Illinois General Assembly - Full Text of SB2981
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Full Text of SB2981  102nd General Assembly




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1    AN ACT concerning transportation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Innovations for Transportation Infrastructure Act.
6    Section 5. Legislative policy.
7    (a) It is the public policy of the State of Illinois to
8promote the development of infrastructure projects that serve
9the needs of the public.
10    (b) The design-build project delivery method and
11Construction Manager/General Contractor project delivery
12method and use of Alternative Technical Concepts have the
13potential to capture private sector innovation and safely
14deliver infrastructure projects on more predictable schedules
15and budgets. Earlier completion and lower cost for projects
16are possible with the ability to shift or share risks with the
17private sector that are generally retained by the public in
18the conventional design-bid-build project delivery method.
19    (c) It is the intent of the General Assembly that the
20Department of Transportation and the Illinois State Toll
21Highway Authority may evaluate and use Alternative Technical
22Concepts proposed by bidders and proposers and to use the
23design-build project delivery method and Construction



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1Manager/General Contractor project delivery method.
2    (d) It is the intent of this Act to use design
3professionals, construction companies, and workers from this
4State, reflecting the diversity of the State's businesses and
5workforce, to the greatest extent possible.
6    (e) Except as otherwise provided in this Act, the powers
7granted in this Act are in addition to any other powers
8authorized under applicable law.
9    Section 10. Definitions. As used in this Act:
10    "Alternative Technical Concepts" means a proposed
11deviation from the contract requirements set forth in the
12procurement documents for a transportation facility that
13offers a solution that is equal to or better than the
14requirements in the procurement documents.
15    "Authority" means the Illinois State Toll Highway
17    "Best value" means any selection process in which
18proposals contain both price and qualitative components and
19award is based upon a combination of price, qualitative
20concepts, and other factors.
21    "Chief procurement officer" means the chief procurement
22officer for the Transportation Agency.
23    "Construction Manager/General Contractor" means a proposer
24that has entered into a Construction Manager/General
25Contractor contract under this Act.



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1    "Construction Manager/General Contractor contract" means a
2two-phase contract between the Transportation Agency and a
3Construction Manager/General Contractor that includes a first
4phase addressing preconstruction services and a second phase
5addressing the construction of the transportation facility.
6    "Construction Manager/General Contractor project delivery
7method" means a method of procurement and contracting that
8makes a Construction Manager/General Contractor who enters
9into a contract with the Transportation Agency responsible for
10certain preconstruction services and then, if the parties
11reach agreement on key terms, responsible for construction of
12the transportation facility.
13    "Department" means the Illinois Department of
15    "Design-bid-build project delivery method" means the
16traditional method of procuring and contracting for design
17services and construction services used separately in this
18State that incorporates the Architectural, Engineering, and
19Land Surveying Qualifications Based Selection Act and the
20principles of competitive bidding under the Illinois
21Procurement Code.
22    "Design-build contract" means a contract between the
23Transportation Agency and a design-builder under which the
24design-builder agrees to furnish architectural, surveying,
25engineering, construction, and related services for a
26transportation facility, and may include, but is not limited



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1to, the progressive design-build project delivery method.
2    "Design-build project delivery method" means a method of
3procurement and contracting that provides responsibility
4within a single contract between the Transportation Agency and
5a design-builder for the furnishing of architectural,
6surveying, engineering, construction, and related services for
7a transportation facility.
8    "Design-builder" means a proposer that has entered into a
9design-build contract with the Transportation Agency under
10this Act.
11    "Evaluation Committee" means the committee assembled to
12evaluate and score statements of qualifications and proposals.
13    "Evaluation criteria" means the standards and requirements
14established by the Transportation Agency against which the
15qualifications and proposals of a proposer will be assessed
16during the procurement of a design-build contract or
17Construction Manager/General Contractor contract, as
19    "Executive Director" means the Executive Director of the
20Illinois State Toll Highway Authority.
21    "Metropolitan planning organization" means a metropolitan
22planning organization under 23 U.S.C. 134 whose metropolitan
23planning area boundaries are partially or completely within
24this State.
25    "Preconstruction services" means all
26non-construction-related services that a Construction



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1Manager/General Contractor is required to perform during the
2first phase of a Construction Manager/General Contractor
3contract, and may include, but is not limited to, giving
4advice to the Transportation Agency regarding scheduling, work
5sequencing, cost engineering, constructability, cost
6estimating, and risk identification.
7    "Progressive design-build project delivery method" is a
8type of design-build project delivery method that consists of
92 phases, with the first phase including budget-level design
10development, preconstruction services, and negotiation of a
11contract price (either lump sum or guaranteed maximum price).
12After completion of the first phase, the second phase is
13begun. The second phase consists of final design,
14construction, and commissioning of the project.
15    "Proposal" means a proposer's response to a request for
17    "Proposer" means any individual, sole proprietorship,
18firm, partnership, joint venture, corporation, professional
19corporation, or other entity legally established to conduct
20business in this State that proposes to be the design-builder
21or Construction Manager/General Contractor for any
22transportation facility under this Act.
23    "Qualifications" means a statement of qualifications
24submitted by a proposer in response to a request for
26    "Request for proposals" means the document issued by the



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1Transportation Agency to solicit proposals and describe the
2procurement process for a design-build contract or
3Construction Manager/General Contractor contract in accordance
4with the design-build project delivery method or the
5Construction Manager/General Contractor project delivery
6method, as applicable.
7    "Request for qualifications" means the document issued by
8the Transportation Agency in the first phase of a two-phase
9procurement to solicit qualifications from proposers in
10accordance with the design-build project delivery method or
11the Construction Manager/General Contractor project delivery
12method, as applicable.
13    "Scope and performance requirements" means the activities,
14constructed elements, and standards of performance the
15Transportation Agency requires the design-builder or the
16Construction Manager/General Contractor to comply with in the
17development of the transportation facility, and may include,
18but is not limited to, the intended usage, capacity, size,
19scope, quality and performance standards, life-cycle costs,
20preliminary engineering, design, and other requirements as
21developed and determined by the Transportation Agency.
22    "Secretary" means the Secretary of the Illinois Department
23of Transportation.
24    "Transportation Agency" means the Illinois Department of
25Transportation or the Illinois State Toll Highway Authority.
26    "Transportation facility" means any new or existing



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1facility or group of facilities that are the subject of a
2design-build contract or a Construction Manager/General
3Contractor contract, and includes highways, roads, bridges,
4tunnels, overpasses, bus ways, guideways, ferries, airports or
5other aviation facilities, public transportation facilities,
6vehicle parking facilities, port facilities, rail facilities,
7stations, hubs, terminals, intermodal facilities, transit
8facilities, or similar facilities used for the transportation
9of persons or goods, together with any buildings, structures,
10parking areas, appurtenances, intelligent transportation
11systems, and other property or facilities related to the
12operation or maintenance of these facilities.
13    Section 15. Authorization of project delivery methods.
14    (a) Notwithstanding any other law, and as authority
15supplemental to its existing powers, except as otherwise
16provided for in this Act, the Transportation Agency, in
17accordance with this Act, may use the design-build project
18delivery method for transportation facilities if the capital
19costs for transportation facilities delivered utilizing the
20design-build project delivery method or Construction
21Manager/General Contractor project delivery method or
22Alternative Technical Concepts in a design-bid-build project
23delivery method do not: (i) for transportation facilities
24delivered by the Department, exceed $400 million of contracts
25awarded during the Department's multi-year highway improvement



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1program for any 5-year period; or (ii) for transportation
2facilities delivered by the Authority, exceed 20% of the
3Authority's annual improvement program. The Transportation
4Agency shall make this calculation before commencing the
5procurement. Notwithstanding any other law, and as authority
6supplemental to its existing powers, the Department, in
7accordance with this Act, may use the Construction
8Manager/General Contractor project delivery method for up to 2
9transportation facilities per year. Before commencing a
10procurement under this Act for either a design-build contract
11or a Construction Manager/General Contractor contract, the
12Transportation Agency shall first undertake an analysis and
13make a written determination that it is in the best interests
14of this State to use the selected delivery method for that
15transportation facility. The analysis and determination shall
16discuss the design-build project delivery method or
17Construction Manager/General Contractor project delivery
18method's impact on the anticipated schedule, completion date,
19and project costs. The best interests of the State analysis
20shall be made available to the public.
21    (b) The Transportation Agency shall report to the General
22Assembly annually for the first 5 years after the effective
23date of this Act on the progress of procurements and
24transportation facilities procured under this Act.
25    (c) A contract entered into pursuant to the provisions of
26this Act are excepted from the Public Contract Fraud Act.



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1    Section 20. Preconditions to commencement of procurement.
2    If the Transportation Agency determines to use the
3design-build project delivery method or the Construction
4Manager/General Contractor project delivery method for a
5particular transportation facility, the Transportation Agency
6may not commence a procurement for the transportation facility
7until the Transportation Agency has satisfied the following
9    (1) the Transportation Agency does one of the following:
10        (A) the Transportation Agency includes the
11    transportation facility in the Transportation Agency's
12    respective multi-year highway improvement program and
13    designates it as a design-build project delivery method
14    project or Construction Manager/General Contractor
15    project;
16        (B) the Transportation Agency issues a notice of
17    intent to receive qualifications, that includes a
18    description of the proposed procurement and transportation
19    facility, at least 28 days before the issuance of the
20    request for qualifications, and for a Department-issued
21    notice of intent publishes the notice in the Illinois
22    Transportation Procurement Bulletin and for an
23    Authority-issued notice of intent publishes the notice in
24    the Illinois Procurement Bulletin; or
25        (C) for a single-phase procurement authorized under



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1    subsection (a) of Section 25 of this Act, the
2    Transportation Agency issues a notice of intent to receive
3    proposals, that includes a description of the proposed
4    procurement and transportation facility, at least 14 days
5    before the issuance of the request for proposals, and for
6    a Department-issued notice of intent publishes the notice
7    in the Illinois Transportation Procurement Bulletin and
8    for an Authority-issued notice of intent publishes the
9    notice in the Illinois Procurement Bulletin; and
10    (2) the Transportation Agency uses its best efforts to
11ensure that the transportation facility is consistent with the
12regional plan in existence at the time of any metropolitan
13planning organization in which the boundaries of the
14transportation facility is located, or any other
15publicly-approved plan.
16    Section 25. Procurement process.
17    (a) The Transportation Agency may solicit a proposer with
18which to enter into a design-build contract or Construction
19Manager/General Contractor contract, as applicable, by using,
20without limitation, one or more requests for qualifications, a
21shortlisting of the most highly qualified proposers, requests
22for proposals, and negotiations. The Transportation Agency
23shall use a two-phase procurement for a design-build contract
24to select the successful proposer, except that the
25Transportation Agency may use a single-phase procurement if



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1the transportation facility is estimated to cost less than
2$5,000,000 or the Secretary or the Executive Director makes a
3written determination that the Transportation Agency may use a
4single-phase procurement for a particular transportation
5facility. In a two-phase procurement, the Transportation
6Agency shall use the first phase to evaluate and shortlist the
7most highly qualified proposers based on a proposer's
8qualifications, and then use the second phase to evaluate and
9select a proposer based on proposals submitted by the
10shortlisted proposers. During the first phase of a two-phase
11procurement, the Transportation Agency shall not consider
12price proposals to make its shortlist decision. In a
13single-phase procurement, the Transportation Agency shall
14solicit proposers with a request for proposals, and shall
15evaluate and select a proposer based on those proposals.
16    (b) The request for qualifications may contain any terms
17deemed appropriate by the Transportation Agency including,
18without limitation, the following:
19        (1) a description of the anticipated scope of work for
20    the transportation facility;
21        (2) a requirement that the proposer identify certain
22    key personnel, and for design-build contracts certain key
23    firms, the experience of the personnel and firms, and the
24    conditions on which identified personnel and firms can be
25    replaced;
26        (3) the evaluation criteria for the qualifications and



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1    the relative importance of those criteria; these
2    evaluation criteria may address, without limitation, the
3    proposer's technical and financial qualifications, such as
4    specialized experience, technical competence, capability
5    to perform, financial capacity, the proposer's workload,
6    local office presence, past performance including the
7    proposer's safety record and record of utilization of
8    business enterprises, including disadvantaged business
9    enterprises, and any other qualifications-based factors;
10        (4) the Transportation Agency's prequalification,
11    licensing, and registration requirements, including any
12    requirements from the Professional Engineering Practice
13    Act of 1989, the Illinois Architecture Practice Act of
14    1989, the Structural Engineering Practice Act of 1989, and
15    the Illinois Professional Land Surveyor Act of 1989,
16    except that nothing contained herein precludes the
17    Transportation Agency's use of additional prequalification
18    criteria or pass-fail evaluation factors addressing
19    minimum levels of technical experience or financial
20    capabilities;
21        (5) a requirement that the proposer provide references
22    or contact information for persons who can attest to the
23    past performance of the proposer, including with respect
24    to successful project delivery, subcontracting, labor
25    relations, diverse business utilization, workforce
26    diversity, and compliance with contract requirements;



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1        (6) the maximum number of proposers the Transportation
2    Agency will shortlist to submit proposals; and
3        (7) any other relevant information the Transportation
4    Agency deems appropriate.
5    (c) Upon completion of the qualifications evaluation, the
6Transportation Agency shall, based on the evaluation criteria
7set forth in the request for qualifications, create a
8shortlist of the most highly qualified proposers. The
9Transportation Agency shall shortlist no more than 5 and no
10fewer than 2 of the most highly qualified proposers.
11Notwithstanding other provisions of this subsection (c), the
12Transportation Agency may shortlist fewer than 2 proposers if
13the Secretary or the Executive Director makes a finding that
14an emergency situation justifies the limited shortlisting and
15fewer than 2 proposers meet any applicable prequalification or
16pass-fail requirements set forth in the request for
18    (d) The request for proposals may contain any terms deemed
19appropriate by the Transportation Agency including, without
20limitation, the following:
21        (1) the form and amount of required bid security;
22        (2) the terms of the design-build contract or
23    Construction Manager/General Contractor contract,
24    including, but not limited to, scope and performance
25    requirements, schedule or completion date requirements,
26    subcontractor requirements, payment and performance



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1    security requirements, and insurance requirements;
2        (3) the requirements for the technical component of
3    the proposal, including a description of the level of
4    design, scope and type of renderings, drawings, and
5    specifications to be provided in the proposals;
6        (4) the requirements for the price component of the
7    proposal, which for Construction Manager/General
8    Contractor contracts may include a requirement for the
9    proposer to submit a lump sum price for the direct costs to
10    perform the required preconstruction services and
11    percentage mark-up on those direct costs;
12        (5) the evaluation criteria for the proposals,
13    including technical criteria, innovation, and schedule,
14    and the relative importance of those criteria, as the
15    Transportation Agency deems appropriate;
16        (6) a process for the Transportation Agency to review
17    and accept Alternative Technical Concepts;
18        (7) requirements regarding utilization of business
19    enterprises, including disadvantaged business
20    enterprises, and workforce development, including a
21    description of utilization and workforce diversity plans
22    and certifications to be provided in the proposals for
23    both design and construction phases;
24        (8) requirements regarding the proposer's
25    qualifications; and
26        (9) any other relevant information the Transportation



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1    Agency deems appropriate.
2    (e) Before the proposers' submittal of proposals, the
3Transportation Agency may conduct confidential meetings and
4exchange confidential information with proposers to promote
5understanding of the request for proposals, review Alternative
6Technical Concepts, or discuss other issues related to the
8    (f) The date proposals are due must be at least 28 calendar
9days after the date the Transportation Agency first issues the
10request for proposals.
11    (g) The Transportation Agency may offer to pay a stipend
12in an amount and on the terms and conditions determined by the
13Transportation Agency and as set forth in the request for
14proposals to: (1) all shortlisted proposers if the
15Transportation Agency cancels the procurement after the
16proposals have been released, but before the due date for
17proposals; or (2) each unsuccessful proposer that submits a
18responsive proposal; or (3) each member of the proposer team
19that incurs costs in the preparation of the proposal. The
20Transportation Agency may pay a stipend only to those
21proposers who grant to the Transportation Agency the right to
22use any work product contained in the unsuccessful proposer's
23proposal and other proposal-related submissions or, if the
24Transportation Agency cancels the procurement after the
25proposals have been released, but before the due date for
26proposals, any work product developed before cancellation,



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1including technologies, techniques, methods, processes, and
2information contained in the recipient's design for the
3transportation facility.
4    (h) The Transportation Agency shall, as appropriate
5depending on whether the transportation facility includes
6building facilities, directly employ or retain a professional
7engineer or engineers licensed in this State or a licensed
8architect or architects, or both engineers licensed in this
9State and licensed architects, to prepare the scope and assist
10in the evaluation of the proposals' technical submissions
11under a design-build project delivery method. The professional
12engineers and licensed architects performing these services
13are precluded from participating in the procurement of the
14transportation facility at issue as a member of a proposer
16    (i) The Transportation Agency has the right to reject any
17and all qualifications or proposals, including, but not
18limited to, the right to reject any qualifications or
19proposals as non-responsive, if, in the Transportation
20Agency's sole discretion, the qualifications or proposals do
21not meet all material requirements of the request for
22qualifications or request for proposals, as appropriate. The
23Transportation Agency shall not consider a proposal that does
24not include:
25        (1) the proposer's plan to comply with requirements
26    established by the Transportation Agency regarding



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1    utilization of business enterprises, including
2    disadvantaged business enterprises; or
3        (2) bid security in the form and amount designated in
4    the request for proposals.
5    (j) The Transportation Agency shall consult with the
6appropriate chief procurement officer on the design-build
7project delivery method and the Construction Manager/General
8Contractor project delivery method procurement processes, and
9the Secretary or the Executive Director, in consultation with
10the chief procurement officer, shall determine which
11procedures to adopt and apply to the design-build project
12delivery method and Construction Manager/General Contractor
13project delivery method procurement processes in order to
14ensure an open, transparent, and efficient process that
15accomplishes the purposes of this Act.
16    (k) To ensure taxpayer accountability, for any project
17with an estimated cost over $30,000,000, the Transportation
18Agency shall independently procure an owner's representative
19or construction manager to supplement staff directly employed
20by the Transportation Agency, provide design reviews,
21constructability reviews, construction acceptance, oversight
22of utility relocations, independent quality assurance surveys,
23independent material testing, documentation of construction,
24risk mitigation, and oversight of construction activities,
25including construction management, maintenance of traffic,
26permit compliance, and other services which may include: value



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1engineering, stakeholder coordination, or public involvement
3    Section 30. Evaluation committee.
4    (a) The Transportation Agency shall establish one or more
5evaluation committees to assist in selecting a design-builder
6and a Construction Manager/General Contractor. The
7Transportation Agency, in its sole discretion, shall determine
8the appropriate size and composition of the evaluation
9committee; however, at least half of the committee must be
10licensed professional engineers.
11    (b) The Transportation Agency may establish an evaluation
12committee for a set term or for the procurement of a particular
13transportation facility.
14    (c) Once the Transportation Agency identifies the
15proposers for a transportation facility, each member of an
16evaluation committee must certify that no conflict of interest
17exists between the member and the proposers. If the
18Transportation Agency, after consultation with the chief
19procurement officer, determines that an actual conflict
20exists, the member shall not participate on the evaluation
21committee for that procurement and the Transportation Agency
22shall appoint a replacement member on either a permanent or a
23temporary basis.
24    Section 35. Procedures for selection.



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1    (a) The Transportation Agency shall review, evaluate,
2score, and rank proposals and determine which proposal offers
3the best value to the public based on the evaluation criteria
4set forth in the request for proposals. The Transportation
5Agency shall award the contract based on this determination.
6Notwithstanding other provisions of this Section, if for any
7reason the proposer awarded the contract is unable or
8unwilling to execute the contract, including the failure of
9the proposer and the Transportation Agency to successfully
10complete negotiations, if any, of the contract, the
11Transportation Agency may award the contract to the proposer
12whose proposal the Transportation Agency determines offers the
13public the next best value.
14    (b) After a response to a request for qualifications or a
15request for proposals has been submitted as provided in
16Section 25, a design-builder shall not replace, remove, or
17otherwise modify any firm identified as a member of the
18proposer team unless authorized to do so by the Transportation
20    Section 40. Project records; confidentiality; public
22    (a) The Transportation Agency shall maintain all written
23decisions, qualification and proposal evaluations, scoring
24documents, selection evaluations, proposals, and procurement
25documents in a procurement file maintained by the



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1Transportation Agency.
2    (b) A proposer may identify those portions of a proposal
3or other submission that the proposer considers to be trade
4secrets or confidential, commercial, financial, or proprietary
5information. Confidential and proprietary information,
6including trade secrets, shall be exempt from disclosure only
7if the proposer does the following:
8        (1) requests exclusion from disclosure upon submission
9    of the information or other materials for which protection
10    is sought;
11        (2) identifies the data or other materials for which
12    protection is sought;
13        (3) states the statutory or regulatory basis for the
14    protection;
15        (4) fully complies with the federal Freedom of
16    Information Act and any other applicable provisions of
17    State law, including, but not limited to, the Freedom of
18    Information Act, with respect to information the proposer
19    contends should be exempt from disclosure; and
20        (5) certifies if the information is in accordance with
21    the protection of the Illinois Trade Secrets Act.
22    (c) Notwithstanding any other provision of law, in order
23to properly balance the need to maximize competition under
24this Act with the need to create a transparent procurement
25process, the qualifications, proposals, and other information
26and documents submitted by proposers and the Transportation



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1Agency's evaluation records shall not be subject to release or
2disclosure by the Transportation Agency until execution of the
3design-build contract or Construction Manager/General
4Contractor contract, as applicable. If the Transportation
5Agency terminates the procurement for a transportation
6facility, the exemption from release or disclosure under this
7Section shall remain in place until the Transportation Agency
8re-procures the transportation facility and has entered into a
9design-build contract or Construction Manager/General
10Contractor contract, as applicable. However, this exemption
11shall lapse if the Transportation Agency does not commence the
12re-procurement of the transportation facility within 5 years
13of the termination.
14    Section 45. Design-build contract. A design-build contract
15may include any provisions the Transportation Agency
16determines are necessary or appropriate, including, but not
17limited to, provisions regarding the following:
18        (1) compensation or payments to the design-builder;
19        (2) grounds for termination of the design-build
20    contract, including the Transportation Agency's right to
21    terminate for convenience;
22        (3) liability for damages and nonperformance;
23        (4) events of default and the rights and remedies
24    available to the design-builder and the Transportation
25    Agency in the event of a default or delay;



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1        (5) the identification of any technical specifications
2    that the design-builder must comply with when developing
3    plans or performing construction work;
4        (6) the procedures for review and approval of the
5    design-builder's plans;
6        (7) required performance and payment security;
7        (8) the terms and conditions of indemnification and
8    minimum insurance requirements; and
9        (9) any other terms and conditions the Transportation
10    Agency deems necessary.
11    Section 50. Construction Manager/General Contractor
13    (a) The Construction Manager/General Contractor contract
14shall divide the Construction Manager/General Contractor
15services into 2 phases. The first phase shall address
16preconstruction services and the procedures the parties shall
17follow to finalize the contract terms for the second phase.
18The second phase shall address the Construction
19Manager/General Contractor's construction of the
20transportation facility for a lump sum or a guaranteed maximum
22    (b) A Construction Manager/General Contractor contract
23shall include provisions regarding the following:
24        (1) the Construction Manager/General Contractor's
25    provision of preconstruction services during the first



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1    phase of the contract, including the Construction
2    Manager/General Contractor's compensation for those
3    services;
4        (2) a requirement that, during the first phase of the
5    contract, the Construction Manager/General Contractor
6    shall use a competitive bidding process to procure
7    subcontracts for at least the minimum percentage of
8    construction work specified in the request for proposals,
9    provided that:
10            (A) compliance with this requirement shall be
11        based on an estimated cost for the construction work
12        approved by the Transportation Agency before the start
13        of the competitive bidding process; and
14            (B) the Construction Manager/General Contractor
15        may not use subcontracts with its wholly or partially
16        owned subsidiaries, parent companies, or affiliates to
17        satisfy this obligation;
18        (3) the process the Transportation Agency and the
19    Construction Manager/General Contractor shall use to
20    determine a lump sum or guaranteed maximum price for the
21    construction work, including a requirement that the
22    Transportation Agency conduct an independent cost estimate
23    for the construction work; and
24        (4) grounds for termination of the Construction
25    Manager/General Contractor contract, including the
26    Transportation Agency's right to terminate the contract



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1    and not proceed with the construction phase of the project
2    if the Transportation Agency and the Construction
3    Manager/General Contractor are unable to negotiate a lump
4    sum or guaranteed maximum price for the construction work.
5    (c) In addition to the provisions under subsection (b) of
6this Section, a Construction Manager/General Contractor
7contract may include any other provisions the Transportation
8Agency determines are necessary or appropriate, including, but
9not limited to, provisions regarding the following:
10        (1) liability for damages and nonperformance;
11        (2) events of default and the rights and remedies
12    available to the Construction Manager/General Contractor
13    and the Transportation Agency in the event of a default or
14    delay;
15        (3) the identification of any technical specifications
16    that the Construction Manager/General Contractor must
17    comply with when aiding the Transportation Agency with
18    developing plans or performing construction work;
19        (4) required performance and payment security for the
20    construction phase of the contract;
21        (5) the terms and conditions of indemnification and
22    minimum insurance requirements; and
23        (6) any other terms and conditions the Transportation
24    Agency deems necessary.
25    (d) If the Construction Manager/General Contractor
26contract is terminated for any reason, the Transportation



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1Agency, in its sole discretion, may readvertise the
2Construction Manager/General Contractor contract under this
3Act or use any other authorized procurement method to complete
4the transportation facility or any portion of the
5transportation facility. Once the contract is terminated, the
6Transportation Agency may use any work product developed by
7the Construction Manager/General Contractor to complete the
8transportation facility.
9    Section 55. Funding and financing.
10    (a) The Transportation Agency may use any lawful source of
11funding and financing to compensate a design-builder and
12Construction Manager/General Contractor for work and services
13performed under a design-build contract or Construction
14Manager/General Contractor contract, as applicable, and the
15Transportation Agency may combine federal, State, local, and
16private funds to finance a transportation facility. Any
17Transportation Agency that administers a construction program
18for which federal law or regulations establish standards and
19procedures for the utilization of minority-owned and
20women-owned businesses and disadvantaged businesses shall
21implement a disadvantaged business enterprise program to
22include minority-owned and women-owned businesses and
23disadvantaged businesses, using the federal standards and
24procedures for the establishment of goals and utilization
25procedures for the State-funded, as well as the federally



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1assisted, portions of the program. In cases of federal funding
2or federally assisted projects, these goals shall not exceed
3those established pursuant to the relevant and applicable
4federal statutes or regulations.
5    (b) Subject to appropriation by the General Assembly of
6the required amounts, the Transportation Agency may obligate
7and make expenditures of funds as and when needed to satisfy
8its payment obligations under a design-build contract or
9Construction Manager/General Contractor contract.
10    Section 56. Utilization requirements.
11    (a) Design-builder and Construction Manager/General
12Contractor projects shall comply with Section 2-105 of the
13Illinois Human Rights Act and all applicable laws and rules
14that establish standards and procedures for the utilization of
15minority, disadvantaged, and women-owned businesses,
16including, but not limited to, the Business Enterprise for
17Minorities, Women, and Persons with Disabilities Act. Any
18Transportation Agency that administers a construction program,
19for which federal law or regulations establish standards and
20procedures for the utilization of minority-owned and
21women-owned businesses and disadvantaged businesses shall
22implement a disadvantaged business enterprise program to
23include minority-owned and women-owned businesses and
24disadvantaged businesses, using the federal standards and
25procedures for the establishment of goals and utilization



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1procedures for the State-funded, as well as the federally
2assisted, portions of the program. In cases of federal funding
3or federally assisted projects, these goals shall not exceed
4those established pursuant to the relevant and applicable
5federal statutes or regulations. Each design-build contract
6and Construction Manager/General Contractor contract shall
7include remedies for a contractor's failure to comply with
8commitments made in the proposal or utilization plan,
9including, without limitation, failure to cooperate in
10providing information regarding compliance or termination of
11any subcontractor identified in the utilization plan without
12the consent of the Transportation Agency. Such remedies may
13include termination of the contract, imposition of a penalty
14in an amount equivalent to any profit or cost savings accruing
15to the contractor as a result of the violation, withholding of
16payments, liquidated damages, disqualification from future
17bidding as non-responsible, or any other remedy available to
18the Transportation Agency at law or in equity.
19    (b) For the purposes of this Section, aspirational goals
20compliant with the Business Enterprise for Minorities, Women,
21and Persons with Disabilities Act and Disadvantaged Business
22Enterprise Program shall be established separately for
23construction-related professional services and shall be
24consistent with the Transportation Agency's methodology for
25design-bid-build contracts. As used in this Section,
26"construction-related professional services" means those



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1services within the scope of the practice of architecture,
2professional engineering, structural engineering, or land
3surveying, as defined in the Illinois Architecture Practice
4Act of 1989, the Professional Engineering Practice Act of
51989, the Illinois Professional Land Surveyor Act of 1989, or
6the Illinois Structural Engineering Practice Act of 1989.
7    Section 57. Labor.
8    (a) A contract or agreement under this Act shall require
9the design-builder or Construction Manager/General Contractor,
10and all subcontractors, to comply with Section 30-22 of the
11Illinois Procurement Code as it applies to responsible bidders
12and to present satisfactory evidence of that compliance to the
13Transportation Agency, unless the transportation project is
14federally funded and the application of those requirements
15would jeopardize the receipt or use of federal funds in
16support of the transportation project.
17    (b) A contract or agreement under this Act shall require
18the design-builder or Construction Manager/General Contractor
19to enter into a project labor agreement used by the
20Transportation Agency.
21    (c) This Section does not apply to construction-related
22professional services. As used in this Section,
23"construction-related professional services" means those
24services within the scope of the practice of architecture,
25professional engineering, structural engineering, or land



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1surveying, as defined in the Illinois Architecture Practice
2Act of 1989, the Professional Engineering Practice Act of
31989, the Illinois Professional Land Surveyor Act of 1989, or
4the Illinois Structural Engineering Practice Act of 1989.
5    Section 58. Disadvantaged business enterprise liaison. The
6Office of Business and Workforce Diversity established under
7Section 2705-593 of the Department of Transportation Law of
8the Civil Administrative Code of Illinois shall retain a staff
9member or consultant to act as a liaison of for outreach,
10monitoring, and compliance with the Department's Disadvantaged
11Business Enterprise Program consistent with all applicable
12federal rules governing the disadvantaged business enterprise
13process. The Department shall also determine attainable goals
14for projects using the new project delivery procurement
15methods, in accordance with federal regulations. The
16Department shall publish a quarterly report regarding projects
17sourced through new procurements methods that includes
18utilization goals and utilization achieved.
19    Section 60. Acquisition of property and related
20agreements. The Transportation Agency may exercise any and all
21powers of condemnation or eminent domain, including quick-take
22powers, to acquire lands or estates or interests in land for a
23transportation facility under this Act to the extent the
24Transportation Agency finds that the action serves the public



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1purpose of this Act and deems the action appropriate in the
2exercise of its powers under this Act. In addition, the
3Transportation Agency and a design-builder or Construction
4Manager/General Contractor may enter into leases, licenses,
5easements, and other grants of property interests that the
6Transportation Agency determines are necessary to deliver a
7transportation facility under this Act.
8    Section 65. Federal requirements. In the procurement of
9design-build contracts and Construction Manager/General
10Contractor contracts, the Transportation Agency shall, to the
11extent applicable, comply with federal law and regulations and
12take all necessary steps to adapt its rules, policies, and
13procedures to remain eligible for federal aid.
14    Section 70. Powers. The powers granted to the
15Transportation Agency under this Act, including the power to
16procure and enter into design-build contracts and Construction
17Manager/General Contractor contracts, shall be liberally
18construed to accomplish its purpose, are in addition to any
19existing powers of the Transportation Agency, and shall not
20affect or impair any other powers authorized under applicable
21law, except as otherwise provided for in this Act.
22    Section 75. Rulemaking.
23    (a) The Illinois Administrative Procedure Act applies to



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1all administrative rules and procedures of the Transportation
2Agency under this Act, except that nothing in this Act shall be
3construed to render any prequalification or other
4responsibility criteria as a "license" or "licensing" under
5that Act.
6    (b) The appropriate chief procurement officer, in
7consultation with the Transportation Agency, may adopt rules
8to carry out the provisions of this Act.
9    Section 80. Repeal. This Act is repealed on July 1, 2032.
10    Section 905. The Department of Transportation Law of the
11Civil Administrative Code of Illinois is amended by adding
12Section 2705-233 as follows:
13    (20 ILCS 2705/2705-233 new)
14    Sec. 2705-233. Innovations for Transportation
15Infrastructure Act. The Department may exercise all powers
16granted to it under the Innovations for Transportation
17Infrastructure Act, including, but not limited to, the power
18to enter into all contracts or agreements necessary or
19incidental to the performance of its powers under that Act,
20and powers related to any transportation facility implemented
21under that Act.
22    Section 910. The Illinois Finance Authority Act is amended



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1by adding Section 825-108 as follows:
2    (20 ILCS 3501/825-108 new)
3    Sec. 825-108. Transportation project financing. For the
4purpose of financing a transportation facility undertaken
5under the Innovations for Transportation Infrastructure Act,
6the Authority may apply for an allocation of tax-exempt bond
7financing authorization provided by subsection (m) of Section
8142 of the United States Internal Revenue Code, as well as
9financing available under any other federal law or program.
10    Section 915. The Illinois Procurement Code is amended by
11adding Section 1-10.5 as follows:
12    (30 ILCS 500/1-10.5 new)
13    Sec. 1-10.5. Alternative Technical Concepts.
14    (a) For the purposes of this Section, "Alternative
15Technical Concepts" and "design-bid-build project delivery
16method" have the meanings ascribed to those terms in the
17Innovations for Transportation Infrastructure Act.
18    (b) Notwithstanding subsection (b) of Section 1-10 of this
19Code, the Department of Transportation may allow bidders and
20proposers to submit Alternative Technical Concepts in their
21bids and proposals, if the Department determines that the
22Alternative Technical Concepts provide an equal or better
23solution than the underlying technical requirements applicable



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1to the work. Notwithstanding the foregoing, for projects the
2Department delivers using the design-bid-build project
3delivery method, the Department shall use the Alternative
4Technical Concepts process for no more than 3 projects per
5year. If the Department allows bidders or proposers for a
6particular contract to submit Alternative Technical Concepts,
7the Department shall describe the process for submission and
8evaluation of Alternative Technical Concepts in the
9procurement documents for that contract, including the
10potential use of confidential meetings and the exchange of
11confidential information with bidders and proposers to review
12and discuss potential or proposed Alternative Technical
14    Section 920. The Public Construction Bond Act is amended
15by adding Section 1.9 as follows:
16    (30 ILCS 550/1.9 new)
17    Sec. 1.9. Design-build contracts and Construction
18Manager/General Contractor contracts. This Act applies to any
19design-build contract or Construction Manager/General
20Contractor contract entered into under the Innovations for
21Transportation Infrastructure Act.
22    Section 925. The Employment of Illinois Workers on Public
23Works Act is amended by adding Section 2.8 as follows:



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1    (30 ILCS 570/2.8 new)
2    Sec. 2.8. Design-build and Construction Manager/General
3Contractor contracts. This Act applies to any design-build
4contracts and Construction Manager/General Contractor
5contracts entered into under the Innovations for
6Transportation Infrastructure Act.
7    Section 930. The Business Enterprise for Minorities,
8Women, and Persons with Disabilities Act is amended by adding
9Section 2.8 as follows:
10    (30 ILCS 575/2.8 new)
11    Sec. 2.8. Design-build and Construction Manager/General
12Contractor contracts. This Act applies to any design-build
13contracts and Construction Manager/General Contractor
14contracts entered into under the Innovations for
15Transportation Infrastructure Act.
16    Section 935. The Toll Highway Act is amended by adding
17Section 11.2 as follows:
18    (605 ILCS 10/11.2 new)
19    Sec. 11.2. Innovations for Transportation Infrastructure
20Act. The Authority may exercise all powers granted to it under
21the Innovations for Transportation Infrastructure Act,



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1including, but not limited to, the power to enter into all
2contracts or agreements necessary to perform its powers under
3that Act, and any powers related to a transportation facility
4implemented under that Act.
5    Section 940. The Eminent Domain Act is amended by adding
6Section 15-5-48 as follows:
7    (735 ILCS 30/15-5-48 new)
8    Sec. 15-5-48. Eminent domain powers in new Acts. The
9following provisions of law may include express grants of the
10power to acquire property by condemnation or eminent domain:
11    The Innovations for Transportation Infrastructure Act; for
12the purposes of constructing a transportation facility under
13the Act.
14    Section 945. The Prevailing Wage Act is amended by
15changing Section 2 as follows:
16    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
17    Sec. 2. This Act applies to the wages of laborers,
18mechanics and other workers employed in any public works, as
19hereinafter defined, by any public body and to anyone under
20contracts for public works. This includes any maintenance,
21repair, assembly, or disassembly work performed on equipment
22whether owned, leased, or rented.



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1    As used in this Act, unless the context indicates
3    "Public works" means all fixed works constructed or
4demolished by any public body, or paid for wholly or in part
5out of public funds. "Public works" as defined herein includes
6all projects financed in whole or in part with bonds, grants,
7loans, or other funds made available by or through the State or
8any of its political subdivisions, including but not limited
9to: bonds issued under the Industrial Project Revenue Bond Act
10(Article 11, Division 74 of the Illinois Municipal Code), the
11Industrial Building Revenue Bond Act, the Illinois Finance
12Authority Act, the Illinois Sports Facilities Authority Act,
13or the Build Illinois Bond Act; loans or other funds made
14available pursuant to the Build Illinois Act; loans or other
15funds made available pursuant to the Riverfront Development
16Fund under Section 10-15 of the River Edge Redevelopment Zone
17Act; or funds from the Fund for Illinois' Future under Section
186z-47 of the State Finance Act, funds for school construction
19under Section 5 of the General Obligation Bond Act, funds
20authorized under Section 3 of the School Construction Bond
21Act, funds for school infrastructure under Section 6z-45 of
22the State Finance Act, and funds for transportation purposes
23under Section 4 of the General Obligation Bond Act. "Public
24works" also includes (i) all projects financed in whole or in
25part with funds from the Environmental Protection Agency under
26the Illinois Renewable Fuels Development Program Act for which



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1there is no project labor agreement; (ii) all work performed
2pursuant to a public private agreement under the Public
3Private Agreements for the Illiana Expressway Act or the
4Public-Private Agreements for the South Suburban Airport Act;
5and (iii) all projects undertaken under a public-private
6agreement under the Public-Private Partnerships for
7Transportation Act; and (iv) all transportation facilities
8undertaken under a design-build contract or a Construction
9Manager/General Contractor contract under the Innovations for
10Transportation Infrastructure Act. "Public works" also
11includes all projects at leased facility property used for
12airport purposes under Section 35 of the Local Government
13Facility Lease Act. "Public works" also includes the
14construction of a new wind power facility by a business
15designated as a High Impact Business under Section
165.5(a)(3)(E) and the construction of a new utility-scale solar
17power facility by a business designated as a High Impact
18Business under Section 5.5(a)(3)(E-5) of the Illinois
19Enterprise Zone Act. "Public works" also includes electric
20vehicle charging station projects financed pursuant to the
21Electric Vehicle Act and renewable energy projects required to
22pay the prevailing wage pursuant to the Illinois Power Agency
23Act. "Public works" does not include work done directly by any
24public utility company, whether or not done under public
25supervision or direction, or paid for wholly or in part out of
26public funds. "Public works" also includes construction



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1projects performed by a third party contracted by any public
2utility, as described in subsection (a) of Section 2.1, in
3public rights-of-way, as defined in Section 21-201 of the
4Public Utilities Act, whether or not done under public
5supervision or direction, or paid for wholly or in part out of
6public funds. "Public works" also includes construction
7projects that exceed 15 aggregate miles of new fiber optic
8cable, performed by a third party contracted by any public
9utility, as described in subsection (b) of Section 2.1, in
10public rights-of-way, as defined in Section 21-201 of the
11Public Utilities Act, whether or not done under public
12supervision or direction, or paid for wholly or in part out of
13public funds. "Public works" also includes any corrective
14action performed pursuant to Title XVI of the Environmental
15Protection Act for which payment from the Underground Storage
16Tank Fund is requested. "Public works" does not include
17projects undertaken by the owner at an owner-occupied
18single-family residence or at an owner-occupied unit of a
19multi-family residence. "Public works" does not include work
20performed for soil and water conservation purposes on
21agricultural lands, whether or not done under public
22supervision or paid for wholly or in part out of public funds,
23done directly by an owner or person who has legal control of
24those lands.
25    "Construction" means all work on public works involving
26laborers, workers or mechanics. This includes any maintenance,



SB2981 Enrolled- 39 -LRB102 21866 RAM 30987 b

1repair, assembly, or disassembly work performed on equipment
2whether owned, leased, or rented.
3    "Locality" means the county where the physical work upon
4public works is performed, except (1) that if there is not
5available in the county a sufficient number of competent
6skilled laborers, workers and mechanics to construct the
7public works efficiently and properly, "locality" includes any
8other county nearest the one in which the work or construction
9is to be performed and from which such persons may be obtained
10in sufficient numbers to perform the work and (2) that, with
11respect to contracts for highway work with the Department of
12Transportation of this State, "locality" may at the discretion
13of the Secretary of the Department of Transportation be
14construed to include two or more adjacent counties from which
15workers may be accessible for work on such construction.
16    "Public body" means the State or any officer, board or
17commission of the State or any political subdivision or
18department thereof, or any institution supported in whole or
19in part by public funds, and includes every county, city,
20town, village, township, school district, irrigation, utility,
21reclamation improvement or other district and every other
22political subdivision, district or municipality of the state
23whether such political subdivision, municipality or district
24operates under a special charter or not.
25    "Labor organization" means an organization that is the
26exclusive representative of an employer's employees recognized



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1or certified pursuant to the National Labor Relations Act.
2    The terms "general prevailing rate of hourly wages",
3"general prevailing rate of wages" or "prevailing rate of
4wages" when used in this Act mean the hourly cash wages plus
5annualized fringe benefits for training and apprenticeship
6programs approved by the U.S. Department of Labor, Bureau of
7Apprenticeship and Training, health and welfare, insurance,
8vacations and pensions paid generally, in the locality in
9which the work is being performed, to employees engaged in
10work of a similar character on public works.
11(Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
12102-673, eff. 11-30-21; revised 12-9-21.)
13    Section 997. Severability. The provisions of this Act are
14severable under Section 1.31 of the Statute on Statutes.
15    Section 999. Effective date. This Act takes effect upon
16becoming law.