103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3772

 

Introduced 2/9/2024, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Progressive Design-Build Pilot Program Act. Provides that the Capital Development Board may elect to use the progressive design-build delivery method. Provides that "progressive design-build delivery method" means a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. Sets forth other provisions concerning procedures for selection and submission of qualifications, the award of contracts, pricing, and federal requirements.


LRB103 39470 HLH 69664 b

 

 

A BILL FOR

 

SB3772LRB103 39470 HLH 69664 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Progressive Design-Build Pilot Program Act.
 
6    Section 5. Legislative policy. It is the intent of the
7General Assembly that the State construction agency shall
8establish a Progressive Design-Build Pilot Program to use the
9progressive design-build delivery method for up to 3 public
10projects commencing prior to January 1, 2027 if it is shown to
11be in the State's best interest for that particular project.
12It shall be the policy of the State construction agency in the
13procurement of progressive design-build services to publicly
14announce all requirements for progressive design-build
15services and to procure these services on the basis of
16demonstrated competence and qualifications and with due regard
17for the principles of competitive selection.
18    The State construction agency shall, prior to issuing
19requests for qualifications, publish procedures for the
20solicitation and award of contracts pursuant to this Act.
21    The State construction agency shall, for each public
22project or projects permitted under this Act, make a written
23determination, including a description as to the particular

 

 

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1advantages of the progressive design-build procurement method,
2that it is in the best interests of this State to enter into a
3progressive design-build contract for the project or projects.
4In making that determination, the following factors shall be
5considered:
6        (1) The probability that the progressive design-build
7    procurement method will be in the best interests of the
8    State by providing a material savings of time or cost over
9    the design-bid-build or other delivery system.
10        (2) The type and size of the project and its
11    suitability to the progressive design-build procurement
12    method.
13        (3) The ability of the State construction agency to
14    define and provide comprehensive scope and performance
15    criteria for the project.
16    No State construction agency may use the progressive
17design-build procurement method unless the agency determines
18in writing that the project will comply with the disadvantaged
19business and equal employment practices of the State as
20established in the Business Enterprise for Minorities, Women,
21and Persons with Disabilities Act and Section 2-105 of the
22Illinois Human Rights Act.
23    The State construction agency shall within 15 days after
24the initial determination provide an advisory copy to the
25Procurement Policy Board and maintain the full record of
26determination for 5 years.
 

 

 

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1    Section 10. Definitions. As used in this Act:
2    "Chief procurement office" means the offices to which the
3chief procurement officers are appointed pursuant to Section
410-20 of the Illinois Procurement Code.
5    "Delivery system" means the design and construction
6approach used to develop and construct a project.
7    "Design-bid-build" means the traditional delivery system
8used on public projects in this State that incorporates the
9Architectural, Engineering, and Land Surveying Qualification
10Based Selection Act and the principles of competitive
11selection in the Illinois Procurement Code.
12    "Design professional" means any individual, sole
13proprietorship, firm, partnership, joint venture, corporation,
14professional corporation, or other entity that offers services
15under the Illinois Architecture Practice Act of 1989, the
16Professional Engineering Practice Act of 1989, the Structural
17Engineering Licensing Act of 1989, or the Illinois
18Professional Land Surveyor Act of 1989.
19    "Evaluation criteria" means the requirements for the
20selection process as defined in this Act and may include the
21specialized experience, technical qualifications and
22competence, capacity to perform, past performance, experience
23with similar projects, assignment of personnel to the project,
24and other appropriate factors. Price may not be used as a
25factor in the evaluation of progressive design-build.

 

 

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1    "Progressive design-build" means a project delivery
2process in which both the design and construction of a project
3are procured from a single entity that is selected through a
4qualifications-based selection at the earliest feasible stage
5of the project.
6    "Progressive design-build contract" means a contract for a
7public project under this Act between the State construction
8agency and a progressive design-build entity to furnish
9architecture, engineering, land surveying, and related
10services as required, and to furnish the labor, materials,
11equipment, and other construction services for the project. A
12progressive design-build contract may be conditioned upon
13subsequent refinements in scope and price and may allow the
14State construction agency to make modifications in the project
15scope without invalidating the progressive design-build
16contract.
17    "Progressive design-build entity" means any individual,
18sole proprietorship, firm, partnership, joint venture,
19corporation, professional corporation, or other entity that
20proposes to design and construct any public project under this
21Act. A progressive design-build entity and associated
22progressive design-build professionals shall conduct
23themselves in accordance with the laws of this State and the
24related provisions of the Illinois Administrative Code, as
25referenced by the licensed design professionals Acts of this
26State.

 

 

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1    "Qualification" means a statement of qualifications
2submitted by a proposer in response to a request for
3qualifications.
4    "Request for qualifications" means a document issued by
5the State construction agency to solicit qualifications from
6proposers in accordance with the progressive design-build
7project delivery method.
8    "Scope and performance criteria" means the requirements
9for the public project, including but not limited to, the
10intended usage, capacity, size, scope, quality and performance
11standards, and other programmatic criteria that are expressed
12in performance-oriented requirements that can be reasonably
13inferred and are suited to allow a progressive design-build
14entity to develop a proposal.
15    "State construction agency" means the Capital Development
16Board.
 
17    Section 15. Solicitation of qualifications.
18    (a) When the State construction agency elects to use the
19progressive design-build delivery method, it must issue a
20notice of intent to receive requests for qualifications for
21the project at least 14 days before issuing the request for
22qualifications. The State construction agency must publish the
23advance notice in the official procurement bulletin of the
24State or the professional services bulletin of the State
25construction agency, if any. The agency is encouraged to use

 

 

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1publication of the notice in related construction industry
2service publications. A brief description of the proposed
3procurement must be included in the notice. The State
4construction agency must provide a copy of the request for
5qualifications to any party requesting a copy.
6    (b) The request for qualifications shall be prepared for
7each project and must contain, without limitation, the
8following information:
9        (1) The name of the State construction agency.
10        (2) A preliminary schedule for the completion of the
11    contract.
12        (3) The proposed budget for the project, the source of
13    funds, and the currently available funds at the time the
14    request for qualifications is submitted.
15        (4) Prequalification criteria for progressive
16    design-build entities wishing to submit proposals. The
17    State construction agency shall include, at a minimum, its
18    normal prequalification, licensing, registration, and
19    other requirements, but nothing contained herein precludes
20    the use of additional prequalification criteria by the
21    State construction agency.
22        (5) Material requirements of the contract, including
23    but not limited to, the proposed terms and conditions,
24    required performance and payment bonds, insurance, and the
25    entity's plan to comply with the utilization goals for
26    business enterprises established in the Business

 

 

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1    Enterprise for Minorities, Women, and Persons with
2    Disabilities Act, and with Section 2-105 of the Illinois
3    Human Rights Act.
4        (6) The performance criteria.
5        (7) The evaluation criteria for the solicitation.
6    (c) The State construction agency may include any other
7relevant information that it chooses to supply. The
8progressive design-build entity shall be entitled to rely upon
9the accuracy of this documentation in the development of its
10qualifications.
11    (d) The date that qualifications are due must be at least
1221 calendar days after the date of the issuance of the request
13for qualifications. In the event the cost of the project is
14estimated to exceed $10,000,000, then the qualifications due
15date must be at least 28 calendar days after the date of the
16issuance of the request for qualifications.
 
17    Section 20. Development of scope and performance criteria.
18The State construction agency shall develop a request for
19qualifications, which shall include preliminary scopes,
20descriptions of the areas of technical expertise needed, and
21requirements for experience. The request must be in sufficient
22detail and contain adequate information to reasonably apprise
23the qualified progressive design-build entities of the State
24construction agency's overall programmatic needs and goals,
25including criteria, general budget parameters, schedule, and

 

 

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1delivery requirements.
 
2    Section 25. Selection committee.
3    (a) When the State construction agency elects to use the
4progressive design-build delivery method, it shall establish a
5committee to evaluate and select the progressive design-build
6entity. The committee, under the discretion of the State
7construction agency, shall consist of at least 5 but no more
8than 7 members and shall include at least one licensed design
9professional and 2 members of the public. Public members may
10not be employed or associated with any firm holding a contract
11with the State construction agency. Within 30 days of
12receiving notice, one public member shall be nominated by
13associations representing the general design or construction
14industry and one member shall be nominated by associations
15that represent minority or woman-owned design or construction
16industry businesses. If either group fails to nominate a
17suitable candidate within the 30-day period, the State
18construction agency shall nominate an appropriate public
19member.
20    (b) The members of the selection committee must certify
21for each request for qualifications that no conflict of
22interest exists between the members and the progressive
23design-build entities submitting qualifications.
24    If a conflict is discovered before qualifications are
25reviewed, the member must be replaced before any review of

 

 

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1qualifications. If a conflict is discovered after
2qualifications are reviewed, the member with the conflict
3shall be removed and the committee may continue with only one
4public member.
5    If at least 5 members remain, the remaining committee
6members may complete the selection process.
 
7    Section 30. Procedures for selection.
8    (a) The State construction agency must use a 2-phase
9procedure for the selection of the successful progressive
10design-build entity. Phase I of the procedure will evaluate
11and shortlist for interviews the progressive design-build
12entities based on qualifications, and Phase II will evaluate
13shortlisted teams based on scoring of specific criteria
14addressed in their presentations and interviews.
15    (b) The State construction agency shall include in the
16request for qualifications the evaluating factors to be used
17in Phase I. These factors are in addition to any
18prequalification requirements of progressive design-build
19entities that the agency has set forth. Each request for
20qualifications shall establish the relative importance
21assigned to each evaluation factor and subfactor, including
22any weighting of criteria to be employed by the State
23construction agency. The State construction agency must
24maintain a record of the evaluation scoring to be disclosed in
25event of a protest regarding the solicitation.

 

 

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1    The State construction agency shall include the following
2criteria in every Phase I evaluation of progressive
3design-build entities: (1) experience of personnel; (2)
4successful experience with similar project types; (3)
5financial capability; (4) timeliness of past performance; (5)
6experience with similarly sized projects; (6) successful
7reference checks of the firm; (7) commitment to assign
8personnel for the duration of the project and qualifications
9of the entity's consultants; and (8) ability or past
10performance in meeting or exhausting good faith efforts to
11meet the utilization goals for business enterprises
12established in the Business Enterprise for Minorities, Women,
13and Persons with Disabilities Act and with Section 2-105 of
14the Illinois Human Rights Act. The State construction agency
15may include any additional relevant criteria in Phase I that
16it deems necessary for a proper qualification review.
17    The State construction agency may not consider any
18progressive design-build entity for evaluation or award if the
19entity has any pecuniary interest in the project or has other
20relationships or circumstances, including but not limited to,
21long-term leasehold, mutual performance, or development
22contracts with the State construction agency, that may give
23the progressive design-build entity a financial or tangible
24advantage over other progressive design-build entities in the
25preparation, evaluation, or performance of the progressive
26design-build contract or that create the appearance of

 

 

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1impropriety. No proposal shall be considered that does not
2include an entity's plan to comply with the requirements
3established in the Business Enterprise for Minorities, Women,
4and Persons with Disabilities Act, for both the design and
5construction areas of performance, and with Section 2-105 of
6the Illinois Human Rights Act.
7    Upon completion of the qualifications evaluation, the
8State construction agency shall create a shortlist of the most
9highly qualified progressive design-build entities. The State
10construction agency, in its discretion, is not required to
11shortlist the maximum number of entities as identified for
12Phase II evaluation, provided however, no less than 2
13progressive design-build entities nor more than 6 are selected
14to present to the selection committee in an interview.
15    The State construction agency shall notify the entities
16selected for the shortlist in writing. This notification shall
17commence the period for the preparation for presentations and
18interviews. The State construction agency must allow
19sufficient time, no less than 28 calendar days, for the
20shortlist entities to prepare their presentations.
21    (c) The State construction agency shall include in the
22project advertisement the evaluating factors to be used in the
23presentations and interviews. Each request for qualifications
24shall establish the relative importance assigned to each
25evaluation factor and subfactor, including any weighting of
26criteria to be employed by the State construction agency. The

 

 

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1State construction agency must maintain a record of the
2evaluation scoring to be disclosed in event of a protest
3regarding the solicitation.
4    The State construction agency shall include the following
5criteria in every Phase II evaluation of progressive
6design-build entities: (1) experience with successful
7completion of similar projects; (2) the design team's approach
8to program analysis and schematic design; (3) record of budget
9adherence on recently completed projects; (4) demonstration of
10past innovation in meeting the scope and performance criteria
11on past design-build projects; (5) completeness of the overall
12project team; (6) collaborative experience of the team
13members; and (7) their plan for achieving project goals for
14participation. The State construction agency may include any
15additional relevant technical evaluation factors it deems
16necessary for proper selection.
17    Upon completion of the evaluation, the State construction
18agency may award the progressive design-build contract to the
19highest overall ranked entity. After qualifications have been
20submitted, a progressive design-build entity shall not
21replace, remove, or otherwise modify any firm identified as a
22member of the proposer team unless authorized to do so by the
23State construction agency.
 
24    Section 40. Submission of qualifications. Qualifications
25must be properly identified and sealed. Qualifications may not

 

 

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1be reviewed until after the deadline for submission has passed
2as set forth in the request for qualifications. All
3progressive design-build entities submitting qualifications
4shall be disclosed after the deadline for submission, and all
5progressive design-build entities who are shortlisted for
6interviews shall also be disclosed at the time of that
7determination.
8    Qualifications shall include representative projects to
9demonstrate past experience of the team members on similar
10progressive design-build projects. Qualifications shall
11include a list of all design professionals and other entities
12as defined in Section 30-30 of the Illinois Procurement Code
13to which any work may be subcontracted during the performance
14of the contract. Any entity that will perform any of the 5
15subdivisions of work defined in Section 30-30 of the Illinois
16Procurement Code must meet prequalification standards of the
17State construction agency.
18    Qualifications must meet all material requirements of the
19request for qualifications, or they may be rejected as
20nonresponsive. The State construction agency shall have the
21right to reject any and all qualifications.
22    The State construction agency shall review the
23qualifications for compliance with the performance criteria
24and evaluation factors.
25    Qualifications may be withdrawn prior to evaluation for
26any cause. After evaluation begins by the State construction

 

 

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1agency, clear and convincing evidence of error is required for
2withdrawal.
 
3    Section 45. Award. The State construction agency may
4award the contract to the highest overall ranked entity.
5Notice of award shall be made in writing. Unsuccessful
6entities shall also be notified in writing. The State
7construction agency may not request a best and final offer
8after the receipt of qualifications. The State construction
9agency may negotiate with the selected progressive
10design-build entity after award but prior to contract
11execution for the purpose of securing better terms than
12originally proposed, provided that the salient features of the
13request for qualifications are not diminished.
 
14    Section 50. Labor.
15    (a) A contract or agreement under this Act shall require
16the progressive design-build entity, or the construction
17manager or general contractor of the progressive design-build
18entity, and all subcontractors of the progressive design-build
19entity to comply with Section 30-22 of the Illinois
20Procurement Code as it applies to responsible bidders and to
21present satisfactory evidence of that compliance to the State
22construction agency.
23    (b) A contract or agreement under this Act shall require
24the progressive design-build entity or the construction

 

 

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1manager or general contractor of the progressive design-build
2entity to enter into a project labor agreement used by the
3State construction agency.
4    (c) This Section does not apply to construction-related
5professional services. As used in this Section, "professional
6services" means those services within the scope of the
7practice of architecture, professional engineering, structural
8engineering, or registered land surveying, as defined by the
9laws of this State.
 
10    Section 55. Transition to design-bid-build. At the
11completion of design development, the progressive design-build
12entity must provide a firm fixed price. The State construction
13agency reserves the right to transition the project to the
14design-bid-build method if the fixed price exceeds the project
15budget, the progressive design-build entity's proposed
16schedule is unreasonable, or if transitioning to the
17design-bid-build method is in the best interests of the State.
18The State construction agency will retain ownership of any
19design documents completed by the progressive design-build
20entity.
 
21    Section 60. Reports and evaluation. At the end of every 6
22month period following the contract award, and again prior to
23final contract payout and closure, a selected progressive
24design-build entity shall detail, in a written report

 

 

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1submitted to the State agency, its efforts and success in
2implementing the entity's plan to comply with the utilization
3goals for business enterprises established in the Business
4Enterprise for Minorities, Women, and Persons with
5Disabilities Act and the provisions of Section 2-105 of the
6Illinois Human Rights Act. If the entity's performance in
7implementing the plan falls short of the performance measures
8and outcomes set forth in the plans submitted by the entity
9during the qualifications process, the entity shall, in a
10detailed written report, inform the General Assembly and the
11Governor whether and to what degree each progressive
12design-build contract authorized under this Act promoted the
13utilization goals for business enterprises established in the
14Business Enterprise for Minorities, Women, and Persons with
15Disabilities Act and the provisions of Section 2-105 of the
16Illinois Human Rights Act.
 
17    Section 65. Federal requirements. In the procurement of
18progressive design-build contracts, the State construction
19agency shall comply with federal law and regulations and take
20all necessary steps to adapt their rules, policies, and
21procedures to remain eligible for federal aid.
 
22    Section 70. Capital Development Board consultation. The
23Capital Development Board shall consult with the applicable
24chief procurement office to determine which procedures to

 

 

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1adopt and apply to the progressive design-build project
2delivery method in order to ensure an open, transparent, and
3efficient process that accomplishes the purposes of this Act.
 
4    Section 75. Repeal. This Act is repealed on January 1,
52027
.