Assigned to TAT                                                                                                 AS PASSED BY COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

 

AMENDED

FACT SHEET FOR H.B. 2876

 

government contracts; public-private partnerships

Purpose

            Increases, from two-tenths of a percent to four-tenths of a percent, the stipulated fee that the Arizona Department of Transportation (ADOT) or an agent must award an unsuccessful offeror for a design-build construction services proposal.

Background

            In any public-private partnership or other agreement for any eligible facility, ADOT may include provisions that, among other specifications: 1) authorize either ADOT or the private partner to establish and collect user charges, tolls, fares, rents or other similar charges; 2) address how the partners will share management of project risks; 3) specify how the partners will share project development costs; 4) allocate financial responsibility for cost overruns; and 5) address the acquisition of rights-of-way. Agreements must also contain provisions that include property tax exemptions, provisions relating to injunctive relief and concession agreements (A.R.S. § 28-7705).

            Statute outlines an alternative process to professional service negotiations by which an agent may award a single contract for design-build construction services or job-order-contracting construction services. For design-build construction services only, an agent is required to award a stipulated fee equal to a percentage of the agent's final project budget to each final list offeror who provides a responsive yet unsuccessful proposal. The stipulated fee percentage is prescribed in the request for proposals, and cannot be less than two-tenths of a percent of the final project budget for design and construction (A.R.S. § 34-603).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires ADOT or an agent to award a stipulated fee of at least four-tenths of a percent, rather than not less than two-tenths of a percent, of the project's final budget to each final list offeror who provides a responsive yet unsuccessful proposal.

2.   Applies the same requirements and specifications relating to the award of a stipulated fee for unsuccessful offerors to statute governing the contents of public-private partnership agreements.

3.   Makes technical changes.

4.   Becomes effective on the general effective date.

Amendments Adopted by Committee

1.   Removes the requirement that a public-private partnership agreement contain provisions relating to recovery of damages by a private partner and utility facility relocation or adjustment.

2.   Replaces the unspecified percentage with four-tenths of a percent.

3.   Requires ADOT to award a stipulated fee of at least four-tenths of a percent, rather than not less than two-tenths of a percent, of the project's final budget to each final list offeror who provides a responsive yet unsuccessful proposal.

4.   Applies the same requirements and specifications relating to the award of a stipulated fee to statute governing the contents of public-private partnership agreements.

House Action                                                           Senate Action

TRANS           2/17/21      DP     12-0-0-0               TAT                 3/22/21      DPA     8-0-1

3rd Read          2/24/21                 56-3-1

Prepared by Senate Research

March 24, 2021

ZD/kja