Bill Text: MN SF1351 | 2013-2014 | 88th Legislature | Engrossed


Bill Title: Hennepin county design-build contract provisions updates and technical corrections

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-05-09 - HF substituted on General Orders HF1510 [SF1351 Detail]

Download: Minnesota-2013-SF1351-Engrossed.html

1.1A bill for an act
1.2relating to Hennepin County; updating and making technical corrections to
1.3county contract provisions;amending Minnesota Statutes 2012, sections
1.4383B.158, subdivisions 1, 2, 5; 383B.1581, subdivisions 2, 3; 383B.1582;
1.5383B.1584; repealing Minnesota Statutes 2012, section 383B.1585.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2012, section 383B.158, subdivision 1, is amended to
1.8read:
1.9    Subdivision 1. Definitions. (a) In sections 383B.158 to 383B.1585, the definitions
1.10in this subdivision apply.
1.11(b) "Best value" describes a result intended in acquiring design-build services. Best
1.12value determination must include price and must measure a responder's qualifications,
1.13experience, prior performance, and responses to technical and qualitative criteria.
1.14(c) "County board" means the Hennepin County Board of Commissioners.
1.15(d) "Design-build selection panel" means the individuals appointed by the county
1.16to advise the county administrator and county board in preparing and conducting
1.17the design-build selection process. At least three members of the committee must
1.18be individuals who are not county employees, a minimum of two members must be
1.19professionally licensed under chapter 326, and at least one must be or must have been a
1.20commercial contractor. No committee member shall have personal financial interest in the
1.21project or with any of the design-build proposals.
1.22(e) "Design-build contract" means a single contract, which may be in phases,
1.23 between the county and a design-builder to furnish the architectural, or engineering,
1.24 and related design services as well as the labor, materials, supplies, equipment, and
1.25construction services for a project.
2.1(f) "Design-build firm" means a proprietorship, partnership, limited liability
2.2partnership, joint venture, corporation, or any type of limited liability company,
2.3professional corporation, or any legal entity.
2.4(g) "Design-builder" means the design-build firm that proposes to design and build a
2.5project governed by the procedures of this section.
2.6(h) "Design professional" means a person who holds or employs individuals who
2.7hold a license under chapter 326 and who is required to be registered under Minnesota law.
2.8(i) "Primary designer" means the designer who is to have primary design
2.9responsibility for a project, and does not include designers who are merely consulted by
2.10the county and do not have substantial design responsibility, or designers who will or may
2.11be employed or consulted by the primary designer.
2.12(j) "Project" means an undertaking for the county to design, construct, erect, or
2.13remodel a building or facility, or to design, construct, or reconstruct a county road, bridge,
2.14or multimodal transportation facility or other infrastructure relating to a county roadway
2.15 or multimodal transportation.
2.16(k) "Proposal" means an offer by a design-builder to enter into a design-build
2.17contract for a project in response to a request for proposals, including a phase-one or
2.18phase-two proposal.
2.19(l) "Request for proposals" or "RFP" means the document or publication through
2.20which the county solicits proposals from prequalified design-builders to design and
2.21construct a design-build project.
2.22(m) "Request for qualifications" or "RFQ" means a document to prequalify and
2.23short-list potential design-builders for a project.

2.24    Sec. 2. Minnesota Statutes 2012, section 383B.158, subdivision 2, is amended to read:
2.25    Subd. 2. Authority. Notwithstanding section 471.345 or any other law to the
2.26contrary, the county board may solicit and award a design-build contract for a project on
2.27the basis of a best value selection process as provided in this section. In exercising the
2.28authority granted in this section and sections 383B.1581 to 383B.1584, the county may
2.29also utilize the design-build procedures available to the Department of Transportation.

2.30    Sec. 3. Minnesota Statutes 2012, section 383B.158, subdivision 5, is amended to read:
2.31    Subd. 5. Licensing requirements. (a) A design-builder must be shall employ, or
2.32have as a partner, member, officer, coventurer, or subcontractor, a person duly licensed
2.33and registered to provide the design services required to complete the project and do
2.34business in this state.
3.1(b) A design-builder may enter into a contract with the county to provide professional
3.2or construction services that the design-builder is not licensed, registered, or qualified to
3.3perform, so long as the design-builder provides the services through subcontracts with
3.4licensed, registered, or otherwise qualified persons in accordance with this section.
3.5(c) This section does not intend to limit or eliminate the responsibility or liability
3.6owed by a professional on a design-build project to the county or other parties under
3.7other law.

3.8    Sec. 4. Minnesota Statutes 2012, section 383B.1581, subdivision 2, is amended to read:
3.9    Subd. 2. Contents. The county, after considering recommendations from the
3.10design-build selection panel, shall prepare or have prepared an RFQ. The RFQ must
3.11include the following:
3.12(1) the minimum qualifications of design-builders necessary to meet the requirements
3.13for acceptance;
3.14(2) a scope of work statement and schedule;
3.15(3) documents defining the project requirements;
3.16(4) the form of contract to be awarded;
3.17(5) the weighted selection criteria for compiling a short list and the number of firms
3.18to be included in the short list, which must be at least three two but not more than five;
3.19(6) a description of the request for proposals (RFP) requirements;
3.20(7) the maximum time allowed for design and construction;
3.21(8) the county board's estimated cost range of design and construction;
3.22(9) requirements for construction experience, design experience, financial,
3.23personnel, and equipment resources available from potential design-builders for the
3.24project and experience in other design-build projects or similar projects, provided that
3.25these requirements may not unduly restrict competition; and
3.26(10) the requirement that the primary designer be designated in the response to
3.27the RFQ; and
3.28(11) a statement that "past performance" or "experience" does not include the
3.29exercise or assertion of a person's legal rights.

3.30    Sec. 5. Minnesota Statutes 2012, section 383B.1581, subdivision 3, is amended to read:
3.31    Subd. 3. Evaluation. (a) The county shall solicit and evaluate proposals and select
3.32a design-builder in two phases.
3.33(b) In phase one, the county board, after considering the recommendations from the
3.34design-build selection panel, shall adopt a short list of at least three but no more than five
4.1of the most highly qualified firms in accordance with qualifications criteria described in
4.2the RFQ. Prior to adoption of the short list by the county board, the designer selection
4.3committee or the county board may require clarification from the design-builders to
4.4ensure conformance of proposals to the RFQ. The county must not consider cost-related
4.5or price-related evaluation factors in phase one.
4.6(c) In phase two, the design-build selection panel and the county shall use
4.7the evaluation criteria in the RFP to determine the design-build proposal to be the
4.8most advantageous and the best value to the public. Prior to award of a contract, the
4.9design-build selection panel and, if necessary, the county board may require clarification
4.10from the design-builders to ensure conformance of proposals to the RFP.

4.11    Sec. 6. Minnesota Statutes 2012, section 383B.1582, is amended to read:
4.12383B.1582 RFP FOR DESIGN-BUILD.
4.13During phase two, the county shall issue an RFP to the design-builders on the short
4.14list. The request for proposals (RFP) must include:
4.15(1) the scope of work, including (i) performance and technical requirements, (ii)
4.16conceptual design, (iii) minimum specifications, and (iv) functional and operational
4.17elements for the delivery of the completed project, which must be prepared by a design
4.18professional qualified to prepare the necessary documents;
4.19(2) a description of the qualifications required of the design-builder;
4.20(3) a description of the selection criteria, including the weighting weight or relative
4.21order, or both, of each criterion;
4.22(4) copies of the contract documents that the successful proposer will be expected to
4.23sign;
4.24(5) the maximum time allowable for design and construction;
4.25(6) the county's estimated range of cost for design and construction;
4.26(7) the requirement that a submitted proposal be segmented into two parts, a
4.27technical proposal and a price proposal;
4.28(8) the requirement that each proposal be in a separately sealed, clearly identified
4.29package and include the date and time of the submittal deadline;
4.30(9) the requirement that the technical proposal include a critical path method,;
4.31 bar schedule of the work to be performed, or similar schematic; design plans and
4.32specifications; technical reports; calculations; permit requirements; applicable
4.33development fees; and other data requested in the RFP;
5.1(10) the requirement that the price proposal contain all design, construction,
5.2engineering, inspection, and construction-related costs, and all other costs of any kind
5.3of the proposed project;
5.4(11) the date, time, and location of the public opening of the sealed price proposals;
5.5(12) a statement that "past performance" or "experience" does not include the
5.6exercise or assertion of a person's legal rights; and
5.7(13) other information relevant to the project.

5.8    Sec. 7. Minnesota Statutes 2012, section 383B.1584, is amended to read:
5.9383B.1584 DESIGN-BUILD AWARD.
5.10    Subdivision 1. Award; computation; announcement. The county board, after
5.11considering the recommendations of the design-build selection panel, shall award the
5.12design-build contract to the proposer with the highest scored proposal based on the
5.13evaluation criteria in the RFP. The rationale for the selection of the proposal must be stated
5.14at the time of the contract award. The county board may reject any or all proposals, but
5.15must not do so to evade the other provisions and policies of this section. If the county
5.16board rejects all proposals, it may then solicit new proposals after making appropriate
5.17modifications to performance criteria, budget constraints, or qualifications. Except as
5.18provided in subdivision 2, a design-build contract shall be awarded as follows:
5.19(a) The design-build selection panel shall score the technical proposals using the
5.20selection criteria in the request for proposals (RFP). The panel shall then submit a
5.21technical proposal score for each design-builder to the county board or its designee. The
5.22panel shall reject any proposal it deems nonresponsive.
5.23(b) The county board or its designee shall announce the technical proposal score for
5.24each design-builder and shall publicly open the sealed price proposals and shall divide
5.25each design-builder's price by the technical score that the panel has given to it to obtain
5.26an adjusted score.
5.27(c) If a time factor is included with the selection criteria in the RFP package, the
5.28county board or its designee may also adjust the bids using a value of the time factor
5.29established by the panel. The value of the time factor must be expressed as a value per
5.30day. The adjustment must be based on the total time value. The total time value is the
5.31design-builder's total number of days to complete the project multiplied by the factor. The
5.32time-adjusted price is the total time value plus the bid amount. This adjustment must be
5.33used for selection purposes only, and must not affect the county's liquidated damages
5.34schedule or incentive or disincentive program. An adjusted score must then be obtained
6.1by dividing each design-builder's time-adjusted price by the score given by the technical
6.2review team.
6.3(d) Unless all proposals are rejected, the county board shall award the contract to
6.4the responsive and responsible design-builder with the lowest adjusted score. The county
6.5board shall reserve the right to reject all proposals.
6.6    Subd. 2. Alternative process for certain contracts. The county board may elect to
6.7use the process under this subdivision for a design-build contract for a project with an
6.8estimated project cost of less than $5,000,000. The county board shall give the lowest
6.9cost proposal the full number of price points defined in the request for proposals (RFP).
6.10The county board shall award each of the other proposals a percentage of the price points
6.11based on a ratio of the lowest price divided by the responder's price. The county board
6.12shall add the technical score and price score and award the contract to the responder
6.13with the highest total score.
6.14    Subd. 3. Stipulated fee. The county board shall award a stipulated fee of not less
6.15than two-tenths of one percent of the county's estimated cost of design and construction
6.16to each short-listed, responsible proposer who provides a responsive but unsuccessful
6.17proposal. When the request for proposals specifies a maximum price, the stipend shall
6.18be awarded if the proposal is responsive in all other aspects but comes in above the
6.19maximum price. If the county board does not award a contract, all short-listed proposers
6.20must receive the stipulated fee. If the county board cancels the contract before reviewing
6.21the technical proposals, the county board shall award each design-builder on the short list
6.22a stipulated fee of not less than two-tenths of one percent of the county's estimated cost of
6.23design and construction. The county board shall pay the stipulated fee to each proposer
6.24within 90 days after the award of the contract or the decision not to award a contract. In
6.25consideration for paying the stipulated fee, the county may use any ideas or information
6.26contained in the proposals in connection with any contract awarded for the project or in
6.27connection with a subsequent procurement, without any obligation to pay any additional
6.28compensation to the unsuccessful proposers. Notwithstanding the other provisions of this
6.29subdivision, an unsuccessful short-list proposer may elect to waive the stipulated fee. If
6.30an unsuccessful short-list proposer elects to waive the stipulated fee, the county may not
6.31use ideas and information contained in that proposer's proposal. Upon the request of
6.32the county, a proposer who waived a stipulated fee may withdraw the waiver, in which
6.33case the county shall pay the stipulated fee to the proposer and thereafter may use ideas
6.34and information in the proposer's proposal.
7.1    Subd. 4. Low-bid design-build process. (a) The county board may also use
7.2low-bid, design-build procedures to award a design-build contract where the scope of
7.3the work can be clearly defined.
7.4(b) Low-bid design-build projects may require a request for qualifications (RFQ)
7.5and short-listing, and must require a request for proposals (RFP).
7.6(c) Submitted proposals under this subdivision must include separately a technical
7.7proposal and a price proposal. The low-bid, design-build procedures must follow a
7.8two-step process for review of the responses to the RFP as follows:
7.9(1) The first step is the review of the technical proposal by the design-build selection
7.10panel. The panel must open the technical proposal first and must determine if it complies
7.11with the requirements of the RFP and is responsive. The panel may not perform any
7.12ranking or scoring of the technical proposals.
7.13(2) The second step is the determination of the low bidder based on the price
7.14proposal. The county board or its designee may not open the price proposal until the
7.15review of the technical proposal is complete.
7.16(d) The contract award under low-bid, design-build procedures must be made to the
7.17proposer whose sealed bid is responsive to the technical requirements as determined by
7.18the panel and that is also the lowest bid.
7.19(e) A stipulated fee may be paid for unsuccessful bids on low-bid, design-build
7.20projects only when the county board has required an RFQ and short-listed the most highly
7.21qualified responsive bidders.
7.22    Subd. 5. Rejection of bids. The county board may reject all bids under this section.
7.23    Subd. 6. Reissue of request for proposals. If the county board rejects all bids or does
7.24not execute the contract, the county board may reissue the request for proposals and allow
7.25only short-listed teams to resubmit proposals. The county board shall then pay a reasonable
7.26stipulated fee to each short-listed, responsible proposer who provides a responsive but
7.27unsuccessful proposal in response to the reissued request for proposals. When the reissued
7.28request for proposals specifies a maximum price, the stipend shall be awarded if the
7.29proposal is responsive in all other aspects but comes in above the maximum price.

7.30    Sec. 8. REPEALER.
7.31Minnesota Statutes 2012, section 383B.1585, is repealed.
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