design-build; cleanup
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Committee on Counties & Municipalities |
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Committee on Appropriations |
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Caucus and COW |
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As Passed the House |
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HB 2425 modifies various statutes regarding the procurement methods available to state and local government agencies for professional and construction services.
Prior to 1996, the only procurement method available to state and local government agencies for professional and construction services was the design-bid-build method of contracting. This is when an agency hires an engineer or architect to design a project first, then the construction contract is bid, and finally the low bidder builds it.
In 1996, the legislature authorized the Arizona Department of Transportation (ADOT) to use a pilot program for design-build contracting. This is where an agency hires a firm or contractor to simultaneously design a project and build it. The pilot program was expanded and other local governments added each year, because of the increasing use of design-build throughout the country, and the growing need to get projects completed in a more timely manner.
In 2000, the Legislature passed HB 2340, which codified the pilot program of design-build for ADOT, and added two additional procurement methods that other state and local government agencies could use in contracting for professional services (architecture, engineering, etc.) and construction services. These two methods were construction manager at risk and job order contracting.
As a result of passage of HB 2340 in 2000, these three procurement methods are now available not only to ADOT, but also to school districts, cities, counties, the universities, and the Arizona Department of Administration (ADOA).
· Modifies the annual reporting requirements for agencies that decide to utilize these contracting procedures.
· Clarifies that ADOT may use the ideas and innovations proposed by unsuccessful bidders if they do not accept a stipend award, as long that information is included in a plan by a bidder who does accept a stipend award.
· Moves definitions found in Section 34-601 to definition section 34-101. Adds clarifying definitions for direct selection and public competition procurements.
· Deletes the provision for exclusion on the shortlist of persons or firms who have previously been involved in the preliminary study or design of a project.
· Clarifies the definition of project budget to be used as a basis for payment of a stipend to unsuccessful bidders.
· Inserts clarifying language regarding bid security amounts.
· Section 34-611 clarifies that civil violations of this statue must be made intentionally and “knowingly”. Deletes 34-612, which contains criminal penalties for violations of this statute.