A review of neighboring states indicates Minnesota and Michigan utilize website project solicitation with differing thresholds. Minnesota threshold for selection is $2,000,000, Michigan threshold is $1,000,000, Illinois threshold is $250,000 also with a qualifications-based architect/engineer selection process. Minor differences in the rules from state to state exist in committee makeup and other threshold values. All utilize and recognize website project posting.

The current rule has been in existence since 1979 with little or no updating. The inflation index and increasing costs of services has created a condition in which the 1979 threshold level is approximately 50% of where it should be. This has created a condition requiring excessive oversight of smaller dollar value projects.

Business practices since 1979 have also radically changed. This proposed rule change reflects current practices such as electronic and web based advertisement, electronic document exchange and acceptance and electronic notifications. This will enhance the construction of state projects and speed up the processing of construction documents. Most other states as well as the Federal government utilize electronic advertising of projects as well as electronic document exchange.

$408,000 est. annual savings.

Waiving 3 of the 4 requirements of s. 20.02 (4) will provide more flexibility and opportunities for small, Wisconsin-based architect/engineering firms to submit their qualifications and provide services and establish a performance evaluation for smaller projects. Waiver is permissive in that making a selection of those projects with greater risk can still be evaluated using all of the requirements.

Approximately $17,000 per interview per firm multiplied by approximately 6 interviews per year is the estimated savings by increasing the threshold to $5 million in the interview process. Typically, four firms are invited to interview. Likewise, Wisconsin architects/engineers can more easily qualify for $5 million projects by making it easier to be selected for projects of 50% of the size ($5 million). Currently, if a firm cannot meet the experience requirement of 50% of the size, the firms will partner with an out-of-state firm to meet the qualification.

Moving toward more electronic notifications requires firms to have computers with internet access or access those locations which provide public internet service for free or a nominal charge. Costs incurred for this are offset by eliminating manual paper processing of documents and creating more efficiency and timeliness for consultants to learn about projects and show interest in those projects they are most qualified for. Also, web advertising is visible to a greater number of potentially qualified design candidates and allows for confidential letters of interest to be read only by those staff most involved with the project allowing opportunity for dialogue.

The department does not foresee any negative impact on small businesses. As indicated in item number 10, given the less restrictive requirements, added access to the department via other media and changes in dollar thresholds, the department foresees a positive impact.

Donna Sorenson

Department of Administration

(608) 266-2887

Donna.sorenson@.doa.state.wi.us

SECTION 1. Adm 20.02 is repealed and recreated to read:

Adm 20.02 Definitions. In this chapter:

(1) “Approval" means the written or electronic procedure for evaluation and acceptance.

(2) “Architect/engineer" means a member of the design profession, registered under ch. 443, Stats. and is meant to refer to either an architect or an engineer, whichever is appropriate. The term shall apply to an individual or firm which provides architectural or engineering services, or both, and is not intended to impose the requirement of both registrations on an individual or individuals within a design firm.

(3) “Architect/engineer data record form" means a form upon which architects/engineers shall provide specific data requested by the department which will facilitate evaluation of architect/engineer eligibility, performance capabilities, experience, personnel and staff and statistics on past and present projects.

(4) “Architect/engineer proposal" means those documents submitted by an architect/engineer, indicating interest in providing professional services to the state for a specific project. The documents may include a fully executed architect/engineer data record form, a tentative schedule to include the method and staff that would be employed to meet the requirements of the proposed projects and such other materials as requested by the selection committee in the advertisement for architect/engineer proposals.

(5) “Department" means the department of administration. This also includes any organizational entity of the department of administration, which is assigned the responsibility for providing and supervising the architectural and engineering services performed by, or for, the state, as provided for in s. 16.85, Stats.

(6) “Eligible architect/engineer" means an architect/ engineer who meets or exceeds the following criteria in order to be considered by the selection committee for a project:

(a) Has more than one architect/engineer as a responsible member of the firm.

(b) Has been in business for a period of not less than 3 years.

(c) Has a permanent office within Wisconsin, where responsible direction of all services will be based. Out-of-state firms will be considered when the selection committee determines there are no Wisconsin firms qualified or available to provide the services required.

(d) Has been responsible for the design and substantial completion of a similar project with a total construction cost or size of at least 50% as large as the construction cost or size of the project under consideration.

(e) For projects less than $1,000,000 or when it becomes apparent to the selection committee that a project is of such a size or has such unique characteristics that special architect/engineer project responsibility is warranted, the selection committee, by vote, may set appropriate standards of acceptability different from pars. (a), (b) and (d).

Note: The department will post additional information regarding selection committee requirements for projects at the time of project advertising. Additional information regarding selection committee policy and procedures maybe be obtained at the department website, www.doa.state.wi.us/dsf.

(7) “Selection committee" means a standing group composed of 5 state employees appointed by the secretary of the department of administration including one who shall also be designated as chairperson, and a minimum of 3 who shall be registered architects/engineers. The agency for whom the project is to be constructed will be requested to appoint 2 representatives to serve as additional members on the committee for the selection of an architect/engineer for that project. If after appropriate notice, the agency fails to have any representative at the selection committee meeting, such absence shall be considered a waiver of their vote on the architect/engineer selection for that project. Each committee member shall have one vote.

SECTION 2. Adm 20.03 (1) is amended to read:

Adm 20.03 Convening of selection committee. (1) At the call of the chairperson, or the chairperson's designee, the selection committee shall convene for the purpose of initiating and carrying out the process of selecting architects/engineers for projects approved by the state building commission.

SECTION 3. Adm 20.03 (2) (e) is created to read:

Adm 20.03 (2) (e) Other pertinent project information.

SECTION 4. Adm 20.03 (4) is created to read:

Adm 20.03 (4) The chairperson of the selection committee, or the chairperson's designee, may nominate an architect/engineer for emergency projects approved by the governor under s. 16.855 (16) (b) 2., Stats., without solicitation or selection committee action. The chairperson, or chairperson's designee, shall notify the selection committee of any emergency nomination action at the next scheduled selection committee meeting.

SECTION 5. Adm 20.04 (1) and (2) are amended to read:

Adm 20.04 Selection procedures. (1) When selecting an architect/engineer for a project when the estimated project cost is less than $2,500,000 $5,000,000, the selection committee may utilize the simplified selection by nomination procedure specified in s. Adm 20.05.

(2) When selecting an architect/engineer for a project that has an estimated project cost of $2,500,000 $5,000,000 or more, the selection committee shall require the more detailed procedure for selection by advertisement, review and interview as specified in ss. Adm 20.06, 20.07 and 20.08.

SECTION 6. Adm 20.05 is repealed and recreated to read:

Adm 20.05 Selection by nomination. (1) The department shall solicit for architects/engineers by posting an advertisement for the project on the department's official website. The advertisement shall include a project description, proposed budget, schedule and a contact name for questions during the solicitation period. Architects/engineers who are interested in a project may submit a letter of interest through the website for review by the selection committee.

(2) An architect/engineer responding to the project solicitation shall provide all of the following information in the letter of interest:

(a) Completed and updated architect/engineer data record form, if one has not previously been provided.

(b) List of similar projects the architect/engineer has, at minimum, substantially completed, including approximate project square footage or cost of project.

(c) Architect's/engineer's proposed staff and subconsultants for the project.

(d) Schedule indicating when the architect/engineer can begin project work.

(e) Any other pertinent information indicating the architect's/engineer's qualifications and experience.

(3) The department shall make copies of the data record forms and the submitted architect/engineer letters of interest available to the selection committee for consideration for each project.

(4) The selection committee's evaluation of all interested architects/engineers shall also give consideration to the qualification criteria stated in Adm 20.07 (3).

(5) The selection committee shall submit its first and second recommendations for selection of an architect/engineer to the secretary of the department, or the secretary's designee, accompanied with justification supporting their recommendations.

(6) The selection committee shall keep the minutes of the selection committee meeting and shall record the name of the architects/engineers considered for each project and the action taken by the selection committee and justification supporting the selection committee recommendations.

(7) The secretary of the department, or the secretary's designee, shall consider the selection committee's recommendations, and inform the selection committee of the approval or disapproval of the recommended architect/engineer.

(8) The department shall repeat the selection process if the secretary of the department, or the secretary's designee, does not accept the selection committee's recommendations.

(9) When the selection of an architect/engineer has been finalized, the department shall establish a time and date for the architect/engineer to meet with the department's designated representative to negotiate a contract. If negotiations with the selected architect/engineer firm do not reach consensus, negotiations may be initiated with the second qualified architect/engineer firm as determined by the selection committee.

(10) The department shall post the results of the selection on the department's official website.

(11) If at any time during the selection process the department determines submitted materials misrepresent qualifications, the department may reject the letter of interest of a recommended architect/engineer.

Note: The Wisconsin Department of Administration Division of State Facilities official website is www.doa.state.wi.us/dsf. Forms, publications and information regarding architect/engineer selection and proposed projects may be obtained from this website.

SECTION 7. Adm 20.06 (1) is amended to read:

Adm 20.06 Selection by advertisement. (1) For all projects having an estimated project cost which would exceed $2,500,000 of $5,000,000 or more, an invitation for architects/engineers to submit proposals for consideration by the selection committee, shall be published in a class 2 notice under ch. 985 Stats. in the official state paper. The notice shall include the following information:

SECTION 8. Adm 20.06 (1) (c) is repealed and recreated to read:

Adm 20.06 (1) (c) Architect/engineer qualification requirements.

SECTION 9. Adm 20.06 (1) (e) is repealed and recreated to read:

Adm 20.06 (1) (e) Project description, estimated project budget and schedule.

SECTION 10. Adm 20.06 (1) (g) and (h) are created to read:

Adm 20.06 (1) (g) Criteria used in ranking architects/engineers to qualify for the interview process.

(h) Other information pertinent to the solicitation regarding the qualifications of the architect/engineer firm.

SECTION 11. Adm 20.07 (3) (f) is created to read:

Adm 20.07 (3) (f) Other information pertinent to the review of architect/engineer qualifications.

SECTION 12. Adm 20.07 (4) is amended to read:

Adm 20.07 (4) Consideration may be given to joint ventures associations consisting of 2 or more architect/engineer firms organized for the purposes of furnishing professional services as a single entity, providing the assignment of and provisions for continuity of the various responsibilities within the joint venture association are approved by the selection committee and further providing that the combination of the qualifications of the individual firms constituting the joint venture association makes the team eligible for selection as defined in s. Adm 20.02 (4) and the qualification requirements indicated in sub. (3). Those firms that are party to an association that are invited to interview in accordance with s. Adm 20.08 (1) shall submit at the interview an executed draft association agreement in principal between the parties. Firms that are party to an association, selected in accordance with s. Adm 20.08 (6), shall submit a final executed association agreement between the parties prior to execution of a contract in accordance with s. Adm 20.09. The association agreement shall indicate how responsibilities will be shared, how tasks will be divided and the firms or individuals that will be assigned the responsibilities and tasks.

SECTION 13. Adm 20.08 (1) is amended to read:

Adm 20.08 Interview. (1) Those architects/engineers deemed to be the best qualified, shall be notified and date and time shall be arranged for them to appear before the selection committee for the purpose of presenting their understanding of the scope of services required and their proposed method of meeting the program. , including appropriateness and adherence to project budget and schedule. A copy of the evaluation form and interview questionnaire used by the selection committee will be furnished to the architect/engineer at least 10 days prior to their scheduled appearance.

SECTION 14. Adm 20.08 (5) and (6) are amended to read:

Adm 20.08 (5) The selection committee will submit their first and second recommendation for selection of an architect/engineer to the secretary of the department or the secretary's designee.

(6) The secretary of the department, or the secretary's designee, will consider the selection committee's recommendations, and inform the selection committee of the results of that consideration.

SECTION 15. Adm 20.08 (8) and (9) are amended to read:

Adm 20.08 (8) Negotiations for contract shall be conducted in the same manner as that specified in s. Adm 20.05 (11) (9).

(9) As soon after the selection of an architect/engineer has been confirmed, an announcement shall be sent to all architects/engineers who were interviewed, informing them of the selection committee action. After confirmation of the selection, the department shall notify all interviewed architects/engineers informing them of the selection committee action and post results of selection on the department's official website. Any architect/engineer who was interviewed may upon request, inspect the selection committee interview evaluation of their firm.

Note: The Wisconsin Department of Administration Division of State Facilities official website is www.doa.state.wi.us/dsf. Forms, publications and information regarding architect/engineer selection and proposed projects may be obtained from this website.

SECTION 16. Adm 20.09 (2), (a) and (b) are amended to read:

Adm 20.09 (2) Upon return of contracts from the architect/engineer, the department shall be guided by the following procedure regarding final approval: Final approval authority for contracts shall be guided by all of the following:

(a) The approving authority for contracts less than $15,000 the threshold prescribed in s. 16.87(3), Stats., is vested in the department secretary or a designee thereof. or the secretary's designee.

(b) Contracts of $15,000 the threshold prescribed in s. 16.87(3), Stats., or more must be signed by the department secretary or a designee thereof, or the secretary's designee, and forwarded to the governor for approval.

SECTION 17. Adm 20.09 (3) (b) and (c) are amended to read:

Adm 20.09 (3) (b) Change order requests shall be reviewed by the appropriate department representative coordinating the project implementation and by that employee's supervisor. If the request is approved by the department representative's supervisor, the recommendation shall be processed in the form of a change order and submitted to the department secretary or a designee thereof, or the secretary's designee, in accordance with s. 16.87(3), Stats., for approval. When the change order amounts to $15,000 or more it shall also be submitted to the governor for approval.

(c) A change order to the architect/engineer contract shall contain: specific information which will document the reason for the contract change, a description of the work involved, any change to the schedule, and the maximum cost limit.