AB 509

This bill makes numerous changes to alternative delivery of highway projects contracted by the Department of Transportation.

Under current law, the design and construction of highway projects are generally two distinct phases. Under this method, commonly known as “design-bid-build,” DOT has broad authority to accomplish the design of a project. The construction of a project must be executed by contract based on bids, with DOT awarding the contract to the lowest responsible bidder.

Under a current pilot program, DOT is authorized to award not more than six contracts for design-build projects, which are projects under which the design, engineering, construction, and related services are provided by a single entity. Under the program, DOT may not expend more than $250,000,000 for the six contracts. DOT is also required to maintain an inventory of at least five projects suitable for selection as design-build projects.

The bill eliminates the pilot program and the requirement that DOT maintain an inventory of design-build suitable projects. The bill provides that DOT may encumber not more than $300,000,000 in each fiscal biennium for state trunk highway improvement projects using alternative project delivery, which is defined as any construction project delivery method, other than design-bid-build, that is eligible for federal funding.

Current law details how, under the pilot program, DOT must solicit requests for qualifications, requests for proposals, and cost proposals and how DOT must award contracts. The bill eliminates these requirements and provides that DOT must use a procedure that conforms to federal regulations for evaluating and selecting contracts under which the design and construction are provided by a single entity.

The bill provides that, for alternative project delivery, a technical review committee must review all responses to a request for qualifications and determine which respondents are qualified responsible bidders. The technical review committee must also review and evaluate each proposal provided in response to a request for proposals. Finally, the technical review committee must make a recommendation for awarding a contract, but only if DOT received two or more proposals.

Under the pilot program that the bill eliminates, DOT must award a stipulated fee of not less than three-tenths of 1 percent of DOT’s estimated cost of design and construction to 1) each qualified responsible bidder that provides a responsive but unsuccessful proposal, 2) each qualified responsible bidder that provides a responsive proposal if DOT does not award a contract, and 3) each qualified responsible bidder if DOT cancels the the solicitation before the technical review committee reviews technical proposals.

Under the bill, DOT must award the stipulated fee for design-build projects and may award the stipulated fee for other alternative delivery projects, if the fee is included in the notice of solicitation for the project.

Under the pilot program that the bill eliminates, any person aggrieved and directly affected by a DOT decision to issue a request for qualifications or a request for proposals is entitled to judicial review of the decision. The bill does not include a similar provision for alternative project delivery.