HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No.  HB 1072

Exempting certain proprietary financial Hearing Date:  1/26/99

information from public inspection

Brief Title

Reps.  Romero and D. Schmidt              Staff:  Steve Lundin

Sponsor(s)                          State Government Committee

                                              Phone:  786-7127

BACKGROUND:

Differing procedures are established for state agencies and various local governments to award contracts for public works projects.

Frequently, three different sets of procedural requirements have been established for state agencies and local governments to award public works contracts, depending on the estimated cost of the project and with varying requirements, as follows:

     oAn agency or local government may award contracts for public works projects of a relatively small estimated cost in any manner it chooses.

     oAn agency or local government may award contracts using a small works roster bidding process to award contracts on projects of up to a medium estimated cost.  Under this process a limited number of contractors are contacted and asked to submit bids.  The contract is awarded to the lowest responsible bidder.

oAn agency or local government may award contracts using a formal competitive bidding process normally to award contracts of a higher estimated value, where a notice is published requesting sealed bids and the sealed bids are opened at a designated time and place.  The contract is awarded to the lowest responsible bidder.

In addition, several different state agencies and local governments have been authorized to use alternative public works contracting procedures to award contracts on certain public works contracts of a very large dollar value.  One alternative procedure is the Adesign-build@ procedure.  Another alternative procedure is the Ageneral contractor/construction manager@ procedure.  Authority to use these alternative procedures terminates on July 1, 2001.  Trade secrets and other proprietary information supplied to a public entity using either of these alternative public works contracting procedures is not subject to public inspection and copying, if the entity submitting these materials states reasons for this exemption.

The Adesign-build@ procedure is used to award a contract to a party for both the design and construction of a public facility or portion of a public facility and involves the following steps:

oPublishing a notice announcing that the procedure will be used, with opportunity for public comments.

oPublishing a notice calling for proposals on design-build services that includes a description of the project, various requirements and details, and a description of the process and relative weight of factors that will be used to evaluate proposals.

oCreation of a committee to evaluate bid proposals using this process with the public entity select between three and five finalists to submit best and final proposals.

oAwarding a contract using either: (1) Negotiating with the firm submitting the highest scored best and final proposal to execute a contract or, if an agreement is not reached, then the firm with next highest scored best and final proposal; or (2) if all finalists are capable of producing plans and specifications meeting project requirements, selecting the responsible best and final proposal with the lowest price.

The Department of General Administration, University of Washington, Washington State University, every county with a population of greater than 450,000 (King, Pierce, and Snohomish Counties), every city with a population in excess of 150,000 (Seattle, Tacoma, and Spokane), and any port district with a population in excess of 500,000 (Port of Seattle, and Port of Tacoma) may use the Adesign-build@ process on any project with an estimated cost of $10 million or more.  In addition, those entities may also use the  Adesign-build@ process on new student housing projects of over $5 million in estimated cost and the construction of preengineered metal buildings or prefabricated modular buildings of any cost.

SUMMARY:

Financial information that is supplied by an entity or person attempting to become a qualified bidder under the alternative public works procedures is not subject to public disclosure requirements, if the entity submitting this information states reasons for this exemption.

The Adesign-build@ alternative public works procedure may be used by eligible government entities to award contracts for the design, fabrication, and installation of building engineering systems of any cost.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.