The bill authorizes a design-build method under which design, engineering,
construction, and related services are procured through a single contract with a
single entity capable of providing the services. The bill creates requirements for
designating design-build projects, soliciting and evaluating requests for
qualifications and requests for proposals, and awarding design-build contracts.
The bill requires DOT to designate design-build projects and award the
1. One low bid design-build contract, which is awarded to the lowest
responsible bidder, for a project with an estimated value of $10,000,000 to
2. One best value design-build contract, which is awarded following a
calculation of value as provided in the project's request for proposals, for a project
with an estimated value of $50,000,000 to $150,000,000.
3. One fixed price variable scope design-build contract, which is awarded to the
lowest qualified responsible bidder able to provide the best qualitative scope of work
at a fixed price, with an estimated value of $50,000,000 to $150,000,000.
4. Three contracts, to be determined by DOT, with a total estimated value of
not more than $200,000,000.
The bill creates in DOT an office of innovative program delivery that is
responsible for conducting the design-build pilot program. The office is supervised
by a director appointed by the DOT secretary. The office is required to prepare a
report establishing the program structure and to develop a design-build
procurement manual. At the end of the pilot program term, the office must prepare
a report for the legislature evaluating the success of the program and joint committee
on finance must make a recommendation as to whether the pilot program should be
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
15.463 of the statutes is created to read:
215.463 Same; offices. (1) Office of innovative program delivery.
There is 3
created an office of innovative program delivery in the department of transportation. 4
The director of the office shall be appointed by, and report directly to, the secretary 5
84.062 of the statutes is created to read:
784.062 Alternative project delivery. (1) Definitions.
In this section:
(a) “Alternative technical concepts" means a proposed alternative to the 9
technical requirements provided by the office in the request for proposals for a 10
(b) “Best value design-build contract” means a design-build contract award 12
made following a calculation of value as provided in a request for proposals.
(c) “Design-build contract” means a contract for a project under which the 2
design, engineering, construction, and related services are provided by a single 3
(d) “Design-builder" means a private legal entity, consortium, or joint venture 5
that proposes to or executes a contract with the office to design, engineer, and 6
construct a project under this section.
(e) “Design-build project" means a project for which design, engineering, 8
construction, and related services are procured through a single contract with a 9
single private legal entity, consortium, or joint venture capable of providing the 10
necessary design, engineering, construction, and related services.
(f) “Design professional” means a person registered under s. 443.03 or 443.04 12
or a firm, partnership, or corporation registered under s. 443.08.
(g) “Director” means the director of the office of innovative program delivery 14
attached to the department under s. 15.463 (1).
(h) “Fixed price variable scope design-build contract” means a design-build 16
contract award made to the lowest qualified responsible bidder able to provide the 17
best qualitative scope of work at a price not to exceed a fixed price set by the office.
(i) “Low bid design-build contract” means a design-build contract award made 19
to the lowest qualified responsible bidder.
(j) “Member” means a private legal entity that is a member of a consortium or 21
joint venture that is a design-builder.
(k) “Office” means the office of innovative program delivery attached to the 23
department under s. 15.463 (1).
(L) “Project” means a project involving a highway improvement, as defined in 25
s. 84.06 (1) (am).
(m) “Qualified responsible bidder” means a design-builder responding to a 2
request for qualifications and that is certified by the technical review committee.
(n) “Responsive cost proposal” means a proposal that clearly identifies the costs 4
of all services to be performed by the qualified responsible bidder, including all 5
related fees, wages, and equipment and material costs.
(o) “Responsive technical proposal” means a proposal that clearly 7
demonstrates a qualified responsible bidder's understanding of the design, 8
engineering, and construction services to be performed and clearly describes the 9
bidder's approach to the project.
(p) “Technical review committee” means the committee appointed under sub. 11
(q) “Value engineering change” means a proposal that provides for a product 13
of equal or improved quality to the product required by the department and that will 14
reduce the project cost, improve safety, or decrease the time to complete the project.
15(2) Design-build projects
. (a) The department shall administer a pilot 16
program under which not more than 6 contracts are awarded for design-build 17
projects to be completed no later than December 31, 2025. The director may not 18
designate a project as a design-build project unless the department is able to clearly 19
define the scope of work.
(b) The department may not expend more than $250,000,000 for 6 design-build 21
contracts designated as follows:
1. One low bid design-build contract for a project with an estimated value of 23
not less than $10,000,000 and not more than $50,000,000.
2. One best value design-build contract for a project with an estimated value 25
of not less than $50,000,000 and not more than $150,000,000.
3. One fixed price variable scope design-build contract with an estimated value 2
of not less than $50,000,000 and not more than $150,000,000.
4. Three contracts designated by the director with a total estimated value of not 4
more than $200,000,000. The department may enter into a low bid design-build 5
contract, best value design-build contract or a fixed price variable scope 6
design-build contract under this subdivision.
(c) For each project designated as a design-build project under par. (a), the 8
office shall prepare a written analysis supporting the office's determination that it 9
is the best interests of the state to make the designation. The written determination 10
and supporting materials are subject to inspection under s. 19.35. The written 11
analysis shall include all of the following:
1. The extent to which the department can adequately define the project 13
requirements in a proposed scope of design and construction.
2. The impact on the projected project schedule and completion date.
3. The impact on the projected cost of the project.
4. The impact on the quality factors of the project.
5. The availability of contractors with experience with design-build projects or 18
other innovative project delivery methods.
6. The capability of the department to manage a design-build project with 20
office employees and design consultants.
7. The capability of the department to oversee a design-build project with a 22
contractor with experience with design-build projects or other innovative project 23
8. The availability of current department employees qualified to perform 25
design and engineering services required for the design-build project.
9. The original character of the product or the services.
10. The statutory authority for the designation of the project as a design-build 3
project and how the project furthers the department's statutory duties.
11. Whether the design-build project must comply with any federal rule or 5
regulation or any U.S. department of transportation requirement and a statement 6
that the design-build project is in compliance.
12. Any other criteria the office determines is necessary.
(d) For each project designated under par. (a), the office shall solicit requests 9
for qualifications, requests for proposals, and cost proposals as provided in this 10
section and, subject to sub. (7) (c) and (d), let each project by contract to a qualified 11
(e) No more than 6 months following the completion of a design-build project 13
designated under this subsection, the office shall prepare a report, with input from 14
the design-builder and the technical review committee, detailing the project, the 15
decision to designate the project as a design-build project, the type of design-build 16
contract let, and recommendations for statutory changes, if any. The office shall 17
provide this report to the joint committee on finance and the senate and assembly 18
standing committees having jurisdiction over transportation matters. The senate 19
and assembly standing committees having jurisdiction over transportation matters 20
shall schedule a hearing on the report not more than 30 days following distribution 21
of the report by the chief clerks of the senate and the assembly. This paragraph does 22
not apply to projects completed after December 31, 2025.
23(3) Technical review committee.
The secretary shall appoint 5 individuals 24
to a technical review committee to evaluate proposals submitted under this section. 25
The committee shall consist of the following:
1. An employee of the department representing a regional office of the 2
department who has at least 5 years of experience in the transportation construction 3
2. Two employees of the department representing the division of the 5
department responsible for transportation project development, each of whom have 6
at least 5 years of experience in the transportation construction industry.
3. One person representing a state association of architectural, engineering, or 8
4. One person representing a state association of transportation construction 10
(b) The secretary may not appoint to the technical review committee any person 12
associated, as defined in s. 19.42 (2), with a design-builder. No person appointed to 13
the technical review committee may review proposals under this section when the 14
proposed project could benefit the appointee or the appointee's immediate family, as 15
defined in s. 19.42 (7).
(c) A person appointed to the technical review committee is an agent of the 17
department under s. 895.46.
(d) Except as otherwise provided in this section, all records of the technical 19
review committee are open to public inspection and copying under s. 19.35 (1).
The office shall solicit design-build proposals in 2 phases. In the first 21
phase, the office shall solicit requests for qualifications under sub. (5) and requests 22
for proposals under sub. (6). The technical review committee shall certify responsible 23
bidders as provided in sub. (5) (c) and shall score technical proposals as provided in 24
sub. (6) (b). In the 2nd phase, the office shall solicit cost proposals and the technical 25
review committee shall evaluate cost proposals as provided in sub. (7).
1(5) Request for qualifications.
(a) The office shall prepare a request for 2
qualifications that includes all of the following:
1. Minimum required qualifications for certification as a qualified bidder, 4
which shall include all of the following:
a. The design and construction experience of the design-builder or member, 6
personnel, and contractors who will manage the design, engineering, and 7
construction aspects of the project. The office may not require a level of experience 8
that will unreasonably restrict competition.
b. A requirement that the design-builder or member employ an individual who 10
has no fewer than 5 years of experience in highway construction specific to highway 11
improvement projects in this state.
c. A requirement that the design-builder or member be a design professional 13
or will employ or contract with a design professional.
d. A sworn statement of the design-builder's financial ability, equipment, and 15
experience in design-build project delivery and any other information the office 16
determines is necessary to determine a bidder's competency.
2. Minimum required qualifications for certification as a responsible bidder, 18
which shall include all of the following:
a. The design-builder is registered or authorized to do business in this state.
b. The design-builder submits a sworn statement that indicates that it has 21
adequate financial resources to complete the work described in the request for 22
qualifications, taking into account any other work the design-builder is currently 23
under contract to complete.
c. The design-builder is bondable for the term of the proposed contract and is 2
able to obtain a 100 percent performance bond and a separate 100 percent payment 3
d. If the department has previously contracted with the design-builder or a 5
member, the design-builder or member has a record of satisfactorily completing 6
projects. In making this determination, the technical review committee shall 7
consider if the design-builder or the member has completed all contracts in 8
accordance with drawings and specifications, diligently pursued execution of the 9
work and completed contracts according to the time schedule, fulfilled guarantee 10
requirements of contracts, and complied with applicable safety program 11
requirements. The technical review committee may not consider whether a 12
design-builder or member exercised legal rights specified in statute or rule or under 13
a contract with the department.
e. The design-builder or a member is not on a list maintained by the 15
department identifying persons ineligible to bid due to suspension or debarment or 16
on a list that the department of administration maintains for persons who violated 17
statutory provisions or administrative rules relating to construction.
f. The design-builder or a member has been in business for at least 12 months.
g. The design-builder or a member has served as a prime contractor on no fewer 20
than 5 projects administered by the department during the previous 5 calendar 21
h. The design-builder can provide information to the technical review 23
committee upon request about ownership, management, and control of the 24
i. The design-builder or a member has not been debarred from any government 2
contracts and has not been found to have committed tax avoidance or evasion in any 3
jurisdiction in the previous 10 years.
j. The design-builder has not been disciplined under a professional license in 5
any jurisdiction in the previous 10 years.
k. No design professional employed by the design-builder or a member or that 7
the design-builder will contract with has been disciplined in any jurisdiction under 8
a license that is currently in use.
3. Information about bid procedures and the proposed project, including all of 10
a. The type of contract to be awarded.
b. The selection criteria for recommendation of design-builders for phase 2.
c. Project requirements, including a scope of work statement and a schedule.
d. The required completion date of the project.
e. A description of requirements for the technical proposal for the project.
(b) The office shall advertise the request for qualifications by publication of a 17
class 1 notice, as defined in s. 985.07 (1), in the official state newspaper and on the 18
department's Internet site. The office may place similar notices in publications likely 19
to inform potential bidders of the project. The office shall issue a request for 20
qualifications or provide information as to where the request for qualifications may 21
be obtained to any person, without regard to the qualifications of the person. The 22
office shall include in all advertisements under this paragraph the location and scope 23
of work, the amount of bid guarantee required, the date, time, and place of bid or 24
proposal opening, and the date when and place where plans will be available.
(c) The technical review committee shall certify at least 2 but not more than 4 2
design-builders as qualified responsible bidders. If the office does not receive at 3
least 2 responses to the request for qualifications or if the technical review committee 4
certifies only one design-builder as a qualified responsible bidder, the office may 5
re-advertise or cancel the project.
6(6) Request for proposals.
(a) The office shall prepare a request for proposals 7
for each design-build contract that includes all the following:
1. The name, title, address, and telephone numbers of persons to whom 9
questions concerning the proposal should be directed.