SB374,27 8Section 27. 84.06 (1) (c) of the statutes is created to read:
SB374,22,119 84.06 (1) (c) “Alternative technical concepts" means a proposed alternative to
10the technical requirements provided by the department in the request for proposals
11for an improvement project.
SB374,28 12Section 28. 84.06 (1) (d) of the statutes is created to read:
SB374,22,1613 84.06 (1) (d) “Construction manager-general contractor project" means a
14two-phase improvement project for which all services unrelated to construction are
15provided in the first phase by a contractor who, subject to department approval, also
16provides construction services in the second phase.
SB374,29 17Section 29. 84.06 (1) (e) of the statutes is created to read:
SB374,22,2018 84.06 (1) (e) “Design-build-finance project” means a project for which the
19design and construction services are provided by a single entity and financing is
20provided in whole or in part by the same entity.
SB374,30 21Section 30. 84.06 (1) (f) of the statutes is created to read:
SB374,22,2422 84.06 (1) (f) “Design-build project" means an improvement project for which
23architectural, surveying, engineering, construction, and related services for an
24improvement project are provided by a single contractor.
SB374,31 25Section 31 . 84.06 (1) (g) of the statutes is created to read:
SB374,23,3
184.06 (1) (g) “Fixed-price variable-scope project" means an improvement
2project with a broad scope for which a contractor provides the maximum amount of
3work at a cost not to exceed the price fixed by the department.
SB374,32 4Section 32 . 84.06 (2) (a) of the statutes is amended to read:
SB374,24,25 84.06 (2) (a) All such highway improvements shall be executed by contract
6based on bids unless the department finds that another method as provided in sub.
7(3) or (4) would be more feasible and advantageous. Bids shall be advertised for in
8the manner determined by the department. Except as provided in s. 84.075, the
9contract shall be awarded to the lowest competent and responsible bidder as
10determined by the department. If the bid of the lowest competent bidder is
11determined by the department to be in excess of the estimated reasonable value of
12the work or not in the public interest, all bids may be rejected. The department shall,
13so far as reasonable, follow uniform methods of advertising for bids and may
14prescribe and require uniform forms of bids and contracts. The department shall
15allow bidders to submit alternative technical concepts in their bids by describing the
16process for submission and evaluation of alternative technical concepts in
17advertisements for bids.
Except as provided in par. (b), the secretary shall enter into
18the contract on behalf of the state. Every such contract is exempted from ss. 16.70
19to 16.75, 16.755 to 16.82, 16.87 and 16.89, but ss. 16.528, 16.752, 16.753, and 16.754
20apply to the contract. Any such contract involving an expenditure of $1,000 or more
21shall not be valid until approved by the governor. The secretary may require the
22attorney general to examine any contract and any bond submitted in connection with
23the contract and report on its sufficiency of form and execution. The bond required
24by s. 779.14 (1m) is exempt from approval by the governor and shall be subject to

1approval by the secretary. This subsection also applies to contracts with private
2contractors based on bids for maintenance under s. 84.07.
SB374,33 3Section 33. 84.06 (2m) of the statutes is created to read:
SB374,24,134 84.06 (2m) Alternative project delivery methods. (a) The department may
5designate any improvement project as a design-build, design-build-finance,
6construction manager-general contractor, or fixed-price variable-scope project if
7the department conducts an analysis of the project and makes a written
8determination that it is in the best interests of the state to designate the project. The
9analysis and determination shall include the selected project delivery method's
10impact on the anticipated schedule, completion date, and cost of the project. The
11department shall make every reasonable effort to ensure the improvement project
12is consistent with any regional plan that exists for the area where the improvement
13project will be located.
SB374,24,1514 (b) The department may not solicit proposals for an improvement project under
15this subsection until the department does one of the following:
SB374,24,1916 1. Designates the improvement project as a design-build,
17design-build-finance, construction manager-general contractor, or fixed-price
18variable-scope project in the department's multi-year highway improvement
19program.
SB374,24,2220 2. Issues a notice of intent to receive qualifications that includes a description
21of the improvement project no later than 30 days before issuing the request for
22qualifications.
SB374,24,2523 3. For a single-phase project delivery, issues a notice of intent to receive
24proposals that includes a description of the improvement project no later than 30
25days before issuing the request for proposals.
SB374,25,4
1(c) 1. Subject to subd. 2., the department may solicit proposals for design-build,
2design-build-finance, construction manager-general contractor, and fixed-price
3variable-scope projects by using one or more requests for qualifications,
4short-listing of qualified bidders, requests for proposals, and negotiations.
SB374,25,105 2. Except as provided in subd. 3., the department shall use a two-phase process
6for a design-build project. In the first phase, the department shall evaluate the
7qualifications of the bidders, create a short list of the most highly qualified bidders,
8and request proposals from those bidders. The department may not consider
9projected cost in its creation of the short list. In the second phase, the department
10shall evaluate and select from among the responsive proposals.
SB374,25,1311 3. For a design-build project with an estimated cost of less than $100,000, the
12department may solicit proposals and evaluate and select from among the responsive
13proposals.
SB374,25,2014 (d) If the department issues a request for qualifications under this subsection,
15the department shall evaluate responses based on the evaluation criteria provided
16in the request for qualifications and create a short list of the most qualified bidders.
17The department shall short-list not more than 5 bidders and, unless the secretary
18finds that it is justified by an emergency, not less than 2 bidders. A request for
19qualifications issued under this subsection may contain any of the following
20information:
SB374,25,2121 1. The scope of work for the improvement project.
SB374,25,2422 2. A requirement that the bidder identify certain personnel and describe the
23experience of the personnel and the conditions under which personnel may be
24replaced.
SB374,26,3
13. The evaluation criteria for the qualifications and the relative importance of
2those criteria. The evaluation criteria may address the bidder's technical and
3financial qualifications.
SB374,26,44 4. The department's prequalification, licensing, and registration requirements.
SB374,26,65 5. The maximum number of bidders the department will short-list to submit
6proposals.
SB374,26,77 6. Any other relevant information the department determines is appropriate.
SB374,26,98 (e) 1. A request for proposals issued under this subsection may contain any of
9the following information:
SB374,26,1010 a. The form and amount of required bid security.
SB374,26,1311 b. The terms of the contract, including scope and performance requirements,
12schedule or completion date requirements, subcontractor requirements, payment
13and performance security requirements, and insurance requirements.
SB374,26,1614 c. The requirements for the technical component of the proposal, including a
15description of the level of design, scope and type of renderings, drawings, and
16specifications to be provided in the proposal.
SB374,26,2017 d. The requirements for the price component of the proposal. For a construction
18manager-general contractor project, the department may require the bidder to
19submit a lump sum price for the direct costs to perform the required preconstruction
20services and a percentage markup on those direct costs.
SB374,26,2221 e. The evaluation criteria for the proposals, including technical criteria,
22innovation, and schedule, and the relative importance of those criteria.
SB374,26,2423 f. A process for the department to review and accept alternative technical
24concepts.
SB374,26,2525 g. Requirements regarding the bidder's qualifications.
SB374,27,1
1h. Any other relevant information the department determines is appropriate.
SB374,27,52 2. Prior to receiving proposals, the department may conduct confidential
3meetings and exchange confidential information with bidders to promote
4understanding of the request for proposals, review alternative technical concepts, or
5discuss other issues related to the procurement.
SB374,27,76 3. The department shall establish a due date for proposals that is not more than
7120 days after the date on which the department issues the request for proposals.
SB374,27,158 (f) 1. The secretary shall appoint a technical review committee to review,
9evaluate, score, and rank proposals. The secretary shall appoint to the committee
10not less than 5 individuals, the majority of whom are design professionals, including
11a representative of this state's largest transportation builders group. Each member
12of a technical review committee must certify that no conflict of interest exists
13between the member and the bidders. If the secretary determines a conflict exists
14with a member, the secretary shall remove the member from the committee and
15substitute a replacement member.
SB374,28,216 2. Except as provided in subd. 3., the technical review committee shall evaluate
17and assign a technical score to each proposal. The committee shall award not less
18than 70 percent of available points to each proposal that is responsive to the request
19for proposals, not less than 5 percent of available points to each proposal that uses
20contractors based in this state for not less than 50 percent of the dollar value of the
21contract, and not more than 25 percent of available points based on any criteria in
22the project scope that the department determines is critical to the improvement
23project. The committee shall divide the bid price for a proposal by the technical score
24to produce an overall score for each proposal. Notwithstanding sub. (2) and s.

166.0901, the department shall award the contract to the bidder with the proposal
2with the lowest overall score.
SB374,28,63 3. For a fixed-price variable-scope project, notwithstanding sub. (2) and s.
466.0901, the technical review committee shall award the contract to the bidder that
5proposes the largest volume of work within the price that the department fixed for
6the project.
SB374,28,127 4. If the bidder awarded the contract is unable or unwilling to execute the
8contract, the department may award the contract to the bidder whose proposal has
9the next lowest overall score. For a fixed-price variable-scope project, if the bidder
10awarded the contract is unable or unwilling to execute the contract, the department
11may award the contract to the bidder whose proposal has the next largest volume of
12work within the price that the department fixed for the project.
SB374,28,1513 (g) A contract for a design-build, design-build-finance, construction
14manager-general contractor, or fixed-price variable-scope project may include
15provisions regarding all of the following:
SB374,28,1616 1. Compensation of or payments to the contractor.
SB374,28,1817 2. Grounds for termination of the contract, including the department's right to
18terminate for convenience.
SB374,28,1919 3. Liability for damages and nonperformance.
SB374,28,2120 4. Events of default and the rights and remedies available to the contractor and
21the department in the event of a default or delay.
SB374,28,2322 5. The identification of any technical specifications that the contractor must
23comply with when developing plans or performing construction work.
SB374,28,2424 6. The procedures for review and approval of the contractor's plans.
SB374,28,2525 7. Required performance and payment security.
SB374,29,2
18. Terms and conditions of indemnification and minimum insurance
2requirements.
SB374,29,33 9. Any other terms and conditions the department determines are appropriate.
SB374,29,84 (h) 1. The department shall divide the services provided under a contract for
5a construction manager-general contractor project into one phase that addresses
6preconstruction services and a subsequent phase that addresses the construction of
7the improvement project for a lump sum or a guaranteed maximum price. The price
8may not exceed 9 percent of the independent cost estimate.
SB374,29,109 2. A contract for a construction manager-general contractor project shall
10include provisions regarding all of the following:
SB374,29,1211 a. The provision of and compensation for preconstruction services during the
12first phase of the contract.
SB374,29,1913 b. A requirement that, during the first phase of the contract, the contractor use
14a competitive bidding process to procure subcontracts for at least the minimum
15percentage of construction work specified in the request for proposals. The
16percentage shall be based on an estimated cost for the construction work approved
17by the department prior to the start of the competitive bidding process. The
18contractor may not use subcontracts with its wholly or partially owned subsidiaries,
19parent companies, or affiliates.
SB374,29,2320 c. The process the department and the contractor shall use to determine a lump
21sum or guaranteed maximum price for the construction work, including a
22requirement that the department conduct an independent cost estimate for the
23construction work.
SB374,29,2424 d. Grounds for termination of the contract.
SB374,30,4
13. If a contract for a construction manager-general contractor project is
2terminated for any reason, the department may re-advertise the project using any
3authorized process to complete the project. The department may use any work
4product developed by the contractor to complete the improvement project.
SB374,30,105 (i) 1. The department shall establish procedures for the bidding and selection
6of proposals for design-build, design-build-finance, construction manager-general
7contractor, and fixed-price variable-scope projects that ensure an open,
8transparent, and efficient process. The department shall submit its proposed
9procedures to the governor and to the relevant standing committees of the legislature
10for passive review.
SB374,30,1811 2. The department shall employ or retain a professional engineer licensed in
12this state or a licensed architect, or both, to prepare the scope of a design-build,
13design-build-finance, construction manager-general contractor, or fixed-price
14variable-scope project and assist in the evaluation of the technical portions of
15proposals for those projects. An engineer or architect evaluating proposals may not
16be a member of a team that is bidding on the project. The department may not use
17engineers or architects directly employed by the department for more than 20
18percent of the delivery cost of work required by this subdivision in a calendar year.
SB374,30,2119 3. The department shall allow bidders to submit alternative technical concepts
20in their proposals by describing the process for submission and evaluation of
21alternative technical concepts in the request for proposals for that project.
SB374,30,2222 4. The department may offer to pay a stipend to any of the following:
SB374,30,2423 a. All short-listed bidders, if the department ends the process before the due
24date for proposals.
SB374,31,2
1b. Each unsuccessful bidder that submits a responsive proposal who grants to
2the department the right to use any work product contained in the proposal.
SB374,31,63 5. The department may reject any submitted qualifications or proposals that
4the department determines are nonresponsive. The department shall consider
5nonresponsive any proposal that fails to include the required bid security or fails to
6comply with department requirements relating to using business enterprises.
SB374,31,157 6. The department may use any authorized source of funding and financing to
8compensate a contractor for work and services performed under a contract for a
9design-build, design-build-finance, construction manager-general contractor, or
10fixed-price variable-scope project and may combine federal, state, local, and private
11funds to finance the project. Subject to appropriation by the joint committee on
12finance or the transportation projects commission, the department may obligate and
13make expenditures of funds as and when needed to satisfy its payment obligations
14under a contract for a design-build, design-build-finance, construction
15manager-general contractor, or fixed-price variable-scope project.
SB374,31,1816 7. The department and a contractor may enter into leases, licenses, easements,
17and other grants of property interests that the department determines are necessary
18to deliver an improvement project under this subsection.
SB374,31,2119 8. a. The department shall maintain all written decisions, qualification and
20proposal evaluations, scoring documents, selection evaluations, proposals, and
21procurement documents in a procurement file maintained by the department.
SB374,31,2522 b. A bidder may clearly identify those portions of a proposal or other submission
23that the bidder considers to be trade secrets or confidential, commercial, financial,
24or proprietary information and request that those portions be exempt from
25disclosure.
SB374,32,7
1c. The qualifications, proposals, and other information and documents
2submitted by bidders and the department's evaluation records shall not be subject
3to release or disclosure by the department until execution of the contract. If the
4department ends the process prior to entering into a contract for an improvement
5project, the exemption from release or disclosure shall remain in place until the
6department has entered into a contract for the improvement project or until 5 years
7after ending the initial process, whichever occurs first.
SB374,32,128 (j) The department shall use project delivery methods under this subsection to
9deliver not less than 5 percent of construction costs of improvement projects by June
1030, 2019, not less than 10 percent of construction costs of improvement projects by
11June 30, 2021, and not less than 20 percent of construction costs of improvement
12projects by June 30, 2023.
SB374,32,1613 (k) Beginning with the completion of the first improvement project procured
14under this subsection, the department shall report to the appropriate standing
15committees of the legislature annually for 5 years on the progress of procurements
16and transportation facilities procured under this subsection.
SB374,32,1817 (L) The department may promulgate rules as necessary to implement this
18subsection.
SB374,34 19Section 34 . 84.062 of the statutes is repealed.
SB374,35 20Section 35 . 84.41 (3) of the statutes is repealed.
SB374,36 21Section 36 . 84.54 of the statutes is created to read:
SB374,32,25 2284.54 Transfers of state and federal funding. (1) From the appropriation
23account under s. 20.395 (2) (fx), the department shall transfer to the appropriation
24account under s. 20.395 (3) (cx) $23,829,800 in fiscal year 2018-19, $24,551,700 in
25fiscal year 2019-20, and $23,829,800 in fiscal year 2020-21.
SB374,33,4
1(2) From the appropriation account under s. 20.395 (3) (cq), the department
2shall transfer to the appropriation account under s. 20.395 (2) (fq) $23,829,800 in
3fiscal year 2018-19, $24,551,700 in fiscal year 2019-20, and $23,829,800 in fiscal
4year 2020-21.
SB374,33,8 5(3) In each fiscal year that the department makes the transfers required under
6subs. (1) and (2), the legislative fiscal bureau shall adjust the amounts in the
7schedule for s. 20.395 (2) (fq) and (fx) and (3) (cq) and (cx) to reflect the amounts in
8those appropriation accounts immediately following the transfers.
SB374,37 9Section 37 . 86.35 of the statutes is created to read:
SB374,33,12 1086.35 Approval of municipal governing body required before
11construction of roundabouts.
(1) In this section, “ municipality" means a city,
12village, or town.
SB374,33,17 13(2) After the effective date of this subsection .... [LRB inserts date], no
14roundabout may be constructed as part of any highway project unless the authority
15in charge of the highway project seeks and obtains approval, by a majority vote, for
16the roundabout from the governing body of the municipality where the proposed
17roundabout would be located.
SB374,38 18Section 38 . 103.503 (1) (a) of the statutes is amended to read:
SB374,33,2419 103.503 (1) (a) “Accident" means an incident caused, contributed to, or
20otherwise involving an employee that resulted or could have resulted in death,
21personal injury, or property damage and that occurred while the employee was
22performing the work described in s. 66.0903 (4), 2013 stats., or s. 16.856 (2m), 2015
23stats.,
on a project of public works or while the employee was performing work on a
24public utility project.
SB374,39 25Section 39 . 103.503 (1) (c) of the statutes is amended to read:
SB374,34,4
1103.503 (1) (c) “Contracting agency" means a local governmental unit, as
2defined in s. 66.0903 (1) (d),
or a state agency, as defined in s. 16.856 (1) (h), that has
3contracted for the performance of work on a project of public works or a public utility
4that has contracted for the performance of work on a public utility project.
SB374,40 5Section 40 . 103.503 (1) (e) of the statutes is amended to read:
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