Design-build contracts are an alternative to traditional design-bid-build contracts and are expressly permitted under the law applicable to Federal-aid highways. The design-build concept allows the contractor maximum flexibility for innovation in the selection of design, materials, and construction methods. Unlike traditional design-bid-build, the project sponsor combines both the project's design and construction activities into one contract. With design-build procurement, the contracting agency identifies the parameters of the end result and establishes the design that optimizes their construction abilities. The submitted proposals may be rated by the contracting agency on factors such as design quality, timeliness, management capability, and cost, and these factors may be used to adjust the bids for the purpose of awarding the contract.
=> What projects are eligible for design-build contracting?
All Federal-aid highway construction projects may now use design-build contracting. Section 1503 of SAFETEA-LU eliminates the $50 million threshold on the size of eligible projects.
=> What are the procedures for soliciting a design-build contract?
A State may use its own procedures for the solicitation and receipt of proposals and information. Oral presentations can be used as a substitute for portions of a written proposal or information. The State may elect to pay a stipend to unsuccessful offerors who have submitted responsive proposals. Stipends may be reimbursed with Federal-aid funds and are recommended on large projects where there are substantial opportunities for innovation and the cost of submitting the proposal is significant. For a project being developed under a public-private agreement to be eligible for Federal-aid funding, the design-build contract must have been awarded to the public-private entity through a competitive process that complies with applicable State and local laws.
SAFETEA-LU section 1503 requires the FHWA to issue revised design-build regulations that allow State DOTs to issue Requests for Proposals, award contracts, and issue notices to proceed with preliminary design work on design-build projects prior to receipt of final NEPA approval. The State DOTs must receive FHWA's concurrence prior to proceeding with any of the above activities. Additionally, final design or construction of any permanent improvement prior to NEPA compliance is still prohibited.
=> How are design-build proposals to be evaluated?
The State must evaluate the quality of the proposal through non-price evaluation factors, such as compliance with solicitation requirements, completion schedules, and technical solutions. Price must be an evaluation factor in any contract where construction is a significant component of the scope of work. In addition, the State may at its discretion consider past performance, technical experience, and management experience.