STATE PROCUREMENT OF SERVICES; MODIFY S.B. 642:
ANALYSIS AS ENROLLED
Senate Committee: Economic and Small Business Development
House Committee: Regulatory Reform
RATIONALE
Qualifications-based selection (QBS) is a procurement process in which architects, engineers, surveyors, and other professional firms compete for a given project based on their qualifications and past experiences rather than the cost of their bid. Qualifications-based selection was established by the Brooks Act of 1972 and has since been used for all Federal design work. Some people believe QBS ensures public safety, encourages creativity, improves delivery time, increases property value, and minimizes the potential for conflict and litigation. Accordingly, it has been suggested that Michigan adopt QBS for projects proposed by State agencies requiring architectural, engineering, or land surveying services.
CONTENT
The bill would amend the Management and Budget Act to do the following:
-- Specify that, if a proposed project by a State agency required architectural services, engineering services, or land surveying services, the Department of Technology, Management, and Budget (DTMB) or a State agency would have to publish a notice requesting a statement of interest in the proposed project by any qualified firm, along with a statement of qualifications and performance data from that firm.
-- Prescribe criteria by which the DTMB or a State agency would have to evaluate a qualified firm for a proposed project that required any of the services listed above.
-- Allow the DTMB or a State agency to conduct discussions with, and require presentations by, a qualified firm being considered to provide any of the services described above for a proposed project.
-- Require the DTMB or State agency to negotiate with the highest-ranked qualified firm at compensation it determined to be fair and reasonable.
-- Specify that, if the DTMB or a State agency were unable to negotiate a satisfactory contract with any of the selected qualified firms, the DTMB or State agency would have to reevaluate the required services, including the estimated value, scope, complexity, and fee requirements.
-- Allow the DTMB or a State agency to waive the bill's requirements if it determined that an emergency situation existed, and a qualified firm had to be selected in an expeditious manner or if the cost of the required services for a project were less than $250,000.
Under the Act, the selection of architects, professional engineers, professional surveyors, and qualified firms must be made in accordance with competitive, qualifications-based selection processes and procedures for the type of professional service required by the DTMB. Under the bill, the selection of architects for architectural services, professional engineers for engineering services, professional surveyors for land surveying services, and qualified firms would have to be made be made in accordance with competitive, qualifications-based selection processes and procedures for the DTMB and all State agencies as described below.
("Qualified firm" would mean a sole proprietorship, partnership, corporation, or limited liability company through which a person licensed as an architect, professional engineer, or professional surveyor under Article 20 of the Occupational Code offers or provides architectural services, engineering services, or land surveying services to the public.)
If a proposed project by a State agency required architectural services, engineering services, or land surveying services, the DTMB or the State agency would have to publish a notice requesting a statement of interest in the proposed project by any qualified firm, along with a statement of qualifications and performance data from that qualified firm. The notice would have to state the general scope and nature of the proposed project for which services were required and would have to include contact information for a representative of the DTMB or State agency who could provide further detail