1     
PROCUREMENT CODE REVISIONS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Karen Mayne

5     
House Sponsor: Mike K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Utah Procurement Code relating to work site safety programs.
10     Highlighted Provisions:
11          This bill:
12          ▸     includes information about a work site safety program in information that a person
13     submitting a statement of qualification may be required to provide; and
14          ▸     includes a work site safety program among the criteria that may be used to evaluate
15     a bid or proposal.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          63G-6a-403, as last amended by Laws of Utah 2014, Chapter 196
23          63G-6a-606, as last amended by Laws of Utah 2014, Chapter 196
24          63G-6a-707, as last amended by Laws of Utah 2014, Chapter 196
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 63G-6a-403 is amended to read:
28          63G-6a-403. Prequalification of potential vendors.
29          (1) As used in this section:

30          (a) "Closed-ended prequalification process" means a process to prequalify potential
31     vendors under this section that is characterized by:
32          (i) a short, specified period of time during which potential vendors may be
33     prequalified; and
34          (ii) a specified date at which prequalifications expire.
35          (b) "Open-ended prequalification process" means a process to prequalify vendors and
36     potential vendors under this section that is characterized by an indeterminate period of time
37     during any part of which vendors or potential vendors may be prequalified and the
38     prequalification of previously prequalified vendors or potential vendors may be periodically
39     renewed.
40          (c) "Vendor" means:
41          (i) a bidder;
42          (ii) an offeror; or
43          (iii) a contractor, including an architect or an engineer.
44          (2) A procurement unit may, in accordance with this section:
45          (a) using a closed-ended prequalification process or an open-ended prequalification
46     process:
47          (i) prequalify potential vendors to provide any procurement item or type of
48     procurement item specified by the procurement unit; or
49          (ii) rank architects, engineers, or other professional service providers to begin the fee
50     negotiation process, as provided in this chapter; and
51          (b) limit participation in a standard procurement process to the prequalified potential
52     vendors for the specified procurement item or type of procurement item.
53          (3) To prequalify potential vendors or rank professional service providers, a
54     procurement unit shall issue a request for statement of qualifications.
55          (4) A procurement unit that issues a request for statement of qualifications:
56          (a) shall:
57          (i) publish the request for statement of qualifications in accordance with the

58     requirements of Section 63G-6a-406; and
59          (ii) state in the request for statement of qualifications:
60          (A) the procurement item or type of procurement item to which the request for
61     statement of qualifications relates;
62          (B) the scope of work to be performed;
63          (C) the instructions and deadline for submitting a statement of qualifications;
64          (D) the criteria by which the procurement unit will evaluate statements of
65     qualifications;
66          (E) whether the prequalification process is a closed-ended prequalification process or
67     an open-ended prequalification process;
68          (F) if the prequalification process is a closed-ended prequalification process, the period
69     of time during which the list of prequalified potential vendors will remain in effect, which may
70     not be longer than 18 months after the list of prequalified potential vendors is made available to
71     the public under Subsection (11)(b);
72          (G) if the prequalification process is an open-ended prequalification process, when a
73     potential vendor may submit a statement of qualifications for the potential vendor to be
74     considered for inclusion on the list of prequalified potential vendors; and
75          (H) that a procurement unit may limit participation in an invitation for bids or a request
76     for proposals to the potential vendors that are prequalified to provide the specified procurement
77     item or type of procurement item; and
78          (b) may request the person submitting a statement of qualifications to provide:
79          (i) basic information about the person;
80          (ii) the person's experience and work history;
81          (iii) information about the person's management and staff;
82          (iv) information about the person's licenses, certifications, and other qualifications;
83          (v) any applicable performance ratings;
84          (vi) financial statements reporting the person's financial condition; [and]
85          (vii) information about the person's work site safety program, including any

86     requirement that the person imposes on subcontractors for a work site safety program; and
87          [(vii)] (viii) any other pertinent information.
88          (5) (a) In order to renew a prequalification, a vendor or potential vendor that has been
89     previously prequalified through an open-ended prequalification process shall submit a
90     statement of qualifications no more than 18 months after the previous prequalification of that
91     vendor or potential vendor.
92          (b) A previously prequalified vendor or potential vendor submitting a statement of
93     qualifications under Subsection (5)(a) shall comply with all requirements applicable at that
94     time to a potential vendor seeking prequalification for the first time.
95          (6) A procurement unit may at any time modify prequalification requirements of an
96     open-ended prequalification process.
97          (7) The criteria described in Subsection (4)(a)(ii)(D):
98          (a) shall include the prequalification requirements unique to the procurement;
99          (b) may include performance rating criteria; and
100          (c) may not be so restrictive that the criteria unreasonably limit competition.
101          (8) A procurement unit may, before making a final list of prequalified vendors, request
102     additional information to clarify responses made to the request for statement of qualifications.
103          (9) A potential vendor shall be included on the list of prequalified potential vendors if
104     the potential vendor:
105          (a) submits a timely, responsive response to the request for statement of qualifications;
106     and
107          (b) meets the criteria for qualification described in Subsection (4)(a)(ii)(D).
108          (10) If a request for statement of qualifications will result in only one potential vendor
109     being placed on the list of prequalified potential vendors:
110          (a) the procurement unit shall cancel the request for statement of qualifications; and
111          (b) the list may not be used by the procurement unit.
112          (11) The procurement unit shall:
113          (a) before making the list of prequalified potential vendors available to the public,

114     provide each potential vendor who provided information in response to the request, but who
115     did not meet the minimum qualifications for placement on the list, a written justification
116     statement describing why the potential vendor did not meet the criteria for inclusion on the list;
117     and
118          (b) make the list of prequalified potential vendors available to the public within 30
119     days after:
120          (i) completing the evaluation process, if the prequalification process is a closed-ended
121     prequalification process; or
122          (ii) updating the list of prequalified potential vendors, if the prequalification process is
123     an open-ended prequalification process.
124          Section 2. Section 63G-6a-606 is amended to read:
125          63G-6a-606. Evaluation of bids -- Award -- Cancellation -- Disqualification.
126          (1) A procurement unit that conducts a procurement using a bidding standard
127     procurement process shall evaluate each bid using the objective criteria described in the
128     invitation for bids, which may include:
129          (a) experience;
130          (b) performance ratings;
131          (c) inspection;
132          (d) testing;
133          (e) quality;
134          (f) workmanship;
135          (g) time and manner of delivery;
136          (h) references;
137          (i) financial stability;
138          (j) cost;
139          (k) suitability for a particular purpose; [or]
140          (l) the contractor's work site safety program, including any requirement that the
141     contractor imposes on subcontractors for a work site safety program; or

142          [(l)] (m) other objective criteria specified in the invitation for bids.
143          (2) Criteria not described in the invitation for bids may not be used to evaluate a bid.
144          (3) The conducting procurement unit shall:
145          (a) award the contract as soon as practicable to:
146          (i) the lowest responsive and responsible bidder who meets the objective criteria
147     described in the invitation for bids; or
148          (ii) if, in accordance with Subsection (4), the procurement officer or the head of the
149     conducting procurement unit disqualifies the bidder described in Subsection (3)(a)(i), the next
150     lowest responsive and responsible bidder who meets the objective criteria described in the
151     invitation for bids; or
152          (b) cancel the invitation for bids without awarding a contract.
153          (4) In accordance with Subsection (5), the procurement officer or the head of the
154     conducting procurement unit may disqualify a bidder for:
155          (a) a violation of this chapter;
156          (b) a violation of a requirement of the invitation for bids;
157          (c) unlawful or unethical conduct; or
158          (d) a change in circumstance that, had the change been known at the time the bid was
159     submitted, would have caused the bidder to not be the lowest responsive and responsible bidder
160     who meets the objective criteria described in the invitation for bids.
161          (5) A procurement officer or head of a conducting procurement unit who disqualifies a
162     bidder under Subsection (4) shall:
163          (a) make a written finding, stating the reasons for disqualification; and
164          (b) provide a copy of the written finding to the disqualified bidder.
165          (6) If a conducting procurement unit cancels an invitation for bids without awarding a
166     contract, the conducting procurement unit shall make available for public inspection a written
167     justification for the cancellation.
168          Section 3. Section 63G-6a-707 is amended to read:
169          63G-6a-707. Evaluation of proposals -- Evaluation committee.

170          (1) To determine which proposal provides the best value to the procurement unit, the
171     evaluation committee shall evaluate each responsive and responsible proposal that has not been
172     disqualified from consideration under the provisions of this chapter, using the criteria described
173     in the request for proposals, which may include:
174          (a) experience;
175          (b) performance ratings;
176          (c) inspection;
177          (d) testing;
178          (e) quality;
179          (f) workmanship;
180          (g) time, manner, or schedule of delivery;
181          (h) references;
182          (i) financial solvency;
183          (j) suitability for a particular purpose;
184          (k) management plans;
185          (l) the presence and quality of a work site safety program, including any requirement
186     that the offeror imposes on subcontractors for a work site safety program;
187          [(l)] (m) cost; or
188          [(m)] (n) other subjective or objective criteria specified in the request for proposals.
189          (2) Criteria not described in the request for proposals may not be used to evaluate a
190     proposal.
191          (3) The conducting procurement unit shall:
192          (a) appoint an evaluation committee consisting of at least three individuals; and
193          (b) ensure that the evaluation committee and each member of the evaluation
194     committee:
195          (i) does not have a conflict of interest with any of the offerors;
196          (ii) can fairly evaluate each proposal;
197          (iii) does not contact or communicate with an offeror concerning the procurement

198     outside the official evaluation committee process; and
199          (iv) conducts the evaluation in a manner that ensures a fair and competitive process
200     and avoids the appearance of impropriety.
201          (4) The evaluation committee may, with the approval of the head of the conducting
202     procurement unit, enter into discussions or conduct interviews with, or attend presentations by,
203     the offerors.
204          (5) (a) Except as provided in Subsections (5)(b) and (8), each member of the evaluation
205     committee is prohibited from knowing, or having access to, any information relating to the
206     cost, or the scoring of the cost, of a proposal until after the evaluation committee submits its
207     final recommended scores on all other criteria to the issuing procurement unit.
208          (b) The issuing procurement unit shall:
209          (i) if applicable, assign an individual who is not a member of the evaluation committee
210     to calculate scores for cost based on the applicable scoring formula, weighting, and other
211     scoring procedures contained in the request for proposals;
212          (ii) review the evaluation committee's scores and correct any errors, scoring
213     inconsistencies, and reported noncompliance with this chapter;
214          (iii) add the scores calculated for cost, if applicable, to the evaluation committee's final
215     recommended scores on criteria other than cost to derive the total combined score for each
216     responsive and responsible proposal; and
217          (iv) provide to the evaluation committee the total combined score calculated for each
218     responsive and responsible proposal, including any applicable cost formula, weighting, and
219     scoring procedures used to calculate the total combined scores.
220          (c) The evaluation committee may not:
221          (i) change its final recommended scores described in Subsection (5)(a) after the
222     evaluation committee has submitted those scores to the issuing procurement unit; or
223          (ii) change cost scores calculated by the issuing procurement unit.
224          (6) (a) As used in this Subsection (6), "management fee" includes only the following
225     fees of the construction manager/general contractor:

226          (i) preconstruction phase services;
227          (ii) monthly supervision fees for the construction phase; and
228          (iii) overhead and profit for the construction phase.
229          (b) When selecting a construction manager/general contractor for a construction
230     project, the evaluation committee:
231          (i) may score a construction manager/general contractor based upon criteria contained
232     in the solicitation, including qualifications, performance ratings, references, management plan,
233     certifications, and other project specific criteria described in the solicitation;
234          (ii) may, as described in the solicitation, weight and score the management fee as a
235     fixed rate or as a fixed percentage of the estimated contract value;
236          (iii) may, at any time after the opening of the responses to the request for proposals,
237     have access to, and consider, the management fee proposed by the offerors; and
238          (iv) except as provided in Subsection (7), may not know or have access to any other
239     information relating to the cost of construction submitted by the offerors, until after the
240     evaluation committee submits its final recommended scores on all other criteria to the issuing
241     procurement unit.
242          (7) (a) The deliberations of an evaluation committee may be held in private.
243          (b) If the evaluation committee is a public body, as defined in Section 52-4-103, the
244     evaluation committee shall comply with Section 52-4-205 in closing a meeting for its
245     deliberations.
246          (8) An issuing procurement unit is not required to comply with Subsection (5) if the
247     head of the issuing procurement unit or a person designated by rule made by the applicable
248     rulemaking authority:
249          (a) signs a written statement:
250          (i) indicating that, due to the nature of the proposal or other circumstances, it is in the
251     best interest of the procurement unit to waive compliance with Subsection (5); and
252          (ii) describing the nature of the proposal and the other circumstances relied upon to
253     waive compliance with Subsection (5); and

254          (b) makes the written statement available to the public, upon request.