Predesign. Major state capital construction projects are subject to both codified and uncodified predesign requirements. The Office of Financial Management (OFM) incorporates these requirements into a predesign manual that outlines these requirements and related guidance for completing a predesign. Predesigns include identification of the problem the project would address, analysis of project alternatives, detailed analysis of the preferred alternative, and project budget analysis. Within these categories, predesigns also include building massing schemes, site planning, planning and regulatory analysis, risk assessment, and detailed consideration of the preferred alternative's programmatic use and planned occupancy of the facility.
Primary Codified Requirements for Major Capital Project. Completion of a predesign is required prior to OFM's approval of allotments for major capital projects valued over $5 million, except for projects at institutions of higher education, for which the predesign requirement threshold is $10 million. The predesign must include review of procedures for long-term cost reduction and increased facility efficiency. These procedures must include, but are not limited to, the following elements:
Uncodified Requirements. Uncodified requirements are also contained in the enacted 2019-21 capital budget. The uncodified predesign requirements are similar to those codified requirements discussed above, but contain a number of additional elements, including:
The threshold for non-higher education capital construction projects requiring predesign is increased from $5 million to $10 million, which establishes the same threshold for all capital project types. OFM may waive some or all predesign requirements for capital projects that exceed the $10 million threshold. When OFM exempts a project from some or all predesign requirements, it must also notify legislative fiscal committees of the waiver and provide an explanation, a project description, and a project cost estimate.
OFM must also consider the following factors in deliberations related to predesign waivers:
If some or all project predesign requirements are waived, the OFM may propose a professional cost estimate in lieu of a request for predesign funding. Other predesign-related thresholds are changed to conform with the adjustment of the predesign cost threshold.
PRO: The origin of this bill lies in the many hours of presentations and conversations about major project pre-designs. This bill reduces the cost to the state of conducting some pre-designs by increasing the state agency threshold for conducting pre-designs to $10 million, the same threshold as applies for institutions of higher education. It does not preclude a pre-design; a pre-design could still be required if the complexity of a project warrants it. The bill does not change any of the requirements for green-build.