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SB 1129 Virginia Public Procurement Act; requirements for use of construction management contracts.
SUMMARY AS PASSED SENATE: (all summaries)
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.