2023 Regular Session ENROLLED SENATE BILL NO. 167 BY SENATOR ABRAHAM 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. 48:250.3(B), (C), (D), and (E), and to enact R.S. 48:250.3.1, 3 relative to design-build; to provide for progressive design-build contracts by the 4 Department of Transportation and Development; to provide for requirements of 5 design-builders, notice of intent letters, and procurement process for progressive 6 design-build; and to provide for related matters. 7 Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 48:250.3 (B), (C), (D), and (E) are hereby amended and reenacted and 9 R.S. 48:250.3.1 is hereby enacted to read as follows: 10 §250.3. Design-build contracts; qualifications of design-build entities; public 11 announcement procedures; letters of interest; selection of short list; 12 bid proposals by competitors; qualifications evaluation committee; 13 proposal review committee; selection and process of award 14 * * * 15 B.(1) Each design-builder shall employ, or have as a partner, a member, 16 coventurer, or subcontractor persons, or a firm with persons, who are duly licensed 17 and registered to provide the services required to complete the project and do 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. 167 ENROLLED 1 business in this state. 2 (2) All registrations and licenses for each component shall be obtained 3 prior to or concurrent with award of the project to the selected design-builder 4 by the department. 5 (a) The standard professional engineer and land surveyor qualifications as 6 provided for in R.S. 37:681 et seq., the rules and regulations of the Louisiana 7 Professional Engineering and Land Surveying Board, and the department's standard 8 technical qualification requirements for firms providing professional engineering and 9 land surveying services as provided for in R.S. 48:290 shall apply to the components 10 providing design services, and the. 11 (b) The standard contractor qualifications as provided for in R.S. 37:2150 et 12 seq., and the current rules and regulations of the State Licensing Board for 13 Contractors shall apply to the component providing construction services utilized by 14 the design-builder, based upon the applicable categories for the specific project. All 15 registrations and licenses for each component shall be obtained prior to or concurrent 16 with award of the project to the selected design-builder by the department. 17 C. A notice of intent "notice of intent" (NOI) to request letters of interest 18 for a design-build project, or for a pool of prequalified design-builders that shall 19 remain prequalified for up to two years, shall be distributed by the department 20 through advertisement on the Department of Transportation and Development's 21 internet webpage. All notices of intent NOIs shall be advertised a minimum of ten 22 days prior to the deadline for receipt of responses. and The NOI shall contain a 23 description of the project or type of work and sufficient information for a 24 design-builder to determine its interest and to enable it to submit a letter of interest. 25 The department may readvertise the notice of intent NOI using additional media or 26 publications in an attempt to solicit additional responses if the number of responses 27 received by the department is inadequate. 28 D. The department shall provide a "Request for Qualifications" "request for 29 qualifications" (RFQ) to design-builders who submit a letter of interest. The 30 department shall identify all required information in the request for qualifications 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. 167 ENROLLED 1 RFQ and in the standard response forms provided by the department. Any response 2 that fails to meet all requirements contained in the RFQ may not be considered 3 by the department. False or misrepresented information furnished in response 4 to an RFQ shall be grounds for rejection by the department. The response to the 5 request for qualifications RFQ shall include both of the following: 6 (1) statements Statements of qualification by credentials and experience of 7 design component members for the areas of expertise specific to the project or type 8 of work. 9 (2) and statements Statements of qualification by experience and resources 10 of the construction team component. The completed response form and any other 11 required information shall be transmitted to the department by the responding 12 design-builder by the deadline to submit such forms and information as provided in 13 the request for qualifications. Any response failing to meet all of the requirements 14 contained in the request for qualifications shall not be considered by the department. 15 False or misrepresented information furnished in response to a request for 16 qualifications shall be grounds for rejection by the department. 17 E.(1) The chief engineer, with concurrence of the secretary, shall establish 18 a design-build qualifications evaluation committee for evaluation of the responses 19 to the request for qualifications received by the department. The following general 20 criteria used by the qualifications evaluation committee in evaluating responses to 21 the request for qualifications for design-build services shall apply to both the design 22 and construction components of any responding entity: 23 (a) Experience of both the design and construction entity components and of 24 key personnel as related to the project or type of work under consideration. 25 (b) Past performance on department projects. 26 (c) Any project-specific criteria as that may apply to project needs. 27 (2) The qualifications evaluation committee shall evaluate the qualifications 28 of responding design-builders on the basis of the criteria identified in the request for 29 qualifications and set forth in this Subsection and shall select a short list of the 30 highest rated entities in a number to be determined by the department; however, if. 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. 167 ENROLLED 1 If fewer than three responses are received, the secretary or designated representative 2 may approve proceeding with the design-build process. The qualifications evaluation 3 committee may, at its discretion, be assisted by other department personnel in its 4 evaluation of an entity's qualifications. The design-build qualifications evaluation 5 committee shall present its short list to the chief engineer for recommendation to the 6 secretary. The short-listed entities shall be invited by the secretary or designated 7 representative to submit a detailed technical and cost proposal for the design-build 8 project. The invitation to the short-listed entities shall specify a deadline for 9 submission of such proposals. 10 * * * 11 §250.3.1. Progressive design-build contracts 12 A. For purposes of this Section, "design-builder" means the entity 13 contractually responsible for delivering the project design and construction. 14 B.(1) Each design-builder shall employ or have as a partner a member, 15 coventurer, subcontractor persons, or a firm with persons, who are duly 16 licensed and registered to provide the services required to complete the project 17 and do business in this state. 18 (2) All registrations and licenses for each component shall be obtained 19 prior to or concurrent with award of the project to the selected design-builder 20 by the department. 21 (a) The standard professional engineer and land surveyor qualifications 22 as provided for in R.S. 37:681 et seq., the rules and regulations of the Louisiana 23 Professional Engineering and Land Surveying Board, and the department's 24 standard technical qualification requirements for firms providing professional 25 engineering and land surveying services, as provided for in R.S. 48:290, shall 26 apply to the components providing design services. 27 (b) The standard contractor qualifications as provided for in R.S. 28 37:2150 et seq. and the current rules and regulations of the State Licensing 29 Board for Contractors shall apply to the component providing construction 30 services utilized by the design-builder, based upon the applicable categories for 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. 167 ENROLLED 1 the specific project. 2 C. A "notice of intent" (NOI) to request letters of interest for a 3 design-build project shall be distributed by the department through 4 advertisement on the Department of Transportation and Development's 5 internet webpage. All NOIs shall be advertised a minimum of ten days prior to 6 the deadline for receipt of responses. The NOI shall contain a description of the 7 project or type of work and sufficient information for a design-builder to 8 determine its interest and to enable it to submit a letter of interest. The 9 department may re-advertise the NOI using additional media or publications 10 in an attempt to solicit additional responses if the number of responses received 11 by the department is inadequate. 12 D. The department shall provide a "request for qualifications" (RFQ) 13 to design-builders who submit a letter of intent. The department shall identify 14 all required information in the RFQ and in the standard response forms 15 provided by the department. The RFQ shall include but is not limited to 16 the following: 17 (1) Project description. 18 (2) Pre-construction scope of services. 19 (3) Submittal criteria for the project. 20 (4) Procurement grading criteria. 21 (5) Scoring methodology. 22 (6) Total fees and compensation payable to the design-builder for 23 preconstruction services. 24 (7) Estimate of the probable construction cost of the project. 25 E. The response to the RFQ shall include "statements of qualifications" 26 (SOQ) submitted by the design-builder. If the department receives only one 27 response, the secretary or designated representative may approve proceeding 28 with the progressive design-build process. The information contained within the 29 SOQ shall include but not be limited to the following: 30 (1) The design-builder's formation and organizational documents at the 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. 167 ENROLLED 1 time of the SOQ submission. 2 (2) Experience of both the design and construction components of the 3 design-build entity on projects of similar size, scope, and may include the 4 complexity of previous projects. 5 (3) Information regarding proposed key personnel's experience and 6 training to competently manage and complete the design and construction of 7 the project. 8 (4) Past performance on projects. 9 (5) The design-builder's ability to obtain all bonding and insurance 10 requirements. 11 (6) The design-builder's safety plan. 12 F. The chief engineer, with the concurrence of the secretary, shall 13 establish a design-build qualifications evaluation committee for evaluation of 14 the responses to the RFQ received by the department. The chief engineer, with 15 the concurrence of the secretary, shall assign a project manager who shall 16 become the chairman of the qualifications evaluation committee for the project. 17 The qualifications evaluation committee may, at its discretion, be assisted by 18 other department personnel in its evaluation of a design-builder's SOQ. 19 G. The department may evaluate submissions based solely upon the 20 information provided in each design-build entity SOQ. The department may 21 also interview some or all of the design-build entities to further evaluate their 22 qualifications for the project. 23 H. After selecting a design-builder based upon qualifications, the 24 department may enter into a contract and direct the design-builder to begin 25 design and preconstruction activities sufficient to establish an estimated price, 26 lump sum, or guaranteed maximum price, for the project. 27 I. If the department and the design-builder do not reach an agreement 28 on the estimated price for the project or the department otherwise elects not to 29 amend the design-builder's contract to complete the remaining work, the 30 department may solicit proposals to complete the project from firms that 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. 167 ENROLLED 1 submitted SOQ or formally solicit bids or proposals from other entities using 2 any public procurement method available to the department. The selected 3 design-builder shall be prohibited from bidding on the project. 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.