HOUSE BILL NO. 5279

December 05, 2019, Introduced by Rep. Warren and referred to the Committee on Government Operations.

"The management and budget act,"

by amending section 241 (MCL 18.1241), as amended by 2012 PA 430, and by adding section 241d.

the people of the state of michigan enact:

Sec. 241. (1) Except for the contracts permitted in section 240, a contract shall not be awarded for the construction, repair, remodeling, or demolition of a facility unless the contract is let pursuant to a bidding procedure that is approved by the board. The department shall issue directives prescribing procedures to be used to implement this section and section 241d. The procedures shall require a competitive solicitation in the award of any contract for construction, repair, remodeling, or demolition of a facility.

(2) The department may award or approve the award, if the board approves, of construction contracts to construct a project for which the director is the agent and may expend, for the purposes and in the manner set forth, the amounts appropriated. The director is not the agent for a community college or institution of higher education, but may act in that capacity upon the specific request of a community college or institution of higher education.

(3) In awarding a contract under this section, the department shall give a preference of up to 10% of the amount of the contract to a qualified disabled veteran, as defined in section 261. If the qualified disabled veteran otherwise meets the requirements of the contract solicitation and with the preference is the lowest bidder, the department shall enter into a construction contract with the qualified disabled veteran under this act. If 2 or more qualified disabled veterans are the lowest bidders on a contract, all other things being equal, the qualified disabled veteran with the lowest bid shall be awarded the contract under this act.

(4) Subject to subsection (3), for projects funded in whole or part with state funds, the construction contract award shall be made to the responsive and responsible best value bidder. As used in this subsection, "responsive and responsible best value bidder" means a bidder who meets all the following:

(a) A bidder who complies with all bid specifications and requirements.

(b) A bidder who has been determined by the department to be responsible by the following criteria:

(i) The bidder's financial resources.

(ii) The bidder's technical capabilities.

(iii) The bidder's professional experience.

(iv) The bidder's past performance.

(v) The bidder's insurance and bonding capacity.

(vi) The bidder's business integrity.

(c) A bidder who has been selected by the department through a selection process that evaluates the bid on both price and qualitative components to determine what is the best value for this state. Qualitative components may include, but are not limited to, all of the following:

(i) Technical design.

(ii) Technical approach.

(iii) Quality of proposed personnel.

(iv) Management plans.

Sec. 241d. (1) If the department enters into a contract for the construction, reconstruction, installation, demolition, maintenance, or repair of any facility that costs $25,000,000.00 or more, the department shall contract for the services of an owner's project manager to serve as the department's project representative and consultant during the planning, design, and implementation for the construction, reconstruction, installation, demolition, maintenance, or repair of that facility. For projects that cost less than $25,000,000.00 under this section, the department may contract for the services of an owner's project manager to serve as the department's project representative and consultant as provided in this section.

(2) The basic duties of the owner's project manager shall include, but are not limited to, all of the following:

(a) Providing advice and consultation during project planning, feasibility, and design.

(b) Providing value engineering.

(d) Providing independent cost estimating.

(e) Providing project cost management.

(f) Providing project schedule management.

(g) Providing general contractor and subcontractor prequalification, when applicable, and selection, negotiation with, and oversight of the designer and general contractor or construction manager for the project.

(h) Ensuring the timely preparation of control budgets and schedules on a time scale, which shall serve as control standards for monitoring timely, on-cost performance of the project.

(i) Assisting in project evaluation including, but not limited to, written evaluations of the performance of the designer, contractor, construction manager, and any subcontractor involved in the project.

(3) Total compensation for owner's project manager services shall not exceed 3% of total project cost, excluding land acquisition cost, as estimated in the third-party cost estimate documented in the total project cost developed based on the department-approved schematic design. The fee described in this subsection does not include land survey, geotechnical evaluation and investigation, aerial survey, third-party cost estimating, materials testing, commissioning agent, quality inspection agents, owner third-party consultants, or any other department-requested specialized consulting services subcontracted by the owner's project manager on behalf of the department. Compensation for owner's project manager during planning, feasibility, and schematic design shall be based on scope of services and associated fee, which fee shall be payable monthly and shall be captured within the owner's project manager total fee of not more than 3% of total project cost approved with the department-approved schematic design. Authorization for each subsequent design phase after schematic design and for the construction phase of the owner's project manager services will be negotiated and contracted timely with the advancement of the project by the department.

(4) The department must use a qualifications-based selection process to procure the services of the owner's project manager.

(5) As used in this section, "owner's project manager" means an individual, corporation, limited liability company, partnership, sole proprietorship, joint stock company, joint venture, or other entity engaged in the practice of providing project management and project control services for the construction and oversight of building projects. The owner's project manager professional-in-charge shall be a person registered as a professional engineer with at least 10 years of experience in project management and project controls in the design, construction, and managing of building projects or, if not registered as a professional engineer, a graduate of an accredited engineering school with at least 15 years of relevant experience in project management and project controls in the design, construction, and managing of building projects. The owner's project manager shall be independent of the designer, general contractor, construction manager, and any subcontractor involved in the project.