2015 Regular Session ENROLLED SENATE BILL NO. 159 BY SENATOR HEITMEIER Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. 1 AN ACT 2 To amend and reenact R.S. 48:250.2(A), and to enact R.S. 38:2225.2.5 and R.S. 48:232.1 3 and 250.2(D), relative to design-build contracts; to authorize any regional transit 4 authority created by law to let a design-build contract for new ferries on the 5 Mississippi River; to require that the Department of Transportation and Development 6 give priority to any bridge project which replaces a tunnel; to authorize the 7 Department of Transportation and Development to utilize the design-build method 8 to contract for ferries on the Mississippi River and for a bridge project which 9 replaces a tunnel; and to provide for related matters. 10 Be it enacted by the Legislature of Louisiana: 11 Section 1. R.S. 38:2225.2.5 is hereby enacted to read as follows: 12 §2225.2.5. Design-build contracts; authorized use by any regional transit 13 authority for new ferries on the Mississippi River 14 A.(1) Notwithstanding any other provision of law to the contrary, and 15 subject to the provisions of this Section, any regional transit authority created 16 by law may let contracts for any new ferry on the Mississippi River in which the 17 design and construction phases of the ferry project are combined into a single 18 contract. 19 (2) For the purposes of this Section: 20 (a) "Authority" means a regional transit authority. 21 (b) "Design-builder" means the person or entity contractually obligated 22 to deliver the design and construction of a new ferry on the Mississippi River. 23 B. Prior to letting any such contract, an authority shall adopt a 24 resolution establishing the design-build program for any new ferry. The ACT No. 30 Page 1 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 159 ENROLLED 1 resolution shall include, at a minimum, the following provisions: 2 (1) Requirements that a design-builder to whom a design-build contract 3 is awarded, or any person or entity to whom a design-builder may sublet, shall 4 be duly registered, licensed, or otherwise qualified to perform such design and 5 construction service as required by law, and registered to do business in 6 Louisiana. 7 (2) Requirements for the composition of a technical review committee to 8 grade and judge the statements of qualifications and technical proposals 9 submitted pursuant to the request for qualifications and the request for 10 technical proposals. At least one member of the technical review committee 11 shall be a maritime engineer, and the resolution shall so provide. 12 (3) Specific requirements for the design-build program and the design- 13 build contract, including but not limited to: 14 (a) Public announcement procedures for solicitation of interested design- 15 build competitors. The resolution shall provide that a notice of intent to select 16 a single legal entity for design-build services and to request letters of interest 17 and statements of qualifications from qualified firms or teams shall be 18 distributed by the authority through advertisement in the official journal of the 19 authority, by appearance on the authority's Internet home page, if any, and by 20 other means to ensure adequate response, including newspapers, trade journals, 21 and other forms of media which may be appropriate for specialty services. The 22 notice of intent shall be advertised a minimum of ten days prior to the deadline 23 for receipt of responses and shall contain a brief description of the project, the 24 required scope of services, and sufficient information for design-build entities 25 to determine their interest and to enable them to submit a letter of interest and 26 statement of qualifications. The authority may readvertise the notice of intent 27 using additional media or publications in an attempt to solicit additional 28 responses if the number of responses is inadequate. 29 (b) Scope of service requirements to be met by the design-builder 30 selected for the contract. Page 2 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 159 ENROLLED 1 (c) Requirements for a request for qualifications and statements of 2 qualifications to be submitted by competitors for the design-build contract. 3 (d) Criteria and rating procedures for choosing a short list from among 4 the persons submitting statements of qualifications to whom requests for the 5 submission of technical proposals will be made. 6 (e) Requirements for cost proposals to be submitted by competitors for 7 the design-build contract. 8 (f) Requirements concerning how the technical review committee shall 9 grade, judge, and rank the technical proposals and make recommendations to 10 the governing authority of the regional transit authority. 11 (g) Requirements for the selection process for the award of the design- 12 build contract. 13 C. The design-build program and any design-build contract entered into 14 pursuant to the design-build program shall be subject to the following 15 procedures and limitations: 16 (1) Statements of qualifications from at least two qualified design-build 17 competitors must be received in response to a formal request for qualifications 18 in order to proceed with a request for technical proposals. 19 (2) Technical proposals shall be requested from no fewer than two of the 20 qualified design-build competitors who submit statements of qualifications for 21 the design-build program. 22 (3) The authority may use a private design professional or its own staff 23 to develop a description of the project and the required scope of services. The 24 description of the project and the required scope of services shall include design 25 criteria, analyses, reports, and cost estimates for the design-build project as 26 prepared by a private design professional or the authority staff. 27 (4) The technical review committee shall grade, judge, and rank the 28 technical proposals and make a recommendation to the authority's governing 29 authority for the awarding of the contract in accordance with requirements of 30 this Section, the resolution, the request for qualifications, and the request for Page 3 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 159 ENROLLED 1 technical proposals. 2 (5)(a) The final selection of the design-build competitor to whom the 3 contract shall be awarded shall be made by the authority's governing authority. 4 (b) Such selection shall be made upon the basis of the best design for the 5 purposes set forth in the request for qualifications and the best cost for that 6 design, taking into account costs of construction and operation and maintenance 7 of that design. Competitors from the short list from whom technical proposals 8 have been requested may submit alternate designs and costs to ensure the 9 greatest number of options from which the award may be made so as to 10 promote best cost, as described in this Subparagraph, and the interests of the 11 taxpayers. 12 (6)(a) An adjusted score approach shall be used by the authority in 13 determining the winning proposal. An adjusted score shall be determined using 14 the following components: 15 (i) The technical score determined by the technical review committee. 16 Weighing factors may be assigned to each element depending on its relative 17 magnitude or significance to the overall project. Each technical review 18 committee member shall rate his assigned element of the proposal from each of 19 the entities on the short list and shall submit such scores to the chairman of the 20 technical review committee. The schedule and price bid shall not be made 21 known to the technical review committee during the scoring process. The 22 chairman of the technical review committee shall adjust the scores for any 23 applicable weighing factors and shall determine the total technical score for 24 each proposal. 25 (ii) Prior to determining the adjusted score, the chairman of the technical 26 review committee shall notify each design-build proposer, in writing, of each 27 proposer's final total technical score. A proposer may request, in writing, a 28 review of its final total technical score by the authority's designated 29 representative. If any proposer requests a review of its total technical score, the 30 designated representative shall hold a hearing to review such within a Page 4 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 159 ENROLLED 1 reasonable time after the request has been received by the designated 2 representative. The designated representative shall give the requesting proposer 3 reasonable notice of the time and place of such hearing. The requesting 4 proposer may appear at the hearing and present facts and arguments in support 5 of the request for review of its final total technical score. 6 (iii) The individual scoring of each member of the technical review 7 committee shall be considered a public record and available for public view. 8 (iv) The designated representative shall present his findings from the 9 hearing to the governing authority of the authority. The governing authority 10 shall determine what action shall be taken regarding the proposer's request to 11 review its final total technical score. Except as provided for in Subsection D of 12 this Section, the governing authority's decision shall be final and not subject to 13 appeal by any legal process. 14 (v) The time value, consisting of the product of the proposed contract 15 time expressed in calendar days multiplied by the value-per-calendar-day 16 expressed in dollars established by the authority and included in the "Scope of 17 Services Package". 18 (vi) The price proposal. 19 (b) The chairman of the technical review committee shall recommend the 20 proposal with the lowest adjusted score to the authority's governing authority. 21 The adjusted score for each entity's design-build proposal shall be determined 22 by the following formula: Adjusted Score = (Price Bid + Time Value) divided 23 by Technical Score. If the Time Value is not used, the Adjusted Score shall be 24 determined by the following formula: Adjusted Score = Price Bid divided by 25 Technical Score. 26 D. There shall be no challenge by any legal process to the choice of the 27 successful designer-builder unless filed and served on the presiding officer of 28 the authority's governing authority within seven calendar days after the award 29 of the design-build contract. Any such challenge shall be limited to fraud, bias 30 for pecuniary or personal reasons not related to the interests of the taxpayers, Page 5 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 159 ENROLLED 1 or arbitrary and capricious selection of the successful design-builder. Any such 2 challenge shall be heard as a summary proceeding by the district court of 3 proper venue for the authority not less than ten days after service of the 4 petition, excluding legal holidays. 5 E. Once the design-builder has been chosen, a contract for a stipulated 6 maximum total cost may be executed, as provided in the authority's award 7 resolution. The final cost of the design-build contract may be increased or 8 decreased to account for inflation if provided for in the contract, for changes in 9 the scope of work, or for a combination thereof, or for other conditions of which 10 the design-builder either did not have knowledge of, or could not have 11 reasonably foreseen the possibility of, concerning the design and construction 12 provided any change is related to the original project and scope of services. 13 F. The provisions of this Section shall supersede any conflicting 14 provisions of any other law, including but not limited to the requirements of 15 Chapter 10 of this Title. 16 Section 2. R.S. 48:250.2(A) is hereby amended and reenacted, and R.S. 48:232.1 and 17 250.2(D) are hereby enacted to read as follows: 18 §232.1. Apportionment of appropriated funds by the department; tunnel 19 replacement priority 20 The Department of Transportation and Development may give priority 21 and advance to construction as expeditiously as possible any bridge project 22 where a bridge replaces a tunnel. The department may use any available source 23 of funds to finance such projects, and may use any available source of funds, 24 including the secretary's emergency fund, as matching funds to meet federal 25 requirements in order to receive federal aid funds. Notwithstanding any other 26 provision of law to the contrary, the department may contract for such projects 27 using any contract method provided by law, including design-build or 28 construction management at risk. 29 * * * 30 §250.2. Design-build contracts; administration Page 6 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 159 ENROLLED 1 A. Notwithstanding any law to the contrary or the requirements of this Part, 2 if the secretary determines it is in the best interest of the taxpayers, the Department 3 of Transportation and Development, with approval of the House and Senate 4 transportation, highways, and public works committees, may formulate, develop, and 5 implement a program to combine the design and construction phases of a 6 transportation facility or facilities, including but not limited to highways, 7 interchanges, or bridges, ferries on the Mississippi River, or tunnels into a single 8 contract. 9 * * * 10 D. The department shall consider a design-build contract to replace the 11 tunnel on Louisiana Highway 23 and shall submit a written report of its 12 recommendation to the House and Senate committees on transportation, 13 highways, and public works not later than February 1, 2016. 14 Section 3. This Act shall become effective upon signature by the governor or, if not 15 signed by the governor, upon expiration of the time for bills to become law without signature 16 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 17 vetoed by the governor and subsequently approved by the legislature, this Act shall become 18 effective on the day following such approval. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 7 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.