TITLE 1.ADMINISTRATION

Part 5. GENERAL SERVICES COMMISSION

Chapter 123. FACILITIES CONSTRUCTION AND SPACE MANAGEMENT DIVISION

The General Services Commission proposes the repeal of Chapter 123--Facilities Construction and Space Management Division; Subchapter A--Capitol Area Development Program, §§123.1-123.3; Subchapter B--Building Construction Administration, §§123.11-123.21 and §123.23; and Subchapter C, §§123,31-123.34 concerning the Facilities Construction and Space Management Division. The repeal is proposed in order to propose new Title 1, TAC, Chapter 123 which contains language in accordance with the Texas Government Code, Title 10, Subtitle D, Chapter 2166.

John Davenport, Director, FCSMD, has determined for the first five-year period the repeal is in effect, there will be no adverse effect to state or local government as a result of enforcing the repeal.

John Davenport, Director, FCSMD, also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be the deletion of obsolete language. There is no anticipated economic cost to persons required to comply with the repeal as proposed. There will be no effect on small businesses.

Comments on the proposal may be submitted to Ann Dillon, General Counsel, General Services Commission, P.O. Box 13047, Austin, Texas, 78711-3047. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register .

Subchapter A. CAPITOL AREA DEVELOPMENT PROGRAM

1 TAC §§123.1-123.3

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the General Services Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Government Code Title 10, Subtitle D, Chapter 2166, §2166.062 , which provides the General Services Commission with the authority to promulgate rules consistent with the code.

The following code is affected by the repeals: Government Code, Title 10, Subtitle D, Chapter 2166.

§123.1.Property Acquisition, General.

§123.2.Property Acquisition Procedure, Condemnation.

§123.3.Property Acquisition, Closing Procedures.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 26, 2000.

TRD-200003803

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3960


Subchapter B. BUILDING CONSTRUCTION ADMINISTRATION

1 TAC §§123.11-123.21, 123.23

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the General Services Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Government Code, Title 10, Subtitle D, Chapter 2166, §2166.062 , which provides the General Services Commission with the authority to promulgate rules consistent with the code.

The following code is affected by the repeal: Government Code, Title 10, Subtitle D, Chapter 2166.

§123.11.General Project Responsibility.

§123.12.Project Analysis.

§123.13.Construction Project.

§123.14.Qualification of Architect/Engineer for Professional Services.

§123.15.Selection of Architect/Engineer for Professional Services.

§123.16.Contracts with Architects/Engineers.

§123.17.Qualification of Contractor to Bid Construction Projects.

§123.18.Bidding Procedures.

§123.19.Contract Award.

§123.20.Construction Contract Administration.

§123.21.State of Texas Uniform General Conditions.

§123.23.Small Contractor Participation Assistance Program.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 26, 2000.

TRD-200003804

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3960


Subchapter C. PREVAILING WAGE RATE DETERMINATION

1 TAC §§123.31-123.34

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the General Services Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Government Code, Title 10, Subtitle D, Chapter 2166, §2166.062 , which provides the General Services Commission with the authority to promulgate rules consistent with the code.

The following code is affected by the repeal: Government Code, Title 10, Subtitle D, Chapter 2166.

§123.31.Prevailing Wage Rate.

§123.32.Data Gathering Procedures.

§123.33.Ascertaining Prevailing Wage Rates.

§123.34.Use of Determination.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 26, 2000.

TRD-200003805

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3960


Chapter 123. FACILITIES CONSTRUCTION AND SPACE MANAGEMENT DIVISION

The General Services Commission proposes new Chapter 123--Facilities Construction and Space Management Division; Subchapter A--General Matters, §123.1 and §123.2; Subchapter B--Real Property Acquisition, §123.12 and §123.13; Subchapter C--Construction Project Administration, §§123.23-123.33; and Subchapter D--Wage Rates, §123.43 and §123.44. The new rules are being proposed as a result of the rule review process mandated by Texas Government Code, §2001.039 (relating to Agency Review of Existing Rules). The new rules concern the Facilities Construction and Space Management Division ("FCSMD") and are proposed in order to bring all rules governing the division's activities into accordance with Texas Government Code, Title 10, Subtitle D, Chapter 2166.

John Davenport, Director, FCSMD, has determined for the first five-year period the rules are in effect, there will be no adverse effect to state or local government as a result of enforcing these rules.

John Davenport, Director, FCSMD, also has determined that for each year of the first five years the new rules are in effect the public benefit anticipated as a result of enforcing the rules will be updated language and more efficient agency processes. There is no anticipated economic cost to persons required to comply with the new Chapter as proposed. There will be no effect on small businesses.

Comments on the proposals may be submitted to Ann Dillon, General Counsel, General Services Commission, P.O. Box 13047, Austin, Texas, 78711-3047. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register .

Subchapter A. GENERAL MATTERS

1 TAC §123.1, §123.2

The new sections are proposed under the Government Code, Title 10, Subtitle D, Chapter 2166, §2166.062, which provides the General Services Commission with the authority to promulgate rules consistent with the code.

The following code is affected by the new sections: Government Code, Title 10, Subtitle D, Chapter 2166.

§123.1.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Biennium--The twenty-four month budget authorization period for state government. Each biennium commences September 1 of odd-numbered years and expires August 31 twenty-four months thereafter.

(2)

Commission--The six member board of the General Services Commission of the State of Texas, or its successor organization.

(3)

Contractor's Qualification Form--The GSC provided document which contractors must complete and return to GSC in order to be considered for a construction contract award. The form requests information concerning the contractor's type of organization, names of officers or principals, type of work performed, work experience, financial condition, bonding capacity, and financial and construction client references.

(4)

Cost of Services--The costs incurred by GSC in providing construction project administration services, including project management, professional inspection, staff time, prior project analysis cost, travel expense, the estimated cost of minor and incidental materials used in pursuit of a project, and may include an overhead rate to cover employee benefit costs.

(5)

Design Professional--Persons licensed by the State of Texas to practice architecture in accordance with Texas Civil Statutes, Article 249a (relating to Architects) or engineering in accordance with Texas Civil Statutes, Article 3271a (relating to the Texas Engineering Practice Act).

(6)

Facilities Construction and Space Management Division (FCSMD)--The GSC division responsible for administration of construction projects under the commission's jurisdiction, and such other projects that the commission has agreed to manage.

(7)

GSC--The General Services Commission for the State of Texas.

(8)

Notice to Proceed--A GSC written order issued to a general contractor under contract on a project which establishes the start and completion dates for the contract and the project schedule.

(9)

Planning Fund--A fund administered by FCSMD from which authorized planning expenditures are initially paid.

(10)

Project Analysis--A study done before the legislative appropriation process for a project to develop a reliable estimate of the cost of the project to be used in the appropriations process, and as authorized by Texas Government Code, Title 10, Subtitle D, Chapter 2166, Subchapter D.

(11)

Project--A building construction project that is financed wholly or partly by a specific appropriation, a bond issue or federal money. The term includes the construction of:

(A)

a building, structure or appurtenant facility or utility, including the acquisition and installation or original equipment and original furnishings; and

(B)

an addition to, alteration, rehabilitation or repair of, an existing building, structure, or appurtenant facility or utility.

(12)

Request Forms--The GSC provided document which using agencies must complete and return to GSC in order to initiate a project for construction. The form requires information regarding source and amount of funds and other information pertinent to managing a project.

(13)

Small Construction Project--A project that has an estimated value of $25,000 or less and requires advance preparation of plans and specifications.

(14)

Using Agency--An instrumentality of the state that occupies and uses a state-owned or state-leased building, or the commission, with respect to a state-owned building maintained by the commission.

(15)

Uniform General Conditions (UGC)--The terms and conditions for state construction projects promulgated in accordance with Texas Government Code, Title 10, Subtitle D, Chapter 2166, Subchapter G.

(16)

Wages--The hourly rate of pay plus payments made to or on behalf of employees for benefits such as health insurance, pension plans, death benefits and vacation pay.

§123.2.Delegation of Authority.

(a)

The commission may act to exercise any power or authority set out in this chapter, or it may delegate such authority to the executive director. The executive director, in exercising delegated authority, may further delegate his authority to another member of the FCSMD staff.

(b)

Procedures for this chapter may be found in FCSMD's Internal Procedures Manual.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 26, 2000.

TRD-200003806

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3960


Subchapter B. REAL PROPERTY ACQUISITION

1 TAC §123.12, §123.13

The new sections are proposed under the Government Code, Title 10, Subtitle D, Chapter 2166, §2166.062 , which provides the General Services Commission with the authority to promulgate rules consistent with the code.

The following code is affected by the new sections: Government Code, Title 10, Subtitle D, Chapter 2166.

§123.12.Land and Real Property Acquisition, Negotiated.

(a)

FCSMD shall solicit offers for land and real property from landowners first through a Request for Offers, when the GSC acts on its own behalf or acts as a purchasing agent for another state agency. Such public solicitations shall include the terms and conditions under which GSC will consider offers received. In the event the Request for Offers is unsuccessful, the GSC may negotiate directly with landowners for the purchase of property. The commission may waive this process under appropriate circumstances.

(b)

Written responses to the Request for Offers to sell from property owners will be evaluated by GSC staff. All final recommendations shall be presented to the commission or purchasing agency for acceptance. All appropriate studies, appraisals and title work shall accompany such recommendations.

(c)

The GSC or the purchasing agency, shall accept offers which are in the best interest of the State of Texas. The GSC and the purchasing agency retain the right to reject any and all offers.

(d)

The GSC or the purchasing agency, after acceptance of a written offer to sell property, is authorized to complete the purchase as follows:

(1)

A real estate contract will be executed by the seller and the GSC stating all specific conditions of the transfer of property, including delivery of draft deeds, acquisition of title policies, conduct of surveys, environmental tests and other such matters, and other details of the individual transaction. A closing on the transaction shall be scheduled at the convenience of the parties.

(2)

The terms and conditions under which the GSC purchases the real property shall be designed to comply with applicable law to protect the interests of the State of Texas and shall be reasonable and prudent under normal business practices.

§123.13.Land and Real Property Acquisition, Condemnation.

(a)

When no agreement on purchase price between the seller and the buyer is reached through negotiations, the GSC may exercise its power of eminent domain.

(b)

At least one appraisal as to fair market value shall be obtained from independent sources and a final offer presented to the seller based on an appraisal.

(c)

The final offer to purchase shall contain a designated acceptance period stated in calendar days.

(d)

If this final offer to purchase is not accepted by the seller within the designated time period, the commission may proceed to make a finding of public purpose for the taking and seek assistance from the office of the Attorney General to proceed with the condemnation action.

(e)

Conduct of the condemnation proceedings shall be in accordance with state law.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 26, 2000.

TRD-200003807

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3960


Subchapter C. CONSTRUCTION PROJECT ADMINISTRATION

1 TAC §§123.23-123.33

The new sections are proposed under the Government Code, Title 10, Subtitle D, Chapter 2166, §2166.062, which provides the General Services Commission with the authority to promulgate rules consistent with the code.

The following code is affected by the new sections: Government Code, Title 10, Subtitle D, Chapter 2166.

§123.23.General Project Responsibility.

(a)

The GSC is responsible for the administration of project analyses and construction projects for all state agencies except as otherwise provided in Texas Government Code, §2166.003 and §2166.004, and other statutes.

(b)

The GSC will act as the owner for the benefit of the using agency and shall provide timely and complete information to the using agency for any pending project for which it is responsible.

(c)

The GSC shall act in the best interests of the State of Texas in administering project contracts for which it is responsible.

(d)

Each construction project administered by the GSC shall bear the cost of services rendered thereon. At the start of a construction project, an estimate of the cost of services provided by the GSC will be provided to the using agency. This estimate may be changed by agreement of the GSC and the using agency.

(e)

The cost of services shall be transferred to GSC upon approval of the total project cost by the using agency. GSC shall use the fees collected to pay for the expenses of performing its services. The executive director is authorized to vary from this schedule based on individual project requirements.

Figure: 1 TAC §123.23(e)

§123.24.Project Analysis Process.

(a)

The using agency is responsible for initiating a project analysis. The using agency shall initiate a project analysis by submitting to the FCSMD a request that a project analysis of a proposed project be prepared. Standard request forms are provided by the FCSMD.

(b)

Requests for project analyses shall be made no later than January 1 of even-numbered years in order to ensure completion in time for submission with an using agency's budget prior to the regular session of the legislature.

(c)

Project analyses may be prepared by the FCSMD staff or by a private design professional selected in accordance with §123.27 of this chapter (relating to the Selection of Design Professionals for Professional Services), particularly §123.27(g), pertaining to use of indefinite quantity contracts for Design Professionals.

(d)

A using agency shall provide the GSC with the following information for inclusion in each project analysis:

(1)

justification for project in a brief and specific form;

(2)

an estimate of annual cost of maintenance including utilities;

(3)

an estimate of the annual cost of operating facility, including staffing;

(4)

feasibility of construction of project in stages, if requested by the GSC;

(5)

if three or more project analyses are requested, the using agency must indicate its priority among the proposed projects;

(6)

an estimate of the cost of equipping and furnishing a completed facility; and

(7)

the program outlining the purpose and scope of the project including space requirements.

(e)

Each project analysis prepared by the FCSMD will include an estimate of all costs to be incurred directly or indirectly by GSC to accomplish a project. This estimate will also include funds necessary to reimburse the planning fund from which the costs to prepare the project analysis are paid.

(f)

Upon completion of a project analysis and before submission with the agency's budget, the using agency must certify in writing that the project analysis fulfills its needs for the project.

(g)

Upon the using agency's acceptance of the project analysis, the FCSMD or the using agency will distribute copies of the project analysis with the agencies' budget.

(h)

The using agency is responsible for preparation of budget requests to the legislature based on the project analysis.

(i)

All design professional fees paid on a project analysis are deducted from the design professional fees paid on a subsequent construction project, provided:

(1)

the design professional on the construction project is the same firm that prepared the project analysis; and

(2)

the construction project is in accordance with that proposed in the project analysis. Should a construction project vary substantially from the project analysis, the amount of prior project analysis fee deducted from the construction project fee will be prorated in accordance with the amount of change to the project, as mutually agreed upon by the using agency, the design professional and the GSC.

§123.25.Construction Project Process.

(a)

Initiation of a construction project.

(1)

The using agency is responsible for initiating a construction project. The using agency may commence the process by submitting a request to initiate work on the project. Request forms are provided by the FCSMD. The using agency must identify the source and amount of funds to be applied to the project. If the funds for the project are not directly appropriated to the GSC, the using agency must execute an interagency agreement with the GSC, which will govern the payment of all services and contracts necessary to accomplish the project.

(2)

Projects must be initiated on or before January 1 of even-numbered years for a contract award to be made within the fiscal year for which appropriated project funds are available. Based upon the size and complexity of a given project, the FCSMD may determine an appropriate schedule to ensure properly prepared bidding documents, bids, and awards.

(3)

If requested by the using agency and acceptable to the GSC, professional design services on new construction and renovations may be performed by the FCSMD.

(4)

Selection of a private firm to provide design services on a project will be in accordance with §123.27 of this chapter (relating to Selection of Design Professionals for Construction Projects).

(5)

If a construction project is supported by a project analysis, the analysis shall be the project program unless the using agency advises that unavoidable changes in project conditions has forced a modification in the analyzed concept.

(6)

If a construction project is not supported by a project analysis, the using agency must cooperate with the FCSMD and the design professional to provide necessary data with which to prepare a project program.

(b)

Provisions for using agency funded projects.

(1)

The FCSMD Director shall designate a project manager to administer all contracts necessary to accomplish the project for construction projects in which the using agency maintains the appropriated funds. A using agency shall appoint a single employee to serve as a contact between the FCSMD and the using agency for all decision-making related to the project when construction project funds are not directly appropriated to the GSC.

(2)

During project development, the using agency shall review and approve each phase of design before the next phase is started, including schematic design, design development, and finished construction drawings and specifications.

(3)

After the using agency's approval of complete construction drawings and specifications, the FCSMD shall have the authority to proceed with solicitation of bids and award of contracts.

(4)

Should the project budget not provide a basis for recommending a contract award, the FCSMD will confer with the using agency to determine whether the scope of the project can be reduced to bring it within the budget.

(5)

Upon receipt of a formal concurrence from the using agency with the FCSMD recommendation and/or acceptable alternate recommendation, the commission will award a contract and FCSMD will proceed with administering the construction project.

(6)

During the construction contract, the FCSMD will recommend all payments to the using agency for final approval and processing. Responsibility for compliance with Texas Government Code, Title 10, Subtitle F, Chapter 2251 (relating to the Payment for Goods and Services), rests with the using agency.

(7)

During tenure of the construction contract, any changes in the scope of the work shall be approved by the using agency before being made a part of the construction contract by the FCSMD.

(8)

Upon completion of construction, a representative of the using agency may attend the owner's final inspection called and conducted by the FCSMD.

(9)

Upon completion of a construction project, the FCSMD will establish the warranty date in compliance with contract documents and release the project to the using agency for occupancy and use. The using agency then assumes responsibility for use and maintenance of the facility.

(10)

During the warranty period on a construction project, the FCSMD is responsible for ensuring that the contractor meets the terms of such warranties.

(c)

Provisions for GSC funded projects.

(1)

For construction projects supported by a direct appropriation to the GSC, the FCSMD director shall designate a project manager to administer all contracts necessary to accomplish the project. The project manager shall inform the using agency of the status of the project. The using agency shall not interfere with the progress of a GSC funded project.

(2)

The GSC shall exercise final decision-making authority over the following steps in the construction project development and implementation process:

(A)

During project development, the FCSMD staff shall review and approve each design phase before next phase is started, including schematic design, design development, and finished construction drawings and specifications.

(B)

The FCSMD shall issue solicitations for bids and prepare awards for construction contracts, subject to commission approval.

(C)

If bid amounts exceed the budget, the GSC shall determine whether the scope of the project can be reduced to bring the project within the budget.

(D)

The FCSMD shall administer the project construction contract.

(E)

During tenure of the construction contract, the FCSMD will make all payments, after review and recommendation by the project manager and the design professional.

(F)

During tenure of the construction contract, any changes in the scope of the work shall be approved by the GSC.

(G)

Upon completion of construction, the FCSMD shall conduct a final inspection.

(H)

Upon completion of a construction project, the FCSMD will establish the warranty date in compliance with contract documents and release the project to the using agency for occupancy and use. The using agency then assumes responsibility for use and maintenance of the facility.

(I)

During the warranty period on a construction project, the FCSMD is responsible for ensuring that the contractor meets the terms of such warranties.

§123.26.Exclusions from Commission Authority.

(a)

Pursuant to the Texas Government Code, §§2166.003(a)(6) and (7), 2166.004 and 2166.063, certain types of repair and rehabilitation projects are not subject to GSC construction administration, or are otherwise excluded from GSC's jurisdiction.

(b)

Applications for a determination that a project is excluded shall be provided to the FCSMD in writing on or before June 1 of each fiscal year. Each application must provide the facts, budget information and method of construction intended by the using agency.

(c)

FCSMD shall only approve exclusion applications which demonstrate compliance with the applicable exclusion provisions of the Texas Government Code, as referenced in subsection (a) of this section. The decision of the FCSMD Director regarding an exclusion application is final.

§123.27.Selection of Design Professionals for Construction Projects.

(a)

Qualification of Design Professionals.

(1)

On or before May 1 of odd-numbered years, the FCSMD shall advertise in the Texas Register, the GSC web site, the Texas Marketplace and such other media generally available to the public, for all interested design professionals to register with the GSC for the following biennium.

(2)

Registration with the GSC will be accomplished by filling out a questionnaire, either in writing or electronically, and submitting it on or before July 1 of odd numbered years.

(b)

Selection process for non-small construction project design professionals.

(1)

Selection of design professionals for prime design (non-small construction projects) assignments shall be in accordance with Texas Government Code, §§2166.202-2166.204, and this section.

(2)

The steps in the selection process are as follows, unless an emergency exists under subsection (d) of this section:

(A)

A preliminary technical review committee will be formed consisting of at least three commission staff architects or engineers who are knowledgeable about the nature, scope, and location of the project.

(i)

The preliminary technical review committee will use the criteria from the project description to formulate a list of design professionals to invite for interviews. Such criteria may include, but are not necessarily limited to:

(I)

project type, size and complexity;

(II)

the ability and capability of the design professional for timeliness, skill, creative ability, technical and professional knowledge;

(III)

the history of previous work on comparable construction projects;

(IV)

the current professional service work load and capability of the design professional to perform the work in the required time frame;

(V)

experience with control of budget and schedule;

(VI)

the registration status of persons engaged in the practice of professional architectural or engineering services;

(VII)

and qualifications of the design professional team, including subconsultants and HUBs.

(ii)

The list will be derived from the qualified design professionals with a current GSC registration, or those who respond to advertisements per subsection (a)(1) of this section, or postings on the Texas Marketplace as applicable.

(iii)

The GSC shall determine the number of firms to be interviewed for any project, or combination of projects. The GSC may, at its discretion, interview for similar projects from a single list of firms. The number of firms listed shall vary, based on the project type, size, complexity and number of similar projects being awarded from the list.

(iv)

The GSC goal is for 50% of the listed firms to be certified HUBs. When circumstances do not permit achievement of this goal, documentation concerning the goal shall be made part of the selection file.

(B)

The listed firms shall be notified of the opportunity to interview at least 30 days in advance of scheduled interviews. Those firms interested in an interview shall be responsible to schedule an interview time and date as directed in the notification. Firms failing to schedule interviews as directed shall be rejected from further consideration for the proposed assignments(s). At the interview, each firm will have the opportunity to present information about specific project experience and other qualifications.

(C)

The preliminary technical review committee shall evaluate each interviewed firm according to the criteria developed in accordance with subparagraph (A)(i) of this paragraph. All design professionals that meet or exceed technical qualifications shall be referred to the executive selection committee, described in subparagraph (D) of this paragraph. The preliminary technical review committee shall report its conclusions about all interviewed firms to the executive selection committee.

(D)

The executive selection committee shall consist of the executive director, a member of the preliminary technical review committee, and a representative from executive administration. The executive selection committee will consider the design professionals referred to it and take into consideration the commitment to HUB participation, including the number of HUBs the design professional proposes to use; work load and capacity; cooperation with the GSC on prior work, volume of work previously awarded to the design professional by the GSC. In the interest of giving as many eligible and qualified firms as possible a fair chance to obtain GSC work, GSC may consider prior work for the GSC as a basis for awarding to a different design professional. In the case of identical scores for those design professionals scoring the highest, additional qualifications of the firms will be scored until ties are resolved.

(E)

For projects with an estimated construction cost equal to or more than $2,000,000, the commission shall provide a prioritized list of their selection from the ranked firms and the time frames allowed for negotiation with each firm. The commission reserves the right to accept, modify or change the recommendation received from the executive selection committee. In accordance with the selections made by the commission, the Director of FCSMD shall conduct negotiations with the first selected firm upon the terms and conditions as may be established by the commission for the period of time allowed. In the event a contract is not concluded within the period of time allowed, the director shall cease negotiations with the first firm and commence negotiations with the next firm, and repeat the process as necessary until one of two things happens:

(i)

an agreement for services is reached, or

(ii)

the time for negotiations with the final selected firm expires without an agreement, at which point the selection process concludes and a new selection process commences.

(F)

For projects with an estimated construction cost of less than $2,000,000, the executive selection committee shall select the design professional for a project, subject to successful negotiation of a contract for services. Negotiations shall be conducted by the director of FCSMD under the direction of the executive selection committee. The Director of FCSMD shall conduct negotiations with the first selected firm upon the terms and conditions as may be established by the executive selection committee for the period of time allowed. In the event, a contract is not concluded within the period of time allowed, the director shall cease negotiations with the first firm and commence negotiations with the next firm, and repeat the process as necessary until one of two things happens:

(i)

an agreement for services is reached, or

(ii)

the executive selection committee determines the process has failed to produce a contract, terminates the selection process and/or directs the commencement of another selection process.

(G)

All design professionals participating in interviews will be advised of the outcome of the selection process.

(c)

Selection process for small construction project design professionals. The selection process is the same as set forth in subsection (b) of this section, with the exception that the notice period for interviews is 14 days.

(d)

Emergency Situations. A finding of an emergency situation must be in writing and is subject to the approval of the executive director. Subsections (b) and (c) of this section do not apply in the event of an emergency situation that:

(1)

presents an imminent peril to the public health, safety or welfare;

(2)

presents an imminent peril to property;

(3)

requires expeditious action to prevent a hazard to life, health, safety, welfare or property; or

(4)

requires expeditious action to avoid undue additional cost to the state.

(e)

Non-prime design selections. The GSC shall conduct selections of design professionals for non-prime design work in accordance with Texas Government Code, Chapter 2254, Subchapter A. The GSC reserves the authority to award multiple, indefinite quantity services agreements to design professionals in the disciplines needed by FCSMD.

(f)

Design Professional Contracts.

(1)

The contract will name the project, state the budgeted project cost, state the fees to be paid, and describe the respective responsibilities of the design professional and the GSC.

(2)

Compensation for design professional services shall not exceed the following schedule, except as may be otherwise established by law. The executive director is authorized to vary from this schedule based on individual project requirements.

Figure: 1 TAC §123.27(f)(2)

(3)

The contract may be amended to reflect desirable changes in project scope, responsibility, or compensation at any time upon written consent of both parties.

(4)

The contract shall provide that in the event a change order is issued on a project that is the result of design professional errors, omissions, or mismanagement and the cost of the change order is greater than that which would have reasonably been expected if such item had been properly included in a projects' original plans and specifications, then such additional extra cost of inefficiency shall be borne by the design professional at the discretion of the FCSMD. No payment of design professional fees will be made for work required from the design professional to rectify the error, omission or mismanagement for the GSC.

(g)

The FCSMD may establish indefinite quantity contracts with design professionals and other consultants for non-project work, by issuing a Request for Qualifications.

§123.28.Contractor Qualifications.

(a)

Interested contractors shall submit a contractor's qualification form to the FCSMD in a timely fashion and no later than the date established in the notice to bidders. Forms are available for pick up with bid documents. Incomplete forms shall be rejected.

(b)

Out-of-state contractors may bid state work and may be awarded contracts if the reciprocal bidding requirements of Texas Government Code, §2252.002 are met. Out of state contractors may be required to prove their authority to do business in Texas prior to award.

(c)

Contractor qualification requirements will be prepared for each project to be bid. Information on the contractor's qualifications form and reference checks will be used to determine if a contractor meets the requirements and is qualified to receive an award. The FCSMD decision on contractor qualifications shall be made in writing to the contractor.

§123.29.Bidding Procedures.

(a)

All GSC construction projects are competitively bid, and publicly opened in the office designated by the commission.

(b)

Construction projects with a value over $25,000, are advertised in a newspaper of general circulation, the Texas Register , the Texas Electronic Marketplace, and other publications and electronic bulletin boards as reasonable, necessary or required. Construction projects are advertised for a period of no less than 30 days. Small construction projects are advertised for a period of no less than 14 days.

(c)

Except as may be required by other law, the advertisement for bids shall contain pertinent information on the project, including name and location of project; date, time and place of bid opening; where and how bid documents may be obtained; and how contractor qualification forms may be obtained.

(d)

The bidding documents shall be based on the current Uniform General Conditions in State Construction Contracts, as authorized in Texas Government Code, Chapter 2166, Subchapter G.

(e)

Bidding documents shall contain provisions to protect the state's interest including, but not limited to, bid bonds or their equivalent, and detailed instructions for submission of bids by sealed envelope. Bidding documents shall include the plans and specifications, including all addenda issued thereto. Bidders are held responsible to have given full consideration to the entire bid package when they submit a proposal.

(f)

It is the sole responsibility of bidders to deliver the bid proposal(s) to the GSC at the designated bid receipt location prior to the time they are scheduled to be opened and read. Any bid not received at the designated location or received after the designated time will be returned unopened to the bidder.

§123.30.Construction Contract Award.

(a)

Award of construction contracts will be made by the commission except in cases of emergency outlined in §123.31(c) of this chapter (relating to Emergency Bidding and Awards Procedures). Award will be based upon the lowest and best bid received from a qualified bidder, except as set out in subsection (g) of this section.

(b)

All conditions which bear upon the quality of a bid proposal will be considered when making an award. The commission reserves the right to reject any or all bids.

(c)

Award shall become effective upon the date that a bidder's proposal or any part thereof is formally accepted by the commission.

(d)

Notice of award to the successful bidder shall be in writing and shall state the basis of award.

(e)

Prior to execution of the construction contract, contractor shall furnish required bonds and insurance. FCSMD will review and approve the bonds and insurance. The contractor executed contract forms, in triplicate originals, will be executed by GSC and an original will be returned to the contractor and project architect/engineer. The Notice to Proceed may then be issued.

(f)

Construction contract documents shall consist of the following:

(1)

the contractor's proposal;

(2)

the notice and description of the award;

(3)

the bidding documents;

(4)

all addenda to the plans and specifications issued prior to bid opening.

(5)

all changes in the work made after award of contract.

(g)

Prior to making an award of a construction contract for a major repair or renovation of a structure designated by the Texas Historical Commission as a recorded Texas Historic Landmark, the GSC shall submit copy of the bids received and the bid evaluation to the Texas Historical Commission for a recommendation concerning award. The commission may award the construction contract to a bidder other than the lowest bidder based on the recommendation of the Texas Historical Commission.

§123.31.Emergency Bidding and Award Procedures.

(a)

Emergency Bidding. The FCSMD may issue an advertisement for a bid and let a bid for a period of time less than required by Texas Government Code, §2166.253 and §123.29 of this chapter (relating to Bidding Procedures), when an emergency condition requires expedient action.

(b)

Emergency conditions. Emergency conditions include, but are not limited to:

(1)

preventing undue additional cost to a state agency; or

(2)

preventing or removing a hazard to life or property.

(c)

Emergency award procedures. The executive director, or his designee, is authorized to award construction contracts when conditions as described in subsection (b) of this section are determined to exist.

(d)

Documenting emergency conditions. Each time an emergency is determined to exist, a written statement describing the emergency condition shall be prepared for approval by the executive director. Copies of the document shall be maintained in the project file.

§123.32.Construction Contract Administration.

(a)

Prior to commencement of work on the construction contract, the FCSMD will schedule and hold a preconstruction conference to explain routine administrative procedures and answer any questions about the contract documents, project schedule and other matters of interest to the general contractor.

(b)

No work shall be performed until the FCSMD issues a Notice to Proceed. A contractor performing work prior to the issuance of a Notice to Proceed does so at its risk. The Notice to Proceed shall establish the start date and completion date for the project.

(c)

All activities of a contractor on a project shall be governed by the contract documents.

(d)

Unless expressly modified in the contract documents, procedures followed by the FCSMD in the administration of construction projects shall include the following:

(1)

At start of work, a contractor shall submit to the FCSMD for review a listing of his major subcontractors and material suppliers and the name of his job superintendent.

(2)

At start of work, contractor shall submit to the FCSMD for approval a breakdown of the material and labor costs of the various work items in the contract.

(3)

The FCSMD will review all submittals, shop drawings, and schedules required by the specifications after approval by the design professional.

(4)

The FCSMD will conduct periodic on-site inspections of work in progress as it deems necessary and may assign a full-time inspector to a project if justified by its size and nature. An official owner's final inspection is conducted at the completion of each project.

(5)

Partial payments for work performed are made monthly. Request for payment must be submitted on state construction voucher forms supplied by the FCSMD and must include the project cost breakdown as approved at the start of a project.

(6)

Changes in the work on a construction project are not official until they have been formally approved by the GSC and a written change order has been executed by all parties. The FCSMD will provide necessary forms for documenting all changes in the work.

(7)

Changes in the contract time of a construction project are not official until approved in writing by the GSC. Necessary forms for documenting reasons for time extension requests are provided by the FCSMD.

(8)

Project Inspection may be accomplished by either FCSMD staff or design professionals. The determination of levels and types of inspection necessary to ensure proper construction remains with the GSC.

(9)

After a final inspection has been held and the FCSMD is satisfied that all conditions of the contract have been met, the contractor may submit his request for final payment.

(10)

The contractor must warrant all materials and labor incorporated into a project against failure for a period of one year from date of acceptance of the project by the FCSMD. Extended warranties may be required on specific items of work.

(11)

At the end of the warranty period, a warranty inspection will be held, and failures found which are not attributable to owner misuse or to acts of God beyond the contractor's control shall become his responsibility to correct. It is the contractor's responsibility to make corrections of failures as they occur during the warranty period when brought to his attention.

(12)

A design professional retained for professional services on a construction project is a representative of the GSC and may be the contractor's primary contact with the GSC, if so designated in the construction contract between the GSC and the contractor.

§123.33.Small Contractor Participation Assistance Program.

(a)

The GSC operates a Small Contractor Participation Assistance Program as set forth in Texas Government Code, §2166.259 and this section.

(b)

Assistance under the program shall be available on projects with an estimated cost exceeding $20 million. In determining the estimated cost of a project, all work financed under a single bond issue or schedule of appropriated projects may be aggregated.

(c)

To be eligible for assistance under the program, a contractor must meet the definition set out in the Small Business Act, 15 U.S.C. Chapter 14A.

(d)

The GSC has established a technical assistance plan which features:

(1)

Contracted technical assistance to aid small contractors to develop the skills necessary to participate in the program.

(2)

The technical assistance shall include assistance in:

(A)

estimating bids, the bidding process, scheduling, and understanding bid documents;

(B)

reading construction drawings and other documents;

(C)

business accounting, bonds, and bond requirements;

(D)

negotiations with general contractors;

(E)

safety training; and

(F)

any other technical and administrative assistance considered appropriate and necessary given the complexity and scope of the particular public works project.

(3)

In awarding contracts for technical assistance, the commission may use a competitive bid process, a competitive proposal process, or may negotiate directly with service providers.

(e)

Any party awarded a contract to provide technical assistance shall be an independent advisor and not a representative or agent of the GSC. Whenever a technical assistance provider gives advice to a small contractor, the provider shall in writing inform the small contractor that the provider's advice and services are those of the provider and do not represent the position of the GSC on any issue.

(f)

The GSC has established a public outreach plan which features:

(1)

Publication of notices annually in five newspapers of general circulation describing the program and giving the names, addresses, and telephone numbers of the technical and financial assistance providers.

(2)

Publication of the names, addresses, and telephone numbers of the technical and financial assistance providers in each participating project specification together with a description of the program.

(3)

Publication of the names, addresses, and telephone numbers of the technical and financial assistance providers in all advertisements and notices about a project.

(4)

A contract requirement that the general contractor provide to all subcontractors the name, addresses, and telephone numbers of the technical and financial assistance providers.

(g)

For each project under the program, the GSC shall make centralized purchases of:

(1)

workers' compensation insurance coverage;

(2)

employers' liability insurance coverage;

(3)

commercial general and excess liability coverage;

(4)

payment and performance bonds; and

(5)

any other analogous coverage the commission considers necessary and reasonable for the particular project.

(h)

Such centrally purchased coverages shall be incorporated into the contract with the state, and any contractor who enters into a contract with the state under a project covered by the program shall be required to pay premiums and fees as set forth in the central purchase contracts.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 26, 2000.

TRD-200003809

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3960


Subchapter D. WAGE RATES

1 TAC §123.43, §123.44

The new sections are proposed under the Government Code, Title 10, Subtitle D, Chapter 2166, §2166.062 , which provides the General Services Commission with the authority to promulgate rules consistent with the code.

The following code is affected by the new sections: Government Code, Title 10, Subtitle D, Chapter 2166.

§123.43.Wage Rate Surveys.

(a)

The GSC has adopted the prevailing wage rates for the locality as determined by the United States Department of Labor in accordance with the Davis-Bacon Act, if the survey was conducted within three years before the project in question is to be bid.

(b)

Affected workers and contractors and subcontractors are responsible for complying with Texas Government Code, Chapter 2258. The GSC is not a party to arbitration under the Texas Government Code.

§123.44.Withholding of Penalties.

The GSC shall retain the amounts authorized by Texas Government Code, Chapter 2258 upon a finding that prevailing wages have not been paid. The GSC shall use any amounts retained to pay the affected worker in accordance with Texas Government Code, §2258.056.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 26, 2000.

TRD-200003808

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3960