CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1845Introduced by Assembly Member CalderonFebruary 08, 2022 An act to amend Section 21565 of, and to add Article 121.1 (commencing with Section 21568) to Chapter 1.5 of Part 3 of Division 2 of, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 1845, as introduced, Calderon. Metropolitan Water District of Southern California: alternative project delivery methods.Existing law generally sets forth the requirements for the solicitation and evaluation of bids and the awarding of contracts by local agencies for public works contracts. Existing law authorizes certain entities, including the Department of General Services, the Military Department, the Department of Corrections and Rehabilitation, and specified local agencies, to use the design-build procurement process, as prescribed, for specified public works.This bill would authorize the Metropolitan Water District of Southern California to use the design-build procurement process for certain regional recycled water projects or other water infrastructure projects. The bill would define design-build to mean a project delivery process in which both the design and construction of a project are procured from a single entity. The bill would require the district, if using this procurement process, to follow certain procedures, including preparing and issuing a request for qualifications, preparing a request for proposals including the scope and needs of the project or contract, and awarding projects based on certain criteria for projects utilizing either lowest responsible bidder or best value selection criteria. Existing law authorizes the Director of General Services to use the progressive design-build procurement process for certain public works projects. This bill would authorize the Metropolitan Water District of Southern California to use the progressive design-build procurement process for regional recycled water projects or other water infrastructure projects under specified conditions. The bill would define progressive design-build to mean a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project. The bill would require the district, if using this process, to prepare and issue a request for qualifications containing certain selection elements to evaluate submissions and select a design-build entity based on qualifications or pursuant to an additional selection phase, as specified.Existing law authorizes certain entities, including the Department of Transportation, the Department of Water Resources, regional transportation agencies, and the San Diego Association of Governments, to engage in a Construction Manager/General Contractor project delivery method (CM/GC method) for specified public work projects.This bill would authorize the Metropolitan Water District of Southern California to utilize the CM/GC method for regional recycled water projects or other water infrastructure projects under specified conditions. The bill would define the CM/GC method generally as a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project, whereby construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The bill would specify the procurement process for CM/GC projects, including, among other things, requiring the district to select a construction manager through either a competitive request for qualifications only or a competitive request for proposals process based on based value. The bill would require the alternative project delivery methods for the contracts described above to be awarded on a best value or qualifications basis or to the lowest responsible bidder. The bill would also prohibit a design-build entity or a construction contractor from being awarded a construction contract unless it provides an enforceable commitment to the district that the entity or contractor and its subcontractors at every tier will use a skilled and trained workforce to perform project work applicable to certain apprenticeable occupations in the building and construction trades, in accordance with existing law, and subject to certain exceptions. By expanding the application of the crime of perjury for a violation of those skilled and trained workforce requirements, the bill would impose a state-mandated local program. Existing law generally requires the board, when work is not performed by a district itself by force account and the amount involved is $25,000 or more, to provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, and subject to the right of the board to reject proposals.This bill would create an exception to those provisions for the alternative project delivery methods authorized by this bill.The bill would make legislative findings and declarations as to the necessity of a special statute for the geographic area served by the Metropolitan Water District of Southern California. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 21565 of the Public Contract Code is amended to read:21565. Whenever Except as otherwise provided in Article 121.1 (commencing with Section 21568) of this chapter, whenever any work is not to be done by the district itself by force account, and the amount involved shall be twenty-five thousand dollars ($25,000) or more, the board shall provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, but subject to the right of the board to reject any and all proposals.SEC. 2. Article 121.1 (commencing with Section 21568) is added to Chapter 1.5 of Part 3 of Division 2 of the Public Contract Code, to read: Article 121.1. Metropolitan Water District of Southern California - Alternative Project Delivery Program21568. (a) The Legislature finds and declares that severe drought conditions and climate change have negatively impacted the imported water supplies of the Metropolitan Water District of Southern California, necessitating an increase in local water supplies, including recycled water, and the construction of water infrastructure to more efficiently transport limited water supplies within the districts service area.(b) The Legislature further finds and declares that alternative project delivery, using the best value procurement methodology, has been authorized for various agencies that have reported benefits from those projects not achievable through the traditional design-bid-build method, including reduced project costs and expedited project start and completion.(c) This article provides for a range of procurement methods for district projects, including a planned regional recycled water project, designed to counteract the negative impacts of severe and ongoing drought and the continuing impacts of climate change on water supplies in southern California.(d) It is the intent of the Legislature in enacting this article to authorize the district to utilize the methods specified herein as cost-effective options for accelerating the construction of drought-resilient water infrastructure projects.21568.1. (a) A regional recycled water project or other water infrastructure project undertaken by the Metropolitan Water District of Southern California to alleviate water supply shortages attributable to drought or climate change may use, in addition to other methods of project delivery otherwise allowable by law, the following methods of project delivery:(1) Design-build.(2) Progressive design-build.(3) Construction Manager/General Contractor method.(b) The contract shall be awarded on a best value or qualifications basis or to the lowest responsible bidder.21568.2. As used in this article:(a) Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the district and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the district, or a tradeoff between price and other specified factors.(b) Construction manager means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a Construction Manager/General Contractor method contract.(c) Construction Manager/General Contractor method means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.(d) Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.(e) Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.(f) District means the Metropolitan Water District of Southern California.(g) Guaranteed maximum price means the maximum payment amount agreed upon by the district and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.(h) Preconstruction services means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the district to design a more constructible project.(i) Progressive design-build means a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project.(j) Project means a public work necessary for the construction of a recycled water facility or infrastructure designed specifically to alleviate water shortages attributable to drought, climate change, or other environmental factors. 21568.3. The procurement process for design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the district to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other non-price-related factors.(3) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article.(b) The district shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(c) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.(d) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) Pursuant to this subdivision, the district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(4) A contract award shall be made to the responsible design-build entity whose proposal is determined by the district to have offered the best value to the public.(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the district shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.(6) The statement regarding the local agencys contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.21568.4. The procurement process for progressive design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to either select a design-build entity to execute the project or to prequalify or short-list the design-build entities whose proposals shall be evaluated based on best value for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) An indication of whether the district will select a design-build entity based on qualifications only or based on best value through a subsequent request for proposals process.(2) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the districts needs, including the expected cost range, the methodology that will be used by the district to evaluate the design-build entitys qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(3) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, performance on previous projects of a similar nature, an acceptable safety record, and all other non-price-related factors.(4) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article. (b) At the close of the solicitation period, the district shall review the submissions. The district may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The district may also interview some or all of the design-build entities to further evaluate their qualifications for the project.(c) Following the evaluation of submissions, the district shall either select a design-build entity based solely on qualifications or proceed to a secondary selection phase, wherein a design-build entity shall be selected based on best value.(d) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(e) If the district proceeds to a secondary selection phase based on best value, it shall issue a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(f) For those projects utilizing best value as a selection method, the selection process shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) The district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(g) After selecting a design-build entity, based on either qualifications or best value, the district may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.(h) (1) Upon agreement of the guaranteed maximum price for the project, the district, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.(2) If the costs for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the costs for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the costs and the guaranteed maximum price.(i) If the district and the design-build entity do not reach agreement on a guaranteed maximum price, or the district otherwise elects not to amend the design-build entitys contract to complete the remaining work, the district may solicit proposals to complete the project from other firms that submitted statements of qualifications or requests for proposals. The district may also, upon written determination that it is in the best interest of the district to do so, formally solicit proposals from other design-build entities. 21568.5. The procurement process for Construction Manager/General Contractor method projects shall proceed as follows:(a) The district shall select a construction manager through either a competitive request for qualifications (RFQ) process based on qualifications only or a competitive request for proposals process based on best value.(b) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(c) If a contract for construction services is entered into pursuant to this section and includes preconstruction services by the construction manager, the district shall enter into a written contract with the construction manager for preconstruction services under which contract the district shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the district and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period, provided, however, that the district shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the district has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project.(d) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the district shall not award the contract for construction services.(e) The district is not required to award the construction services contract.(f) Construction shall not commence on any phase, package, or element until the district and a construction manager agree in writing on either a fixed price that the district will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced and a construction schedule for the project. 21568.6. (a) Neither a design-build entity nor a construction contractor shall be awarded a construction contract unless it provides an enforceable commitment to the district that the design-build entity or construction contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.(b) This subdivision shall not apply if any of the following requirements are met:(1) The district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the design-build entity or construction contractor agrees to be bound by that project labor agreement.(2) The design-build entity or construction contractor has entered into a project labor agreement that will bind the design-build entity or construction contractor and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.(c) For purposes of this subdivision, project labor agreement has the same meaning as in paragraph (1) of subdivision (b) of Section 2500. 21568.7. (a) The district may not award a design-build-operate contract for any project pursuant to this article. A contract may, however, cover operations during a training or transition period.(b) The district shall perform construction inspection services for all projects authorized and awarded pursuant to this article, and it shall use district employees or consultants under contract with the district to perform these services. 21568.8. Any design-build entity or Construction Manager/General Contractor that is selected to construct a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance the district may require. Any payment or performance bond written for the purposes of this article shall be written using a bond form developed by the district. 21568.9. If the district elects to award a project pursuant to this article, retention proceeds withheld by the district from the design-build entity or Construction Manager/General Contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids. 21568.10. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law. SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need to improve water infrastructure in the geographic area served by the Metropolitan Water District of Southern California.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1845Introduced by Assembly Member CalderonFebruary 08, 2022 An act to amend Section 21565 of, and to add Article 121.1 (commencing with Section 21568) to Chapter 1.5 of Part 3 of Division 2 of, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 1845, as introduced, Calderon. Metropolitan Water District of Southern California: alternative project delivery methods.Existing law generally sets forth the requirements for the solicitation and evaluation of bids and the awarding of contracts by local agencies for public works contracts. Existing law authorizes certain entities, including the Department of General Services, the Military Department, the Department of Corrections and Rehabilitation, and specified local agencies, to use the design-build procurement process, as prescribed, for specified public works.This bill would authorize the Metropolitan Water District of Southern California to use the design-build procurement process for certain regional recycled water projects or other water infrastructure projects. The bill would define design-build to mean a project delivery process in which both the design and construction of a project are procured from a single entity. The bill would require the district, if using this procurement process, to follow certain procedures, including preparing and issuing a request for qualifications, preparing a request for proposals including the scope and needs of the project or contract, and awarding projects based on certain criteria for projects utilizing either lowest responsible bidder or best value selection criteria. Existing law authorizes the Director of General Services to use the progressive design-build procurement process for certain public works projects. This bill would authorize the Metropolitan Water District of Southern California to use the progressive design-build procurement process for regional recycled water projects or other water infrastructure projects under specified conditions. The bill would define progressive design-build to mean a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project. The bill would require the district, if using this process, to prepare and issue a request for qualifications containing certain selection elements to evaluate submissions and select a design-build entity based on qualifications or pursuant to an additional selection phase, as specified.Existing law authorizes certain entities, including the Department of Transportation, the Department of Water Resources, regional transportation agencies, and the San Diego Association of Governments, to engage in a Construction Manager/General Contractor project delivery method (CM/GC method) for specified public work projects.This bill would authorize the Metropolitan Water District of Southern California to utilize the CM/GC method for regional recycled water projects or other water infrastructure projects under specified conditions. The bill would define the CM/GC method generally as a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project, whereby construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The bill would specify the procurement process for CM/GC projects, including, among other things, requiring the district to select a construction manager through either a competitive request for qualifications only or a competitive request for proposals process based on based value. The bill would require the alternative project delivery methods for the contracts described above to be awarded on a best value or qualifications basis or to the lowest responsible bidder. The bill would also prohibit a design-build entity or a construction contractor from being awarded a construction contract unless it provides an enforceable commitment to the district that the entity or contractor and its subcontractors at every tier will use a skilled and trained workforce to perform project work applicable to certain apprenticeable occupations in the building and construction trades, in accordance with existing law, and subject to certain exceptions. By expanding the application of the crime of perjury for a violation of those skilled and trained workforce requirements, the bill would impose a state-mandated local program. Existing law generally requires the board, when work is not performed by a district itself by force account and the amount involved is $25,000 or more, to provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, and subject to the right of the board to reject proposals.This bill would create an exception to those provisions for the alternative project delivery methods authorized by this bill.The bill would make legislative findings and declarations as to the necessity of a special statute for the geographic area served by the Metropolitan Water District of Southern California. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 1845
Introduced by Assembly Member CalderonFebruary 08, 2022
Introduced by Assembly Member Calderon
February 08, 2022
An act to amend Section 21565 of, and to add Article 121.1 (commencing with Section 21568) to Chapter 1.5 of Part 3 of Division 2 of, the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1845, as introduced, Calderon. Metropolitan Water District of Southern California: alternative project delivery methods.
Existing law generally sets forth the requirements for the solicitation and evaluation of bids and the awarding of contracts by local agencies for public works contracts. Existing law authorizes certain entities, including the Department of General Services, the Military Department, the Department of Corrections and Rehabilitation, and specified local agencies, to use the design-build procurement process, as prescribed, for specified public works.This bill would authorize the Metropolitan Water District of Southern California to use the design-build procurement process for certain regional recycled water projects or other water infrastructure projects. The bill would define design-build to mean a project delivery process in which both the design and construction of a project are procured from a single entity. The bill would require the district, if using this procurement process, to follow certain procedures, including preparing and issuing a request for qualifications, preparing a request for proposals including the scope and needs of the project or contract, and awarding projects based on certain criteria for projects utilizing either lowest responsible bidder or best value selection criteria. Existing law authorizes the Director of General Services to use the progressive design-build procurement process for certain public works projects. This bill would authorize the Metropolitan Water District of Southern California to use the progressive design-build procurement process for regional recycled water projects or other water infrastructure projects under specified conditions. The bill would define progressive design-build to mean a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project. The bill would require the district, if using this process, to prepare and issue a request for qualifications containing certain selection elements to evaluate submissions and select a design-build entity based on qualifications or pursuant to an additional selection phase, as specified.Existing law authorizes certain entities, including the Department of Transportation, the Department of Water Resources, regional transportation agencies, and the San Diego Association of Governments, to engage in a Construction Manager/General Contractor project delivery method (CM/GC method) for specified public work projects.This bill would authorize the Metropolitan Water District of Southern California to utilize the CM/GC method for regional recycled water projects or other water infrastructure projects under specified conditions. The bill would define the CM/GC method generally as a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project, whereby construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The bill would specify the procurement process for CM/GC projects, including, among other things, requiring the district to select a construction manager through either a competitive request for qualifications only or a competitive request for proposals process based on based value. The bill would require the alternative project delivery methods for the contracts described above to be awarded on a best value or qualifications basis or to the lowest responsible bidder. The bill would also prohibit a design-build entity or a construction contractor from being awarded a construction contract unless it provides an enforceable commitment to the district that the entity or contractor and its subcontractors at every tier will use a skilled and trained workforce to perform project work applicable to certain apprenticeable occupations in the building and construction trades, in accordance with existing law, and subject to certain exceptions. By expanding the application of the crime of perjury for a violation of those skilled and trained workforce requirements, the bill would impose a state-mandated local program. Existing law generally requires the board, when work is not performed by a district itself by force account and the amount involved is $25,000 or more, to provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, and subject to the right of the board to reject proposals.This bill would create an exception to those provisions for the alternative project delivery methods authorized by this bill.The bill would make legislative findings and declarations as to the necessity of a special statute for the geographic area served by the Metropolitan Water District of Southern California. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law generally sets forth the requirements for the solicitation and evaluation of bids and the awarding of contracts by local agencies for public works contracts. Existing law authorizes certain entities, including the Department of General Services, the Military Department, the Department of Corrections and Rehabilitation, and specified local agencies, to use the design-build procurement process, as prescribed, for specified public works.
This bill would authorize the Metropolitan Water District of Southern California to use the design-build procurement process for certain regional recycled water projects or other water infrastructure projects. The bill would define design-build to mean a project delivery process in which both the design and construction of a project are procured from a single entity. The bill would require the district, if using this procurement process, to follow certain procedures, including preparing and issuing a request for qualifications, preparing a request for proposals including the scope and needs of the project or contract, and awarding projects based on certain criteria for projects utilizing either lowest responsible bidder or best value selection criteria.
Existing law authorizes the Director of General Services to use the progressive design-build procurement process for certain public works projects.
This bill would authorize the Metropolitan Water District of Southern California to use the progressive design-build procurement process for regional recycled water projects or other water infrastructure projects under specified conditions. The bill would define progressive design-build to mean a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project. The bill would require the district, if using this process, to prepare and issue a request for qualifications containing certain selection elements to evaluate submissions and select a design-build entity based on qualifications or pursuant to an additional selection phase, as specified.
Existing law authorizes certain entities, including the Department of Transportation, the Department of Water Resources, regional transportation agencies, and the San Diego Association of Governments, to engage in a Construction Manager/General Contractor project delivery method (CM/GC method) for specified public work projects.
This bill would authorize the Metropolitan Water District of Southern California to utilize the CM/GC method for regional recycled water projects or other water infrastructure projects under specified conditions. The bill would define the CM/GC method generally as a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project, whereby construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The bill would specify the procurement process for CM/GC projects, including, among other things, requiring the district to select a construction manager through either a competitive request for qualifications only or a competitive request for proposals process based on based value.
The bill would require the alternative project delivery methods for the contracts described above to be awarded on a best value or qualifications basis or to the lowest responsible bidder. The bill would also prohibit a design-build entity or a construction contractor from being awarded a construction contract unless it provides an enforceable commitment to the district that the entity or contractor and its subcontractors at every tier will use a skilled and trained workforce to perform project work applicable to certain apprenticeable occupations in the building and construction trades, in accordance with existing law, and subject to certain exceptions. By expanding the application of the crime of perjury for a violation of those skilled and trained workforce requirements, the bill would impose a state-mandated local program.
Existing law generally requires the board, when work is not performed by a district itself by force account and the amount involved is $25,000 or more, to provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, and subject to the right of the board to reject proposals.
This bill would create an exception to those provisions for the alternative project delivery methods authorized by this bill.
The bill would make legislative findings and declarations as to the necessity of a special statute for the geographic area served by the Metropolitan Water District of Southern California.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 21565 of the Public Contract Code is amended to read:21565. Whenever Except as otherwise provided in Article 121.1 (commencing with Section 21568) of this chapter, whenever any work is not to be done by the district itself by force account, and the amount involved shall be twenty-five thousand dollars ($25,000) or more, the board shall provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, but subject to the right of the board to reject any and all proposals.SEC. 2. Article 121.1 (commencing with Section 21568) is added to Chapter 1.5 of Part 3 of Division 2 of the Public Contract Code, to read: Article 121.1. Metropolitan Water District of Southern California - Alternative Project Delivery Program21568. (a) The Legislature finds and declares that severe drought conditions and climate change have negatively impacted the imported water supplies of the Metropolitan Water District of Southern California, necessitating an increase in local water supplies, including recycled water, and the construction of water infrastructure to more efficiently transport limited water supplies within the districts service area.(b) The Legislature further finds and declares that alternative project delivery, using the best value procurement methodology, has been authorized for various agencies that have reported benefits from those projects not achievable through the traditional design-bid-build method, including reduced project costs and expedited project start and completion.(c) This article provides for a range of procurement methods for district projects, including a planned regional recycled water project, designed to counteract the negative impacts of severe and ongoing drought and the continuing impacts of climate change on water supplies in southern California.(d) It is the intent of the Legislature in enacting this article to authorize the district to utilize the methods specified herein as cost-effective options for accelerating the construction of drought-resilient water infrastructure projects.21568.1. (a) A regional recycled water project or other water infrastructure project undertaken by the Metropolitan Water District of Southern California to alleviate water supply shortages attributable to drought or climate change may use, in addition to other methods of project delivery otherwise allowable by law, the following methods of project delivery:(1) Design-build.(2) Progressive design-build.(3) Construction Manager/General Contractor method.(b) The contract shall be awarded on a best value or qualifications basis or to the lowest responsible bidder.21568.2. As used in this article:(a) Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the district and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the district, or a tradeoff between price and other specified factors.(b) Construction manager means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a Construction Manager/General Contractor method contract.(c) Construction Manager/General Contractor method means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.(d) Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.(e) Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.(f) District means the Metropolitan Water District of Southern California.(g) Guaranteed maximum price means the maximum payment amount agreed upon by the district and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.(h) Preconstruction services means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the district to design a more constructible project.(i) Progressive design-build means a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project.(j) Project means a public work necessary for the construction of a recycled water facility or infrastructure designed specifically to alleviate water shortages attributable to drought, climate change, or other environmental factors. 21568.3. The procurement process for design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the district to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other non-price-related factors.(3) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article.(b) The district shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(c) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.(d) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) Pursuant to this subdivision, the district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(4) A contract award shall be made to the responsible design-build entity whose proposal is determined by the district to have offered the best value to the public.(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the district shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.(6) The statement regarding the local agencys contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.21568.4. The procurement process for progressive design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to either select a design-build entity to execute the project or to prequalify or short-list the design-build entities whose proposals shall be evaluated based on best value for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) An indication of whether the district will select a design-build entity based on qualifications only or based on best value through a subsequent request for proposals process.(2) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the districts needs, including the expected cost range, the methodology that will be used by the district to evaluate the design-build entitys qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(3) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, performance on previous projects of a similar nature, an acceptable safety record, and all other non-price-related factors.(4) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article. (b) At the close of the solicitation period, the district shall review the submissions. The district may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The district may also interview some or all of the design-build entities to further evaluate their qualifications for the project.(c) Following the evaluation of submissions, the district shall either select a design-build entity based solely on qualifications or proceed to a secondary selection phase, wherein a design-build entity shall be selected based on best value.(d) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(e) If the district proceeds to a secondary selection phase based on best value, it shall issue a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(f) For those projects utilizing best value as a selection method, the selection process shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) The district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(g) After selecting a design-build entity, based on either qualifications or best value, the district may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.(h) (1) Upon agreement of the guaranteed maximum price for the project, the district, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.(2) If the costs for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the costs for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the costs and the guaranteed maximum price.(i) If the district and the design-build entity do not reach agreement on a guaranteed maximum price, or the district otherwise elects not to amend the design-build entitys contract to complete the remaining work, the district may solicit proposals to complete the project from other firms that submitted statements of qualifications or requests for proposals. The district may also, upon written determination that it is in the best interest of the district to do so, formally solicit proposals from other design-build entities. 21568.5. The procurement process for Construction Manager/General Contractor method projects shall proceed as follows:(a) The district shall select a construction manager through either a competitive request for qualifications (RFQ) process based on qualifications only or a competitive request for proposals process based on best value.(b) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(c) If a contract for construction services is entered into pursuant to this section and includes preconstruction services by the construction manager, the district shall enter into a written contract with the construction manager for preconstruction services under which contract the district shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the district and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period, provided, however, that the district shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the district has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project.(d) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the district shall not award the contract for construction services.(e) The district is not required to award the construction services contract.(f) Construction shall not commence on any phase, package, or element until the district and a construction manager agree in writing on either a fixed price that the district will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced and a construction schedule for the project. 21568.6. (a) Neither a design-build entity nor a construction contractor shall be awarded a construction contract unless it provides an enforceable commitment to the district that the design-build entity or construction contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.(b) This subdivision shall not apply if any of the following requirements are met:(1) The district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the design-build entity or construction contractor agrees to be bound by that project labor agreement.(2) The design-build entity or construction contractor has entered into a project labor agreement that will bind the design-build entity or construction contractor and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.(c) For purposes of this subdivision, project labor agreement has the same meaning as in paragraph (1) of subdivision (b) of Section 2500. 21568.7. (a) The district may not award a design-build-operate contract for any project pursuant to this article. A contract may, however, cover operations during a training or transition period.(b) The district shall perform construction inspection services for all projects authorized and awarded pursuant to this article, and it shall use district employees or consultants under contract with the district to perform these services. 21568.8. Any design-build entity or Construction Manager/General Contractor that is selected to construct a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance the district may require. Any payment or performance bond written for the purposes of this article shall be written using a bond form developed by the district. 21568.9. If the district elects to award a project pursuant to this article, retention proceeds withheld by the district from the design-build entity or Construction Manager/General Contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids. 21568.10. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law. SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need to improve water infrastructure in the geographic area served by the Metropolitan Water District of Southern California.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 21565 of the Public Contract Code is amended to read:21565. Whenever Except as otherwise provided in Article 121.1 (commencing with Section 21568) of this chapter, whenever any work is not to be done by the district itself by force account, and the amount involved shall be twenty-five thousand dollars ($25,000) or more, the board shall provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, but subject to the right of the board to reject any and all proposals.
SECTION 1. Section 21565 of the Public Contract Code is amended to read:
### SECTION 1.
21565. Whenever Except as otherwise provided in Article 121.1 (commencing with Section 21568) of this chapter, whenever any work is not to be done by the district itself by force account, and the amount involved shall be twenty-five thousand dollars ($25,000) or more, the board shall provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, but subject to the right of the board to reject any and all proposals.
21565. Whenever Except as otherwise provided in Article 121.1 (commencing with Section 21568) of this chapter, whenever any work is not to be done by the district itself by force account, and the amount involved shall be twenty-five thousand dollars ($25,000) or more, the board shall provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, but subject to the right of the board to reject any and all proposals.
21565. Whenever Except as otherwise provided in Article 121.1 (commencing with Section 21568) of this chapter, whenever any work is not to be done by the district itself by force account, and the amount involved shall be twenty-five thousand dollars ($25,000) or more, the board shall provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, but subject to the right of the board to reject any and all proposals.
21565. Whenever Except as otherwise provided in Article 121.1 (commencing with Section 21568) of this chapter, whenever any work is not to be done by the district itself by force account, and the amount involved shall be twenty-five thousand dollars ($25,000) or more, the board shall provide for the letting of contracts to the lowest responsible bidder, after publication of notices inviting bids, but subject to the right of the board to reject any and all proposals.
SEC. 2. Article 121.1 (commencing with Section 21568) is added to Chapter 1.5 of Part 3 of Division 2 of the Public Contract Code, to read: Article 121.1. Metropolitan Water District of Southern California - Alternative Project Delivery Program21568. (a) The Legislature finds and declares that severe drought conditions and climate change have negatively impacted the imported water supplies of the Metropolitan Water District of Southern California, necessitating an increase in local water supplies, including recycled water, and the construction of water infrastructure to more efficiently transport limited water supplies within the districts service area.(b) The Legislature further finds and declares that alternative project delivery, using the best value procurement methodology, has been authorized for various agencies that have reported benefits from those projects not achievable through the traditional design-bid-build method, including reduced project costs and expedited project start and completion.(c) This article provides for a range of procurement methods for district projects, including a planned regional recycled water project, designed to counteract the negative impacts of severe and ongoing drought and the continuing impacts of climate change on water supplies in southern California.(d) It is the intent of the Legislature in enacting this article to authorize the district to utilize the methods specified herein as cost-effective options for accelerating the construction of drought-resilient water infrastructure projects.21568.1. (a) A regional recycled water project or other water infrastructure project undertaken by the Metropolitan Water District of Southern California to alleviate water supply shortages attributable to drought or climate change may use, in addition to other methods of project delivery otherwise allowable by law, the following methods of project delivery:(1) Design-build.(2) Progressive design-build.(3) Construction Manager/General Contractor method.(b) The contract shall be awarded on a best value or qualifications basis or to the lowest responsible bidder.21568.2. As used in this article:(a) Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the district and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the district, or a tradeoff between price and other specified factors.(b) Construction manager means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a Construction Manager/General Contractor method contract.(c) Construction Manager/General Contractor method means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.(d) Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.(e) Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.(f) District means the Metropolitan Water District of Southern California.(g) Guaranteed maximum price means the maximum payment amount agreed upon by the district and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.(h) Preconstruction services means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the district to design a more constructible project.(i) Progressive design-build means a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project.(j) Project means a public work necessary for the construction of a recycled water facility or infrastructure designed specifically to alleviate water shortages attributable to drought, climate change, or other environmental factors. 21568.3. The procurement process for design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the district to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other non-price-related factors.(3) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article.(b) The district shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(c) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.(d) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) Pursuant to this subdivision, the district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(4) A contract award shall be made to the responsible design-build entity whose proposal is determined by the district to have offered the best value to the public.(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the district shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.(6) The statement regarding the local agencys contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.21568.4. The procurement process for progressive design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to either select a design-build entity to execute the project or to prequalify or short-list the design-build entities whose proposals shall be evaluated based on best value for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) An indication of whether the district will select a design-build entity based on qualifications only or based on best value through a subsequent request for proposals process.(2) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the districts needs, including the expected cost range, the methodology that will be used by the district to evaluate the design-build entitys qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(3) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, performance on previous projects of a similar nature, an acceptable safety record, and all other non-price-related factors.(4) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article. (b) At the close of the solicitation period, the district shall review the submissions. The district may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The district may also interview some or all of the design-build entities to further evaluate their qualifications for the project.(c) Following the evaluation of submissions, the district shall either select a design-build entity based solely on qualifications or proceed to a secondary selection phase, wherein a design-build entity shall be selected based on best value.(d) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(e) If the district proceeds to a secondary selection phase based on best value, it shall issue a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(f) For those projects utilizing best value as a selection method, the selection process shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) The district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(g) After selecting a design-build entity, based on either qualifications or best value, the district may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.(h) (1) Upon agreement of the guaranteed maximum price for the project, the district, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.(2) If the costs for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the costs for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the costs and the guaranteed maximum price.(i) If the district and the design-build entity do not reach agreement on a guaranteed maximum price, or the district otherwise elects not to amend the design-build entitys contract to complete the remaining work, the district may solicit proposals to complete the project from other firms that submitted statements of qualifications or requests for proposals. The district may also, upon written determination that it is in the best interest of the district to do so, formally solicit proposals from other design-build entities. 21568.5. The procurement process for Construction Manager/General Contractor method projects shall proceed as follows:(a) The district shall select a construction manager through either a competitive request for qualifications (RFQ) process based on qualifications only or a competitive request for proposals process based on best value.(b) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(c) If a contract for construction services is entered into pursuant to this section and includes preconstruction services by the construction manager, the district shall enter into a written contract with the construction manager for preconstruction services under which contract the district shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the district and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period, provided, however, that the district shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the district has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project.(d) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the district shall not award the contract for construction services.(e) The district is not required to award the construction services contract.(f) Construction shall not commence on any phase, package, or element until the district and a construction manager agree in writing on either a fixed price that the district will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced and a construction schedule for the project. 21568.6. (a) Neither a design-build entity nor a construction contractor shall be awarded a construction contract unless it provides an enforceable commitment to the district that the design-build entity or construction contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.(b) This subdivision shall not apply if any of the following requirements are met:(1) The district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the design-build entity or construction contractor agrees to be bound by that project labor agreement.(2) The design-build entity or construction contractor has entered into a project labor agreement that will bind the design-build entity or construction contractor and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.(c) For purposes of this subdivision, project labor agreement has the same meaning as in paragraph (1) of subdivision (b) of Section 2500. 21568.7. (a) The district may not award a design-build-operate contract for any project pursuant to this article. A contract may, however, cover operations during a training or transition period.(b) The district shall perform construction inspection services for all projects authorized and awarded pursuant to this article, and it shall use district employees or consultants under contract with the district to perform these services. 21568.8. Any design-build entity or Construction Manager/General Contractor that is selected to construct a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance the district may require. Any payment or performance bond written for the purposes of this article shall be written using a bond form developed by the district. 21568.9. If the district elects to award a project pursuant to this article, retention proceeds withheld by the district from the design-build entity or Construction Manager/General Contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids. 21568.10. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law.
SEC. 2. Article 121.1 (commencing with Section 21568) is added to Chapter 1.5 of Part 3 of Division 2 of the Public Contract Code, to read:
### SEC. 2.
Article 121.1. Metropolitan Water District of Southern California - Alternative Project Delivery Program21568. (a) The Legislature finds and declares that severe drought conditions and climate change have negatively impacted the imported water supplies of the Metropolitan Water District of Southern California, necessitating an increase in local water supplies, including recycled water, and the construction of water infrastructure to more efficiently transport limited water supplies within the districts service area.(b) The Legislature further finds and declares that alternative project delivery, using the best value procurement methodology, has been authorized for various agencies that have reported benefits from those projects not achievable through the traditional design-bid-build method, including reduced project costs and expedited project start and completion.(c) This article provides for a range of procurement methods for district projects, including a planned regional recycled water project, designed to counteract the negative impacts of severe and ongoing drought and the continuing impacts of climate change on water supplies in southern California.(d) It is the intent of the Legislature in enacting this article to authorize the district to utilize the methods specified herein as cost-effective options for accelerating the construction of drought-resilient water infrastructure projects.21568.1. (a) A regional recycled water project or other water infrastructure project undertaken by the Metropolitan Water District of Southern California to alleviate water supply shortages attributable to drought or climate change may use, in addition to other methods of project delivery otherwise allowable by law, the following methods of project delivery:(1) Design-build.(2) Progressive design-build.(3) Construction Manager/General Contractor method.(b) The contract shall be awarded on a best value or qualifications basis or to the lowest responsible bidder.21568.2. As used in this article:(a) Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the district and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the district, or a tradeoff between price and other specified factors.(b) Construction manager means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a Construction Manager/General Contractor method contract.(c) Construction Manager/General Contractor method means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.(d) Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.(e) Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.(f) District means the Metropolitan Water District of Southern California.(g) Guaranteed maximum price means the maximum payment amount agreed upon by the district and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.(h) Preconstruction services means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the district to design a more constructible project.(i) Progressive design-build means a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project.(j) Project means a public work necessary for the construction of a recycled water facility or infrastructure designed specifically to alleviate water shortages attributable to drought, climate change, or other environmental factors. 21568.3. The procurement process for design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the district to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other non-price-related factors.(3) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article.(b) The district shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(c) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.(d) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) Pursuant to this subdivision, the district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(4) A contract award shall be made to the responsible design-build entity whose proposal is determined by the district to have offered the best value to the public.(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the district shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.(6) The statement regarding the local agencys contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.21568.4. The procurement process for progressive design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to either select a design-build entity to execute the project or to prequalify or short-list the design-build entities whose proposals shall be evaluated based on best value for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) An indication of whether the district will select a design-build entity based on qualifications only or based on best value through a subsequent request for proposals process.(2) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the districts needs, including the expected cost range, the methodology that will be used by the district to evaluate the design-build entitys qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(3) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, performance on previous projects of a similar nature, an acceptable safety record, and all other non-price-related factors.(4) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article. (b) At the close of the solicitation period, the district shall review the submissions. The district may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The district may also interview some or all of the design-build entities to further evaluate their qualifications for the project.(c) Following the evaluation of submissions, the district shall either select a design-build entity based solely on qualifications or proceed to a secondary selection phase, wherein a design-build entity shall be selected based on best value.(d) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(e) If the district proceeds to a secondary selection phase based on best value, it shall issue a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(f) For those projects utilizing best value as a selection method, the selection process shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) The district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(g) After selecting a design-build entity, based on either qualifications or best value, the district may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.(h) (1) Upon agreement of the guaranteed maximum price for the project, the district, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.(2) If the costs for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the costs for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the costs and the guaranteed maximum price.(i) If the district and the design-build entity do not reach agreement on a guaranteed maximum price, or the district otherwise elects not to amend the design-build entitys contract to complete the remaining work, the district may solicit proposals to complete the project from other firms that submitted statements of qualifications or requests for proposals. The district may also, upon written determination that it is in the best interest of the district to do so, formally solicit proposals from other design-build entities. 21568.5. The procurement process for Construction Manager/General Contractor method projects shall proceed as follows:(a) The district shall select a construction manager through either a competitive request for qualifications (RFQ) process based on qualifications only or a competitive request for proposals process based on best value.(b) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(c) If a contract for construction services is entered into pursuant to this section and includes preconstruction services by the construction manager, the district shall enter into a written contract with the construction manager for preconstruction services under which contract the district shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the district and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period, provided, however, that the district shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the district has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project.(d) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the district shall not award the contract for construction services.(e) The district is not required to award the construction services contract.(f) Construction shall not commence on any phase, package, or element until the district and a construction manager agree in writing on either a fixed price that the district will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced and a construction schedule for the project. 21568.6. (a) Neither a design-build entity nor a construction contractor shall be awarded a construction contract unless it provides an enforceable commitment to the district that the design-build entity or construction contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.(b) This subdivision shall not apply if any of the following requirements are met:(1) The district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the design-build entity or construction contractor agrees to be bound by that project labor agreement.(2) The design-build entity or construction contractor has entered into a project labor agreement that will bind the design-build entity or construction contractor and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.(c) For purposes of this subdivision, project labor agreement has the same meaning as in paragraph (1) of subdivision (b) of Section 2500. 21568.7. (a) The district may not award a design-build-operate contract for any project pursuant to this article. A contract may, however, cover operations during a training or transition period.(b) The district shall perform construction inspection services for all projects authorized and awarded pursuant to this article, and it shall use district employees or consultants under contract with the district to perform these services. 21568.8. Any design-build entity or Construction Manager/General Contractor that is selected to construct a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance the district may require. Any payment or performance bond written for the purposes of this article shall be written using a bond form developed by the district. 21568.9. If the district elects to award a project pursuant to this article, retention proceeds withheld by the district from the design-build entity or Construction Manager/General Contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids. 21568.10. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law.
Article 121.1. Metropolitan Water District of Southern California - Alternative Project Delivery Program21568. (a) The Legislature finds and declares that severe drought conditions and climate change have negatively impacted the imported water supplies of the Metropolitan Water District of Southern California, necessitating an increase in local water supplies, including recycled water, and the construction of water infrastructure to more efficiently transport limited water supplies within the districts service area.(b) The Legislature further finds and declares that alternative project delivery, using the best value procurement methodology, has been authorized for various agencies that have reported benefits from those projects not achievable through the traditional design-bid-build method, including reduced project costs and expedited project start and completion.(c) This article provides for a range of procurement methods for district projects, including a planned regional recycled water project, designed to counteract the negative impacts of severe and ongoing drought and the continuing impacts of climate change on water supplies in southern California.(d) It is the intent of the Legislature in enacting this article to authorize the district to utilize the methods specified herein as cost-effective options for accelerating the construction of drought-resilient water infrastructure projects.21568.1. (a) A regional recycled water project or other water infrastructure project undertaken by the Metropolitan Water District of Southern California to alleviate water supply shortages attributable to drought or climate change may use, in addition to other methods of project delivery otherwise allowable by law, the following methods of project delivery:(1) Design-build.(2) Progressive design-build.(3) Construction Manager/General Contractor method.(b) The contract shall be awarded on a best value or qualifications basis or to the lowest responsible bidder.21568.2. As used in this article:(a) Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the district and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the district, or a tradeoff between price and other specified factors.(b) Construction manager means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a Construction Manager/General Contractor method contract.(c) Construction Manager/General Contractor method means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.(d) Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.(e) Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.(f) District means the Metropolitan Water District of Southern California.(g) Guaranteed maximum price means the maximum payment amount agreed upon by the district and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.(h) Preconstruction services means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the district to design a more constructible project.(i) Progressive design-build means a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project.(j) Project means a public work necessary for the construction of a recycled water facility or infrastructure designed specifically to alleviate water shortages attributable to drought, climate change, or other environmental factors. 21568.3. The procurement process for design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the district to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other non-price-related factors.(3) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article.(b) The district shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(c) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.(d) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) Pursuant to this subdivision, the district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(4) A contract award shall be made to the responsible design-build entity whose proposal is determined by the district to have offered the best value to the public.(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the district shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.(6) The statement regarding the local agencys contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.21568.4. The procurement process for progressive design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to either select a design-build entity to execute the project or to prequalify or short-list the design-build entities whose proposals shall be evaluated based on best value for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) An indication of whether the district will select a design-build entity based on qualifications only or based on best value through a subsequent request for proposals process.(2) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the districts needs, including the expected cost range, the methodology that will be used by the district to evaluate the design-build entitys qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(3) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, performance on previous projects of a similar nature, an acceptable safety record, and all other non-price-related factors.(4) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article. (b) At the close of the solicitation period, the district shall review the submissions. The district may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The district may also interview some or all of the design-build entities to further evaluate their qualifications for the project.(c) Following the evaluation of submissions, the district shall either select a design-build entity based solely on qualifications or proceed to a secondary selection phase, wherein a design-build entity shall be selected based on best value.(d) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(e) If the district proceeds to a secondary selection phase based on best value, it shall issue a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(f) For those projects utilizing best value as a selection method, the selection process shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) The district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(g) After selecting a design-build entity, based on either qualifications or best value, the district may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.(h) (1) Upon agreement of the guaranteed maximum price for the project, the district, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.(2) If the costs for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the costs for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the costs and the guaranteed maximum price.(i) If the district and the design-build entity do not reach agreement on a guaranteed maximum price, or the district otherwise elects not to amend the design-build entitys contract to complete the remaining work, the district may solicit proposals to complete the project from other firms that submitted statements of qualifications or requests for proposals. The district may also, upon written determination that it is in the best interest of the district to do so, formally solicit proposals from other design-build entities. 21568.5. The procurement process for Construction Manager/General Contractor method projects shall proceed as follows:(a) The district shall select a construction manager through either a competitive request for qualifications (RFQ) process based on qualifications only or a competitive request for proposals process based on best value.(b) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(c) If a contract for construction services is entered into pursuant to this section and includes preconstruction services by the construction manager, the district shall enter into a written contract with the construction manager for preconstruction services under which contract the district shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the district and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period, provided, however, that the district shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the district has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project.(d) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the district shall not award the contract for construction services.(e) The district is not required to award the construction services contract.(f) Construction shall not commence on any phase, package, or element until the district and a construction manager agree in writing on either a fixed price that the district will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced and a construction schedule for the project. 21568.6. (a) Neither a design-build entity nor a construction contractor shall be awarded a construction contract unless it provides an enforceable commitment to the district that the design-build entity or construction contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.(b) This subdivision shall not apply if any of the following requirements are met:(1) The district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the design-build entity or construction contractor agrees to be bound by that project labor agreement.(2) The design-build entity or construction contractor has entered into a project labor agreement that will bind the design-build entity or construction contractor and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.(c) For purposes of this subdivision, project labor agreement has the same meaning as in paragraph (1) of subdivision (b) of Section 2500. 21568.7. (a) The district may not award a design-build-operate contract for any project pursuant to this article. A contract may, however, cover operations during a training or transition period.(b) The district shall perform construction inspection services for all projects authorized and awarded pursuant to this article, and it shall use district employees or consultants under contract with the district to perform these services. 21568.8. Any design-build entity or Construction Manager/General Contractor that is selected to construct a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance the district may require. Any payment or performance bond written for the purposes of this article shall be written using a bond form developed by the district. 21568.9. If the district elects to award a project pursuant to this article, retention proceeds withheld by the district from the design-build entity or Construction Manager/General Contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids. 21568.10. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law.
Article 121.1. Metropolitan Water District of Southern California - Alternative Project Delivery Program
Article 121.1. Metropolitan Water District of Southern California - Alternative Project Delivery Program
21568. (a) The Legislature finds and declares that severe drought conditions and climate change have negatively impacted the imported water supplies of the Metropolitan Water District of Southern California, necessitating an increase in local water supplies, including recycled water, and the construction of water infrastructure to more efficiently transport limited water supplies within the districts service area.(b) The Legislature further finds and declares that alternative project delivery, using the best value procurement methodology, has been authorized for various agencies that have reported benefits from those projects not achievable through the traditional design-bid-build method, including reduced project costs and expedited project start and completion.(c) This article provides for a range of procurement methods for district projects, including a planned regional recycled water project, designed to counteract the negative impacts of severe and ongoing drought and the continuing impacts of climate change on water supplies in southern California.(d) It is the intent of the Legislature in enacting this article to authorize the district to utilize the methods specified herein as cost-effective options for accelerating the construction of drought-resilient water infrastructure projects.
21568. (a) The Legislature finds and declares that severe drought conditions and climate change have negatively impacted the imported water supplies of the Metropolitan Water District of Southern California, necessitating an increase in local water supplies, including recycled water, and the construction of water infrastructure to more efficiently transport limited water supplies within the districts service area.
(b) The Legislature further finds and declares that alternative project delivery, using the best value procurement methodology, has been authorized for various agencies that have reported benefits from those projects not achievable through the traditional design-bid-build method, including reduced project costs and expedited project start and completion.
(c) This article provides for a range of procurement methods for district projects, including a planned regional recycled water project, designed to counteract the negative impacts of severe and ongoing drought and the continuing impacts of climate change on water supplies in southern California.
(d) It is the intent of the Legislature in enacting this article to authorize the district to utilize the methods specified herein as cost-effective options for accelerating the construction of drought-resilient water infrastructure projects.
21568.1. (a) A regional recycled water project or other water infrastructure project undertaken by the Metropolitan Water District of Southern California to alleviate water supply shortages attributable to drought or climate change may use, in addition to other methods of project delivery otherwise allowable by law, the following methods of project delivery:(1) Design-build.(2) Progressive design-build.(3) Construction Manager/General Contractor method.(b) The contract shall be awarded on a best value or qualifications basis or to the lowest responsible bidder.
21568.1. (a) A regional recycled water project or other water infrastructure project undertaken by the Metropolitan Water District of Southern California to alleviate water supply shortages attributable to drought or climate change may use, in addition to other methods of project delivery otherwise allowable by law, the following methods of project delivery:
(1) Design-build.
(2) Progressive design-build.
(3) Construction Manager/General Contractor method.
(b) The contract shall be awarded on a best value or qualifications basis or to the lowest responsible bidder.
21568.2. As used in this article:(a) Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the district and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the district, or a tradeoff between price and other specified factors.(b) Construction manager means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a Construction Manager/General Contractor method contract.(c) Construction Manager/General Contractor method means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.(d) Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.(e) Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.(f) District means the Metropolitan Water District of Southern California.(g) Guaranteed maximum price means the maximum payment amount agreed upon by the district and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.(h) Preconstruction services means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the district to design a more constructible project.(i) Progressive design-build means a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project.(j) Project means a public work necessary for the construction of a recycled water facility or infrastructure designed specifically to alleviate water shortages attributable to drought, climate change, or other environmental factors.
21568.2. As used in this article:
(a) Best value means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the district and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the district, or a tradeoff between price and other specified factors.
(b) Construction manager means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a Construction Manager/General Contractor method contract.
(c) Construction Manager/General Contractor method means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.
(d) Design-build means a project delivery process in which both the design and construction of a project are procured from a single entity.
(e) Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.
(f) District means the Metropolitan Water District of Southern California.
(g) Guaranteed maximum price means the maximum payment amount agreed upon by the district and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.
(h) Preconstruction services means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the district to design a more constructible project.
(i) Progressive design-build means a project delivery process in which both the design and construction of a project are procured from a single entity at the earliest feasible stage of the project.
(j) Project means a public work necessary for the construction of a recycled water facility or infrastructure designed specifically to alleviate water shortages attributable to drought, climate change, or other environmental factors.
21568.3. The procurement process for design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the district to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other non-price-related factors.(3) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article.(b) The district shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(c) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.(d) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) Pursuant to this subdivision, the district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(4) A contract award shall be made to the responsible design-build entity whose proposal is determined by the district to have offered the best value to the public.(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the district shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.(6) The statement regarding the local agencys contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.
21568.3. The procurement process for design-build projects shall proceed as follows:
(a) The district shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:
(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the district to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.
(2) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other non-price-related factors.
(3) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article.
(b) The district shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:
(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.
(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.
(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.
(c) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.
(d) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:
(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:
(A) Price, unless a stipulated sum is specified.
(B) Technical design and construction expertise.
(C) Life-cycle costs over 15 or more years.
(2) Pursuant to this subdivision, the district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.
(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.
(4) A contract award shall be made to the responsible design-build entity whose proposal is determined by the district to have offered the best value to the public.
(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the district shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.
(6) The statement regarding the local agencys contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.
21568.4. The procurement process for progressive design-build projects shall proceed as follows:(a) The district shall prepare and issue a request for qualifications in order to either select a design-build entity to execute the project or to prequalify or short-list the design-build entities whose proposals shall be evaluated based on best value for final selection. The request for qualifications shall include, but need not be limited to, the following elements:(1) An indication of whether the district will select a design-build entity based on qualifications only or based on best value through a subsequent request for proposals process.(2) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the districts needs, including the expected cost range, the methodology that will be used by the district to evaluate the design-build entitys qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(3) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, performance on previous projects of a similar nature, an acceptable safety record, and all other non-price-related factors.(4) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article. (b) At the close of the solicitation period, the district shall review the submissions. The district may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The district may also interview some or all of the design-build entities to further evaluate their qualifications for the project.(c) Following the evaluation of submissions, the district shall either select a design-build entity based solely on qualifications or proceed to a secondary selection phase, wherein a design-build entity shall be selected based on best value.(d) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(e) If the district proceeds to a secondary selection phase based on best value, it shall issue a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.(f) For those projects utilizing best value as a selection method, the selection process shall progress as follows:(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:(A) Price, unless a stipulated sum is specified.(B) Technical design and construction expertise.(C) Life-cycle costs over 15 or more years.(2) The district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.(g) After selecting a design-build entity, based on either qualifications or best value, the district may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.(h) (1) Upon agreement of the guaranteed maximum price for the project, the district, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.(2) If the costs for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the costs for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the costs and the guaranteed maximum price.(i) If the district and the design-build entity do not reach agreement on a guaranteed maximum price, or the district otherwise elects not to amend the design-build entitys contract to complete the remaining work, the district may solicit proposals to complete the project from other firms that submitted statements of qualifications or requests for proposals. The district may also, upon written determination that it is in the best interest of the district to do so, formally solicit proposals from other design-build entities.
21568.4. The procurement process for progressive design-build projects shall proceed as follows:
(a) The district shall prepare and issue a request for qualifications in order to either select a design-build entity to execute the project or to prequalify or short-list the design-build entities whose proposals shall be evaluated based on best value for final selection. The request for qualifications shall include, but need not be limited to, the following elements:
(1) An indication of whether the district will select a design-build entity based on qualifications only or based on best value through a subsequent request for proposals process.
(2) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the districts needs, including the expected cost range, the methodology that will be used by the district to evaluate the design-build entitys qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.
(3) Significant factors that the district reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, performance on previous projects of a similar nature, an acceptable safety record, and all other non-price-related factors.
(4) A standard template request for statements of qualifications prepared by the district. In preparing the standard template, the district may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this article.
(b) At the close of the solicitation period, the district shall review the submissions. The district may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The district may also interview some or all of the design-build entities to further evaluate their qualifications for the project.
(c) Following the evaluation of submissions, the district shall either select a design-build entity based solely on qualifications or proceed to a secondary selection phase, wherein a design-build entity shall be selected based on best value.
(d) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.
(e) If the district proceeds to a secondary selection phase based on best value, it shall issue a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the district. The request for proposals shall include, but need not be limited to, the following elements:
(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the district to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the district to inform interested parties of the contracting opportunity.
(2) Significant factors that the district reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.
(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.
(f) For those projects utilizing best value as a selection method, the selection process shall progress as follows:
(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the district:
(A) Price, unless a stipulated sum is specified.
(B) Technical design and construction expertise.
(C) Life-cycle costs over 15 or more years.
(2) The district may hold discussions or negotiations with responsive proposers using the process articulated in the districts request for proposals.
(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.
(g) After selecting a design-build entity, based on either qualifications or best value, the district may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.
(h) (1) Upon agreement of the guaranteed maximum price for the project, the district, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.
(2) If the costs for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the costs for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the costs and the guaranteed maximum price.
(i) If the district and the design-build entity do not reach agreement on a guaranteed maximum price, or the district otherwise elects not to amend the design-build entitys contract to complete the remaining work, the district may solicit proposals to complete the project from other firms that submitted statements of qualifications or requests for proposals. The district may also, upon written determination that it is in the best interest of the district to do so, formally solicit proposals from other design-build entities.
21568.5. The procurement process for Construction Manager/General Contractor method projects shall proceed as follows:(a) The district shall select a construction manager through either a competitive request for qualifications (RFQ) process based on qualifications only or a competitive request for proposals process based on best value.(b) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.(c) If a contract for construction services is entered into pursuant to this section and includes preconstruction services by the construction manager, the district shall enter into a written contract with the construction manager for preconstruction services under which contract the district shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the district and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period, provided, however, that the district shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the district has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project.(d) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the district shall not award the contract for construction services.(e) The district is not required to award the construction services contract.(f) Construction shall not commence on any phase, package, or element until the district and a construction manager agree in writing on either a fixed price that the district will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced and a construction schedule for the project.
21568.5. The procurement process for Construction Manager/General Contractor method projects shall proceed as follows:
(a) The district shall select a construction manager through either a competitive request for qualifications (RFQ) process based on qualifications only or a competitive request for proposals process based on best value.
(b) If the district selects a design-build entity based solely on qualifications, the district shall enter into negotiations for a contract with the highest qualified person or firm on the final list for that contract. The negotiations shall include consideration of compensation and other contract terms that the district determines to be fair and reasonable to the district. In making this decision, the district shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the district is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list regarding compensation and on other contract terms the district determines to be fair and reasonable, the district shall formally terminate negotiations with that person or firm. The district may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached or a determination is made to reject all persons or firms on the final list.
(c) If a contract for construction services is entered into pursuant to this section and includes preconstruction services by the construction manager, the district shall enter into a written contract with the construction manager for preconstruction services under which contract the district shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the district and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period, provided, however, that the district shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the district has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project.
(d) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the district shall not award the contract for construction services.
(e) The district is not required to award the construction services contract.
(f) Construction shall not commence on any phase, package, or element until the district and a construction manager agree in writing on either a fixed price that the district will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced and a construction schedule for the project.
21568.6. (a) Neither a design-build entity nor a construction contractor shall be awarded a construction contract unless it provides an enforceable commitment to the district that the design-build entity or construction contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.(b) This subdivision shall not apply if any of the following requirements are met:(1) The district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the design-build entity or construction contractor agrees to be bound by that project labor agreement.(2) The design-build entity or construction contractor has entered into a project labor agreement that will bind the design-build entity or construction contractor and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.(c) For purposes of this subdivision, project labor agreement has the same meaning as in paragraph (1) of subdivision (b) of Section 2500.
21568.6. (a) Neither a design-build entity nor a construction contractor shall be awarded a construction contract unless it provides an enforceable commitment to the district that the design-build entity or construction contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.
(b) This subdivision shall not apply if any of the following requirements are met:
(1) The district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the design-build entity or construction contractor agrees to be bound by that project labor agreement.
(2) The design-build entity or construction contractor has entered into a project labor agreement that will bind the design-build entity or construction contractor and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.
(c) For purposes of this subdivision, project labor agreement has the same meaning as in paragraph (1) of subdivision (b) of Section 2500.
21568.7. (a) The district may not award a design-build-operate contract for any project pursuant to this article. A contract may, however, cover operations during a training or transition period.(b) The district shall perform construction inspection services for all projects authorized and awarded pursuant to this article, and it shall use district employees or consultants under contract with the district to perform these services.
21568.7. (a) The district may not award a design-build-operate contract for any project pursuant to this article. A contract may, however, cover operations during a training or transition period.
(b) The district shall perform construction inspection services for all projects authorized and awarded pursuant to this article, and it shall use district employees or consultants under contract with the district to perform these services.
21568.8. Any design-build entity or Construction Manager/General Contractor that is selected to construct a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance the district may require. Any payment or performance bond written for the purposes of this article shall be written using a bond form developed by the district.
21568.8. Any design-build entity or Construction Manager/General Contractor that is selected to construct a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance the district may require. Any payment or performance bond written for the purposes of this article shall be written using a bond form developed by the district.
21568.9. If the district elects to award a project pursuant to this article, retention proceeds withheld by the district from the design-build entity or Construction Manager/General Contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.
21568.9. If the district elects to award a project pursuant to this article, retention proceeds withheld by the district from the design-build entity or Construction Manager/General Contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.
21568.10. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law.
21568.10. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law.
SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need to improve water infrastructure in the geographic area served by the Metropolitan Water District of Southern California.
SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need to improve water infrastructure in the geographic area served by the Metropolitan Water District of Southern California.
SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need to improve water infrastructure in the geographic area served by the Metropolitan Water District of Southern California.
### SEC. 3.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 4.