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2017 SESSION

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HB 2366 Virginia Public Procurement Act; requirements for use of construction management contracts.

Introduced by: David B. Albo | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Public procurement; requirements for use of construction management and design-build contracts. Establishes requirements for the procurement of construction using the construction management and design-build procurement methods by state and local public bodies and covered institutions of higher education, as defined in the bill, and the conditions under which such methods may be used. Public bodies must comply with procedures adopted by the Secretary of Administration for construction management or design-build projects. State public bodies and covered institutions must adopt procedures that include, among other things, a requirement that the state public body or covered institution make a written determination in advance that competitive sealed bidding is not practicable or fiscally advantageous and document the basis for the determination to use the construction management or design-build procurement method. The bill requires the Department of General Services (DGS) to evaluate the proposed procurement method of state public bodies and covered institutions and provide a recommendation regarding the procurement method within five days of receipt of the written determination. If a state public body or covered institution elects to proceed with the project using a construction management or design-build contract despite a DGS recommendation to the contrary, the state public body or covered institution must provide to DGS in writing its reasons for doing so. For local public bodies, construction management contracts may be used for projects whose cost is expected to be less than $10 million, provided that the project is a complex project and the project procurement method is approved by the local governing body. The bill also requires DGS to report to the Governor and certain General Assembly committees annually by December 1 information pertaining to (i) the agency's evaluation of projects submitted by state public bodies and covered institutions and (ii) all completed capital projects in excess of $2 million. This bill is identical to SB 1129.

SUMMARY AS PASSED HOUSE:

Virginia Public Procurement Act; requirements for use of construction management contracts. Restricts the use of construction management procurements by public bodies, to include state public bodies, covered institutions as defined in the bill, and local public bodies, unless (i) the total estimated contract value is $10 million or more, (ii) a written determination is provided stating that competitive sealed bidding is not practicable or fiscally advantageous, (iii) the contract is entered into prior to the schematic phase of design, (iv) prior alternative procurement method experience is not required as a prerequisite for an award, and (v) price is the critical basis for award of the contract. The bill provides that for projects where the total estimated contract value is not expected to exceed $10 million, a public body may use competitive negotiation to procure construction on a construction management basis if the above requirements are met and the project is a complex project as defined in the bill. In addition, public bodies seeking to use construction management for projects where the total estimated contract value is not expected to exceed $10 million must also obtain written approval from the local governing body for local public bodies or from the Director of the Department of General Services for state public bodies and covered institutions. The bill also  requires all such public bodies and covered institutions to (i) post on the central electronic procurement website of the Department of General Services approved projects and approved procurement methods for construction at least 30 days prior to soliciting for design services for such construction projects and (ii) report no later than November 1 of each year to the Director of the Department of General Services information on all completed capital project in excess of $2 million, (a) the project budget, (b) the actual project cost. (c) the expected timeline, (d) the actual completion time, and (e) any post-project issues. The bill provides that the Virginia Public Procurement Act (VPPA) still applies; provided however that in the event of any conflict by the VPPA or other provision of law with the new law on construction management and design-build, the latter shall control.

SUMMARY AS INTRODUCED:

Virginia Public Procurement Act; requirements for use of construction management contracts. Restricts the use of construction management procurements by public bodies unless (i) the total estimated contract value is $40 million or more, (ii) a written determination is provided stating that competitive sealed bidding is not practicable or fiscally advantageous, (iii) the contract is entered into prior to the schematic phase of design, (iv) prior alternative procurement method experience is not required as a prerequisite for an award, and (v) price is the primary determining factor for award of the contract. The bill provides that for projects where the total estimated contract value is not expected to exceed $40 million, a public body may use competitive negotiation to procure construction on a construction management basis if the above requirements are met and the project is of substantial historical value or significantly unique or complex in nature. In addition, public bodies seeking to use construction management for projects where the total estimated contract value is not expected to exceed $40 million must also obtain a written finding of compliance from the local governing body for local public bodies, from the Director of the Department of General Services for certain state public bodies, and from the respective contracting officer for public institutions of higher education designated with Tier 3 procurement authority. The bill also (i) establishes a procedure to appeal a public body's determination to procure construction on a construction management basis, (ii) prohibits combining multiple construction projects for the purpose of exceeding the $40 million threshold, (iii) requires public bodies to make available to the public, after award, all prequalification score sheets, award score sheets, and selection information for each project, (iv) establishes reporting requirements regarding the use of construction management by state public bodies, (v) directs the Auditor of Public Accounts to include, as part of his annual audit plan, a determination regarding whether a public institution of higher education designated with Tier 3 procurement authority is in compliance with the institution's internal review process in the selection of procurement method for construction, and (vi) requires all state public bodies to post on the central electronic procurement website of the Department of General Services approved projects and approved procurement methods for construction at least 30 days prior to soliciting for design services for such construction projects.