Predesign and Capital Projects.

Predesign is a planning and analysis process that may be completed prior to the design and construction phases of capital projects.  Broadly, predesigns for state-funded capital construction projects include identification of the problem that the project would address, analysis of project alternatives, detailed analysis of the preferred alternative, and project budget analysis.  Predesigns typically include:  (1) building massing schemes; (2) site planning; (3) other planning and regulatory analysis; (4) risk assessment; and (5) detailed consideration of the preferred alternative's programmatic use and planned occupancy of the facility.  State-funded predesign requirements are outlined in the Office of Financial Management's (OFM) Predesign Manual.

Predesign Cost Thresholds.

Predesigns are generally required for state-funded capital construction projects valued over $10 million.  Certain capital projects below this threshold, such as high-risk projects, may also be required to complete a predesign.  The OFM may also grant exceptions for some or all predesign requirements for higher-cost projects under certain conditions (e.g., low-risk or relatively simple projects).  If some or all predesign requirements are waived, the OFM may propose a professional cost estimate in lieu of a request for predesign funding.  When the OFM grants exceptions to the predesign process, it must report various information about the exception to the fiscal committees of the Legislature.

C-100 Form.

As part of the OFM's budgetary role in administering state capital projects, it requires agencies to submit a capital budget form called the C-100 for major capital project funding requests.  This form is used for cost estimating purposes and includes an inflation factor that is updated each year.

The statutory threshold for capital construction projects is increased from $10 million to $15 million.  The OFM is required to adjust this threshold annually for inflation, using the C-100 form's inflation factor, beginning July 1, 2027.

(In support) This bill was developed in response to the difficult budget reduction environment that was experienced last session.  The state's colleges and universities brought this idea forward as an outside-the-box means of saving money in this difficult budget context.

Rising construction costs and delays result in increasing project costs.  This bill will address these problems by increasing the predesign threshold from $10 million to $15 million, which will reduce the number of projects that require a predesign.  This will save time and money for capital construction projects.  Many projects receive separate appropriations for predesign, design, and construction, which can delay project completion timelines, especially when they are funded across multiple legislative sessions.  Adding an inflation escalator to the threshold means that the Legislature will not have to keep changing the threshold over time.  This bill would have saved $275,000 and six months of time for a recent Department of Corrections' roof replacement project.

(Opposed) None.

Representative Michael Keaton, prime sponsor; and Steve DuPont.