ARIZONA STATE SENATE
design-build; cleanup
An emergency measure that makes a variety of changes to alternative contracting method statutes relating to annual reports, selection committees and the repeal of criminal violations.
Traditionally, public projects have utilized a method of contracting, design-bid-build, whereby the different elements of the contracting process are handled separately. Alternative methods of contracting for construction and other services have developed that are intended to provide more flexibility and more efficient use of time. Authorization to utilize one alternative contracting method, design-build, existed prior to 2000 for a limited number of projects performed by the Arizona Department of Transportation (ADOT), the Arizona Department of Administration (ADOA), counties and cities. Last year, H.B. 2340 statutorily established the following “alternative” contracting methods for use by state agencies, school districts, counties, cities and other political subdivisions of the state: design-build, construction-manager-at-risk and job-order-contracting.
This legislation has no direct fiscal impact to the state general fund.
Use of Proposed Ideas by ADOT
1.
Allows ADOT to use an idea or information contained in an
unsuccessful alternative contract proposal if the proposer has accepted a
stipulated fee from ADOT for non-acceptance or non-award of the contract.
2. Allows ADOA to award contracts solely for professional services to a single entity if that entity provided the only responsive and responsible proposal and if a written determination is made that the negotiated fee is fair and reasonable and that other parties did not or were unable to respond. Presently political subdivision agents have such ability.
3. Requires political subdivisions to intentionally, in addition to knowingly, violate alternative contracting laws in order to be liable for up to $5,000 per each violation.
4. Repeals classification of a violation of alternative contracting laws as a class 2 misdemeanor.
5. Removes all required recipients of annual alternative contracting method reports except for the Secretary of State. Former recipients were the State Board of Education (solely for school district reports), the Governor and the Legislature.
6. Stipulates that annual alternative contracting method reports include:
a. information on alternative contract projects that have been completed, rather than begun, in the preceding year.
b. estimates of, rather than actual, cost savings or other benefits.
7. Retroactively removes prohibition on alternative contract selection committees from including on their short list any person or firm that has provided any paid services relating to the project at hand and prohibits any actions against a procurement entity by persons or firms that have been excluded.
8. Allows a contract selection committee, for professional and construction services, to replace removed or withdrawn short list firms with another person or firm that has submitted qualifications and that is selected by the selection committee.
9. Stipulates that the licensed contractor representative on a contract selection committee must be a senior management employee.
10. Makes general clarifying changes relating to the employment of technical registrants for work on public buildings and structures.
11. Clarifies that counties, cities, towns and other political subdivisions are allowed to award multiple contracts from a single solicitation except for services provided under design-build and construction-manager-at-risk and that they are required to award multiple contracts for job-order-contracting.
12. Specifies that counties, cities, towns and other political subdivisions must pay a percentage of their project’s final design and construction budget, rather than their budge in general, to each short list member who has an unsuccessful proposal.
13. Removes specification that monetary limits set by agents may be set in accordance with the Administrative Procedures Act.
14. Specifies that political subdivisions must return bid security monies when the successful contractor has obtained statutorily established insurance.
15. Specifies that taxes are not a factor in determining the best proposal, regardless if one of the parties is from out of state.
16. Removes prohibition on agents from discussing information regarding man-hours disclosed by a person on the short list with another short list entity.
17. Requires contractors who perform construction services for public construction contracts to which they are not parties to be co-principals on payment and performance bonds.
18. Exempts demolition projects costing less than $200,000 from alternative contracting method statutes.
19. Reconciles a statutory conflict.
20. Transfers definitions.
21. Makes technical, conforming and clarifying changes.
22. Contains an emergency clause.
Amendments
Adopted by Committee
1. Removes prohibition on agents from discussing information regarding man-hours disclosed by a person on the short list with another short list entity.
2. Requires contractors who perform construction services for public construction contracts to which they are not parties to be co-principals on payment and performance bonds.
Amendments
Adopted by Committee of the Whole
1. Exempts demolition projects costing less than $200,000 from alternative contracting method statutes.
CM 1/30/01 DPA 10-0-0-0-0 GOV 4/2/01 DPA 4-0-2-0
3rd Read 3/15/01 53-0-7-0 3rd Read 4/11/01 29-1-0-0
Prepared by Senate Staff
April 12, 2001