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PRINTER'S NO. 1798
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1377
Session of
2026
INTRODUCED BY J. WARD, JUNE 9, 2026
REFERRED TO TRANSPORTATION, JUNE 9, 2026
AN ACT
Amending Title 74 (Transportation) of the Pennsylvania
Consolidated Statutes, in transportation infrastructure,
providing for design build best value.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 74 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 98
DESIGN BUILD BEST VALUE
Sec.
9801. Scope of chapter.
9802. Definitions.
9803. Design build best value process.
9804. Applicability of other laws.
9805. Limitation on powers and duties and existing contracts.
9806. Project reporting.
§ 9801. Scope of chapter.
This chapter relates to design build best value as an
alternative procurement process for highway and bridge design
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and construction projects for the Pennsylvania Turnpike
Commission.
§ 9802. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Alternative technical concept" or "ATC." A proposed
variance from the contractual requirements or request for
proposal that is equal to or better than the requirements in the
request for proposal document.
"Commission." The Pennsylvania Turnpike Commission.
"Commissioners." The commissioners of the Pennsylvania
Turnpike Commission.
"Design build best value." The source selection method other
than competitive sealed proposals in 62 Pa.C.S. § 513 (relating
to competitive sealed proposals), as described in section 9803
(relating to design build best value process), which may be used
by the commission acting as the purchasing agency, as an
alternative to competitive sealed bidding and competitive sealed
proposals .
"Offeror." An entity that submits a proposal in response to
a request for proposals or request for qualifications.
"Project." The design and construction of a highway or
bridge, or both, by the commission.
"Request for proposals." All documents, including those
either attached or incorporated by reference, used for
soliciting proposals.
"Request for qualifications." All documents, including those
either attached or incorporated by reference, used for
soliciting statements of qualifications.
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"Responsible offeror." An entity that has submitted a
responsive statement of qualifications to a request for
qualifications or responsive proposal to a request for proposals
and that possesses the capability to fully perform the contract
requirements in all respects and the integrity and reliability
to assure good faith performance as determined by the
commission .
"Responsive proposal." A proposal which conforms in all
material respects to the requirements and criteria in the
request for proposals.
"Shortlisted offeror." An offeror that may qualify for a
stipend because of the offeror's score, ranking or rating after
submittal of the statement of qualifications.
"Statement of qualifications." An offeror's response to the
commission , after the commission issues a request for
qualifications.
§ 9803. Design build best value process.
(a) Value score.-- The commission may use the design build
best value source selection method for projects in accordance
with this section.
(b) Conditions for use.--Design build best value may be used
when the commission determines that a project would benefit from
the design build best value method of procurement due to one or
more of the following factors:
(1) project complexity;
(2) potential for innovation;
(3) unique equipment or specialized systems;
(4) project risks;
(5) project schedule;
(6) other project considerations; and
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(7) estimated project value.
(c) Projects procured.-- The commission may advertise no more
than 10 one-step design build best value procurements per
calendar year and no more than 10 two-step design build best
value procurements per calendar year.
(d) Public notice of determination for use of design build
best value.--
(1) Except as provided under paragraph (2), the notice
of determination under subsection (b) shall be posted by the
commission for a period of 30 days prior to the date the
procurement documents are posted on the commission's publicly
accessible Internet website.
(2) The commission may elect a period of less than 30
days.
(e) Request for proposals.--
(1) After the determination under subsection (b) has
been issued, the commission shall solicit proposals through a
request for proposals.
(2) In accordance with subsection (c), the commission
may conduct a one-step or two-step request for proposals,
subject to the following:
(i) If the commission conducts a one-step request
for proposals, the commission shall seek a technical and
price proposal in accordance with subsection (i).
(ii) If the commission conducts a two-step request
for proposals, the commission shall seek a statement of
qualifications as step one in accordance with subsection
(j) and a technical and price proposal as step two in
accordance with subsection (k).
(3) The commission shall include a schedule in a request
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for proposal under this chapter that identifies the
anticipated dates for the procurement, including an
anticipated final selection of a best value offeror.
(f) Public notice.--Public notice of the one-step or two-
step request for proposals shall be given in the same manner as
provided in 62 Pa.C.S. § 512(c) (relating to competitive sealed
bidding).
(g) Submission and receipt of statements of qualifications
and proposals.--Offerors shall submit their statements of
qualifications and proposals to ensure that their statements of
qualifications and proposals are received prior to the times and
dates established for the submission of statements for
qualifications and proposals. Statements of qualifications and
proposals shall be submitted in the format required by the
request for qualifications and the request for proposals.
Statements of qualifications and proposals shall be opened so as
to avoid disclosure of their contents to competing offerors.
(h) Preproposal conference.--T he commission shall schedule a
preproposal conference after issuing the request for
qualifications in a two-step procurement or the request for
proposals in a one-step procurement, which conference may be
held virtually. The commission shall indicate the date, time and
location for a preproposal conference within the request for
qualifications in a two-step procurement or the request for
proposals in a one-step procurement.
(i) Request for technical and price proposals in a one-step
procurement.--
(1) The commission shall issue a formal request for
proposals publicly, which shall include separate proposals
for a technical solution, to be known as the technical
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proposal, and the proposed price, to be known as the price
proposal.
(2) After receipt of all technical proposals, the
evaluation committee under subsection (t) shall evaluate each
responsive proposal based on the criteria stated in the
request for proposals. The technical and price proposals
shall be evaluated and either scored or rated separately, as
applicable. Except for a responsiveness determination made by
a nonvoting member of the evaluation committee, a price
proposal may not be opened until all technical proposals are
scored or rated.
(3) In scoring or rating a technical proposal and price
proposal, the evaluation committee shall consider the
relative importance of the evaluation factors fixed prior to
the opening of the technical and price proposals, which shall
be stated in the request for proposals.
(4) Failure of an offeror to meet the requirements of a
request for proposal shall result in the proposal being
deemed nonresponsive.
(j) Statement of qualifications and short-list process in a
two-step procurement.--
(1) A statement of qualifications received by the
commission from a responsible offeror shall be scored or
rated by an evaluation committee based on the criteria stated
in the request for qualifications.
(2) After the statements of qualifications are scored or
rated under paragraph (1), the evaluation committee shall
develop a short list of the number of offerors established in
the request for qualifications, which may identify the
responsible offerors eligible to receive a stipend under
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subsection (o)(3).
(3) The commission shall post a list and rank of all
responsible offerors on the commission's publicly accessible
Internet website .
(4) A responsible offeror that submitted a statement of
qualifications under the request for qualifications process,
but was not a shortlisted offeror by the commission , is
ineligible to receive a stipend after the request for
proposals process but may still submit proposals in response
to the request for proposals in step two of the procurement
under subsection (k).
(k) Request for technical and price proposals in a two-step
procurement.--
(1) Following the creation of a short list and to the
extent that the commission is satisfied with the number of
responsible offerors, the commission shall issue a formal
request for proposals to all responsible offerors who
submitted a responsive statement of qualifications, which
shall seek separate proposals for a technical solution, to be
known as the technical proposal, and the proposed price, to
be known as the price proposal.
(2) After receipt of all technical proposals, the
evaluation committee shall evaluate each submission based on
the criteria stated in the request for proposals. The
technical and price proposals shall be evaluated and scored
or rated separately. Except for a responsiveness
determination made by a nonvoting member of the evaluation
committee, a price proposal may not be opened until all
technical proposals are scored or rated.
(3) In scoring or rating a technical proposal and price
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proposal, the evaluation committee shall consider the
relative importance of the evaluation factors fixed prior to
the opening of the technical and price proposals, which shall
be stated in the request for proposals.
(4) If the statement of qualifications rating or score
will be included in the final rating or score for the design
build best value two-step procurement, the request for
proposal shall indicate that fact.
(l) Alternative technical concepts.--
(1) An alternative technical concept, proposed by an
offeror, if any, shall be submitted by the offeror to the
commission on or before the due date for ATC submission
established by the request for proposal.
(2) The commission shall determine at its sole
discretion whether an ATC is acceptable or approved.
(3) The commission may communicate individually with an
offeror regarding its proposed or submitted ATC.
(4) Approval of an ATC will constitute a change in the
specific requirements of the contractual requirements or
request for proposal associated with the approved ATC for
that specific offeror. An offeror shall ensure that its
proposal complies with the request for proposal requirements
for the specific offeror, as modified by approval of the ATC.
(5) Approval of an ATC in no way implies that the ATC or
the proposal will receive a favorable review from the
evaluation committee.
(m) Records of requests for alternative technical concepts
and use of intellectual property.--
(1) Except as provided under paragraph (2), an ATC shall
be confidential unless or until:
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(i) the ATC is deemed to take advantage of an error
or omission or reveals an area or discrepancy where a
clarification may be warranted in the request for
proposal or contract documents, which may be subsequently
amended by the commission in its sole discretion;
(ii) cancellation of the procurement without
selection of an offeror and upon an executed agreement
for payment to an offeror in accordance with subsection
(n) or (o);
(iii) the effective date of the contract as a result
of the procurement or upon an executed agreement for
payment to an unsuccessful offeror in accordance with
subsection (n) or (o); or
(iv) another date as may be prescribed under
applicable law, at which time all confidentiality rights,
if any, shall be of no further force and effect except as
otherwise allowed under the applicable law.
(2) An unsuccessful offeror's ATC is not a public record
subject to inspection and duplication under the act of
February 14, 2008 (P.L.6, No.3), known as the Right-to-Know
Law, unless the commission enters into an agreement with an
unsuccessful offeror for payment of the ATC.
(3) Except to the extent not transferable by law, the
commission may use all or a portion of a submitted proposal
and ATC, including the technologies, techniques, methods,
processes and information contained in the proposal or ATC,
with an agreement for payment of the ATC. Notice of
nontransferability by law shall be given to the commission in
response to the request for proposals or submittal of the
ATC.
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(4) Under no circumstances may the commission be
responsible for or liable to an offeror or third party as a
result of disclosing an offeror's ATC materials.
(n) Payment for alternative technical concept.--The
commission may reasonably compensate any offeror for an ATC.
(o) Stipends.--
(1) A stipend shall be limited to a two-step
procurement. The determination to offer a stipend and its
amount under this subsection shall be determined by the
commission on a project-by-project basis. The determination
to offer a stipend in a two-step procurement and its terms
shall be stated in the request for qualifications or request
for proposals.
(2) In a two-step procurement, the commission may
compensate unsuccessful responsible shortlisted offerors for
a portion of the costs associated with the preparation of a
responsive proposal in response to a request for proposals
and for payment of an ATC. If a stipend is provided to
unsuccessful shortlisted offerors, the commission may only
provide payment if the unsuccessful shortlisted offeror's
technical and price proposals are responsive and the offeror
is a responsible offeror.
(3) The commission may not provide or award a stipend to
an unsuccessful responsible shortlisted offeror more than one
time. This paragraph shall not apply to an ATC.
(p) Due dates for technical proposal and price proposal.--
(1) The commission may determine that a technical
proposal is due on a date prior to the due date for a price
proposal. All due dates shall be clearly stated by the
commission in the request for proposals.
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(2) If the commission seeks submission of a technical
proposal prior to submission of the price proposal, a
nonvoting member from the commission may seek written
clarification from an offeror between the technical proposal
due date and price proposal due date, which includes asking
questions or seeking clarification regarding a technical
proposal.
(3) After the technical proposal and price proposal due
dates, the commission may seek clarification with responsible
offerors. Responsible offerors shall be accorded fair and
equal treatment with respect to any opportunity to provide
clarification . In conducting a meeting for the purpose of
clarification , the commission may not disclose information
derived from proposals submitted by competing offerors.
(q) Selection for negotiation.--The responsible offeror
whose proposal is determined in writing to be the most
advantageous to the commission shall be selected for contract
negotiations necessary to finalize a contract or to clarify any
remaining issue regarding scope, schedule or any other
information provided by the selected best value offeror without
impacting material price and evaluation factors.
(r) Incorporation of an unsuccessful offeror's ATC.-- Upon an
executed agreement for payment to an unsuccessful offeror in
accordance with subsection (n) or (o), the commission may
utilize an unsuccessful offeror's ATC. If the commission chooses
to incorporate the ATC into the contract executed as a result of
the subject procurement, the commission and contractor shall
execute a change order.
(s) Proposal validity period.--The request for proposal
shall state the validity period for the proposal, unless
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extended by the mutual consent of the commission and offerors .
(t) Evaluation committee.--
(1) Notwithstanding any other provisions of this
chapter, an evaluation committee under this chapter shall
consist of at least five employees as determined by the
commission. An individual who has been employed by an offeror
within the preceding five years may not participate in the
evaluation of any proposals submitted by that offeror.
(2) Nothing in this subsection shall be construed to
prohibit an employee of the Department of Transportation to
participate on an evaluation committee for the commission.
§ 9804. Applicability of other laws.
(a) Construction.--Except as provided under subsection (b),
l aws related to the design , construction, operation or financing
of a project in effect on the date the agreement is fully
executed shall apply to the agreement between the commission and
contractor. The provisions shall also include:
(1) The act of May 1, 1913 (P.L.155, No.104), referred
to as the Separations Act.
(2) The act of August 15, 1961 (P.L.987, No.442), known
as the Pennsylvania Prevailing Wage Act.
(b) Application.--Only the following provisions of 62
Pa.C.S. (relating to procurement) shall apply to this chapter:
(1) Section 102 (relating to application of part).
(2) Section 107 (relating to reciprocal limitations).
(3) Section 301 (relating to procurement
responsibility).
(4) Section 521 (relating to cancellation of invitations
for bids or requests for proposals).
(5) Section 531 (relating to debarment or suspension).
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(6) Section 541 (relating to approval of accounting
system).
(7) Section 542 (relating to multiterm contracts).
(8) Section 551 (relating to right to inspect plant).
(9) Section 552 (relating to right to audit records).
(10) Section 562 (relating to anticompetitive
practices).
(11) Section 563 (relating to retention of procurement
records).
(12) Section 902 (relating to bid or proposal security).
(13) Section 903 (relating to contract performance
security and payment bonds).
(14) Section 904 (relating to copies of bonds).
(15) Chapter 17 (relating to legal and contractual
remedies).
(16) Chapter 23 (relating to ethics in public
contracting).
(17) Chapter 35 (relating to Iran-free procurement).
(18) Chapter 36 (relating to prohibited contracts).
(19) Section 3701 (relating to contract provisions
prohibiting discrimination).
(20) Section 3921 (relating to retainage).
(21) Section 3922 (relating to payment of retainage to
subcontractors).
(22) Section 3931 (relating to performance by contractor
or subcontractor).
(23) Section 3932 (relating to government agency's
progress payment obligations).
(24) Section 3933 (relating to contractors' and
subcontractors' payment obligations).
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(25) Section 3934 (relating to withholding of payment
for good faith claims).
(26) Section 3935 (relating to penalty and attorney
fees).
(27) Section 3936 (relating to contracts involving
Federal aid).
(28) Section 3937 (relating to certain provisions
unenforceable).
(29) Section 3938 (relating to applicability).
(30) Section 3939 (relating to claims by innocent
parties).
(31) Section 3941 (relating to substantial/final payment
under contract).
(32) Section 3942 (relating to arbitration).
(33) Section 4506 (relating to liability for increased
costs).
(34) Section 4507 (relating to noncollusion affidavits).
§ 9805. Limitation on powers and duties and existing contracts.
(a) Restriction.--The powers and duties of the commission
under this chapter may not be exercised beginning four years
after the effective date of this section.
(b) Exception.--Notwithstanding subsection (a), all
contracts procured by use of this chapter, which are fully
executed prior to eight years after the effective date of this
section, shall remain in full force and effect, unless
terminated in accordance with the terms of the contract.
§ 9806. Project reporting.
(a) Project information.--The commission shall include
project information related to design build best value on the
commission's publicly accessible Internet website.
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(b) Report.--The commission shall prepare a report on design
build best value. The report shall include, and is not limited
to, the description of any project approved, including the
conditions for use under section 9803 (relating to design build
best value process), cost benefit analysis of pursuing the
project with design build best value instead of normal
procurement methods, recommendations to improve the act and
descriptions of how the commission is managing design build best
value, including any policy guidance. The commission shall
complete the report following completion of the procurement
using design build best value and provide a copy to the
chairperson and minority chairperson of the Transportation
Committee of the Senate and the chairperson and minority
chairperson of the Transportation Committee of the House of
Representatives.
Section 2. This act shall take effect immediately.
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