Last year, the State adopted legislation authorizing cities and other public agencies to let contracts for public buildings, parks and recreational facilities estimated to cost at least one million dollars pursuant to the design-build method of contract procurement.  The legislation was codified in sections 22160 through 22169 of the Public Contract Code.

The City has traditionally let public works construction projects through a design-bid-build procurement method, where an engineering or architectural firm is hired to prepare plans and specifications for the project, then the plans are put to bid, and a separate qualified construction contractor is hired to build the project based on the lowest responsive bid submitted for the work.  

In the design-build method of contract procurement, a single qualified entity is hired to design and deliver the completed construction project.  The single entity can be made up of a team that includes project designers (architects and engineers) and construction contractors.  Pursuant to Public Contract section 22162, the City may now procure contracts for design-build based on low bid or "best value" for the construction of public buildings, parks and recreational facilities estimated to cost at least one million dollars of more.  "Best value" takes into consideration not only price, but also other project criteria, such as project features, functions, life-cycle costs, and the experience and past performance of the design-build team.

Although Public Contract Code section 22162(a) now authorizes the City, with the approval of the City Council, to procure design-build contracts for the specified public works projects, the Municipal Code currently only authorizes bid procedures pursuant to the traditional design-bid-build method of public works contract procurement.  The proposed ordinance would implement the new authority provided by the Public Contract Code to let contracts for the specified public works projects pursuant to the design-build method of procurement.

Public Contract Code section 22162 limits the projects authorized to be let by design-build to projects in excess of one million dollars for the construction of buildings, park and recreational facilities.  The design-build authority does not extend to infrastructure projects that include streets, water and sewer distribution facilities. Street, water and sewer projects must still follow the traditional design-bid-build method of contract procurement.

Projects subject to design-build must be procured through a specific process that includes the following:

1. The preparation of a project description setting forth the scope and estimated price for the project.

2.  The preparation and issuance of a request for qualifications containing the following elements:

• Identification of the basic scope and needs of the project, the expected cost range, the methodology that will be used by the City to evaluate proposals, and the procedure for final selection of the design-build entity.

• The factors that the city expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other non-price-related factors.

• A standard template request for statements of qualifications that require proposers to identify their organization; to provide evidence that the members of the design-build team have demonstrated experience, competency, capability, and capacity to complete projects of similar size, scope, or complexity, including the credentials required to design and construct the project; evidence of their capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance; information concerning workers’ compensation experience history and a worker safety program; and an acceptable safety record.

3.  The selection of and contract with the design-build entity based on lowest bid or best value, as determined by the City.

It is recommended that the City Council consider the adoption of the ordinance adding Section 2.52.020 to the Municipal Code to authorize the use of the design-build public works contract procurement method for specified projects. If the City Council determines that adoption of the ordinance is appropriate, it is recommended that the City Council:

• Introduce the attached ordinance adding Section 2.52.020 to the Municipal Code to authorize the use of design-build public works contract procurement method for specified projects.