ARIZONA HOUSE OF REPRESENTATIVES

HB 2304: public buildings; omnibus

PRIME SPONSOR: Representative Campbell, LD 1

BILL STATUS: Government

Abstract

Relating to procurement of contracts for construction and professional services by public bodies.

Provisions

1. Permits an agent to employ an architect using direct selection, public competition or the use of a selection committee, if the contract is for an amount less than $500,000, rather than $250,000. (Sec. 1)

o Currently, technical registrants other than architects can be employed using direct selection, public competition or the use of a selection committee  for contracts less than $500,000 (A.R.S. § 34-103).

2. Requires an agent to procure professional services from an architect using certain authorized procurement methods if the contract is for more than $500,000. (Sec. 2)

3. Extends the ability of an agent to procure any horizontal construction project using the CMAR, design-build or job-order-contracting method of project delivery until June 30, 2025, rather than 2020. (Sec. 3)

o Horizontal construction includes construction of highways, roads, streets, bridges, canals, and light rail and airport runways (A.R.S. § 34-101).

4. Extends the ability of an agent to use a two-step competition process for certain FAA and FTA procurements from June 30, 2018 to June 30, 2025. (Sec. 2)

o Currently, a city with a  population over 1,000,0000 can procure any CMAR construction using a two-step competition process for single-contract projects for horizontal construction in which FAA or FTA monies and require price competition (A.R.S. § 34-603).

5. Specifies that an agent who violates public procurement and contracting requirements for technical registrants is liable of a civil penalty in the following amounts, rather than $5,000, per violation:

a. $10,000 for a first violation;

b. $25,000 for a second violation; or

c. $75,000 for a third violation. (Sec. 4)

6. Contains a retroactive effective date of June 30, 2018 for requirements relating to FAA & FTA project procurement. (Sec. 5)

7. Makes technical and conforming changes. (Sec. 1-4)

Current Law

If authority is given to a county, municipality or political subdivision to construct or alter a building or structure, the entity must employ an architect or engineer, as warranted by the type of construction.  Agents are required to procure professional services of technical registrants.  For contracts under $500,000 (or $250,000 for architects), the agent may use direct selection, public competition or the use of a selection committee to procure the registrant.  For projects above this amount, the agent must procure design and construction services using the following delivery methods: design-bid-build, CMAR, design-build or job-order-contracting.  An agent must procure a single contract for specific architect, construction, engineer and land surveying services.  The single contract must be awarded based on demonstrated competence and qualifications for the type of service required (A.R.S. §§ 34-103 & 34-602). 

In order to procure for a single contract for professional or construction services, the agency must appoint a selection committee which is prohibited from considering fees, price, man-hours or any other cost information during the initial selection process.  An agent is required to issue an RFQ and provide notice for each procurement.  The selection committee must determine the persons or firms to be interviewed by reviewing the RFQ and submitted performance data and select those to be included on a final list.  An agent must either 1.) enter into negotiations with the highest qualified person on the final list, which must include consideration of compensation and other contract terms that are fair and reasonable; or 2.) develop a scoring method to choose from the final list

For procurement contracts for CMAR construction services that use FAA or FTA money and that require price competition by the federal funding agency, procurement must be done through a two-step competition process using a designated scoring method.  The competition process must require each offeror to submit a qualitative and technical proposal and a separate price proposal.  The agent's selection committee must first score the qualitative and technical proposals.  After evaluation of all qualitative and technical proposals, the selection committee must score price proposals and add the two together to develop a total score, the highest of which is considered the winning offeror (A.R.S. § 34-603).  

Construction-manager-at-risk is a project delivery method in which there is a separate contract for design and construction services.  Separate contracts for constructions services can be used during the design and construction phases. 

Design-bid-build is a project delivery method in which there is a sequential award of two separate contracts: first for design and second for construction.

Design-build is a project delivery method in which there is a single contract for design services and construction services. 

Job-order-contracting is a project delivery method in which the contract is a requirements contract for indefinite quantities of construction in which the construction is performed as specified in job orders issued during the contract.

A.R.S. § 34-101 outlines further requirements of each project delivery method.

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Fifty-third Legislature                  HB 2304

Second Regular Session                               Version 1: Government

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