1.1                          A bill for an act 
  1.2             relating to public contracts; specifying procedures to 
  1.3             be followed for certain professional service 
  1.4             contracts; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 16C. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [16C.095] [SELECTION OF CERTAIN PROFESSIONAL 
  1.8   SERVICE CONTRACTORS.] 
  1.9      Subdivision 1.  [PROFESSIONAL SERVICES COVERED.] This 
  1.10  section applies to an agency contract for professional services 
  1.11  of persons regulated by the board of architecture, engineering, 
  1.12  land surveying, landscape architecture, geoscience, and interior 
  1.13  design for which the agency, with the approval of the 
  1.14  commissioner, decides to use procedures under this section.  If 
  1.15  the agency, with the approval of the commissioner, decides to 
  1.16  use procedures under this section, it must comply with 
  1.17  subdivisions 2, 3, and 4.  This section does not apply to an 
  1.18  agency contract that is subject to section 16B.33. 
  1.19     Subd. 2.  [QUALIFICATION-BASED SELECTION.] Notwithstanding 
  1.20  section 16C.06, subdivision 6, an agency must rank contractors 
  1.21  described in subdivision 1 on the basis of qualifications, as 
  1.22  described in subdivision 3, for the type of professional service 
  1.23  required.  An agency may solicit pricing information from a 
  1.24  single responder at a time in rank order, commencing with the 
  1.25  highest ranked contractor, to determine contractor compensation 
  2.1   only after the agency has ranked prospective contractors based 
  2.2   on the factors the agency specifies in accordance with 
  2.3   subdivisions 3 and 4. 
  2.4      Subd. 3.  [PROCEDURES.] Subject to subdivision 2, 
  2.5   procedures for screening and selection of contractors are within 
  2.6   the sole discretion of the agency and must be approved by the 
  2.7   commissioner when the agency seeks approval to use this 
  2.8   alternative.  Procedures may be adjusted to accommodate the 
  2.9   agency's cost, scope, and schedule objectives for a particular 
  2.10  project.  Screening and selection procedures may include a 
  2.11  consideration of each contractor's: 
  2.12     (1) specialized expertise, capabilities, and technical 
  2.13  competence as demonstrated by the proposed approach and 
  2.14  methodology to meet the project requirements; 
  2.15     (2) resources available to perform the work, including any 
  2.16  specialized services, within the specified time limits for the 
  2.17  project; 
  2.18     (3) record of past performance, including but not limited 
  2.19  to price and cost data from previous projects, quality of work, 
  2.20  ability to meet schedules, cost control, and contract 
  2.21  administration; 
  2.22     (4) ownership status and employment practices regarding 
  2.23  women, minorities, and emerging small businesses or historically 
  2.24  underutilized businesses; 
  2.25     (5) availability to the project locale; 
  2.26     (6) familiarity with the project locale; 
  2.27     (7) proposed project management techniques; and 
  2.28     (8) ability and proven history in handling special project 
  2.29  constraints. 
  2.30     Subd. 4.  [SELECTION.] (a) The agency shall rank 
  2.31  prospective contractors based on the factors approved by the 
  2.32  commissioner, which the agency must specify in the request for 
  2.33  proposal, in accordance with this section.  The agency and the 
  2.34  highest ranked contractor shall mutually discuss and refine the 
  2.35  scope of services for the project and shall negotiate 
  2.36  conditions, including but not limited to compensation and 
  3.1   performance schedule, based on the scope of the services.  The 
  3.2   compensation level paid must be reasonable and fair to the 
  3.3   agency, as determined solely by the agency. 
  3.4      (b) If the agency and the highest ranked contractor are 
  3.5   unable for any reason to negotiate a contract at a compensation 
  3.6   level that is reasonable and fair to the agency, the agency 
  3.7   shall, either orally or in writing, terminate negotiations with 
  3.8   this contractor.  The agency may then negotiate with the next 
  3.9   highest ranked contractor, as provided in this subdivision.  The 
  3.10  negotiation process may continue through successive contractors, 
  3.11  according to agency ranking, until an agreement is reached or 
  3.12  the agency terminates the contracting process. 
  3.13     Sec. 2.  [EFFECTIVE DATE.] 
  3.14     Section 1 is effective July 1, 2001, and applies to 
  3.15  contracts for which a request for bids or a request for 
  3.16  proposals is issued after that date.