1.1                          A bill for an act 
  1.2             relating to public administration; providing for 
  1.3             design-build contracts; providing for exempt rules; 
  1.4             amending Minnesota Statutes 1998, sections 16B.31, 
  1.5             subdivision 1; and 16B.33, subdivisions 1, 2, and by 
  1.6             adding subdivisions; proposing coding for new law in 
  1.7             Minnesota Statutes, chapter 16C. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 16B.31, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [CONSTRUCTION PLANS AND SPECIFICATIONS.] (a)
  1.12  The commissioner shall (1) have plans and specifications 
  1.13  prepared for the construction, alteration, or enlargement of all 
  1.14  state buildings, structures, and other improvements except 
  1.15  highways and bridges, and except for buildings and structures 
  1.16  under the control of the board of trustees of the Minnesota 
  1.17  state colleges and universities; (2) approve those plans and 
  1.18  specifications; (3) advertise for bids and award all contracts 
  1.19  in connection with the improvements; (4) supervise and inspect 
  1.20  all work relating to the improvements; (5) approve all lawful 
  1.21  changes in plans and specifications after the contract for an 
  1.22  improvement is let; and (6) approve estimates for payment.  This 
  1.23  subdivision does not apply to the construction of the zoological 
  1.24  gardens.  
  1.25     (b) The commissioner may use a design-build method of 
  1.26  project development and construction and award a design-build 
  2.1   contract on the basis of qualification-based selection or 
  2.2   design-based selection without bids as provided in section 
  2.3   16C.091. 
  2.4      (c) Paragraph (b) expires August 1, 2003. 
  2.5      Sec. 2.  Minnesota Statutes 1998, section 16B.33, 
  2.6   subdivision 1, is amended to read: 
  2.7      Subdivision 1.  [DEFINITIONS.] As used in this section, the 
  2.8   following terms have the meanings given them:  
  2.9      (a) "Agency" has the meaning given in section 16B.01.  
  2.10     (b) "Architect" means an architect or landscape architect 
  2.11  registered to practice under sections 326.02 to 326.15.  
  2.12     (c) "Board" means the state designer selection board.  
  2.13     (d) "Designer" means an architect or engineer, or a 
  2.14  partnership, association, or corporation comprised primarily of 
  2.15  architects or engineers or of both architects and engineers.  
  2.16     (e) "Design-builder" means the person that proposes to 
  2.17  design and construct a project governed by the procedures of 
  2.18  section 16C.091. 
  2.19     (f) "Engineer" means an engineer registered to practice 
  2.20  under sections 326.02 to 326.15.  
  2.21     ~~(f)~~ (g) "Person" includes an individual, corporation, 
  2.22  partnership, association, or any other legal entity.  
  2.23     ~~(g)~~ (h) "Primary designer" means the designer who is to 
  2.24  have primary design responsibility for a project, and does not 
  2.25  include designers who are merely consulted by the user agency 
  2.26  and do not have substantial design responsibility, or designers 
  2.27  who will or may be employed or consulted by the primary designer.
  2.28     ~~(h)~~ (i) "Project" means an undertaking to construct, erect, 
  2.29  or remodel a building by or for the state or an agency.  
  2.30     ~~(i)~~ (j) "User agency" means the agency undertaking a 
  2.31  specific project.  
  2.32     Sec. 3.  Minnesota Statutes 1998, section 16B.33, 
  2.33  subdivision 2, is amended to read: 
  2.34     Subd. 2.  [ORGANIZATION OF BOARD.] (a) [MEMBERSHIP.] The 
  2.35  state designer selection board consists of five individuals, the 
  2.36  majority of whom must be Minnesota residents.  Each of the 
  3.1   following ~~three~~ four organizations shall nominate one individual 
  3.2   whose name and qualifications shall be submitted to the 
  3.3   commissioner of administration for consideration:  the 
  3.4   consulting engineers council of Minnesota after consultation 
  3.5   with other professional engineering societies in the state; the 
  3.6   AIA Minnesota ~~society of architects~~; the Minnesota chapter of 
  3.7   the Associated General Contractors, after consultation with 
  3.8   other commercial contractor associations in the state, and the 
  3.9   Minnesota board of the arts.  The commissioner may appoint 
  3.10  the ~~three~~ four named individuals to the board but may reject a 
  3.11  nominated individual and request another nomination.  The 
  3.12  remaining ~~two members~~ member shall also be appointed by the 
  3.13  commissioner.  
  3.14     (b) [NONVOTING MEMBERS.] In addition to the five members of 
  3.15  the board, ~~two~~ one nonvoting ~~members~~ member shall participate in 
  3.16  the interviewing and selection of designers pursuant to this 
  3.17  section and design-builders pursuant to section 16C.091.  One 
  3.18  shall be a representative of the commissioner and shall 
  3.19  participate in the interviewing and selection of designers for 
  3.20  all projects.  The other shall be a representative of the user 
  3.21  agency, who shall participate in the interviewing and selection 
  3.22  of the designers for the project being undertaken by the user 
  3.23  agency.  The commissioner shall appoint the representative of 
  3.24  the user agency in consultation with the user agency.  
  3.25     (c) [TERMS; COMPENSATION; REMOVAL; VACANCIES.] The 
  3.26  membership terms, compensation, removal of members, and filling 
  3.27  of vacancies on the board are as provided in section 15.0575.  
  3.28  No individual may serve for more than two consecutive terms.  
  3.29     (d) [OFFICERS, RULES.] At its first meeting, the board 
  3.30  shall elect a voting member of the board as chair.  The board 
  3.31  shall also elect other officers necessary for the conduct of its 
  3.32  affairs.  The board shall adopt rules governing its operations 
  3.33  and the conduct of its meetings.  The rules shall provide for 
  3.34  the terms of the chair and other officers.  
  3.35     (e) [MEETINGS.] The board shall meet as often as is 
  3.36  necessary, not less than twice annually, in order to act 
  4.1   expeditiously on requests submitted to it for selection of 
  4.2   primary designers.  
  4.3      (f) [OFFICE, STAFF, RECORDS.] The department of 
  4.4   administration shall provide the board with suitable quarters to 
  4.5   maintain an office, hold meetings, and keep records.  The 
  4.6   commissioner shall designate an employee of the department of 
  4.7   administration to serve as executive secretary to the board and 
  4.8   shall furnish a secretarial staff to the board as necessary for 
  4.9   the expeditious conduct of the board's duties and 
  4.10  responsibilities.  
  4.11     Sec. 4.  Minnesota Statutes 1998, section 16B.33, is 
  4.12  amended by adding a subdivision to read: 
  4.13     Subd. 5.  [DESIGN-BUILDER SELECTION PROCESS.] The board 
  4.14  shall select design-builders pursuant to section 16C.091.  The 
  4.15  board may not select a design-builder in which a member of the 
  4.16  designer selection board has a current financial interest. 
  4.17     Sec. 5.  Minnesota Statutes 1998, section 16B.33, is 
  4.18  amended by adding a subdivision to read: 
  4.19     Subd. 6.  [EXPIRATION.] The amendments to this section made 
  4.20  by this act expire August 1, 2003. 
  4.21     Sec. 6.  [16C.091] [DESIGN-BUILD CONTRACTS.] 
  4.22     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  4.23  section, the following terms have the meanings given them, 
  4.24  unless the context clearly indicates otherwise. 
  4.25     (b) "Acceptance" means a formal resolution of the 
  4.26  commissioner authorizing the execution of a design-build 
  4.27  contract. 
  4.28     (c) "Board" means the designer selection board, as 
  4.29  described in section 16B.33. 
  4.30     (d) "Capitol area architectural and planning board" means 
  4.31  the board established to govern the capitol area under section 
  4.32  15.50. 
  4.33     (e) "Commissioner" means the commissioner of administration.
  4.34     (f) "Design-build contract" means a state contract between 
  4.35  an agency and a design-builder to furnish the architectural, 
  4.36  engineering, and related design services as well as the labor, 
  5.1   materials, supplies, equipment, and construction services for a 
  5.2   project.  A design-build contract may be conditioned upon later 
  5.3   refinements in scope and price, and may permit the agency to 
  5.4   make changes in the scope of the project without invalidating 
  5.5   the design-build contract. 
  5.6      (g) "Design-builder" means the person that proposes to 
  5.7   design and build a project governed by the procedures of this 
  5.8   section. 
  5.9      (h) "Design criteria package" means a performance-oriented 
  5.10  description of the budget, program and site for the project, 
  5.11  containing sufficient information to permit design-build firms 
  5.12  to prepare a response to the request for proposals.  The design 
  5.13  criteria package must specify performance-based criteria for the 
  5.14  project and: 
  5.15     (1) for a qualification-based selection, must include 
  5.16  sufficient information to satisfy the predesign requirement of 
  5.17  section 16B.335 and may state the range of fees the state 
  5.18  proposes to pay the design-builder; and 
  5.19     (2) for a design-based selection process, must include the 
  5.20  legal description of the site; survey, soil, and environmental 
  5.21  information concerning the site; interior space requirements, 
  5.22  including adjacency diagrams; material quality standards; 
  5.23  conceptual design criteria; cost or budget estimates; design and 
  5.24  construction schedules; site development requirements; 
  5.25  provisions for utilities; stormwater retention and disposal; and 
  5.26  parking requirements applicable to the project and any other 
  5.27  information required to adequately describe the project. 
  5.28     (i) "Design criteria professional" means a person who 
  5.29  holds, or employs individuals who hold, the license or licenses 
  5.30  under chapter 326 that would be required to design the 
  5.31  design-build project and who is employed by or under contract to 
  5.32  the commissioner to provide professional architecture and 
  5.33  engineering services in connection with the preparation of the 
  5.34  design criteria package. 
  5.35     (j) "Design proposal" means the phase-two proposal to be 
  5.36  submitted by a design-builder in a design-based selection 
  6.1   process, which includes the building and site design, design and 
  6.2   construction schedule, and the construction cost, in such detail 
  6.3   as the board may require in the request for proposals. 
  6.4      (k) "Person" means an individual, partnership, joint 
  6.5   venture, corporation, professional corporation, business 
  6.6   association, or any other legal entity. 
  6.7      (l) "Project" means an undertaking to design, construct, 
  6.8   erect, or remodel a building by or for the state or an agency 
  6.9   under the supervision and control of the commissioner pursuant 
  6.10  to section 16B.30. 
  6.11     (m) "Proposal" means an offer by a design-builder to enter 
  6.12  into a design-build contract for a project in response to a 
  6.13  request for proposals, including a phase-one or phase-two 
  6.14  proposal pursuant to subdivisions 8, 9, and 10. 
  6.15     (n) "Request for proposals" means the document or 
  6.16  publication through which the commissioner solicits proposals 
  6.17  for a design-build contract. 
  6.18     Subd. 2.  [AUTHORITY.] (a) Notwithstanding section 16C.06, 
  6.19  the commissioner may solicit and award a design-build contract 
  6.20  on the basis of a qualification-based or design-based selection 
  6.21  process as described in subdivisions 9 and 10, without 
  6.22  competitive bids if the commissioner meets the conditions in 
  6.23  paragraphs (b) to (g). 
  6.24     (b) Pursuant to section 16B.31, subdivision 4, if the 
  6.25  project is within the capitol area as defined in section 15.50, 
  6.26  the project shall comply with section 15.50, subdivision 2, 
  6.27  paragraphs (c), (d), and (e). 
  6.28     (c) The commissioner shall adopt exempt rules under section 
  6.29  14.386 establishing procedures consistent with this section for 
  6.30  the solicitation and award of design-build contracts.  
  6.31  Notwithstanding section 14.386, paragraph (b), the rules do not 
  6.32  expire. 
  6.33     (d) The commissioner shall, for each project for which the 
  6.34  commissioner intends to use the design-build method, make a 
  6.35  written determination that it is in the best interest of the 
  6.36  state to enter into a design-build contract to complete the 
  7.1   project.  
  7.2      (e) If the project is within the capitol area as defined in 
  7.3   section 15.50, and if the design selection process does not 
  7.4   adhere to section 16B.31, subdivision 4, then the project shall 
  7.5   comply with paragraphs (c) and (d) and receive periodic review 
  7.6   and final approval of the capitol area architectural and 
  7.7   planning board. 
  7.8      (f) The board shall not solicit phase-two proposals, as 
  7.9   described in subdivision 7, unless it receives phase-one 
  7.10  proposals, as described in subdivision 7, from at least three 
  7.11  qualified design-builders.  If the board receives fewer than 
  7.12  three phase-one proposals from qualified design-builders, the 
  7.13  commissioner shall either ask the board to revise the request 
  7.14  for proposals and solicit new proposals or request selection of 
  7.15  a designer pursuant to section 16B.33 and proceed with 
  7.16  competitive bidding pursuant to section 16C.06. 
  7.17     (g) For all design-based selection design-build projects, 
  7.18  the commissioner shall award a stipend to each design-builder 
  7.19  who submits a phase-two proposal, as described in subdivision 7, 
  7.20  in an amount determined by the board, but not less than one 
  7.21  percent of the construction budget for the project.  The stipend 
  7.22  paid to the design-builder selected to complete the project 
  7.23  shall be applied to the design-build contract. 
  7.24     Subd. 3.  [RULES.] The commissioner shall adopt exempt 
  7.25  rules under section 14.386 consistent with this section for the 
  7.26  award of design-build contracts.  Notwithstanding section 
  7.27  14.386, paragraph (b), the rules do not expire.  The rules shall 
  7.28  include, at a minimum, procedures governing the following: 
  7.29     (1) preparing requests for proposals, including procedures 
  7.30  for determining the appropriate content of each request for 
  7.31  proposal; 
  7.32     (2) standards to be used to qualify or prequalify 
  7.33  design-builders; 
  7.34     (3) preparing and submitting proposals; 
  7.35     (4) evaluating proposals; 
  7.36     (5) negotiations between the board or commissioner and 
  8.1   those submitting proposals prior to the acceptance of a proposal 
  8.2   if negotiations are contemplated, including safeguards to 
  8.3   preserve confidential information and proprietary information 
  8.4   supplied by those submitting proposals; 
  8.5      (6) awarding and executing design-build contracts; and 
  8.6      (7) acting on formal protests relating to the solicitation 
  8.7   of proposals or award of design-build contracts. 
  8.8      Subd. 4.  [LICENSING REQUIREMENTS.] (a) Each design-builder 
  8.9   shall be, employ, or have as a partner, member, coventurer, or 
  8.10  subcontractor, persons duly licensed and registered to provide 
  8.11  the services required to complete the project and do business in 
  8.12  this state. 
  8.13     (b) A design-builder may contract with the commissioner to 
  8.14  provide professional or construction services that the 
  8.15  design-builder is not itself licensed, registered, or qualified 
  8.16  to perform, so long as the design-builder provides such services 
  8.17  through subcontracts with duly licensed, registered, or 
  8.18  otherwise qualified persons in accordance with this section.  
  8.19     (c) Nothing in this section authorizing design-build 
  8.20  contracts is intended to limit or eliminate the responsibility 
  8.21  or liability owed by a professional on a design-build project to 
  8.22  the state or other third parties under existing law. 
  8.23     Subd. 5.  [DEVELOPMENT OF DESIGN CRITERIA PACKAGE.] Each 
  8.24  request for proposals shall contain performance criteria 
  8.25  prepared by a design criteria professional.  The design criteria 
  8.26  professional shall be either an employee of the commissioner or 
  8.27  shall be selected by the board in compliance with section 
  8.28  16B.33.  The commissioner, in consultation with the board, the 
  8.29  agency, and the design criteria professional, shall determine 
  8.30  the scope and level of detail required for the design criteria 
  8.31  package.  If the project is within the capitol area as defined 
  8.32  in section 15.50, and if the design selection process does not 
  8.33  adhere to section 16B.31, subdivision 4, the commissioner shall 
  8.34  also consult with the capitol area architectural and planning 
  8.35  board to determine the scope and level of detail required for 
  8.36  the design criteria package. 
  9.1      Subd. 6.  [SOLICITATION OF PROPOSALS.] (a) A request for 
  9.2   proposals shall be prepared for each design-build contract 
  9.3   soliciting design-builders to respond in two phases pursuant to 
  9.4   subdivision 7.  A request for proposals shall contain, at a 
  9.5   minimum, the following elements: 
  9.6      (1) the identity of the agency for which the project will 
  9.7   be built and that will award the design-build contract; 
  9.8      (2) procedures for submitting proposals, the criteria for 
  9.9   evaluation of proposals and their relative weight, and the 
  9.10  procedures for making awards, including a reference to the 
  9.11  requirements of this section and the rules of the commissioner; 
  9.12     (3) the proposed terms and conditions for the design-build 
  9.13  contract; 
  9.14     (4) the design criteria package; 
  9.15     (5) the qualifications the design-builder will be required 
  9.16  to have; 
  9.17     (6) a schedule for commencement and completion of the 
  9.18  project; 
  9.19     (7) budget limits for the project; 
  9.20     (8) affirmative action, disadvantaged business, small 
  9.21  business, or set-aside goals or requirements for the 
  9.22  design-build contract, if any; 
  9.23     (9) requirements for performance bonds, payment bonds, and 
  9.24  insurance; 
  9.25     (10) for a design-based selection process, a description of 
  9.26  the drawings, specifications, or other submittals to be 
  9.27  submitted with the design proposal, with guidance as to the form 
  9.28  and level of completeness of the drawings, specifications, or 
  9.29  submittals that will be acceptable and the stipend to be paid to 
  9.30  the three design-builders who are selected to submit phase-two 
  9.31  proposals; and 
  9.32     (11) any other information that the commissioner or board 
  9.33  in its discretion chooses to supply, including without 
  9.34  limitation, surveys, soils reports, drawings or models of 
  9.35  existing structures, environmental studies, photographs, or 
  9.36  references to public records. 
 10.1      (b) Notice of requests for proposals must be advertised in 
 10.2   the same manner in which bids are solicited under section 
 10.3   16C.06, subdivision 2, paragraph (a). 
 10.4      Subd. 7.  [EVALUATION OF PROPOSALS.] (a) The board shall 
 10.5   solicit and evaluate proposals and select a design-builder in 
 10.6   two phases. 
 10.7      (b) In phase one, the board shall evaluate each 
 10.8   design-builder's experience, technical competence, capability to 
 10.9   perform, the past performance of the design-builder and its 
 10.10  employees, and other appropriate facts submitted by it in 
 10.11  response to the request for proposals.  The board shall not 
 10.12  consider cost-related or price-related evaluation factors in 
 10.13  phase one.  The board shall qualify three potential 
 10.14  design-builders for phase two of the selection process. 
 10.15     (c) In phase two, the board shall evaluate design-builders 
 10.16  as described in subdivision 9 for qualification-based selection 
 10.17  or subdivision 10 for design-based selection. 
 10.18     (d) In both phase one and phase two, the board may require 
 10.19  clarifications or further information from design-builders to 
 10.20  ensure conformance of proposals with the design criteria package.
 10.21     (e) If the project is within the capitol area, the capitol 
 10.22  area architecture and planning board shall participate in both 
 10.23  phase-one and phase-two evaluation processes. 
 10.24     Subd. 8.  [ACCEPTANCE OF PROPOSALS.] After obtaining and 
 10.25  evaluating proposals from each design-builder according to the 
 10.26  criteria and procedures set forth in the request for proposals, 
 10.27  the board shall select the proposal it considers most 
 10.28  advantageous to the public.  The commissioner may reject any 
 10.29  proposal, except for the purpose of evading the provisions and 
 10.30  policies of this section.  The commissioner may thereafter 
 10.31  solicit new proposals using the same or different performance 
 10.32  criteria, budget constraints, or qualifications.  No proposal or 
 10.33  design-build contract may be accepted unless the board receives 
 10.34  at least three qualifying phase-two proposals unless the board 
 10.35  determines that there was otherwise adequate competition for the 
 10.36  contract. 
 11.1      Subd. 9.  [QUALIFICATION-BASED SELECTION.] (a) The 
 11.2   requirements of subdivisions 1 to 8 apply to all design-build 
 11.3   contracts.  The minimum requirements in this subdivision apply 
 11.4   only to design-build contracts to be awarded by 
 11.5   qualification-based selection. 
 11.6      (b) The design criteria package for a project to be awarded 
 11.7   by a qualification-based selection process must be in sufficient 
 11.8   detail to allow qualified persons to respond to the request for 
 11.9   proposals with materials that will demonstrate experience and 
 11.10  abilities relevant to the project. 
 11.11     (c) For each proposed project, the board shall evaluate 
 11.12  phase-one proposals consisting of statements of qualifications 
 11.13  and performance data submitted by design-builders regarding the 
 11.14  proposed project. 
 11.15     (d) The board shall solicit phase-two proposals from and 
 11.16  conduct interviews with no fewer than three design-builders 
 11.17  regarding their qualifications, approach to the project, and 
 11.18  ability to furnish the required services.  The board's 
 11.19  requirements for phase-two proposals for the qualification-based 
 11.20  selection process must include written statements of the 
 11.21  design-builder's proposed approach to the design and 
 11.22  construction of the project and may include graphic materials 
 11.23  illustrating the proposed approach to design and construction, 
 11.24  but may not include proposed design solutions or price proposals.
 11.25     (e) The board shall select in order of preference no fewer 
 11.26  than three design-builders deemed to be the most qualified to 
 11.27  perform the required services.  In determining whether a 
 11.28  design-builder is qualified, the board shall consider such 
 11.29  factors as the ability of professional personnel; past 
 11.30  performance; ability to meet time and budget requirements; 
 11.31  location; recent, current, and projected workloads of the 
 11.32  design-builder; and the volume of work previously awarded to 
 11.33  each design-builder by the commissioner, with the object of 
 11.34  effecting an equitable distribution of contracts among qualified 
 11.35  design-builders, provided the distribution does not violate the 
 11.36  principle of selection of the most qualified design-builder. 
 12.1      (f) The commissioner shall negotiate a two-part 
 12.2   design-build contract with the design-builder selected by the 
 12.3   board at compensation which the commissioner determines is fair, 
 12.4   competitive, and reasonable.  The first part shall be a fixed 
 12.5   fee contract for the preliminary design of the project, under 
 12.6   which the design-builder will prepare a written and graphic 
 12.7   description of the project, containing all information 
 12.8   reasonably required to establish a cost and schedule for 
 12.9   completion of the design and construction of the project.  The 
 12.10  second part shall provide for preparation of final plans, 
 12.11  specifications, and construction of the project, with 
 12.12  compensation for design and construction services on the basis 
 12.13  of the actual cost of the work plus a negotiated fee.  The 
 12.14  second part shall also require the design-builder to obtain at 
 12.15  least three competitive bids or proposals from subcontractors 
 12.16  selected by the design-builder in consultation with the 
 12.17  commissioner for each item of work, other than general 
 12.18  conditions work, to be performed by the design-builder. 
 12.19     (g) If the commissioner is unable to negotiate a 
 12.20  satisfactory design-build contract with the design-builder 
 12.21  considered by the board to be the most qualified at a price the 
 12.22  commissioner determines to be fair, competitive, and reasonable, 
 12.23  the commissioner may terminate negotiations with that 
 12.24  design-builder.  The commissioner may then undertake 
 12.25  negotiations with the second most qualified design-builder.  If 
 12.26  the commissioner is unable to negotiate a satisfactory contract 
 12.27  with the second most qualified design-builder, the commissioner 
 12.28  may undertake negotiations with the third most qualified 
 12.29  design-builder. 
 12.30     (h) If the commissioner is unable to negotiate a 
 12.31  satisfactory contract with any of the selected design-builders, 
 12.32  the commissioner may either revise the request for proposals and 
 12.33  solicit new proposals or request selection of a design pursuant 
 12.34  to section 16B.33 and proceed with competitive bidding pursuant 
 12.35  to section 16C.06 
 12.36     Subd. 10.  [DESIGN-BASED SELECTION.] (a) The requirements 
 13.1   of subdivisions 1 to 8 apply to all design-build contracts.  The 
 13.2   minimum requirements in this subdivision apply only to 
 13.3   design-build projects to be awarded by design-based selection. 
 13.4      (b) The design criteria package for a project to be awarded 
 13.5   by a design-based selection process shall be in sufficient 
 13.6   detail to allow qualified persons to submit design proposals in 
 13.7   accordance with the request for proposals, given the nature of 
 13.8   the project and the level of design to be provided in the 
 13.9   proposal. 
 13.10     (c) Design-builders selected to submit phase-two proposals 
 13.11  shall submit design proposals as required by the request for 
 13.12  proposals, consisting of:  
 13.13     (1) preliminary plans and specifications, renderings, and 
 13.14  models as may be required in the request for proposals in 
 13.15  sufficient detail to describe the character, quality, and scope 
 13.16  of the project; 
 13.17     (2) a construction schedule; 
 13.18     (3) the price at which the design-builder will complete the 
 13.19  project if selected; and 
 13.20     (4) other materials the board determines are necessary to 
 13.21  fix the design, schedule, and cost of the project. 
 13.22     (d) Design proposals must be sealed and may not be opened 
 13.23  until expiration of the time established for making proposals as 
 13.24  set forth in the request for proposals. 
 13.25     (e) Design proposals shall identify each person with whom 
 13.26  the design-builder proposes to enter into subcontracts for 
 13.27  primary design and construction obligations under the 
 13.28  design-build contract.  Persons so identified may not be 
 13.29  replaced without the approval of the commissioner, or the award 
 13.30  may be revoked. 
 13.31     (f) Design proposals must establish a cost that will not be 
 13.32  exceeded if the design proposal is accepted without change.  
 13.33  After a design proposal is accepted, the maximum cost in the 
 13.34  design proposal may be converted to fixed prices by negotiated 
 13.35  agreement between the commissioner and the design-builder.  The 
 13.36  stipend paid to the design-builder pursuant to subdivision 2, 
 14.1   paragraph (f), shall be applied to the design-build contract. 
 14.2      (g) Design-builders shall not be required to submit 
 14.3   detailed architectural or engineering design or construction 
 14.4   documents as part of the proposal. 
 14.5      (h) The commissioner may require each design-builder to 
 14.6   submit with its phase-two design-based proposal a cash deposit, 
 14.7   letter of credit, or bid bond not to exceed five percent of the 
 14.8   maximum cost of the design-build contract, as established by the 
 14.9   proposal.  The deposit or bond shall be forfeited if the 
 14.10  proposal is accepted but the design-builder fails to execute the 
 14.11  design-builder contract. 
 14.12     (i) The board shall accept the proposal that best meets all 
 14.13  requirements of the design criteria package, considering the 
 14.14  competence and qualifications of the design-builder, the 
 14.15  design-builder's ability to meet schedules, and the feasibility 
 14.16  of implementing the project as proposed, and that provides the 
 14.17  state with the best value, but the board shall not be required 
 14.18  to select the lowest cost proposal. 
 14.19     Subd. 11.  [EXPIRATION.] This section expires August 1, 
 14.20  2003. 
 14.21     Sec. 7.  [EFFECTIVE DATE.] 
 14.22     Sections 1 to 6 are effective on the day following final 
 14.23  enactment.