LRB-3330/1
ZDW:cdc
2019 - 2020 LEGISLATURE
June 7, 2019 - Introduced by Representatives Sanfelippo, Felzkowski, Brandtjen,
Dittrich, Gundrum, Hutton, Knodl, Kuglitsch, Magnafici, Neylon, Ott,
Quinn, Ramthun, Sortwell, Tauchen, Wichgers and Allen, cosponsored by
Senators Kapenga, Craig, Feyen, Kooyenga, Marklein, Nass, Tiffany,
Wanggaard, Stroebel, Bernier and LeMahieu. Referred to Committee on
Transportation.
AB286,1,3
1An Act to create 15.463, 84.062 and 85.64 of the statutes;
relating to:
2alternative highway project delivery methods, providing an exemption from
3emergency rule procedures, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
This bill requires the Department of Transportation to conduct a pilot program
under which DOT awards six contracts for design-build projects to be completed by
2025.
Under current law, the design and construction of projects are generally two
distinct phases. Under this method, often referred to 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.
The bill authorizes a design-build method under which design, engineering,
construction, and related services are procured through a single contract with a
single entity capable of providing the services. The bill creates requirements for
designating design-build projects, soliciting and evaluating requests for
qualifications and requests for proposals, and awarding design-build contracts.
The bill requires DOT to designate design-build projects and award the
following contracts:
1. One low bid design-build contract, which is awarded to the lowest
responsible bidder, for a project with an estimated value of $10,000,000 to
$50,000,000.
2. One best value design-build contract, which is awarded following a
calculation of value as provided in the project's request for proposals, for a project
with an estimated value of $50,000,000 to $150,000,000.
3. One fixed price variable scope design-build contract, which is awarded to the
lowest qualified responsible bidder able to provide the best qualitative scope of work
at a fixed price, with an estimated value of $50,000,000 to $150,000,000.
4. Three contracts, to be determined by DOT, with a total estimated value of
not more than $200,000,000.
The bill creates in DOT an office of innovative program delivery that is
responsible for conducting the design-build pilot program. The office is supervised
by a director appointed by the DOT secretary. The office is required to prepare a
report establishing the program structure and to develop a design-build
procurement manual. At the end of the pilot program term, the office must prepare
a report for the legislature evaluating the success of the program and joint committee
on finance must make a recommendation as to whether the pilot program should be
made permanent.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB286,1
1Section 1
. 15.463 of the statutes is created to read:
AB286,2,5
215.463 Same; offices. (1) Office of innovative program delivery. There is
3created an office of innovative program delivery in the department of transportation.
4The director of the office shall be appointed by, and report directly to, the secretary
5of transportation.
AB286,2
6Section
2. 84.062 of the statutes is created to read:
AB286,2,7
784.062 Alternative project delivery. (1) Definitions. In this section:
AB286,2,108
(a) “Alternative technical concepts" means a proposed alternative to the
9technical requirements provided by the office in the request for proposals for a
10project.
AB286,2,1211
(b) “Best value design-build contract” means a design-build contract award
12made following a calculation of value as provided in a request for proposals.
AB286,3,3
1(c) “Design-build contract” means a contract for a project under which the
2design, engineering, construction, and related services are provided by a single
3design-builder.
AB286,3,64
(d) “Design-builder" means a private legal entity, consortium, or joint venture
5that proposes to or executes a contract with the office to design, engineer, and
6construct a project under this section.
AB286,3,107
(e) “Design-build project" means a project for which design, engineering,
8construction, and related services are procured through a single contract with a
9single private legal entity, consortium, or joint venture capable of providing the
10necessary design, engineering, construction, and related services.
AB286,3,1211
(f) “Design professional” means a person registered under s. 443.03 or 443.04
12or a firm, partnership, or corporation registered under s. 443.08.
AB286,3,1413
(g) “Director” means the director of the office of innovative program delivery
14attached to the department under s. 15.463 (1).
AB286,3,1715
(h) “Fixed price variable scope design-build contract” means a design-build
16contract award made to the lowest qualified responsible bidder able to provide the
17best qualitative scope of work at a price not to exceed a fixed price set by the office.
AB286,3,1918
(i) “Low bid design-build contract” means a design-build contract award made
19to the lowest qualified responsible bidder.
AB286,3,2120
(j) “Member” means a private legal entity that is a member of a consortium or
21joint venture that is a design-builder.
AB286,3,2322
(k) “Office” means the office of innovative program delivery attached to the
23department under s. 15.463 (1).
AB286,3,2524
(L) “Project” means a project involving a highway improvement, as defined in
25s. 84.06 (1) (am).
AB286,4,2
1(m) “Qualified responsible bidder” means a design-builder responding to a
2request for qualifications and that is certified by the technical review committee.
AB286,4,53
(n) “Responsive cost proposal” means a proposal that clearly identifies the costs
4of all services to be performed by the qualified responsible bidder, including all
5related fees, wages, and equipment and material costs.
AB286,4,96
(o) “Responsive technical proposal” means a proposal that clearly
7demonstrates a qualified responsible bidder's understanding of the design,
8engineering, and construction services to be performed and clearly describes the
9bidder's approach to the project.
AB286,4,1110
(p) “Technical review committee” means the committee appointed under sub.
11(3).
AB286,4,1412
(q) “Value engineering change” means a proposal that provides for a product
13of equal or improved quality to the product required by the department and that will
14reduce the project cost, improve safety, or decrease the time to complete the project.
AB286,4,19
15(2) Design-build projects. (a) The department shall administer a pilot
16program under which not more than 6 contracts are awarded for design-build
17projects to be completed no later than December 31, 2025. The director may not
18designate a project as a design-build project unless the department is able to clearly
19define the scope of work.
AB286,4,2120
(b) The department may not expend more than $250,000,000 for 6 design-build
21contracts designated as follows:
AB286,4,2322
1. One low bid design-build contract for a project with an estimated value of
23not less than $10,000,000 and not more than $50,000,000.
AB286,4,2524
2. One best value design-build contract for a project with an estimated value
25of not less than $50,000,000 and not more than $150,000,000.
AB286,5,2
13. One fixed price variable scope design-build contract with an estimated value
2of not less than $50,000,000 and not more than $150,000,000.
AB286,5,63
4. Three contracts designated by the director with a total estimated value of not
4more than $200,000,000. The department may enter into a low bid design-build
5contract, best value design-build contract or a fixed price variable scope
6design-build contract under this subdivision.
AB286,5,117
(c) For each project designated as a design-build project under par. (a), the
8office shall prepare a written analysis supporting the office's determination that it
9is the best interests of the state to make the designation. The written determination
10and supporting materials are subject to inspection under s. 19.35. The written
11analysis shall include all of the following:
AB286,5,1312
1. The extent to which the department can adequately define the project
13requirements in a proposed scope of design and construction.
AB286,5,1414
2. The impact on the projected project schedule and completion date.
AB286,5,1515
3. The impact on the projected cost of the project.
AB286,5,1616
4. The impact on the quality factors of the project.
