Montana Code 18-2-502. Alternative project delivery contract — authority — criteria
18-2-502. (Temporary) Alternative project delivery contract — authority — criteria. (1) Subject to the provisions of this part, a state agency or a governing body may use an alternative project delivery contract. A state agency or governing body that uses an alternative project delivery contract shall:
Terms Used In Montana Code 18-2-502
- Alternative project delivery contract: means a construction management contract, a general contractor construction management contract, a design-build contract, or a comprehensive agreement. See Montana Code 18-2-501
- Comprehensive agreement: means an agreement setting forth the firm fixed price, duration, risk transfer, and all other commercial and technical terms to be adhered to with respect to an awarded eligible project utilizing innovative financing delivery with a private party. See Montana Code 18-2-501
- Contract: A legal written agreement that becomes binding when signed.
- Governing body: means :
(a)the legislative authority of:
(i)a municipality, county, or consolidated city-county established pursuant to Title 7, chapter 1, 2, or 3;
(ii)a school district established pursuant to Title 20; or
(iii)an airport authority established pursuant to Title 67, chapter 11;
(b)the board of directors of a county water or sewer district established pursuant to Title 7, chapter 13, parts 22 and 23; or
(c)the trustees of a fire district established pursuant to Title 7, chapter 33, or the county commissioners or trustees of a fire service area established pursuant to 7-33-2401. See Montana Code 18-2-501
- Innovative financing delivery: means a project delivery method whereby a state agency or a governing body procures an eligible project that includes private financing and any combination of design, build, operate, or maintain with a private party. See Montana Code 18-2-501
- Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
- Project: means any construction or any improvement of the land, a building, or another improvement that is suitable for use as a state or local governmental facility. See Montana Code 18-2-501
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- State agency: has the meaning provided in 2-2-102, except that the department of transportation, provided for in 2-15-2501, is not considered a state agency. See Montana Code 18-2-501
(a)demonstrate that the state agency or the governing body has or will have knowledgeable staff or consultants who have the capacity to manage an alternative project delivery contract;
(b)clearly describe the manner in which:
(i)the alternative project delivery contract award process will be conducted; and
(ii)subcontractors and suppliers will be selected.
(2)Prior to awarding an alternative project delivery contract, the state agency or the governing body shall determine that the proposal meets at least two of the sets of criteria described in subsections (2)(a) through (2)(c) and the provisions of subsection (3). To make the determination, the state agency or the governing body shall make a detailed written finding that:
(a)the project has significant schedule ramifications and using the alternative project delivery contract is necessary to meet critical deadlines by shortening the duration of construction. Factors that the state agency or the governing body may consider in making its findings include, but are not limited to:
(i)operational and financial data that show significant savings or increased opportunities for generating revenue as a result of early project completion;
(ii)demonstrable public benefits that result from less time for construction; or
(iii)less or a shorter duration of disruption to the public facility.
(b)by using an alternative project delivery contract, the design process will contribute to significant cost savings. Significant cost savings that may justify an alternative project delivery contract may derive from but are not limited to value engineering, building systems analysis, life cycle analysis, and construction planning.
(c)the project presents significant technical complexities that necessitate the use of an alternative delivery project contract.
(3)The state agency or the governing body shall make a detailed written finding that using an alternative project delivery contract will not:
(a)encourage favoritism or bias in awarding the contract; or
(b)substantially diminish competition for the contract.
(4)In addition to meeting the criteria set forth in subsections (1) through (3), a state agency or governing body that utilizes a comprehensive agreement must, for each project:
(a)demonstrate a public purpose; and
(b)demonstrate that the innovative financing delivery favors the innovative financing contract method over other available procurement and alternative project delivery methods.(Terminates July 1, 2033–sec. 6, Ch. 418, L. 2023.)