Bill Summary – FastDemocracy

Fiscal Note
                                       Fiscal Services Division
SF 183 – Guaranteed Maximum Price Contracts, Public Improvements (LSB1182SV)
Staff Contact: Adam Broich (515.281.8223) adam.broich@legis.iowa.gov
Fiscal Note Version – As passed by the Senate
Description
Senate File 183 consists of two divisions that do the following:
Division I
• Prohibits the Iowa Board of Regents from entering into a design-build contract to construct,
   repair, or improve buildings or grounds. This prohibition does not apply to projects that are
   currently under contract. Provisions of Division I that amend Iowa Code section 262.34 are
   effective immediately.
• Prohibits governmental entities from utilizing the fee-based selection of an architect,
   landscape architect, or engineer for a public improvement.
Division II
• Adopts new definitions for “construction manager-at-risk,” “governmental entity,”
   “guaranteed maximum price contract,” and other terms.
• Authorizes a governmental entity to enter into a guaranteed maximum price contract for the
   construction of a public improvement.
• Adopts procedures and requirements for public entities that are pursuing a guaranteed
   maximum price contract. These procedures include public disclosures, a request for
   qualifications, a request for proposal, and the selection of bid winners.
• Prohibits all governmental entities from entering into a design-build contract for the
   construction of a public improvement.
• Prohibits governmental entities from entering into a guaranteed maximum price contract for
   public improvements relating to highway, bridge, or culvert construction.
Background
With the exception of the Board of Regents, all current public improvement projects are
completed using a process that requires governmental entities to bid projects using a design-
bid-build contract.
The Board of Regents currently uses both design-bid-build and design-build contracts. The
Board has completed or initiated a total of 14 contracts using design-build to develop projects.
As of February 2021, the Board had completed seven projects using design-build. These
projects are listed in Table 1.
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Table 1 — Board of Regents Projects Completed Under Design-Build
Institution     Project                                     Completion          Budget
Iowa            Hawkeye Tennis and Recreation Complex         Dec. 2014     $15,000,000
Iowa            Biomedical Research Support Facility          Dec. 2015      33,868,000
Iowa            Elizabeth Catlett Residence Hall              Jun. 2017      95,000,000
Iowa            Chilled Water Plant 2 (West)                   Jul. 2018      5,200,000
Iowa            Hancher Footbridge                            Aug. 2018       3,200,000
Iowa State      Gregory L. Geoffroy Hall                     Dec. 2016       49,500,000
Iowa State      Poultry Farm                                Spring 2020       5,750,000
Iowa State      Gerdin Business Building                      Fall 2020      28,000,000
Northern Iowa   McElroy Hall                                  Aug. 2001       2,000,000
The Board is also planning or currently working on seven projects that will use design-build.
These projects are reflected in Table 2.
Table 2 — Ongoing Board of Regents Projects Under Design-Build
                                                              Scheduled
Institution     Project                                      Completion        Phase       Budget
Iowa            Oakdale Studio                                 Dec. 2021 Construction $ 2,500,000
Iowa            Women's Soccer                                  Fall 2021 Construction $ 3,900,000
Iowa State      Curtiss Farm-Feed Mill and Grain Science    Summer 2021        Select DB   21,200,000
Iowa State      Veterinary Diagnostic Lab                   Summer 2023       RPF for DB   75,000,000
Iowa State      Industrial and Manufacturings Sys. Engin.            tbd.   Programming    40,000,000
Iowa State      LeBaron Hall                                Summer 2024     Programming    55,000,000
Iowa State      Utilities Power Plant                          Jun. 2023    Programming    14,000,000
Iowa State      Veterinary Diagnostic Lab - Addition                 tbd.   Programming    62,400,000
Assumptions
• Allowing public entities to enter into guaranteed maximum price contracts may allow
   additional flexibility when designing public improvement projects. The extent to which
   governmental entities may use these agreements and the impact of them is unknown.
• Prohibiting the use of design-build may impact expenses for future Board projects by an
   unknown amount. The extent to which the Board of Regents may use guaranteed maximum
   price contracts and the impact of them is unknown.
Fiscal Impact
Prohibiting the use of design-build will have an unknown impact on Board of Regents building
projects. The fiscal impact of allowing all public entities to enter into guaranteed maximum price
contracts cannot be determined at this time.
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Sources
Iowa Board of Regents
Legislative Services Agency
                                                                        /s/ Holly M. Lyons
                                                                         February 8, 2021
Doc ID 121130611306
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
                                            www.legis.iowa.gov
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Statutes affected: 
Introduced: 26.4, 26.3, 262.34
Enrolled: 26.4, 26.3