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Senate Bill 370 Report – Project Development

C. Project Development

1. Professional services procurement for preliminary engineering.

The department has rules in place that incorporate the two-step, qualifications-based selection process for professional service providers of architectural, engineering or surveying services as required by the Professional Services Procurement Act. The evolution of these rules and department procedures has been highly interactive with the industry. In September 1997, the department established minimum qualifications that have been incorporated in a database that tracks firms precertified in many different categories of expertise typically used by the department. The database is utilized to determine qualified professional services for advertised department work. The purpose of this precertification process is to minimize routine data that was previously required to be submitted by firms each time they submitted a proposal. This not only costs the firms time and money but also requires large amounts of departmental time to review the proposals. The current rules and procedures are again under review by TxDOT and industry. Proposals are planned for calendar year 1998 to further modify the process--with a two to four month selection time as the goal. Currently, eight to ten months are typically necessary to complete the selection process. Changes will be presented to the Transportation Commission in the coming months and a proposal will be open for public comment before formal adoption. The department is committed to a qualifications-based selection process and negotiating a fair and reasonable price. The department is also committed to a process that is open. The department currently does business with over four hundred different firms as either prime or sub-providers of professional services.

Status: Current rules and procedures are under review by TxDOT staff and industry. Proposals are currently being initiated to speed up the consultant selection process.

2. Administrative settlement in right of way acquisition.

Administrative settlement is a recently instituted policy that allows for one-time negotiation with a land owner when the department is seeking to purchase property. It replaced a previous procedure which only provided for eminent domain proceedings if the land holder refused the department’s one and only purchase offer. Under an administrative settlement, if the land owner believes that his/her property is more valuable than what the department has offered, the owner may submit a documented counter-offer to the department. In turn, the department may accept that purchase price. If the department does not believe that the proposed purchase price is appropriate, then it must opt for eminent domain.

Since implemented in November 1, 1996 and through July 9, 1998, a total of 571 requests for administrative settlement were received. Of those received, 319 have been granted which otherwise would have gone to condemnation under former procedures. In Fiscal Year 1996 the condemnation rate statewide was 25 percent. In FY 1997 it was reduced to 15 percent. In FY 1998 it was further reduced to 13.5 percent.

A single parcel on a project that goes through the eminent domain process could take from six weeks to three months longer to acquire than if the sale was negotiated. Over the life of a project, the number of parcels requiring eminent domain could significantly delay the construction of a facility. The administrative settlement procedure is a proven way to reduce acquisition time. Any procedure that decreases acquisition time results in significant savings of time and money over the life of a project. The administrative settlement procedure has proven to be a successful tool in significantly reducing the number of parcels which must be acquired through the judicial process.

Status: Implemented.

 
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