SENATE BILL REPORT

SB 5997

As of February 19, 2015

Title: An act relating to transportation project delivery.

Brief Description: Concerning transportation project delivery.

Sponsors: Senators King, Hobbs, Fain, Liias, Litzow, Braun, Schoesler, Parlette, Dammeier, Warnick, Sheldon, O'Ban, Hewitt, Becker and Brown.

Brief History:

Committee Activity: Transportation: 2/17/15.

Staff: Kim Johnson (786-7472)

Background: Design-build construction is a contracting technique that allows the owner of a project to contract with a single entity for the design and construction of a project. Some construction work can often begin before final design is complete, providing opportunity for cost savings and expedited project delivery. The more common project contract, design-bid-build, requires design to be complete before the construction portion of the project is awarded.Current law allows the Washington State Department of Transportation (WSDOT) to use design-build construction if construction activities are highly specialized, efficiency opportunities through the use of a single entity for design and construction are greater, or significant savings in project delivery time would be realized. A design-build project must be over $10 million, except that WSDOT may also use the design-build process on up to five pilot projects costing between $2 and $10 million.

Summary of Bill: WSDOT is strongly encouraged to use design-build for public works projects over $10 million.

After the completion of the five pilot projects valued between $2 and $10 million, the authority to use design-build on projects of this size expires.

WSDOT must convene an expert review panel to examine WSDOT's implementation and use of design-build contracting. The expert review panel must be comprised of five members representing the following stakeholders: two members must be nationally recognized experts in the field of design-build project delivery; a representative from the association of general contractors; a representative from the American Council of Engineering Companies of Washington; and a representative from WSDOT. The two nationally recognized experts must be selected cooperatively by the chairs and ranking members of the transportation committees of the Legislature. The experts must be compensated, including reimbursement for expenses.

WSDOT must provide the necessary staff support for the expert review panel.

The bill takes effect only if SB 5987, concerning transportation revenue, is enacted by June 30, 2015.

Appropriation: None.

Fiscal Note: Requested on February 16, 2015.

Committee/Commission/Task Force Created: No.

Effective Date: The bill contains an emergency clause and takes effect on July 1, 2015.

Staff Summary of Public Testimony: PRO: We believe that design-build contracting brings the strengths of private industry into project delivery. There will be rigorous discussion in the review panel process. This process can help WSDOT to continue to be a strong and capable public owner.

OTHER: We support the intent of the bill, but have concerns. Design-build was always supposed to be a tool in the tool box, not the be-all-end-all project delivery mechanism. The process has matured to where there can be some cost savings, but really the benefit is in advancing the project schedule. However, because of the additional costs to negotiate and monitor the delivery of a project using this method, the cost savings may not be that great. We ask that there be a seat on the review panel added for a representative of the Professional and Technical Employee union.

Persons Testifying: PRO: Carolyn Logue, South Sound Chambers of Commerce Legislative Coalition, Duke Schaub, Associated General Contractors; Van Collins, American Council of Engineering Companies.

OTHER: Lynn Peterson, WSDOT, Secretary; Vince Oliveri, Professional and Technical Employees.