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2017 SESSION

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SB 1129 Virginia Public Procurement Act; requirements for use of construction management contracts.

Introduced by: Frank M. Ruff, Jr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Public procurement; requirements for use of construction management and design-build procurement methods. 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 HB 2366.

SUMMARY AS PASSED SENATE:

Virginia Public Procurement Act; requirements for use of construction management contracts. Establishes a statewide policy for governmental procurement of construction management and design-build contracting procurement methods. The bill restricts the use of construction management and design-build contracting procurements by public bodies to projects with an estimated project cost that is expected to be greater than $25 million but may be used when the estimated project cost is expected to be less than $25 million, provided that the project is a complex project that has been approved in writing by the Department of General Services for state public bodies, the contact officer for covered institutions of higher education, and the local governing body for local public bodies. Additional requirements for the use of construction management and design-build contracting procurements include the following: (i) a written determination must be provided stating that competitive sealed bidding is not practical or fiscally advantageous, (ii) a public notice of the Request for Qualifications must be posted on the Department of General Services' central electronic procurement website at least 30 days prior to the date set for receipt of qualification proposals, (iii) the contract must be entered into prior to the schematic phase of design, (iv) prior alternative procurement method experience cannot be required as a prerequisite for an award, (v) procedures must allow for a two-step competitive negotiation process, and (vi) price must be a critical basis for award of the contract. In addition, the bill requires that construction management contracts provide that no more than 10 percent of the construction work be performed by the construction manager and that the remaining construction work be performed by subcontractors. The bill establishes a procedure to appeal a public body's determination to procure construction on a construction management or design-build basis when the estimated project cost is expected to be less than $25 million. For determinations made by state public bodies, the appeal is made to the Department of General Services, for covered institutions the appeal is made to the contracting officer of the institution, and for local public bodies, the appeal is made to the chief executive officer of the locality. The bill also defines "complex project" and "covered institution" and contains reporting requirements regarding the use of construction management and design-build contracting procurements by all public bodies.

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.