Analysis by the Legislative Reference Bureau
This bill makes numerous changes to the design-build method that the
Department of Transportation is currently authorized to use for projects.
Under current law, the design and construction of projects are generally two
distinct phases. Under this method, often referred to as “design-bid-build,” DOT has
broad authority to accomplish the design of a project. The construction of a project

must be executed by contract based on bids, with DOT awarding the contract to the
lowest responsible bidder.
Under current law, DOT is also authorized to use 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. Current law
specifies the contents of requests for qualifications and requests for proposals
solicited by DOT for design-build projects.
Under the bill, DOT must award six contracts for design-build projects every
six years. The bill creates requirements for the evaluation of proposals and the
awarding of design-build contracts. Under the bill, DOT must develop a
design-build procurement manual. DOT must also prepare a report for the
transportation projects commission and the legislature evaluating the success of the
design-build program and the Joint Committee on Finance must make a
recommendation as to whether the program should continue.
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:
AB820,1 1Section 1 . 84.062 (1) (f) of the statutes is created to read:
AB820,2,32 84.062 (1) (f) “Design professional” means a person registered under s. 443.03
3or 443.04 or a firm, partnership, or corporation registered under s. 443.08.
AB820,2 4Section 2 . 84.062 (1) (j) of the statutes is created to read:
AB820,2,65 84.062 (1) (j) “Member” means a private legal entity that is a member of a
6consortium or joint venture that is a design-builder.
AB820,3 7Section 3 . 84.062 (1) (k) of the statutes, as created by 2019 Wisconsin Act 9,
8is repealed.
AB820,4 9Section 4 . 84.062 (1) (L) of the statutes is created to read:
AB820,2,1110 84.062 (1) (L) “Project” means a project involving a highway improvement, as
11defined in s. 84.06 (1) (a).
AB820,5 12Section 5 . 84.062 (1) (m) of the statutes, as created by 2019 Wisconsin Act 9,
13is amended to read:
AB820,3,3
184.062 (1) (m) “Qualified responsible bidder” means a design-builder
2responding to a request for qualifications and that is certified by the technical review
3committee
.
AB820,6 4Section 6 . 84.062 (1) (p) of the statutes is created to read:
AB820,3,65 84.062 (1) (p) “Technical review committee” means the committee appointed
6under sub. (3).
AB820,7 7Section 7 . 84.062 (2) of the statutes, as created by 2019 Wisconsin Act 9, is
8renumbered 84.062 (2) (a) and amended to read:
AB820,3,119 84.062 (2) (a) The department shall administer a program for design-build
10projects. The department may not designate a project as a design-build project
11unless the department is able to clearly define the scope of work
.
AB820,8 12Section 8 . 84.062 (2) (b) of the statutes is created to read:
AB820,3,2213 84.062 (2) (b) The department shall award 6 design-build contracts every 6
14years, beginning on the effective date of this paragraph .... [LRB inserts date].
15During each 6-year period, the department shall award at least one low bid
16design-build contract, one best value design-build contract, and one fixed price
17variable scope design-build contact and 3 additional contracts that may be any
18combination of low bid design-build, best value design-build, and fixed price
19variable scope design-build contracts. The combined cost of the 6 design-build
20contracts awarded under this paragraph in each 6-year period may not exceed
21$250,000,000 and the combined cost of all low bid design-build contracts awarded
22under this paragraph in each 6-year period may not exceed $25,000,000.
AB820,9 23Section 9 . 84.062 (2) (c) of the statutes is created to read:
AB820,4,224 84.062 (2) (c) For each project designated under par. (a), the department shall
25solicit requests for qualifications, requests for proposals, and cost proposals as

1provided in this section and, subject to sub. (7) (c) and (d), let each project by contract
2to a qualified responsible bidder.
AB820,10 3Section 10 . 84.062 (2) (d) of the statutes is created to read:
AB820,4,154 84.062 (2) (d) No more than 6 months following the completion of a
5design-build project designated under this subsection, the department shall prepare
6a report, with input from the design-builder and the technical review committee,
7detailing the project, the decision to designate the project as a design-build project,
8the type of design-build contract let, and recommendations for statutory changes,
9if any. The department shall provide this report to the transportation projects
10commission, the joint committee on finance, and the senate and assembly standing
11committees having jurisdiction over transportation matters. The senate and
12assembly standing committees having jurisdiction over transportation matters shall
13schedule a hearing on the report not more than 30 days following distribution of the
14report by the chief clerks of the senate and the assembly. This paragraph does not
15apply to projects awarded after December 31, 2026.
AB820,11 16Section 11 . 84.062 (3) of the statutes is created to read:
AB820,4,1917 84.062 (3) Technical review committee. (a) The secretary shall appoint 5
18individuals to a technical review committee to evaluate proposals submitted under
19this section. The committee shall consist of the following:
AB820,4,2020 1. Three employees of the department.
AB820,4,2421 2. Two individuals who are not employees of the department and who are
22chosen in compliance with a memorandum of understanding entered into by the
23department with a state association of architectural, engineering, or design
24companies and a state association of transportation construction companies.
AB820,5,5
1(b) The secretary may not appoint to the technical review committee any person
2associated, as defined in s. 19.42 (2), with a design-builder. No person appointed to
3the technical review committee may review proposals under this section when the
4proposed project could benefit the appointee or the appointee's immediate family, as
5defined in s. 19.42 (7).
AB820,5,76 (c) A person appointed to the technical review committee is an agent of the
7department under s. 895.46.
AB820,5,98 (d) Except as otherwise provided in this section, all records of the technical
9review committee are open to public inspection and copying under s. 19.35 (1).
AB820,12 10Section 12 . 84.062 (4) of the statutes is created to read:
AB820,5,1711 84.062 (4) Selection. The department shall solicit design-build proposals in
122 phases. In the first phase, the department shall solicit requests for qualifications
13under sub. (5) and requests for proposals under sub. (6). The technical review
14committee shall certify responsible bidders as provided in sub. (5) (c) and shall score
15technical proposals as provided in sub. (6) (b). In the 2nd phase, the department shall
16solicit cost proposals and the technical review committee shall evaluate cost
17proposals as provided in sub. (7).
AB820,13 18Section 13 . 84.062 (5) (a) 1. a. of the statutes, as created by 2019 Wisconsin
19Act 9
, is amended to read:
AB820,5,2320 84.062 (5) (a) 1. a. The design and construction experience of the
21design-builder or member, personnel, and contractors who will manage the design,
22engineering, and construction aspects of the project. The department may not
23require a level of experience that will unreasonably restrict competition.
AB820,14 24Section 14 . 84.062 (5) (a) 2. d. of the statutes, as created by 2019 Wisconsin
25Act 9
, is repealed.
AB820,15
1Section 15. 84.062 (5) (a) 2. f. of the statutes is created to read:
AB820,6,32 84.062 (5) (a) 2. f. The design-builder or a member has been in business for at
3least 12 months.
AB820,16 4Section 16 . 84.062 (5) (a) 2. h. of the statutes, as created by 2019 Wisconsin
5Act 9
, is amended to read:
AB820,6,86 84.062 (5) (a) 2. h. The design-builder can provide information to the technical
7review committee
upon request about ownership, management, and control of the
8design-builder.
AB820,17 9Section 17 . 84.062 (5) (a) 2. i. of the statutes, as created by 2019 Wisconsin Act
109
, is amended to read:
AB820,6,1311 84.062 (5) (a) 2. i. The design-builder or a member has not been debarred from
12any government contracts and has not been found to have committed tax avoidance
13or evasion in any jurisdiction in the previous 10 5 years.
AB820,18 14Section 18 . 84.062 (5) (a) 2. k. of the statutes, as created by 2019 Wisconsin
15Act 9
, is amended to read:
AB820,6,2016 84.062 (5) (a) 2. k. No design professional employed by the design-builder or
17a member or who is assigned to the design-build project and no design professional
18that the design-builder will contract with for the design-build project has been
19disciplined in any jurisdiction in the previous 5 years under a license that is currently
20in use.
AB820,19 21Section 19 . 84.062 (5) (b) of the statutes, as created by 2019 Wisconsin Act 9,
22is amended to read:
AB820,6,2423 84.062 (5) (b) The office department shall advertise the request for
24qualifications.
AB820,20 25Section 20 . 84.062 (5) (c) of the statutes is created to read:
AB820,7,5
184.062 (5) (c) The technical review committee shall certify at least 2 but not
2more than 5 design-builders as qualified responsible bidders. If the department does
3not receive at least 2 responses to the request for qualifications or if the technical
4review committee certifies only one design-builder as a qualified responsible bidder,
5the department may re-advertise or cancel the project.
AB820,21 6Section 21 . 84.062 (5) (d) of the statutes is created to read:
AB820,7,97 84.062 (5) (d) In making determinations under this subsection, the technical
8review committee may not consider whether a design-builder or member exercised
9legal rights specified in statute or rule or under a contract with the department.
AB820,22 10Section 22 . 84.062 (6) (a) 11. of the statutes, as created by 2019 Wisconsin Act
119
, is amended to read:
AB820,7,1212 84.062 (6) (a) 11. Amount of stipend, if any.
AB820,23 13Section 23 . 84.062 (6) (a) 14. of the statutes is created to read:
AB820,7,1714 84.062 (6) (a) 14. A requirement that the design-builder perform not less than
1530 percent of the construction services under the contract with labor provided by
16employees of the design-builder or member and equipment owned or rented by the
17design-builder or member.
AB820,24 18Section 24 . 84.062 (6) (b) of the statutes is created to read:
AB820,7,2119 84.062 (6) (b) The technical review committee shall evaluate each technical
20proposal, which may include a confidential interview, and shall assign points in
21accordance with the request for proposals and subject to all of the following:
AB820,7,2522 1. For a project that will be awarded as either a low bid design-build contract
23or a fixed price variable scope design-build contract, the technical review committee
24shall determine whether technical proposals are responsive to the request for
25proposals without ranking or scoring the proposals.
AB820,8,10
12. For a project that will be awarded as a best value design-build contract, the
2technical review committee shall determine whether technical proposals are
3responsive to the request for proposals and score each responsive technical proposal
4as required by the request for proposals. The technical review committee may award
5not more than 20 percent of the points awarded to a technical proposal based on the
6design-builder's qualifications and ability to design, contract, and deliver the project
7in accordance with any deadline established in the request for proposals. The
8technical review committee may award a technical proposal not less than 25 percent
9and not more than 60 percent of the maximum number of combined points that may
10be awarded to a technical proposal and cost proposal.
AB820,25 11Section 25 . 84.062 (6) (c) of the statutes is created to read:
AB820,8,1512 84.062 (6) (c) The department shall allow design-builders to include
13alternative technical concepts and value engineering changes in their proposals by
14describing the process for submission and evaluation of alternative technical
15concepts and value engineering changes in the request for proposals.
AB820,26 16Section 26 . 84.062 (6) (d) of the statutes is created to read:
AB820,8,2217 84.062 (6) (d) The technical review committee may not consider a proposal
18responsive unless the proposal includes a conceptual design, critical path method,
19bar schedule of the work to be performed or similar schematic, design plans and
20specifications, technical reports, and all other information required by the request
21for proposals. The technical review committee may not consider any price or fee
22included in the technical proposal.
AB820,27 23Section 27 . 84.062 (6) (e) of the statutes is created to read:
AB820,9,224 84.062 (6) (e) The department shall notify the design-builder for each proposal
25that is determined to be responsive under par. (b) that the design-builder may

1submit a cost proposal under par. (7). The department shall reject all proposals that
2are determined to be nonresponsive under par. (b).
AB820,28 3Section 28 . 84.062 (6) (f) of the statutes, as created by 2019 Wisconsin Act 9,
4is renumbered 84.062 (7) (f).
AB820,29 5Section 29 . 84.062 (7) of the statutes is created to read:
AB820,9,106 84.062 (7) Cost proposals. (a) Design-builders notified under sub. (6) (e) may
7submit a cost proposal and the proposal shall include a fixed cost of design,
8engineering, and construction services prepared by a design professional that
9contains all design, engineering, construction, and quality assurance and quality
10control costs of the project.
AB820,9,1611 (b) The technical review committee may open cost proposals only after the
12technical proposals have been reviewed as provided in sub. (6). At the time and place
13specified in the request for proposals, the technical review committee shall open cost
14proposals, read the proposals aloud, and, for a project that will be awarded as a best
15value design-build contract, make public the committee's scoring of the technical
16proposals.
AB820,9,1817 (c) Following a review of cost proposals, the department may issue a notice of
18intent to award a contract, subject to all of the following:
AB820,9,2119 1. For a low bid design-build contract, the contract shall be awarded to the
20qualified responsible bidder that submitted a responsive technical proposal and also
21submitted the lowest responsive cost proposal.
AB820,9,2422 2. For a fixed price variable scope design-build contract, the contract shall be
23awarded to the qualified responsible bidder that submitted a responsive technical
24proposal and that submitted a responsive cost proposal that provides the maximum

1amount of services for the maximum fixed price set by the department or for an
2amount that is less than the maximum fixed price.
AB820,10,143 3. For a best value design-build contract, the contract shall be awarded to the
4qualified responsible bidder with the highest adjusted score, which shall be
5calculated by adding the bidder's technical proposal score to the bidder's cost
6proposal score. The technical review committee shall award the lowest qualified
7responsible bidder the maximum number of points that may be awarded to a cost
8proposal under the request for proposals, but not less than 40 percent and not more
9than 75 percent of the maximum number of combined points that shall be awarded
10to a technical proposal and cost proposal. For each remaining qualified responsible
11bidder, the technical review committee shall calculate the score for the cost proposal
12by reducing the maximum number of points that may be awarded to the cost proposal
13by 1 percent for each percentage point by which the cost proposal exceeds the lowest
14cost proposal.
AB820,10,2315 (d) Following a review of cost proposals, the department may reject all
16proposals. If the department rejects all proposals or does not execute a contract after
17issuing an intent to award a contract under par. (c), the department may reissue the
18request for proposals and allow only the qualified responsible bidders originally
19notified under sub. (6) (e) to submit new proposals. The department shall pay a
20reasonable stipulated fee to each design-builder that provides a responsive but
21unsuccessful proposal in response to the reissued request for proposals. If the
22reissued request for proposals specifies a maximum fixed price, the department may
23not award a stipend to a design-builder whose proposal exceeds that price.
AB820,11,3
1(e) Not less than 5 working days prior to executing a design-build contract, the
2department shall provide notice to each unsuccessful qualified responsible bidder
3that a notice of intent to award a contract has been issued.
AB820,30 4Section 30 . 84.062 (8) of the statutes is created to read:
AB820,11,55 84.062 (8) Contract award. (a) In this subsection:
AB820,11,86 1. “Construction services” means work necessary to construct a project,
7including trucking services and materials purchased regardless of whether the
8materials are installed by the design-builder.
AB820,11,119 2. “Specialty services” means work related to sanitary sewer systems, water
10main systems, staking, electrical, landscaping and erosion control, traffic control,
11signing, pavement marking, fencing, and other work identified by the department.
AB820,11,1612 (b) No later than 10 days following the issuance of a notice of intent to award
13a design-build contract, the department shall verify that the design-builder will
14perform not less than 30 percent of the construction services under the contract with
15labor provided by employees of the design-builder or member and equipment owned
16or rented by the design-builder or member.
AB820,11,1917 (c) The design-builder shall submit to the department in the form prescribed
18by the department documentation of the construction services the design-builder or
19members will perform and the dollar value of the services.
AB820,12,220 (d) The department shall calculate the percentage of total construction services
21identified in the contract to be performed by the design-builder or members by
22subtracting the value of specialty services to be performed from the total contract
23amount and dividing the dollar value of construction services to be performed by the
24design-builder or members by the difference. If the value of construction services
25to be performed by the design-builder or members is less than 30 percent of the value

1of all construction services required under the contract, the department shall cancel
2the contract award.
AB820,31 3Section 31 . 84.062 (11) of the statutes is created to read:
AB820,12,64 84.062 (11) Stipulated fee. (a) The department shall award a stipulated fee
5of not less than three-tenths of 1 percent of the department's estimated cost of design
6and construction as follows:
AB820,12,107 1. To each qualified responsible bidder that provides a responsive but
8unsuccessful proposal when the department issues a notice of intent to award a
9contract. If the request for proposals specifies a maximum fixed price, the
10department may not award a fee to a proposal that exceeds the maximum fixed price.
AB820,12,1211 2. To all qualified responsible bidders that provide a responsive proposal, if the
12department does not issue a notice of intent to award a contract.
AB820,12,1413 3. To all qualified responsible bidders if the department cancels the solicitation
14before the technical review committee reviews technical proposals.
Loading...
Loading...