AN ACT Relating to transportation project delivery; amending RCW 47.20.780 and 47.20.785; adding a new section to chapter 47.01 RCW; creating a new section; providing an expiration date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1.  RCW 47.20.780 and 2007 c 152 s 1 are each amended to read as follows:

The department of transportation shall develop a process for awarding competitively bid highway construction contracts for projects over ((ten)) two million dollars that may be constructed using a design-build procedure. As used in this section and RCW 47.20.785, "design-build procedure" means a method of contracting under which the department of transportation contracts with another party for the party to both design and build the structures, facilities, and other items specified in the contract.

The process developed by the department must, at a minimum, include the scope of services required under the design-build procedure, contractor prequalification requirements, criteria for evaluating technical information and project costs, contractor selection criteria, and issue resolution procedures.

Sec. 2.  RCW 47.20.785 and 2006 c 37 s 1 are each amended to read as follows:

(((1))) The department of transportation ((may)) is authorized and strongly encouraged to use the design-build procedure for public works projects over ((ten)) two million dollars ((where)) when:

(((a))) (1) The construction activities are highly specialized and a design-build approach is critical in developing the construction methodology; or

(((b))) (2) The projects selected provide opportunity for greater innovation and efficiencies between the designer and the builder; or

(((c))) (3) Significant savings in project delivery time would be realized.

(2) The joint transportation committee must provide a report detailing any recommended changes or improvements that the department of transportation should make to the design-build process in order to maximize cost and schedule efficiencies and ensure that design risk is borne by the appropriate party. The report is due to the transportation committees of the legislature and the governor by December 1, 2016.

(3) A panel of experts must be appointed to assist with the study. Membership must include: A consultant selected by the joint transportation committee and at least two nationally recognized experts in the field of design-build project delivery proposed by the consultant, a representative from the association of general contractors, a representative from the American council of engineering companies of Washington, a representative of the professional and technical employees local 17, and a representative from the department of transportation. The consultant must lead the review panel and be responsible for the organization and conduct of the panel and reporting on the process, findings, and recommendations of the panel.

(4) This section expires June 30, 2017.

NEW SECTION.  Sec. 4.  A new section is added to chapter 47.01 RCW to read as follows:

(1) The department must develop a construction program business plan that incorporates findings of the report required in section 3 of this act and also outlines a sustainable staffing level of state-employed engineering staff, adjusted as necessary by additional sustainable revenue and modeled and optimized to address long-term needs in preservation and improvement programs through multiple biennia.

(2) The sustainable staffing level recognizes that it is in the state's interest that periodic increases in workload due to increases in construction funding are best addressed through the use of contract engineering resources in conjunction with limited and flexible augmentations to department staffing levels as necessary for project oversight, accountability, and delivery.

(3) To provide the appropriate management oversight and accountability of the use of contracted services, the plan must also make recommendations on the development of a strong owner strategy that addresses state employee training, career development, and competitive compensation.

(4) The department must submit the plan to the office of financial management and appropriate committees of the legislature one hundred eighty days after the report in section 3 of this act is completed. The department must submit progress reports on implementation of the plan biennially beginning September 30, 2018, until September 30, 2030. The elements of the plan must include:

(a) Sustainable staffing levels to address long-term needs in preservation and improvement programs;

(b) Employee recruitment, retention, training, and compensation status;

(c) Project delivery methods for design and construction; and

(d) A comparison of Washington state to national trends and methods.

(5) To assist in the development of the plan, the department must convene an advisory group to be comprised of the following members:

(a) One representative of the professional and technical employees local 17 to represent the nonmanagement engineering and technical employees of the department;

(b) One member of the managerial engineering and technical staff of the department, who must serve as chair of the advisory group;

(c) One member appointed by the American council of engineering companies of Washington to represent the private design industry; and

(d) One member appointed by the associated general contractors of Washington to represent the private construction industry.

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