ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	House: TRANS DP 12-0-0-0 | 3^rd Read 56-3-1-0 Senate: TAT DPA 8-0-1-0 | 3^rd Read 26-3-1-0 Final Read: 60-0-0-0

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HB 2876: government contracts; public-private partnerships

Sponsor:  Representative Carroll, LD 22

Transmitted to the Governor

Overview

Establishes a stipulated fee that ADOT must award to unsuccessful proposers for a public-private partnership design-build contract equal to 0.4% of estimated costs. Increases the stipulated fee that ADOT or local governments must award for an unsuccessful response to design-build construction request for proposals (RFP) from 0.2% to 0.4% of the project's final budget.

History

In any public-private partnership or other agreement for any eligible facility, ADOT may include provisions that: 1) Authorize ADOT or the private partner to establish and collect service charges; 2) Authorize ADOT to continue or cease collection of user charges, tolls, fares or similar charges after the end of the term of the agreement; 3) Allow ADOT to accept payments of monies and share revenues with the private partner; 4) Address how the partners will share management of risks of the project; 5) Specify how the partners will share the cost of development of the project; 6) Allocate financial responsibility for cost overruns; 7) Establish the damages to be assessed for nonperformance; 8) Establish performance criteria or incentives, or both; 9) Address the acquisition of right-of-way and other property interests, including eminent domain; 10) Establish recordkeeping, accounting and auditing standards to be used for the project; 11) Address responsibility for reconstruction or renovations in order for a facility to meet all applicable government standards for a project that reverts to public ownership; 12) Provide for patrolling and law enforcement on public facilities; 13) Identify any ADOT specifications that must be satisfied, including provision for the private partner to deviate from specification on a satisfactory showing to ADOT; 14) Require acceptable forms of security that meet a certain threshold; 15) Authorize the private partner in any concession agreement to establish and collect service charges to cover costs and the partner's investment; 16) Specify remedies and dispute procedures, including legal proceedings; and 17) Allow ADOT to acquire real property that is needed and related to eligible facilities (A.R.S. § 28-7705).

For design-build construction service RFPs, a stipulated fee is required to be awarded to each final list offeror who provides an unsuccessful proposal that is equal to at least 0.2% of a project's final budget (A.R.S. § § 28-7365, 34-603).  

Provisions

1. Establishes a stipulated fee for public-private partnership design-build contracts that ADOT must award to each unsuccessful short list responsible proposer equal to 0.4% of the department's estimated cost of design and construction (Sec. 2)

2. Requires all responsive proposers to receive the stipulated fee, if ADOT does not award a contract. (Sec. 2)

3. Requires ADOT to award each design-builder on the short list a stipulated fee equal to 0.4% of the department's estimated cost of design and construction, if ADOT cancels the contract before reviewing the technical proposals. (Sec. 2)

4. Requires ADOT to pay the stipulated fee to each proposer within 90 days after the award of the contract or the decision not to award a contract. (Sec. 2)

5. Allows ADOT, in consideration for paying the stipulated fee, to use any ideas or information contained in the proposals, or in connection with any contract awarded for the project, or in connection with a subsequent procurement, without any obligation to pay any additional compensation to the unsuccessful proposer. (Sec. 2)

6. Allows an unsuccessful short list proposer to elect to waive the stipulated fee. (Sec. 2)

7. Prohibits ADOT from using ideas and information contained in the proposer's proposal, if an unsuccessful short list proposer waives the stipulated fee. (Sec. 2)

8. States that ADOT is not restricted from using any idea or information if the idea or information is also included in a proposal of a short list proposer that accepts the stipulated fee. (Sec. 2)

9. Increases the stipulated fee that ADOT or local governments must award for an unsuccessful response to a design-build construction RFP from 0.2% to 0.4% of the project's final budget. (Sec. 1, 3)

10. Makes technical changes. (Sec. 1, 2)

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14.                   HB 2876

15. Initials JT  Page 0 Transmitted

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