Design-Build Effectiveness Study: As Required by TEA-21 Section 1307(f)
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Design-Build Effectiveness Study: As Required by TEA-21 Section 1307(f)

Filetype[PDF-2.79 MB]

  • English

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      Final Report
    • Abstract:
      In 1998, the Transportation Equity Act for the 21st Century (TEA-21) became the new authorization legislation for the nation’s surface transportation programs. Included in TEA-21 was Section 1307 (c), which required FHWA to develop and issue regulations describing the Agency’s approval criteria and procedures. The Design-Build Contracting: Final Rule was published in the Federal Register on December 10, 2002 and became effective on January 9, 2003.

      The following lists the most salient parts of FHWA’s Design-Build Contracting Final Rule for consideration by both representatives of transportation agencies and firms interested in proposing on prospective projects using the design-build contracting approach: • Allows but does not require use of design-build contracting approaches; • Permits the use of design-build contracting on both qualified and non-qualified projects, where qualified projects are those over $50 million (or $5 million for Intelligent Transportation Systems (ITS) projects); • Requires completion of the NEPA environmental clearance process prior to the release of the final request for proposals document; • Allows responsive unsuccessful proposers to receive stipends as partial compensation for their proposal development costs; • Eliminates minimum percentage participation by prime contractors on design-build teams; • Allocates various forms of risk based on ability to manage and control these risks; • Encourages consideration of value engineering and life cycle costing; • Permits multiple notices-to-proceed to enable work to proceed on specific project sections when environmental, utility, permit, and right-of-way clearances have been completed for those sections; • Defines requirements for avoiding conflicts of interest in the procurement process; • Allows for public-private partnerships to submit design-build contract proposals under a competitive process, consistent with state and local laws as well as applicable nonprocurement requirements such as Buy America, Davis-Bacon minimum wage, and right-ofway acquisition requirements; and • Suggests using a two-phase selection procedure, consisting of (1) shortlisting qualified teams based on responses (containing technical and qualifications-based information) to a request for qualifications (RFQ), and (2) evaluating technical and price proposals submitted in response to a request for proposal (RFP).

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