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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: APPROP DP 10-7-1-0 |
HB 2692: procurement; professionals; construction services
Sponsor: Representative Livingston, LD 28
Caucus & COW
Overview
Outlines requirements for a cooperative agreement used to procure a single contract for job-order-contracting construction services, modifies the request for proposal process regarding construction-manager-at-risk procurement, authorizes and defines progressive design-build procurement, and expands the definition of horizontal construction.
Construction-manager-at-risk is a project delivery method in which there is a separate contract for design services and construction services, sometimes including a contract for preconstruction services. Job-order-contracting is a project delivery method in which the contract is a requirements contract for indefinite quantities of construction. The contracts specify the construction to be performed and may include finance, maintenance, operations, preconstruction, design, and other services. Public procurement unit means any local government unit, political subdivision, agency, board, department or other instrumentality of such political subdivision (A.R.S. §§ 41-2631; 34-603).
Construction services, for construction-manager-at-risk, design-build and job-order contracting project delivery methods, are either: 1) construction, excluding services, through the construction-manager-at-risk or job-order-contracting project delivery methods; or 2) a combination of construction and, as elected by the agent, one or more related services. Horizontal construction is construction of highways, roads, streets, bridges, canals, floodways, earthen dams, landfills, airport runways, taxiways and aprons and light rail, excluding any related rail stations, maintenance facilities or parking facilities. An agent is any county, city or town, or officer, board or commission of any county, city or town and irrigation, power, electrical, drainage, flood protection and control districts, tax levying public improvement districts and county or city improvement districts. An agent includes any county board of supervisors and any representative authorized by an agent to act as an agent for the purpose of authorizing necessary change orders to previously awarded contracts in accordance with guidelines established by rule of the agent, including the board of supervisors (A.R.S. § 34-101).
Provisions
1. Expands the definition of horizontal construction to include pipelines. (Sec. 1)
2. Excludes municipally owned natural gas pipelines, regulator stations, gate stations or meter assemblies for gas pipelines from the definition of pipelines. (Sec. 1)
3. Requires an agent to procure a single contract for program management services, project management, construction management services and land right-of-way acquisition services, except for single contracts procured from a technical registrant or through emergency procurement. (Sec. 2)
4. Establishes, as an alternative to conducting negotiations with persons or firms on the final list or awarding a single contract for design build or job-order-contracting construction services, an agent may award a single contract for job-order-contracting construction services using a cooperative purchasing agreement if the agreement complies with all the following:
a. a local, state, or federal agency governmental unit or nonprofit corporation conducting or administering the cooperative purchasing agreement complies with the requirements relating to negotiations on the final list and the awarding of a single contract for design-build construction services or job-order-contracting construction services;
b. the agent enters contract for a single project;
c. the single project scope of work is consistent with the scope of work described in the cooperative agreement; and
d. the single project value does not exceed the maximum job order value established by the cooperative agreement. (Sec. 2)
5. Repeals the ability of an agent to use a two-step request for proposals best-value competition when procuring a single contract for construction-manager-at-risk horizontal construction services funded via the federal aviation or federal transit administrations, if the city or subgrantee of the city has a population over one million persons. (Sec. 2)
6. Repeals the outlined requirements of the two-step competition process for procurement of construction-manager-at-risk construction services for horizontal construction.
7. Repeals the prohibition on construction-manager-at-risk services for horizontal construction after December 31, 2030. (Sec. 2)
8. Authorizes an agent to conduct a one-step request for proposals best value competition, when procuring a single contract for construction-manager-at-risk services, if the public infrastructure is federally funded and requires price competition. (Sec. 2)
9. Directs, under the one step process, an agent to issue a single request for proposals to offerors and allows interviews as part of the evaluation process. (Sec. 2)
10. Prohibits prices or fees from being part of the interview. (Sec. 2)
11. Requires a request for proposals;
a. state that one contract may or will be awarded;
b. describe the construction-manager-at-risk services to be performed;
c. require separate qualitative and technical proposals and, only if required by federal law or guidance, a price or fee proposal including pricing elements allowed by federal guidance;
d. specify required contents for each proposal;
e. provide information to be used by offerors to prepare proposals;
f. state that qualitative and technical proposals will be evaluated and scored before opening any price or fee proposals; and
g. describe the best-value scoring method. (Sec. 2)
12. Requires the selection committee use only the scoring method specified in the request for proposals. (Sec. 2)
13. Stipulates that, when required, price or fee proposals be opened and scored after completion of the evaluation and scoring of all qualitative and technical proposals. (Sec. 2)
14. Directs an agent to award the contract to the offeror whose proposal receives the highest total score. (Sec. 2)
15. Directs an agent to promptly notify the winning offeror and send notice to each other offeror that they have not won. (Sec. 2)
16. Requires the contract file contain the basis on which the award is made and, at a minimum, documentation required by law. (Sec. 2)
17. Prohibits agents from procuring construction-manager-at-risk construction services after December 31, 2030. (Sec. 2)
18. Allows an agent to procure progressive design-build construction services for any public infrastructure project, including vertical and horizontal construction. (Sec. 2)
19. Directs an agent to issue a request for qualifications, develop a single final list and establish qualifications-only selection for progressive design-build and prohibits any price consideration until after the top firm is chosen and contract negotiations begin. (Sec. 2)
20. Requires completion of preconstruction contracting before any construction pricing is finalized or construction begins. (Sec. 2)
21. Limits the number of points assigned to any price criteria to 10% of total points. (Sec. 2)
22. Prohibits subcontractors from being selected on price alone and requires consideration of other qualifications. (Sec. 2)
23. Prohibits stipulated fees from being paid to unsuccessful offerors in progressive design-build procurements. (Sec. 2)
24. Prohibits procurement of progressive design-build construction services after December 31, 2030. (Sec. 2)
25. Expands the definition of professional services to include project management services, project management and construction management services and land and right-of-way acquisition services. (Sec. 2)
26. Defines progressive design-build as a project delivery process in which all of the following apply:
a. both the design and construction of a project are procured from a single entity selected through qualifications-based selection at the earliest feasible stage of the project;
b. the agent enters into a contract for preconstruction and design services; and
c. a fixed price or guaranteed maximum price for construction is subsequently negotiated after sufficient design advancement. (Sec. 2)
27. Makes conforming changes. (Sec. 1-3)
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Initials DS/JA HB 2692
2/19/2026 Page 0 Caucus & COW
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