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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: ATT DP 5-4-1-0 | Third Read 17-10-3-0 |
SB 1250: appropriation; State Route 87
S/E procurement; professionals; construction services
Sponsor: Senator Shope, LD 16
Committee on Appropriations
Summary of the Strike-Everything Amendment to SB 1250
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.
History
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)
Employment of Technical Registrants
3. Requires an agent to procure professional services from a technical registrant through the procurement process as required by Title 34, Chapter 6, Arizona Revised Statutes if the contract is for an amount of $1,000,000 or more and shall be adjusted by the annual percentage change in the GDP price deflator (Sec. 2)
4. Allows for alternative selection methods of technical registrants, including by direct selection, if the contract is for an amount of $1,000,000 or less and shall be adjusted by the annual percentage change in the GDP price deflator. (Sec. 2)
Single Contract Construction Services
5. 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. 3)
Job-Order-Contracting
6. 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. 3)
Construction-Manager-at-Risk
7. 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 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. 3)
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, whether for horizontal construction or projects not prescribed as horizontal construction, if the public infrastructure is federally funded and requires price competition. (Sec. 3)
9. Repeals requirements of the existing two-step competition process for procurement of construction-manager-at-risk construction services for horizontal construction. (Sec. 3)
10. Directs, under the one step process, an agent to issue a single request for qualifications, rather than a request for proposals. (Sec. 3)
11. Allows the agent to conduct interviews and requires the agent specify interview criteria and that the interview address only technical and qualitative proposals.
12. Prohibits prices or fees from being part of the interview. (Sec. 3)
13. Requires the request for qualifications to include a requirement that each offeror submit a price proposal limited to the construction management fee, preconstruction services fee, and design services fee any other pricing elements allowed by federal guidance. (Sec. 3)
14. Removes the definition of professional services from the section. (Sec. 3)
Progressive Design-Build Services
15. Allows an agent to procure progressive design-build services when procuring a single contract for horizontal construction and projects not defined as horizontal construction that are federally funded and require price competition. (Sec. 3)
16. Requires the agent to issue a single request for qualifications. (Sec. 3)
17. Allows an agent to conduct interviews as part of the evaluation process and requires the agent specify interview criteria and that the interview address only technical and qualitative proposals. (Sec. 3)
18. Prohibits prices or fees from being part of the interview. (Sec. 3)
19. Directs an agent to include the following in their request for qualifications:
a. a statement that one contract may or will be awarded;
b. a description of the design-build services to be performed;
c. a requirement that each offeror submit separately a qualitative and technical proposal and a price proposal;
d. the required contents of the qualitative and technical proposals and the price proposal;
e. information to be used by offerors to prepare the proposals;
f. a statement saying that the selection committee will evaluate and score the qualitative and technical proposals before opening the price proposals;
g. a statement saying that the agent will use the scoring method described in the request for qualifications to determine the winning offeror; and
h. a description of the scoring method. (Sec. 3)
20. Requires that the agent not assign more than 10 percent of the total number of points in the scoring method to the price criteria. (Sec. 3)
21. Requires the selection committee to evaluate and score final qualitative and technical proposals using only the qualitative and technical criteria and assigned points specified in the request for proposals and to open price proposals only after finishing the evaluation. (Sec. 3)
22. Directs the committee to then score price proposals using only the price criteria and assigned points in the request for proposals. (Sec. 3)
23. Requires the committee to combine the qualitative and technical score with the price proposal score to determine a total score and to award the contract to the responsive and responsible offeror with the highest total score. (Sec. 3)
24. Requires the agent to promptly notify the winning offeror and provide notice to all other offerors of the award decision. (Sec. 3)
25. Requires that the contract file include the basis for the award, including all minimum required information and documentation. (Sec. 3)
26. Prohibits payment of stipulated fees to unsuccessful offerors in progressive design-build procurements. (Sec. 3)
27. Prohibits an agent from procuring progressive design-build construction services after December 31, 2030. (Sec. 3)
28. Defines progressive design-build as a project delivery method in which:
a. a single entity provides both design and construction services and is selected through a qualifications-based process at the earliest feasible stage;
b. the agent initially contracts for preconstruction and design services; and
c. a fixed price or guaranteed maximum price is negotiated after sufficient design advancement. (Sec. 3)
29. Makes conforming changes. (Sec. 1-4)
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Initials DS/JA SB 1250
3/27/2026 Page 0 Appropriations
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