Texas Administrative Code › Title 43 - TRANSPORTATION › Part 1 - TEXAS DEPARTMENT OF TRANSPORTATION › Chapter 27 - TOLL PROJECTS › Subchapter A - COMPREHENSIVE DEVELOPMENT AGREEMENTS › Section 27.7 - Design-Build Contracts

Current through Reg. 49, No. 28; July 12, 2024
(a) Applicability.
				  The department may prequalify a private entity to submit a detailed proposal to
				  provide services under a design-build contract. The department is not required
				  to publish a request for qualifications for a design-build contract, and may
				  enter into a design-build contract based solely on an evaluation of detailed
				  proposals submitted by prequalified private entities in response to a request
				  for proposals. If the department develops a concept for private participation
				  in an eligible design-build project, or proceeds with the further evaluation of
				  an unsolicited proposal for an eligible design-build project, and chooses to
				  prequalify private entities to submit a detailed proposal without publishing a
				  request for qualifications, it will proceed in accordance with the requirements
				  of this section. Each entity comprising a team that intends to submit a
				  detailed proposal must be prequalified or precertified in accordance with the
				  requirements of this section.
(b)
				  Prequalification.
(1) Audited financial
				  qualification of construction, maintenance, and operations providers. Unless
				  waived under subparagraph (B) of this paragraph, to be eligible to propose on a
				  design-build contract as a provider of construction services, maintenance
				  services, or operations services, a potential proposer must be prequalified in
				  accordance with subparagraph (A) of this paragraph.
(A) Requirements.
(i) To be prequalified to propose, either
				  individually or as a member of the proposers' team, as a provider of
				  construction, maintenance, or operations services on a design-build contract, a
				  private entity must:
(I) submit a completed
				  confidential questionnaire to the department's Construction Division in Austin
				  at any time, but at least 120 days prior to the due date for a response to a
				  request for proposals, in a form prescribed by the department, which shall
				  include certain information concerning the proposer's equipment, experience,
				  and financial condition;
(II) have
				  its certified public accountant submit the audited and other financial
				  information required by the current edition of the department's Bulletin Number
				  2, titled "Contractor's Financial Resources";
(III) demonstrate it has the financial
				  capacity to complete, operate, and maintain, as applicable, a specific project.
				  Factors that will be considered in assessing a proposer's financial capacity
				  include:
(-a-) the proposer's current
				  financial strength;
(-b-) the
				  proposer's credit quality;
(-c-)
				  any claims, litigation, or equivalent current or pending against the
				  proposer;
(IV)
				  demonstrate, if it will be the prime provider of construction services under a
				  contract, that it is capable of obtaining payment and performance bonds in the
				  amount of $250 million, or 100% of the construction cost of the project,
				  whichever is less, from a surety rated in the top two categories by two
				  nationally recognized rating agencies or at least A minus (A-) or better and
				  Class VIII or better by A.M. Best and Company, or an alternative form of
				  security in the amount of $250 million, or 100% of the construction cost of the
				  project, whichever is less, in accordance with §
														27.3
				  of this subchapter (relating to General Rules for Private
				  Involvement);
(V) satisfactorily
				  comply with any technical qualification requirements determined by the
				  department to be necessary for a specific project; and
(VI) for the purpose of proposing on
				  federal-aid projects, properly complete the Certification of Eligibility Status
				  form contained in the Confidential Questionnaire.