Bill Summary – FastDemocracy

68th Legislature                                                                                                  SB 57.1
                                                  SENATE BILL NO. 57
                                            INTRODUCED BY T. MANZELLA
                             BY REQUEST OF THE DEPARTMENT OF TRANSPORTATION
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING DEPARTMENT OF TRANSPORTATION
   CONTRACTING; PROVIDING FOR ALTERNATIVE PROJECT DELIVERY METHODS; REVISING
   TERMINATION DATES REGARDING ALTERNATIVE PROJECT DELIVERY; AMENDING SECTIONS 18-8-
   204, 18-8-205, 60-2-111, 60-2-112, AND 60-2-134, MCA; AMENDING SECTION 6, CHAPTER 54, LAWS OF
   2017, AND SECTION 9, CHAPTER 111, LAWS OF 2021; AND PROVIDING AN IMMEDIATE EFFECTIVE
   DATE.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              NEW SECTION. Section 1.       Alternative project delivery. (1) The commission may use alternative
   project delivery methods for letting contracts.
              (2)    Once the commission, acting on a recommendation of the department, identifies a project for
   which an alternative project delivery method will be used and approves selection criteria proposed by the
   department, the department shall prepare and advertise a request for qualifications.
              (3)    From the responders, the department shall prepare a short list of the highest scoring
   responders, not to exceed five responders on any single project.
              (4)    The department shall announce the short list and issue a request for proposals inviting each
   responder on the short list to submit a technical and price proposal to the department.
              (5)    The department shall evaluate the technical and price proposals and present to the
   commission the department's written recommendation to award the contract.
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              Section 2. Section 18-8-204, MCA, is amended to read:
              "18-8-204.   Procedures for selection. (1) In the procurement of architectural, engineering, and land
   surveying services, the agency may encourage firms engaged in the lawful practice of their profession to submit
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   annually or biennially a statement of qualifications and performance data. The agency shall evaluate current
   statements of qualifications and performance data on file with the agency, together with those that may be
   submitted by other firms regarding the proposed project, and conduct discussions with one or more firms
   regarding anticipated concepts and the relative utility of alternative methods of approach for furnishing the
   required services.
              (2)     (a)     The agency shall then select, based on criteria established under agency procedures
   and guidelines and the law, the firm considered most qualified to provide the services required for the proposed
   project.
              (b)     The agency procedures and guidelines must be available to the public and include at a
   minimum the following criteria as they relate to each firm:
              (i)     the qualifications of professional personnel to be assigned to the project;
              (ii)    capability to meet time and project budget requirements;
              (iii)   location;
              (iv)    present and projected workloads;
              (v)     related experience on similar projects; and
              (vi)    recent and current work for the agency.
              (c)     The agency shall follow the minimum criteria of this part if no other agency procedures are
   specifically adopted.
              (3)     After conducting an evaluation of firms pursuant to subsections (1) and (2)(b), a local agency
   may enter into a contract with one or more of those firms to provide architectural, engineering, or land surveying
   services on an as-needed basis for one or more projects and for a term to be mutually agreed to by the parties.
   Nothing in this subsection prevents a local agency from following the procurement procedures in this part for
   professional services for a particular project, unless a contract made pursuant to this subsection provides
   otherwise.
              (4)     The provisions of this section do not apply to procurement of architectural, engineering, and
   land surveying services for projects that the transportation commission has approved pursuant to an alternative
   project delivery method under [section 1] or as part of the design-build contracting program authorized in 60-2-
   137.
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              (5)    The definitions in 60-2-134 apply to this section."
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              Section 3. Section 18-8-205, MCA, is amended to read:
              "18-8-205.   Negotiation of contract for services. (1) The agency shall negotiate a contract with the
   most qualified firm for architectural, engineering, and land surveying services at a price that the agency
   determines to be fair and reasonable. In making its determination, the agency shall take into account the
   estimated value of the services to be rendered, as well as the scope, complexity, and professional nature of the
   services.
              (2)    If the agency is unable to negotiate a satisfactory contract with the firm selected at a price the
   agency determines to be fair and reasonable, negotiations with that firm must be formally terminated and the
   agency shall select other firms in accordance with 18-8-204 and continue as directed in this section until an
   agreement is reached or the process is terminated.
              (3)    The provisions of this section do not apply to the negotiation of contracts for projects that the
   transportation commission has approved pursuant to an alternative project delivery method under [section 1] or
   as part of the design-build contracting program authorized in 60-2-137.
              (4)    The definitions in 60-2-134 apply to this section."
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              Section 4. Section 60-2-111, MCA, is amended to read:
              "60-2-111.   (Temporary) Letting of contracts on state highways and commission-designated
   highway systems. (1) Except as provided in subsection (2), all contracts for the construction or reconstruction
   of the highways located on commission-designated highway systems and state highways, including portions in
   cities and towns, and all contracts entered into under 7-14-4108 must be let by the commission. Except as
   otherwise specifically provided, the commission may enter the types of contracts and upon terms that it may
   decide. All contracts must meet the requirements of Title 18, chapter 2, part 4. When there is no prevailing rate
   of wages set by collective bargaining, the commission shall determine the prevailing rate to be stated in the
   contract.
              (2)    The commission may delegate the authority, with all applicable statutory restrictions, to award
   any contract covered by this section to the department or to a unit of local government.
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68th Legislature                                                                                                  SB 57.1
              (3)    The commission may award contracts for projects that the department has determined are part
   of the design-build contracting program authorized in 60-2-137.
              (4)    Subject to 60-2-119, the commission may award alternative project delivery contracts in
   accordance with Title 18, chapter 2, part 5, for projects that the department has determined are appropriate for
   those contracts. (Terminates December 31, 2024 June 30, 2023--sec. 6, Ch. 54, L. 2017.)
              60-2-111. (Effective January 1, 2025 July 1, 2023) Letting of contracts on state highways and
   commission-designated highway systems. (1) Except as provided in subsection (2), all contracts for the
   construction or reconstruction of the highways located on commission-designated highway systems and state
   highways, including portions in cities and towns, and all contracts entered into under 7-14-4108 must be let by
   the commission. Except as otherwise specifically provided, the commission may enter the types of contracts
   and upon terms that it may decide. All contracts must meet the requirements of Title 18, chapter 2, part 4.
   When there is no prevailing rate of wages set by collective bargaining, the commission shall determine the
   prevailing rate to be stated in the contract.
              (2)    The commission may delegate the authority, with all applicable statutory restrictions, to award
   any contract covered by this section to the department or to a unit of local government.
              (3)    The commission may award contracts for projects that the department has determined are part
   of the design-build contracting program authorized in 60-2-137.
              (4)    The commission may award contracts using alternative project delivery methods in accordance
   with [section 1]."
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              Section 5. Section 60-2-112, MCA, is amended to read:
              "60-2-112.   (Temporary) Competitive bidding -- reciprocity. (1) Except as provided in subsections
   (2) through (6), if the estimated cost of any work exceeds $50,000, the commission shall award the contract by
   competitive bidding to the lowest responsible and responsive bidder. The award must be made upon the notice
   and terms that the commission prescribes by its rules. However, except when prohibited by federal law, the
   commission shall make awards and contracts in accordance with 18-1-102.
              (2)    The commission may award a contract by means other than competitive bidding if it determines
   that special circumstances so require. The commission shall specify the special circumstances in writing.
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              (3)     The commission may enter into contracts with units of local government for the construction of
   projects without competitive bidding if it finds that the work can be accomplished at lower total costs, including
   total costs of labor, materials, supplies, equipment usage, engineering, supervision, clerical and accounting
   services, administrative costs, and reasonable estimates of other costs attributable to the project.
              (4)     The commission may delegate to the department the authority to enter, without competitive
   bidding, agreed-upon price contracts for projects costing $50,000 or less.
              (5)     The commission may award a design-build contract under the design-build contracting program
   if the provisions of 60-2-137 have been met.
              (6)     The commission or the department may not enter into a contract for a state-funded highway
   project or a construction project with a bidder whose operations are not headquartered in the United States
   unless:
              (a)     the foreign country, or province or other political subdivision of that country, in which the bidder
   is headquartered affords companies based in the United States open, fair, and nondiscriminatory access to
   bidding on highway projects and construction projects located in the foreign country, or province or other
   political subdivision of that country; and
              (b)     the department has entered into a reciprocity agreement with or has exchanged letters of
   information with the foreign country, or province or other political subdivision of that country, that addresses:
              (i)     the equal and fair treatment of bids originating in the United States and in the foreign country,
   or province or other political subdivision of that country;
              (ii)    specific ownership requirements and tax policies in the United States and in the foreign
   country, or province or other political subdivision of that country, that may result in the unequal treatment of all
   bids received, regardless of their origin;
              (iii)   the means by which contractors from both the United States and the foreign country, or
   province or other political subdivision of that country, are notified of highway projects and construction projects
   available for bid; and
              (iv)    any other differences in public policy or procedure that may result in the unequal treatment of
   bids originating in the United States or in the foreign country, or province or other political subdivision of that
   country, for projects located in either the United States or the foreign country, or province or other political
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   subdivision of that country.
              (7)    Subject to 60-2-119, the commission may award general contractor construction management
   contracts in accordance with Title 18, chapter 2, part 5, if the provisions of 60-2-145 have been met.
              (8)    For the purposes of subsection (6), "construction" has the meaning provided in 18-2-101.
   (Terminates December 31, 2024 June 30, 2023--sec. 6, Ch. 54, L. 2017.)
              60-2-112. (Effective January 1, 2025 July 1, 2023) Competitive bidding -- reciprocity. (1) Except
   as provided in subsections (2) through (6), if the estimated cost of any work exceeds $50,000, the commission
   shall award the contract by competitive bidding to the lowest responsible and responsive bidder. The award
   must be made upon the notice and terms that the commission prescribes by its rules. However, except when
   prohibited by federal law, the commission shall make awards and contracts in accordance with 18-1-102.
              (2)    The commission may award a contract by means other than competitive bidding if it determines
   that special circumstances so require. The commission shall specify the special circumstances in writing.
              (3)    The commission may enter into contracts with units of local government for the construction of
   projects without competitive bidding if it finds that the work can be accomplished at lower total costs, including
   total costs of labor, materials, supplies, equipment usage, engineering, supervision, clerical and accounting
   services, administrative costs, and reasonable estimates of other costs attributable to the project.
              (4)    The commission may delegate to the department the authority to enter, without competitive
   bidding, agreed-upon price contracts for projects costing $50,000 or less.
              (5)    The commission may award a design-build contract under the design-build contracting program
   if the provisions of 60-2-137 have been met. The commission may also award a contract using an alternative
   project delivery method under [section 1].
              (6)    The commission or the department may not enter into a contract for a state-funded highway
   project or a construction project with a bidder whose operations are not headquartered in the United States
   unless:
              (a)    the foreign country, or province or other political subdivision of that country, in which the bidder
   is headquartered affords companies based in the United States open, fair, and nondiscriminatory access to
   bidding on highway projects and construction projects located in the foreign country, or province or other
   political subdivision of that country; and
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              (b)      the department has entered into a reciprocity agreement with or has exchanged letters of
   information with the foreign country, or province or other political subdivision of that country, that addresses:
              (i)      the equal and fair treatment of bids originating in the United States and in the foreign country,
   or province or other political subdivision of that country;
              (ii)     specific ownership requirements and tax policies in the United States and in the foreign
   country, or province or other political subdivision of that country, that may result in the unequal treatment of all
   bids received, regardless of their origin;
              (iii)    the means by which contractors from both the United States and the foreign country, or
   province or other political subdivision of that country, are notified of highway projects and construction projects
   available for bid; and
              (iv)     any other differences in public policy or procedure that may result in the unequal treatment of
   bids originating in the United States or in the foreign country, or province or other political subdivision of that
   country, for projects located in either the United States or the foreign country, or province or other political
   subdivision of that country.
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