law may include express grants of the
12power to acquire property by condemnation or eminent domain:
13    The Innovations for Transportation Infrastructure Act; for
14the purposes of constructing a transportation facility under
15the Act.
 
16    Section 945. The Prevailing Wage Act is amended by
17changing Section 2 as follows:
 
18    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
19    Sec. 2. This Act applies to the wages of laborers,
20mechanics and other workers employed in any public works, as
21hereinafter defined, by any public body and to anyone under
22contracts for public works. This includes any maintenance,

 

 

SB2981- 34 -LRB102 21866 RAM 30987 b

1repair, assembly, or disassembly work performed on equipment
2whether owned, leased, or rented.
3    As used in this Act, unless the context indicates
4otherwise:
5    "Public works" means all fixed works constructed or
6demolished by any public body, or paid for wholly or in part
7out of public funds. "Public works" as defined herein includes
8all projects financed in whole or in part with bonds, grants,
9loans, or other funds made available by or through the State or
10any of its political subdivisions, including but not limited
11to: bonds issued under the Industrial Project Revenue Bond Act
12(Article 11, Division 74 of the Illinois Municipal Code), the
13Industrial Building Revenue Bond Act, the Illinois Finance
14Authority Act, the Illinois Sports Facilities Authority Act,
15or the Build Illinois Bond Act; loans or other funds made
16available pursuant to the Build Illinois Act; loans or other
17funds made available pursuant to the Riverfront Development
18Fund under Section 10-15 of the River Edge Redevelopment Zone
19Act; or funds from the Fund for Illinois' Future under Section
206z-47 of the State Finance Act, funds for school construction
21under Section 5 of the General Obligation Bond Act, funds
22authorized under Section 3 of the School Construction Bond
23Act, funds for school infrastructure under Section 6z-45 of
24the State Finance Act, and funds for transportation purposes
25under Section 4 of the General Obligation Bond Act. "Public
26works" also includes (i) all projects financed in whole or in

 

 

SB2981- 35 -LRB102 21866 RAM 30987 b

1part with funds from the Environmental Protection Agency under
2the Illinois Renewable Fuels Development Program Act for which
3there is no project labor agreement; (ii) all work performed
4pursuant to a public private agreement under the Public
5Private Agreements for the Illiana Expressway Act or the
6Public-Private Agreements for the South Suburban Airport Act;
7and (iii) all projects undertaken under a public-private
8agreement under the Public-Private Partnerships for
9Transportation Act; and (iv) all transportation facilities
10undertaken under a design-build contract or a Construction
11Manager/General Contractor contract under the Innovations for
12Transportation Infrastructure Act. "Public works" also
13includes all projects at leased facility property used for
14airport purposes under Section 35 of the Local Government
15Facility Lease Act. "Public works" also includes the
16construction of a new wind power facility by a business
17designated as a High Impact Business under Section
185.5(a)(3)(E) of the Illinois Enterprise Zone Act. "Public
19works" does not include work done directly by any public
20utility company, whether or not done under public supervision
21or direction, or paid for wholly or in part out of public
22funds. "Public works" also includes construction projects
23performed by a third party contracted by any public utility,
24as described in subsection (a) of Section 2.1, in public
25rights-of-way, as defined in Section 21-201 of the Public
26Utilities Act, whether or not done under public supervision or

 

 

SB2981- 36 -LRB102 21866 RAM 30987 b

1direction, or paid for wholly or in part out of public funds.
2"Public works" also includes construction projects that exceed
315 aggregate miles of new fiber optic cable, performed by a
4third party contracted by any public utility, as described in
5subsection (b) of Section 2.1, in public rights-of-way, as
6defined in Section 21-201 of the Public Utilities Act, whether
7or not done under public supervision or direction, or paid for
8wholly or in part out of public funds. "Public works" also
9includes any corrective action performed pursuant to Title XVI
10of the Environmental Protection Act for which payment from the
11Underground Storage Tank Fund is requested. "Public works"
12does not include projects undertaken by the owner at an
13owner-occupied single-family residence or at an owner-occupied
14unit of a multi-family residence. "Public works" does not
15include work performed for soil and water conservation
16purposes on agricultural lands, whether or not done under
17public supervision or paid for wholly or in part out of public
18funds, done directly by an owner or person who has legal
19control of those lands.
20    "Construction" means all work on public works involving
21laborers, workers or mechanics. This includes any maintenance,
22repair, assembly, or disassembly work performed on equipment
23whether owned, leased, or rented.
24    "Locality" means the county where the physical work upon
25public works is performed, except (1) that if there is not
26available in the county a sufficient number of competent

 

 

SB2981- 37 -LRB102 21866 RAM 30987 b

1skilled laborers, workers and mechanics to construct the
2public works efficiently and properly, "locality" includes any
3other county nearest the one in which the work or construction
4is to be performed and from which such persons may be obtained
5in sufficient numbers to perform the work and (2) that, with
6respect to contracts for highway work with the Department of
7Transportation of this State, "locality" may at the discretion
8of the Secretary of the Department of Transportation be
9construed to include two or more adjacent counties from which
10workers may be accessible for work on such construction.
11    "Public body" means the State or any officer, board or
12commission of the State or any political subdivision or
13department thereof, or any institution supported in whole or
14in part by public funds, and includes every county, city,
15town, village, township, school district, irrigation, utility,
16reclamation improvement or other district and every other
17political subdivision, district or municipality of the state
18whether such political subdivision, municipality or district
19operates under a special charter or not.
20    "Labor organization" means an organization that is the
21exclusive representative of an employer's employees recognized
22or certified pursuant to the National Labor Relations Act.
23    The terms "general prevailing rate of hourly wages",
24"general prevailing rate of wages" or "prevailing rate of
25wages" when used in this Act mean the hourly cash wages plus
26annualized fringe benefits for training and apprenticeship

 

 

SB2981- 38 -LRB102 21866 RAM 30987 b

1programs approved by the U.S. Department of Labor, Bureau of
2Apprenticeship and Training, health and welfare, insurance,
3vacations and pensions paid generally, in the locality in
4which the work is being performed, to employees engaged in
5work of a similar character on public works.
6(Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
7revised 9-23-21.)
 
8    Section 997. Severability. The provisions of this Act are
9severable under Section 1.31 of the Statute on Statutes.
 
10    Section 999. Effective date. This Act takes effect upon
11becoming law.