Design-Build Legislative Update

Renewed Focus on Infrastructure at the State and Federal Level

The collapse of Minnesota’s I-35W bridge has caused both state and federal policymakers to take action to make certain that the nation’s bridges are as safe as possible. The U.S. Congress passed emergency legislation that was signed into law by President Bush shortly after the tragedy which would provide authorization for emergency funding to reconstruct the bridge (a major transportation connector between Minneapolis and St. Paul) and to provide funding to help with nearby roads and highways that were impacted by the overflow traffic. In addition, Rep. Oberstar (D-MN), chair of the U.S. House of Representatives Transportation and Infrastructure Committee, announced the intention to hold hearings in September on the state of the nation’s bridges and to introduce legislation that would establish a trust fund (funded through a gasoline tax increase) to repair and maintain the bridges. Senator Clinton (D-NY) also announced her intention to introduce legislation that includes a $10 billion, 10-year plan to repair the nation’s bridges. DBIA also supports S. 775, National Infrastructure Improvement Act of 2007, a federal bill calling for increased focus on the nation’s infrastructure and establishing a commission to study ways to improve U.S. infrastructure.

Many states are also turning their attention to bridge and other infrastructure maintenance and repair. DBIA expects to see a strong increase in bills and hearings across the state legislatures.

Other Federal Legislation

DBIA continues to advocate for including design-build language in 2007 federal appropriations bills, particularly for Veterans Affairs and Military Construction, U.S. Department of Agriculture, and U.S. Housing and Urban Development. DBIA is working to include the following language:

“In order to expedite construction projects and any other real property improvements hereunder appropriated or authorized by this Act, use of the design-build method of project delivery, in which one entity provides both design and construction services, is encouraged.

 Recipients of grants who use funds appropriated by this Act are authorized to use the design-build method of project delivery for construction projects and all other real property improvements.”

DBIA will meet with the chair and ranking member of the U.S. House of Representatives Subcommittee on U.S. Department of Agriculture Appropriations in September to discuss specific design-build language. The U.S. Congress is running out of time to pass the appropriations bills before the end of the fiscal year. It is possible that several or all of the appropriations bills remaining could be combined into an omnibus bill.

Federal Regulations

U.S. Department of Transportation’s Federal Highway Administration released its long awaited rule on design-build contracting on August 14, 2007. DBIA had commented extensively on the proposed rule and is pleased to see that many of its comments are incorporated into the final rule. DBIA is especially happy that FHWA expanded the definition of preliminary design which in the proposed rule had been extremely narrowly defined and would have negatively impacted the ability to move forward on a design-build federally funded transportation project. To view the text of the final rule, please see the following link: http://www.fhwa.dot.gov/program admin/contracts/fedreg071408.cfm

For more details on DBIA’s reaction to the new final rule, please see DBIA’s website in the advocacy section under legislative news. www.DBIA.org

DBIA also filed comments recently regarding a proposed regulation concerning the U.S. Coast Guard’s use of design-build. A link to the proposed rule and a copy of the comments can be found on DBIA’s website in the advocacy section under legislative news. www.DBIA.org

The proposed rule would give the Department of Homeland Security (DHS) the authority to allow the U.S. Coast Guard to use one-step turnkey design-build contracting for Coast Guard Facilities. While DBIA is encouraged that DHS wishes to provide the U.S. Coast Guard with maximum flexibility to accommodate the wide variety of design-build projects and procurement methodologies, DBIA remains concerned that this rule may not achieve the best result.

In its comments, DBIA specifically recommended:

• DHS should continue to encourage the expansion of the use of design-build.
• DHS should encourage the use of performance-based requirements for all design and construction projects, which matches the Office of Management and Budget’s goal for all major acquisitions.
• DHS should encourage the U.S. Coast Guard to get training on best practices in design-build contracting. DBIA already provides similar programs across the United States for public and private owners and design-builders and would be happy to assist the U.S. Coast Guard in this endeavor.
• DHS should encourage the U.S. Coast Guard to include recognition of Designated Design-Build Professionals through enhanced consideration for award in the source selection process to ensure professional expertise in the design-build field. Certification reflects achievement of education, training and experience, and testing requirements which demonstrate mastery of design-build fundamentals. DBIA offers a designation program.

State Legislative Update

DBIA recently participated in the National Conference of State Legislatures Annual Meeting and Exposition. This year the meeting was held in Boston from August 6-9, and DBIA was pleased to have member volunteers from the DBIA New England Region help staff the DBIA exhibit booth. Nearly 4,000 state legislators and legislative staff attended the meeting. Many legislators stopped by DBIA’s booth to speak about the benefits of design-build.

Recently design-build bills were signed into law in California and North Carolina.

California Governor Schwarzenegger signed SB 630 into law on July 27, 2007. The new law appropriates funds to finance the acquisition, design, construction, establishment, equipping, renovation, or expansion of the veterans homes in Yountville, Barstow, Chula Vista, Lancaster, Saticoy, and West Los Angeles, and in Fresno and Shasta counties. It also authorizes the issuance of additional lease-revenue bonds, notes, or bond anticipation notes for that purpose and authorizes the director to enter into only seven design-build contracts pursuant to these provisions.

North Carolina Governor Easley signed H.B. 610 into law on July 23, 2007. The new law allows the Department of Transportation to award up to 25 design-build construction contracts for each fiscal year.

Two new bills were introduced in Missouri:

Missouri H.B. 2A was introduced on August 20, 2007. The bill allows the Highways and Transportation Commission to modify bonding requirements for projects designated as design-build-finance-maintain projects which exceed 25 years.

Missouri S.B. 1A was also introduced on August 20, 2007, and is a companion bill to HB 2A.

INFO: www.DBIA.org