SB 0620 - Fiscal Note

Fiscal Note - SB 0620 - Allows use of a single contract to design and build state facilities

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2759-03

BILL NO. Perfected SS for SB 620

SUBJECT: Contracts

TYPE: Original

DATE: March 25, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	Unknown to (Unknown)	Unknown to (Unknown)	Unknown to (Unknown)
Total Estimated Net Effect on All State Funds	Unknown to (Unknown)	Unknown to (Unknown)	Unknown to (Unknown)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Transportation, Department of Economic Development, Division of Professional Registration, and Office of Administration, Division of Design and Construction (DDC) assume this proposal would not fiscally impact their agencies.

Oversight assumes that combining the design and construction of a facility into one contract may affect the total cost of the project. Savings could be realized since one "design-builder" is responsible for the total project, and DDC would not have to contract out the design and construction functions separately. However, Oversight further assumes there may be additional costs associated with this proposal, as it requires DDC to pay a stipend to each unsuccessful proposer in return for their rights in the design. Because design-builders may choose to forfeit this fee to retain the rights to their design, the costs for these fees cannot be estimated.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE
Savings due to design-build contracts	Unknown	Unknown	Unknown
Costs - Stipend for rights to designs	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT	Unknown to	Unknown to	Unknown to
ON GENERAL REVENUE	(Unknown)	(Unknown)	(Unknown)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0

FISCAL IMPACT - Small Business

This proposal may affect small businesses as it may decrease the number of businesses capable of bidding on both the design and construction of a facility.

DESCRIPTION

This proposal allows the Division of Design and Construction of the Office of Administration to simultaneously contract for the design and construction of a building. Proposals would be solicited in a three-phase process. Phase I would be the solicitation of qualifications of the design-build team; phase II would be the solicitation of a technical proposal including conceptual design for the project; and phase III would be the proposal of the construction cost. An evaluation team would review the submittals of the proposers and assign points to each proposal in accordance with this legislation. The proposer with the highest total number of points would be awarded the contract. The Division would pay a stipend to all unsuccessful proposers and it would retain all rights to the design. This proposal contains an expiration date of August 28, 2003.

This legislation is not federally mandated, would not duplicate any other program, and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Office of Administration

Division of Design and Construction

Department of Transportation

Department of Economic Development

Division of Professional Registration

Jeanne Jarrett, CPA

Director

March 25, 1998