Master FIR (1988)

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Kissner		DATE TYPED:	3/15/99		HB	506
SHORT TITLE:		SHTD Design & Build Delivery System				SB
					ANALYST:		Esquibel

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY99	FY2000	FY99	FY2000	Recurring or Non-Rec	Fund Affected
	N/A

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

General Services Department (GSD)

State Highway and Transportation Department (SHTD)

SUMMARY

Synopsis of Bill

The bill proposes the SHTD may use a design and build delivery system in FY99-2003 for two highway construction or reconstruction projects.

Significant Issues

Currently, the State Procurement Code prohibits design/build contracts for road projects as a means of ensuring cost effectiveness, efficiency and fair competition.

Given the provisions of the bill, SHTD would have to develop an internal design and construction evaluation process against which the new design/build proposals could be objectively compared to assure cost efficiency, equal competition, quality standards and liability implications.

FISCAL IMPLICATIONS

The SHTD indicates design/build contracts are generally considered to save money and time because all the work is given to one contractor.

TECHNICAL ISSUES

The General Services Department (GSD) indicates the bill would not require SHTD to follow all GSD rules and regulations regarding implementation of the State Procurement Code.

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