SB 1308 - HB 1320
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 22, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
SB 1308 - HB 1320
SUMMARY OF BILL: Effective July 1, 2029, standardizes the evaluation and selection
process for transportation project proposals by implementing a uniform scoring and ranking system.
Clarifies the Commissioner of the Department of Transportation’s (TDOT) authority in awarding
transportation contracts, allowing the acceptance of the highest-ranked proposer or the rejection of
all proposals with the option to use alternative procurement methods.
Effective July 1, 2025, expands the Commissioner's ability to award emergency transportation
contracts by allowing various procurement methods, including noncompetitive selection for urgent
repairs.
Eliminates the requirement to list emergency transportation projects in advance in the state's Annual
Transportation Improvement Plan, but mandates immediate notification to various legislative
committees, the Commissioner of the Department of Finance and Administration (F&A), and the
Comptroller of the Treasury when such contracts are awarded.
Exempts emergency alternative delivery contracts from the 28-contract annual limit, allowing an
unlimited number of such contracts when necessary for urgent repairs.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 54-1-504(b)(3), TDOT Construction Manager/General
Contractor and Progressive Design-Build method of procurement selection committee
members independently review and score proposals, with scores averaged and ranked. The
highest-scoring proposer and any within five percent of that score are designated as first-
tier proposers. These first-tier proposals are then submitted alphabetically, without ranking,
to the Commissioner, who can either select any first-tier proposer or reject all proposals.
Notices to proposers include individual scores from each committee member.
• Effective July 1, 2029, the proposed legislation modifies the evaluation process while
maintaining the selection committee’s role in reviewing and scoring proposals. However,
members are no longer required to score independently and scores are compiled instead of
averaged. Only the highest-scoring proposer is now designated as the best-evaluated
proposer, eliminating the first-tier system. Proposals are submitted in rank order to the
Commissioner, who may either accept the best-evaluated proposer or reject all proposals.
Notices will now include compiled scores rather than individual scores.
SB 1308 - HB 1320 2
• While these changes do not directly impact the number of contracts awarded or
procurement costs, they may influence which contracts the state enters into. Since only one
proposal is now submitted to the Commissioner instead of multiple first-tier proposals, the
selection process may result in different contract outcomes than under the current system.
This could lead to minor fiscal impacts depending on the specific contracts awarded, but
any such impact is expected to be insignificant.
• Pursuant to Tenn. Code Ann. § 54-1-135, the Commissioner has the authority to enter into
contracts to address transportation system failures, imminent failures, or other emergencies
that pose a hazard or significant delay. This may be done through a special letting process,
where bidding requirements can be waived, or through noncompetitive selection of a
prequalified contractor when immediate action is necessary. If a contract is awarded, the
Commissioner must immediately notify the Commissioner of F&A and the Comptroller.
Within 30 days, all bids and supporting documentation must be submitted to the Fiscal
Review Committee.
• Effective July 1, 2025, the proposed legislation expands the Commissioner’s authority by
allowing the use of alternative delivery contracts and highway construction and engineering
contracts, with the ability to waive certain provisions for expedited project execution. It also
increases reporting requirements, mandating immediate notice to the Commissioner of
F&A, the Comptroller, and key legislative committee chairs. Additionally, it exempts
emergency contracts over $100 million from inclusion in the annual transportation
improvement program and removes the fiscal year cap on alternative delivery contracts for
emergencies, providing greater flexibility in responding to infrastructure failures.
• These changes do not require additional spending, but expand the Commissioner’s
contracting authority and remove procurement restrictions. The ability to waive provisions
and lift contract limits in addressing transportation emergencies is not expected to result in
a significant impact to state expenditures. The additional reporting requirements can be
managed within existing administrative resources.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director