HCS HB 1540 -- STATE PROCUREMENT

SPONSOR:  Backer (Green)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Fiscal
Review by a vote of 9 to 3.

This substitute authorizes the Division of Design and
Construction to establish a design-build procurement pilot
program.  The program is limited to 8 projects with 4 projects
costing less than $5 million and 4 projects costing more than $5
million.

The Director of Design and Construction must select these
projects based on project savings, completion time, suitability,
size, and scope.  The director must submit yearly progress
reports on the program to the General Assembly and a final
report at the end of the project.

The division is authorized to adopt regulations for the design--
build program.  A design-build consultant may be employed to
assist in the program.  Design-build proposals must be publicly
advertised.  The proposal must include contract terms, project
specifications, budget limits, completion date, affirmative
action requirements, and other information the division chooses.

The director must solicit proposals in a three-phase process.
Phase I is the solicitation of qualifications of the design--
build team.  Phase II is the solicitation of a technical
proposal including conceptual design for the project.  Phase III
is the proposal of the construction cost.  Requirements for each
phase  are outlined in the substitute.

A stipend must be paid to qualified design professionals as an
inducement to submit proposals.  The amount must be established
in the request proposal.  The state acquires a nonexclusive
right to use the design submitted by the proposer and the
proposer has no further liability for its use by the state.  If
the design-build proposer desires to retain all rights and
interest in the design proposal, the proposer forfeits the
stipend.

Any person or corporation that enters into a design-build
contract with the division for public construction does not
violate the requirements of professional license requirements so
long as professional services are performed by licensed
employees, a licensed person under contract, or a corporation
under contract that holds a current certificate.

Any person or corporation that enters into a design-build
contract for public or private construction is exempt from
professional license requirements as long as the professional
services are performed by licensed persons who are not employees
of the design-build contractor, or the services are performed by
corporations that hold current certificates of authority from
the board.

A design-build contract is defined as a contract between the
division and a design-builder to furnish the architecture or
engineering and related design services required for a given
public construction project, and to furnish the labor,
materials, and other construction services for such public
project.

The provisions of this substitute are to expire December 31,
2004.

FISCAL NOTE:  Estimated Net Effect on General Revenue of Unknown
in FY 2001, FY 2002, and FY 2003.

PROPONENTS:  Supporters say that this bill authorizes the
Division of Design and Construction to establish a design-build
procurement pilot program.  Design-build is currently a common
practice in the private sector and would result in cost and time
savings.  Other states are currently using design-build
procurement.

Testifying for the bill were Representative Green; Division of
Design and Construction; Builders Association of Kansas City;
Consulting Engineers of Missouri; and James Riley, Joint
Committee on Capital Improvements.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

HB 1540 -- State Procurement

Sponsor:  Green

This bill authorized the Division of Design and Construction to
establish a design-build procurement pilot program.  The program
is limited to 8 projects with 4 projects costing less than $5
million and 4 projects costing more than $5 million.

The Director of Design and Construction must select these
projects based on project savings, completion time, suitability,
size, and scope.  The director must submit yearly progress
reports on the program to the General Assembly and a final
report at the end of the project.

The division is authorized to adopt regulations for the design--
build program.  A design-build consultant may be employed to
assist in the program.  Design-build proposals must be publicly
advertised.  The proposal must include contract terms, project
specifications, budget limits, completion date, affirmative
action requirements, and other information the division chooses.

The director must solicit proposals in a three-phase process.
Phase I is the solicitation of qualifications of the design--
build team.  Phase II is the solicitation of a technical
proposal including conceptual design for the project.  Phase III
is the proposal of the construction cost.  Requirements for each
phase  are outlined in the bill.

A stipend must be paid to qualified design professionals as an
inducement to submit proposals.  The amount must be established
in the request proposal.  The state acquires a nonexclusive
right to use the design submitted by the proposer and the
proposer has no further liability for its use by the state.  If
the design-build proposer desires to retain all rights and
interest in the design proposal, the proposer forfeits the
stipend.

Any person or corporation that enters into a design-build
contract with the division for public construction does not
violate the requirements of professional license requirements so
long as professional services are performed by licensed
employees, a licensed person under contract, or a corporation
under contract that holds a current certificate.

Any person or corporation that enters into a design-build
contract for public or private construction is exempt from
professional license requirements as long as the professional
services are performed by licensed persons who are not employees
of the design-build contractor, or the services are performed by
corporations that hold current certificates of authority from
the board.

A design-build contract is defined as a contract between the
division and a design-builder to furnish the architecture of
engineering and related design services required for a given
public construction project, and to furnish the labor,
materials, and other construction services for such public
project.