Transportation procurement

AN ACT Relating to alternative procurement and delivery models 1
for transportation projects; amending RCW 47.56.030, 47.56.031, 2
70A.15.4030, 47.20.780, 47.20.785, 39.10.270, 39.10.280, and 3
43.131.408; adding a new chapter to Title 47 RCW; creating a new 4
section; repealing RCW 47.29.010, 47.29.020, 47.29.030, 47.29.040, 5
47.29.050, 47.29.060, 47.29.070, 47.29.080, 47.29.090, 47.29.100, 6
47.29.110, 47.29.120, 47.29.130, 47.29.140, 47.29.150, 47.29.160, 7
47.29.170, 47.29.180, 47.29.190, 47.29.200, 47.29.210, 47.29.220, 8
47.29.230, 47.29.240, 47.29.250, 47.29.260, 47.29.270, 47.29.280, and 9
47.29.290; and providing an effective date. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:11
NEW SECTION. Sec. 1. (1)(a) The legislature finds that a full 12
set of project procurement, contracting, financing, and funding tools 13
are needed to enable the delivery of transportation projects in a 14
manner most advantageous to the public. Current public-private 15
partnership laws have failed to spur innovative proposals from the 16
private sector or new project delivery approaches from the department 17
of transportation.18
(b) The legislature confirms the findings from previous studies 19
that current laws and administrative processes are the primary 20
obstacle impairing the state's ability to utilize public-private 21
S-1583.3
SENATE BILL 5773
State of Washington 69th Legislature 2025 Regular Session
By Senators Liias and King
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partnerships. The legislature finds that a new public-private 1
partnership law is needed to: 2
(i) Transparently demonstrate and deliver better value for the 3
public including, but not limited to, expedited project delivery and 4
more effective management of project life-cycle costs;5
(ii) Provide an additional option for delivering complex 6
transportation projects, including addressing a shortage of truck 7
parking; 8
(iii) Incorporate private sector expertise and innovation into 9
transportation project delivery; 10
(iv) Allocate project risks to the parties best able to manage 11
those risks; 12
(v) Allow new sources of private capital; 13
(vi) Increase access to federal funding and financing mechanisms;14
(vii) Better align private sector incentives with public 15
priorities; and 16
(viii) Provide consistency in the review and approval processes 17
for the full range of project delivery tools and contracting methods.18
(2) The legislature further finds that there is a need to develop 19
other innovative approaches to deliver transportation infrastructure 20
in a manner that maximizes value and addresses the increasing costs 21
of project delivery. Requiring mandatory review and approval of other 22
alternative project delivery models available to the department of 23
transportation stifles procurement and timely project delivery. 24
Expanded and expedited use of alternative project delivery models, 25
like progressive design-build and general contractor/construction 26
manager procedures, without mandatory approval or review by the 27
capital projects advisory review board will deliver better value for 28
the public and provide the department of transportation with more 29
options to deliver complex transportation projects. This will also 30
give the department of transportation the needed flexibility to adapt 31
to changing conditions, and result in fewer delays in project 32
delivery. Any use of such delivery models should continue to strive 33
and adhere to disadvantaged business enterprise and small business 34
enterprise program contract goals. 35
I. PUBLIC-PRIVATE PARTNERSHIPS36
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NEW SECTION. Sec. 101. DEFINITIONS. The definitions in this 1
section apply throughout this chapter unless the context clearly 2
requires otherwise.3
(1) "Commission" means the transportation commission.4
(2) "Department" means the department of transportation.5
(3) "Eligible transportation project" means any project, whether 6
capital or operating, where the state's purpose for the project is to 7
preserve or facilitate the safe transport of people or goods via any 8
mode of travel. 9
(4) "Private sector partner" and "private partner" means a 10
person, entity, or organization that is not the federal government, a 11
state, or a political subdivision of a state. 12
(5) "Public funds" means all moneys derived from taxes, fees, 13
charges, tolls, or other levies of money from the public.14
(6) "Public sector partner" and "public partner" means any 15
federal or state unit of government, bistate transportation 16
organization, or any other political subdivision of any state.17
(7) "State finance committee" means the entity created in chapter 18
43.33 RCW. 19
(8) "Unit of government" means any department or agency of the 20
federal government, any state or agency, office, or department of a 21
state, any city, county, district, commission, authority, entity, 22
port, or other public corporation organized and existing under 23
statutory law or under a voter-approved charter or initiative, and 24
any intergovernmental entity created under chapter 39.34 RCW or this 25
chapter. 26
NEW SECTION. Sec. 102. WASHINGTON STATE DEPARTMENT OF 27
TRANSPORTATION POWERS AND DUTIES. (1) The department shall develop 28
policies and, where appropriate, adopt rules to carry out this 29
chapter and govern the use of public-private partnerships for 30
transportation projects. At a minimum, the department's policies and 31
rules must address the following issues:32
(a) The types of projects allowed; 33
(b) Consistent with section 108 of this act, a process and 34
methodology for determining whether a public-private partnership 35
delivery model will be in the public's interest; 36
(c) Consistent with section 113 of this act, a process and 37
methodology for determining whether a negotiated partnership 38
agreement will result in greater public value to the state than if 39
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the project is delivered using other procurement and contracting 1
methods; 2
(d) The types of contracts allowed, with consideration given to 3
the best practices available; 4
(e) Minimum standards and criteria required of all proposals;5
(f) Procedures for the proper identification, solicitation, 6
acceptance, review, and evaluation of projects, consistent with 7
existing project procurement and contracting requirements and 8
practices; 9
(g) Criteria to be considered in the evaluation and selection of 10
proposals that includes: 11
(i) Comparison with the department's internal ability to complete 12
the project that documents the advantages of completing the project 13
as a partnership versus solely as a public venture; and14
(ii) Factors such as, but not limited to: Priority, life-cycle 15
cost, risk sharing, scheduling, innovation, and management 16
conditions; 17
(h) The protection of confidential proprietary information while 18
still meeting the need for transparency and public disclosure that is 19
consistent with section 113 of this act; 20
(i) Protection for local contractors to participate in 21
subcontracting opportunities that is consistent with section 103 (3) 22
of this act; 23
(j) Specifying that maintenance issues must be resolved in a 24
manner consistent with chapter 41.80 RCW; 25
(k) Guidelines to address security and performance issues.26
(2) During its rule-making activities, the department must 27
consult with the department's office of equity and civil rights.28
(3) By September 1, 2026, the department must provide a report to 29
the house of representatives and senate transportation committees on 30
proposed policies and guidelines it intends to develop into 31
administrative rules. Rules adopted by the department pursuant to 32
this chapter may not take effect before January 1, 2027.33
NEW SECTION. Sec. 103. APPLICABILITY OF OTHER TRANSPORTATION 34
PROJECT GOVERNING PROVISIONS. 35
(1) For any eligible transportation project that requires the 36
imposition of tolls on a state facility, the legislature must approve 37
the imposition of such tolls consistent with RCW 47.56.820.38
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(2) For any eligible transportation project that requires setting 1
or adjusting toll rates on a state facility, the commission has sole 2
responsibility consistent with RCW 47.56.850. 3
(3)(a) If federal funds are provided for an eligible 4
transportation project developed under this chapter, disadvantaged 5
business enterprise inclusion requirements, as established, 6
monitored, and administered by the department's office of equity and 7
civil rights, apply. 8
(b) If no federal funds are provided for an eligible 9
transportation project developed under this chapter, state laws, 10
rates, and rules must govern, including the small business 11
enforceable goals program required through 49 C.F.R. Sec. 26.39 as 12
established, monitored, and administered by the department's office 13
of equity and civil rights. 14
(4) All other transportation project procurement and contracting 15
governing provisions and procedures that do not conflict with this 16
chapter apply unless otherwise specified. 17
NEW SECTION. Sec. 104. PROJECT COST THRESHOLD FOR P3 18
EVALUATION. Any eligible transportation project with an estimated 19
cost to the state of less than $500,000,000 may be evaluated for 20
delivery under a public-private partnership model as prescribed under 21
this chapter. Any eligible transportation project with an estimated 22
cost to the state of $500,000,000 or more may only be evaluated for 23
delivery under a public-private partnership model pursuant to this 24
chapter if explicitly authorized by the legislature.25
NEW SECTION. Sec. 105. ELIGIBLE FINANCING. (1) Subject to the 26
limitations in this section, the department may, in connection with 27
the evaluation of eligible transportation projects, consider any 28
financing mechanisms from any lawful source, either integrated as 29
part of a project proposal or as a separate, stand-alone proposal to 30
finance a project. Financing may be considered for all or part of a 31
proposed project. A project may be financed in whole or in part with:32
(a) The proceeds of grant anticipation revenue bonds authorized 33
under 23 U.S.C. Sec. 122 and applicable state law. Legislative 34
authorization and appropriation are required to use this source of 35
financing; 36
(b) Grants, loans, loan guarantees, lines of credit, revolving 37
lines of credit, or other financing arrangements available under the 38
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transportation infrastructure finance and innovation act under 23 1
U.S.C. Sec. 181 et seq., or any other applicable federal law, subject 2
to legislative authorization and appropriation as required;3
(c) Infrastructure loans or assistance from the state 4
infrastructure bank established under RCW 82.44.195, subject to 5
legislative authorization and appropriation as required;6
(d) Federal, state, or local revenues, subject to appropriation 7
by the applicable legislative authority; 8
(e) User fees, tolls, fares, lease proceeds, rents, gross or net 9
receipts from sales, proceeds from the sale of development rights, 10
franchise fees, or any other lawful form of consideration. However, 11
projects financed by tolls must first be authorized by the 12
legislature under RCW 47.56.820; 13
(f) Loans, pledges, or contributions of funds, including equity 14
investments, from private entities; 15
(g) Revenue bonds, subject to legislative authorization and 16
appropriation as required. 17
(2) Subject to subsection (4) of this section, the department may 18
develop a plan of finance that would require either the state or a 19
private partner, or both, to: Issue debt, equity, or other securities 20
or obligations; enter into contracts, leases, concessions, and grant 21
and loan agreements; or secure any financing with a pledge of funds 22
to be appropriated by the legislature or with a lien or exchange of 23
real property. 24
(3) As security for the payment of any financing, the revenues 25
from the project may be pledged, but no such pledge of revenues 26
constitutes in any manner or to any extent a general obligation of 27
the state, unless specifically authorized by the legislature. Any 28
financing described in this section may be structured on a senior, 29
parity, or subordinate basis to any other financing.30
(4) The department shall not execute any agreement with respect 31
to an eligible transportation project, including any agreement that 32
could materially impact the state's debt capacity or credit rating as 33
determined by the state finance committee, without prior review and 34
approval of the plan of finance and proposed financing terms by the 35
state finance committee. 36
NEW SECTION. Sec. 106. USE OF FEDERAL FUNDS OR OTHER SOURCES. 37
(1) The department may accept from the United States or any of its 38
agencies such funds as are available to this state or to any other 39
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unit of government for carrying out the purposes of this chapter, 1
whether the funds are made available by grant, loan, or other 2
financing arrangement. The department may enter into such agreements 3
and other arrangements with the United States or any of its agencies 4
as may be necessary, proper, and convenient for carrying out the 5
purposes of this chapter, subject to subsection (2) of this section.6
(2)(a) The department may accept from any source any grant, 7
donation, gift, or other form of conveyance of land, money, other 8
real or personal property, or other valuable thing made to the state 9
of Washington, the department, or a local government for carrying out 10
the purposes of this chapter. 11
(b) Any eligible transportation project may be financed in whole 12
or in part by contribution of any funds or property made by any 13
private entity or public sector partner that is a party to any 14
agreement entered into under this chapter. 15
NEW SECTION. Sec. 107. PUBLIC INTEREST FINDING. (1) The 16
department may evaluate eligible transportation projects that are 17
already programmed for other delivery methods to determine their 18
appropriateness for delivery under a public-private partnership 19
model.20
(2) Before entering into a formal solicitation or procurement to 21
develop a project as a public-private partnership, the department 22
must make formal findings that utilizing a public-private partnership 23
delivery method is in the public's interest. The department must 24
adopt rules detailing the process and criteria for making such 25
findings. At a minimum, the criteria must consider whether:26
(a) Public ownership of the asset can be retained;27
(b) Transparency during the consideration of a public-private 28
partnership agreement can be provided; 29
(c) Public oversight of the private entity's management of the 30
asset can be provided; and 31
(d) Additional criteria that reflects the legislative findings in 32
section 1(1) of this act. 33
(3) Before commencing any solicitation to deliver the project as 34
a public-private partnership, the department must provide an 35
opportunity for public comment on the proposed project and delivery 36
method. 37
(4) Upon a finding of public interest pursuant to subsection (2) 38
of this section, the department must provide written notification of 39
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their finding of public interest and intent to deliver the project as 1
a public-private partnership to the general public, to the chairs and 2
ranking members of the transportation committees of the legislature, 3
and to the governor. 4
(5) Upon a finding of public interest pursuant to subsection (2) 5
of this section, the department may: 6
(a) Solicit concepts or proposals for the identified public-7
private partnership project from private entities and units of 8
government; 9
(b) Evaluate the concepts or proposals received under this 10
section. The evaluation under this subsection must include 11
consultation with any appropriate unit of government; and12
(c) Select potential projects based on the concepts or proposals.13
NEW SECTION. Sec. 108. USE OF FUNDS FOR PROPOSAL PURPOSES. (1) 14
Subject to the availability of amounts appropriated for this specific 15
purpose, the department may spend such moneys as may be necessary for 16
stipends for respondents to a solicitation, the evaluation of 17
concepts or proposals for eligible transportation projects, and for 18
negotiating agreements for eligible transportation projects 19
authorized under this chapter. Expenses incurred by the department 20
under this section before the issuance of transportation project 21
bonds or other financing must be paid by the department and charged 22
to the appropriate project. The department must keep records and 23
accounts showing each charged amount.24
(2) Unless otherwise provided in the omnibus transportation 25
appropriations act, the funds spent by the department under this 26
section in connection with the project must be repaid from the 27
proceeds of the bonds or other financing upon the sale of 28
transportation project bonds or upon obtaining other financing for an 29
eligible transportation project, as allowed by law or contract.30
NEW SECTION. Sec. 109. EXPERT CONSULTATION. The department may 31
consult with legal, financial, technical, and other experts in the 32
public and private sector in the evaluation, negotiation, and 33
development of projects under this chapter.34
NEW SECTION. Sec. 110. CONTRACTED STUDIES. In the absence of 35
any direct federal funding or direction, the department may contract 36
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with a private developer of a selected project proposal to conduct 1
environmental impact studies and engineering and technical studies.2
NEW SECTION. Sec. 111. PARTNERSHIP AGREEMENTS. (1) The 3
following provisions must be included in any transportation project 4
agreement entered into under the authority of this chapter and to 5
which the state is a party:6
(a) For any project that proposes terms for stand alone 7
maintenance or asset management services for a public facility, those 8
services must be provided in a manner consistent with any collective 9
bargaining agreements, chapter 41.80 RCW, and civil service laws that 10
are in effect for the public facility; 11
(b) A finding of public interest, as issued by the department 12
pursuant to section 107 of this act; 13
(c) If there is a tolling component to the project, it must be 14
specified that the tolling technology used in the project must be 15
consistent with tolling technology standards adopted by the 16
department for transportation-related projects; 17
(d) Provisions for bonding, financial guarantees, deposits, or 18
the posting of other security to secure the payment of laborers, 19
subcontractors, and suppliers who perform work or provide materials 20
as part of the project; 21
(e) All projects must be financed in a manner consistent with 22
section 106 of this act. 23
(2) At a minimum, agreements between the state and private sector 24
partners entered into under this section must specifically include 25
the following contractual elements: 26
(a) The point in the project at which public and private sector 27
partners will enter the project and which partners will assume 28
responsibility for specific project elements; 29
(b) How the partners will share management of the risks of the 30
project; 31
(c) The compensation method and amount for the private partner, 32
establishing a maximum rate of return, and identifying how project 33
revenue, if any, in excess of the maximum rate of return will be 34
distributed; 35
(d) How the partners will share the costs of development of the 36
project; 37
(e) How the partners will allocate financial responsibility for 38
cost overruns; 39
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(f) The penalties for nonperformance; 1
(g) The incentives for performance; 2
(h) The accounting and auditing standards to be used to evaluate 3
work on the project; 4
(i) For any project that reverts to public ownership, the 5
responsibility for reconstruction or renovations that are required 6
for a facility to meet all service standards and state of good repair 7
upon reversion of the facility to the state; 8
(j) Provisions and remedies for default by either party, and 9
provisions for termination of the agreement for or without cause;10
(k) Provisions for public communication and participation with 11
respect to the development of the project. 12
NEW SECTION. Sec. 112. BEST VALUE FINDING AND AGREEMENT 13
EXECUTION. Before executing an agreement under section 111 of this 14
act, the department must make a formal finding that the negotiated 15
partnership agreement is expected to result in best value for the 16
public. The department must develop and adopt a process and criteria 17
for measuring, determining, and transparently reporting best value 18
relevant to the proposed project. At minimum, the criteria must 19
include:20
(1) A comparison of the total cost to deliver the project, 21
including any operations and maintenance costs, as a public-private 22
partnership compared to traditional or other alternative delivery 23
methods available to the department; 24
(2) A comparison with the department's current plan, resources, 25
delivery capacity, and schedule to complete the project that 26
documents the advantages of completing the project as a public-27
private partnership versus solely as a public venture; and28
(3) Factors such as, but not limited to: Priority, cost, risk 29
sharing, scheduling, asset and service quality, innovation, and 30
management conditions. 31
NEW SECTION. Sec. 113. CONFIDENTIALITY. A proposer must 32
identify those portions of a proposal that the proposer considers to 33
be confidential, proprietary information, or trade secrets and 34
provide any justification as to why these materials, upon request, 35
should not be disclosed by the department. Patent information will be 36
covered until the patent expires. Other information, such as 37
originality of design or records of negotiation, is protected under 38
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this section only until an agreement under section 112 of this act is 1
reached. Eligible transportation projects under federal jurisdiction 2
or using federal funds must conform to federal regulations under the 3
freedom of information act. 4
NEW SECTION. Sec. 114. PREVAILING WAGES. If public funds are 5
used to pay any costs of construction of a public facility that is 6
part of an eligible transportation project, chapter 39.12 RCW applies 7
to the entire eligible transportation project.8
NEW SECTION. Sec. 115. GOVERNMENT AGREEMENTS. The state may, 9
either separately or in combination with any other public sector 10
partner, enter into working agreements, coordination agreements, or 11
similar implementation agreements, including the formation of bistate 12
transportation organizations, to carry out the joint implementation 13
and operation of an eligible transportation project selected under 14
this chapter. The state may enter into agreements with other units of 15
government or Canadian provinces for transborder transportation 16
projects.17
NEW SECTION. Sec. 116. EMINENT DOMAIN. The state may exercise 18
the power of eminent domain to acquire property, easements, or other 19
rights or interests in property for projects that are necessary to 20
implement an eligible transportation project developed under this 21
chapter. Any property acquired pursuant to this section must be owned 22
in fee simple by the state.23
NEW SECTION. Sec. 117. FEDERAL LAWS. Applicable federal laws, 24
rules, and regulations govern in any situation that involves federal 25
funds if the federal laws, rules, or regulations:26
(1) Conflict with any provision of this chapter;27
(2) Require procedures that are additional to or inconsistent 28
with those provided in this chapter; or 29
(3) Require contract provisions not authorized in this chapter.30
NEW SECTION. Sec. 118. PUBLIC-PRIVATE PARTNERSHIPS ACCOUNT. (1) 31
The public-private partnerships account is created in the custody of 32
the state treasurer.33
(2) The following moneys must be deposited into the account:34
(a) Proceeds from bonds or other financing instruments;35
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(b) Revenues received from any transportation project developed 1
under this chapter or developed under the general powers granted to 2
the department; and 3
(c) Any other moneys that are by donation, grant, contract, law, 4
or other means transferred, allocated, or appropriated to the 5
account. 6
(3) Expenditures from the account may be used only for the 7
planning, acquisition, financing, development, design, construction, 8
reconstruction, replacement, improvement, maintenance, preservation, 9
management, repair, or operation of any eligible transportation 10
project under this chapter. 11
(4) The state treasurer may establish separate subaccounts within 12
the public-private partnerships account for each transportation 13
project that is initiated under this chapter or under the general 14
powers granted to the department. The state may pledge moneys in the 15
public-private partnerships account to secure revenue bonds or any 16
other debt obligations relating to the project for which the account 17
is established. 18
(5) Only the secretary or the secretary's designee may authorize 19
distributions from the account. The account is subject to the 20
allotment procedures under chapter 43.88 RCW, but an appropriation is 21
not required for expenditures. 22
Sec. 119. RCW 47.56.030 and 2023 c 429 s 6 are each amended to 23
read as follows: 24
(1) Except as permitted under chapter ((47.29)) 47.--- RCW (the 25
new chapter created in section 402 of this act) or 47.46 RCW:26
(a) Unless otherwise delegated, and subject to RCW 47.56.820, the 27
department of transportation shall have full charge of the planning, 28
analysis, and construction of all toll bridges and other toll 29
facilities including the Washington state ferries, and the operation 30
and maintenance thereof. 31
(b) The transportation commission shall determine and establish 32
the tolls and charges thereon. 33
(c) Unless otherwise delegated, and subject to RCW 47.56.820, the 34
department shall have full charge of planning, analysis, and design 35
of all toll facilities. The department may conduct the planning, 36
analysis, and design of toll facilities as necessary to support the 37
legislature's consideration of toll authorization.38
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(d) The department shall utilize and administer toll collection 1
systems that are simple, unified, and interoperable. To the extent 2
practicable, the department shall avoid the use of toll booths. The 3
department shall set the statewide standards and protocols for all 4
toll facilities within the state, including those authorized by local 5
authorities. 6
(e) Except as provided in this section, the department shall 7
proceed with the construction of such toll bridges and other 8
facilities and the approaches thereto by contract in the manner of 9
state highway construction immediately upon there being made 10
available funds for such work and shall prosecute such work to 11
completion as rapidly as practicable. The department is authorized to 12
negotiate contracts for any amount without bid under (e)(i) and (ii) 13
of this subsection: 14
(i) Emergency contracts, in order to make repairs to ferries or 15
ferry terminal facilities or removal of such facilities whenever 16
continued use of ferries or ferry terminal facilities constitutes a 17
real or immediate danger to the traveling public or precludes prudent 18
use of such ferries or facilities; and 19
(ii) Single source contracts for vessel dry dockings, when there 20
is clearly and legitimately only one available bidder to conduct dry 21
dock-related work for a specific class or classes of vessels. The 22
contracts may be entered into for a single vessel dry docking or for 23
multiple vessel dry dockings for a period not to exceed two years.24
(f) Any new vessel planning, construction, purchase, analysis, or 25
design work must be consistent with RCW 47.60.810, except as 26
otherwise provided in RCW 47.60.826. 27
(2) The department shall proceed with the procurement of 28
materials, supplies, services, and equipment needed for the support, 29
maintenance, and use of a ferry, ferry terminal, or other facility 30
operated by Washington state ferries, in accordance with chapter 31
43.19 RCW except as follows: 32
(a) When the secretary of the department of transportation 33
determines in writing that the use of invitation for bid is either 34
not practicable or not advantageous to the state and it may be 35
necessary to make competitive evaluations, including technical or 36
performance evaluations among acceptable proposals to complete the 37
contract award, a contract may be entered into by use of a 38
competitive sealed proposals method, and a formal request for 39
proposals solicitation. Such formal request for proposals 40
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solicitation shall include a functional description of the needs and 1
requirements of the state and the significant factors.2
(b) When purchases are made through a formal request for 3
proposals solicitation the contract shall be awarded to the 4
responsible proposer whose competitive sealed proposal is determined 5
in writing to be the most advantageous to the state taking into 6
consideration price and other evaluation factors set forth in the 7
request for proposals. No significant factors may be used in 8
evaluating a proposal that are not specified in the request for 9
proposals. Factors that may be considered in evaluating proposals 10
include but are not limited to: Price; maintainability; reliability; 11
commonality; performance levels; life-cycle cost if applicable under 12
this section; cost of transportation or delivery; delivery schedule 13
offered; installation cost; cost of spare parts; availability of 14
parts and service offered; and the following: 15
(i) The ability, capacity, and skill of the proposer to perform 16
the contract or provide the service required; 17
(ii) The character, integrity, reputation, judgment, experience, 18
and efficiency of the proposer; 19
(iii) Whether the proposer can perform the contract within the 20
time specified; 21
(iv) The quality of performance of previous contracts or 22
services; 23
(v) The previous and existing compliance by the proposer with 24
laws relating to the contract or services; 25
(vi) Objective, measurable criteria defined in the request for 26
proposal. These criteria may include but are not limited to items 27
such as discounts, delivery costs, maintenance services costs, 28
installation costs, and transportation costs; and 29
(vii) Such other information as may be secured having a bearing 30
on the decision to award the contract. 31
(c) When purchases are made through a request for proposal 32
process, proposals received shall be evaluated based on the 33
evaluation factors set forth in the request for proposal. When 34
issuing a request for proposal for the procurement of propulsion 35
equipment or systems that include an engine, the request for proposal 36
must specify the use of a life-cycle cost analysis that includes an 37
evaluation of fuel efficiency. When a life-cycle cost analysis is 38
used, the life-cycle cost of a proposal shall be given at least the 39
same relative importance as the initial price element specified in 40
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the request of proposal documents. The department may reject any and 1
all proposals received. If the proposals are not rejected, the award 2
shall be made to the proposer whose proposal is most advantageous to 3
the department, considering price and the other evaluation factors 4
set forth in the request for proposal. 5
Sec. 120. RCW 47.56.031 and 2005 c 335 s 2 are each amended to 6
read as follows: 7
No tolls may be imposed on new or existing highways or bridges 8
without specific legislative authorization, or upon a majority vote 9
of the people within the boundaries of the unit of government 10
empowered to impose tolls. This section applies to chapter 47.56 RCW 11
and to any tolls authorized under chapter ((47.29 RCW, the 12
transportation innovative partnership act of 2005 )) 47.--- RCW (the 13
new chapter created in section 402 of this act). 14
Sec. 121. RCW 70A.15.4030 and 2020 c 20 s 1126 are each amended 15
to read as follows: 16
(1) A county, city, or town may, as part of its commute trip 17
reduction plan, designate existing activity centers listed in its 18
comprehensive plan or new activity centers as growth and 19
transportation efficiency centers and establish a transportation 20
demand management program in the designated area. 21
(a) The transportation demand management program for the growth 22
and transportation efficiency center shall be developed in 23
consultation with local transit agencies, the applicable regional 24
transportation planning organization, major employers, and other 25
interested parties. 26
(b) In order to be eligible for state funding provided for the 27
purposes of this section, designated growth and transportation 28
efficiency centers shall be certified by the applicable regional 29
transportation organization to: (i) Meet the minimum land use and 30
transportation criteria established in collaboration among local 31
jurisdictions, transit agencies, the regional transportation planning 32
organization, and other interested parties as part of the regional 33
commute trip reduction plan; and (ii) have established a 34
transportation demand management program that includes the elements 35
identified in (c) of this subsection and is consistent with the rules 36
established by the department of transportation in RCW 37
70A.15.4060(2). If a designated growth and transportation efficiency 38
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center is denied certification, the local jurisdiction may appeal the 1
decision to the commute trip reduction board. 2
(c) Transportation demand management programs for growth and 3
transportation efficiency centers shall include, but are not limited 4
to: (i) Goals for reductions in the proportion of single-occupant 5
vehicle trips that are more aggressive than the state program goal 6
established by the commute trip reduction board; (ii) a sustainable 7
financial plan demonstrating how the program can be implemented to 8
meet state and regional trip reduction goals, indicating resources 9
from public and private sources that are reasonably expected to be 10
made available to carry out the plan, and recommending any innovative 11
financing techniques consistent with chapter ((47.29 RCW)) 47.--- RCW 12
(the new chapter created in section 402 of this act) , including 13
public/private partnerships, to finance needed facilities, services, 14
and programs; (iii) a proposed organizational structure for 15
implementing the program; (iv) a proposal to measure performance 16
toward the goal and implementation progress; and (v) an evaluation to 17
which local land use and transportation policies apply, including 18
parking policies and ordinances, to determine the extent that they 19
complement and support the trip reduction investments of major 20
employers. Each of these program elements shall be consistent with 21
the rules established under RCW 70A.15.4060. 22
(d) A designated growth and transportation efficiency center 23
shall be consistent with the land use and transportation elements of 24
the local comprehensive plan. 25
(e) Transit agencies, local governments, and regional 26
transportation planning organizations shall identify certified growth 27
and transportation efficiency centers as priority areas for new 28
service and facility investments in their respective investment 29
plans. 30
(2) A county, city, or town that has established a growth and 31
transportation efficiency center program shall support vehicle trip 32
reduction activities in the designated area. The implementing 33
jurisdiction shall adopt policies, ordinances, and funding strategies 34
that will lead to attainment of program goals in those areas.35
II. PROGRESSIVE DESIGN-BUILD AND36
GENERAL CONTRACTOR/CONSTRUCTION MANAGER37
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Sec. 201. RCW 47.20.780 and 2015 3rd sp.s. c 18 s 1 are each 1
amended to read as follows: 2
(1) The department of transportation shall develop a process for 3
awarding competitively bid highway construction contracts for 4
projects over ((two million dollars )) $2,000,000 that may be 5
constructed using a design-build procedure , a progressive design-6
build procedure, or any general contractor/construction manager 7
procedure. 8
(2) As used in this section and RCW 47.20.785((, "design-build)):9
(a) "Design-build procedure" means a method of contracting under 10
which the department of transportation contracts with another party 11
for the party to both design and build the structures, facilities, 12
and other items specified in the contract. 13
(b) "General contractor/construction manager procedure" means a 14
method of contracting under which the department of transportation 15
selects a firm to provide services during the design phase, negotiate 16
a maximum allowable construction cost, and act as construction 17
manager and general contractor during the construction phase.18
(c) "Progressive design-build procedure" means a method of 19
contracting under which the department of transportation selects a 20
design-builder before the establishment of a final project design, 21
price, and schedule, and thereafter, the department and design-22
builder collaborate to develop a final project scope, schedule, and 23
price.24
(3) The process developed by the department must, at a minimum, 25
include ((the)): The scope of services required under the design-26
build procedure, progressive design-build procedure, or general 27
contractor/construction manager procedures; contractor 28
prequalification requirements((,)); criteria for evaluating technical 29
information and project costs ((,)); contractor selection 30
criteria((,)); and issue resolution procedures. 31
(4) Until June 30, 2031, upon completing a delivery method 32
selection process that identifies the progressive design-build 33
procedure or any general contract/construction manager procedure as 34
the preferred delivery method for a project in excess of 35
$100,000,000, the department shall consult with the capital projects 36
advisory review board under chapter 39.10 RCW to review the selected 37
delivery method for the project and provide any recommendations or 38
feedback for the department to consider. The department and the 39
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capital projects advisory review board shall collaboratively develop 1
and implement the coordination and details of this consultation.2
Sec. 202. RCW 47.20.785 and 2015 3rd sp.s. c 18 s 2 are each 3
amended to read as follows: 4
The department of transportation is authorized and strongly 5
encouraged to use the design-build procedure , the progressive design-6
build procedure, or any general contractor/construction manager 7
procedure for public works projects over ((two million dollars )) 8
$2,000,000 when: 9
(1) The construction activities are highly specialized and a 10
design-build, progressive design-build, or general contractor/11
construction manager approach is critical in developing the 12
construction methodology; or 13
(2) The projects selected provide opportunity for greater 14
innovation and efficiencies between the designer and the builder; or15
(3) Significant savings in project delivery time would be 16
realized. 17
Sec. 203. RCW 39.10.270 and 2019 c 212 s 3 are each amended to 18
read as follows: 19
(1) A public body may apply for certification to use the design-20
build or general contractor/construction manager contracting 21
procedure, or both. Once certified, a public body may use the 22
contracting procedure for which it is certified on individual 23
projects without seeking committee approval for a period of three 24
years. A public body seeking certification must submit to the 25
committee an application in a format and manner as prescribed by the 26
committee. The application must include a description of the public 27
body's qualifications, its capital plan during the certification 28
period, and its intended use of alternative contracting procedures.29
(2) A public body seeking certification for the design-build 30
procedure must demonstrate successful management of at least one 31
design-build project within the previous five years. A public body 32
seeking certification for the general contractor/construction manager 33
procedure must demonstrate successful management of at least one 34
general contractor/construction manager project within the previous 35
five years. 36
(3) To certify a public body, the committee shall determine that 37
the public body: 38
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(a) Has the necessary experience and qualifications to determine 1
which projects are appropriate for using alternative contracting 2
procedures; 3
(b) Has the necessary experience and qualifications to carry out 4
the alternative contracting procedure including, but not limited to: 5
(i) Project delivery knowledge and experience; (ii) personnel with 6
appropriate construction experience; (iii) a management plan and 7
rationale for its alternative public works projects; (iv) 8
demonstrated success in managing public works projects; (v) the 9
ability to properly manage its capital facilities plan including, but 10
not limited to, appropriate project planning and budgeting 11
experience; and (vi) the ability to meet requirements of this 12
chapter; and 13
(c) Has resolved any audit findings on previous public works 14
projects in a manner satisfactory to the committee.15
(4) The committee shall make its determination at the public 16
meeting during which an application for certification is reviewed. 17
Public comments must be considered before a determination is made. 18
Within ten business days of the public meeting, the committee shall 19
provide a written determination to the public body, and make its 20
determination available to the public on the committee's website.21
(5) The committee may revoke any public body's certification upon 22
a finding, after a public hearing, that its use of design-build or 23
general contractor/construction manager contracting procedures no 24
longer serves the public interest. 25
(6) The committee may renew the certification of a public body 26
for additional three-year periods. The public body must submit an 27
application for recertification at least three months before the 28
initial certification expires. The committee may accept late 29
applications, if administratively feasible, to avoid expiration of 30
certification on a case-by-case basis. The application shall include 31
updated information on the public body's experience and current 32
staffing with the procedure it is applying to renew, and any other 33
information requested in advance by the committee. The committee must 34
review the application for recertification at a meeting held before 35
expiration of the applicant's initial certification period. A public 36
body must reapply for certification under the process described in 37
subsection (1) of this section once the period of recertification 38
expires. 39
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(7) Certified public bodies must submit project data information 1
as required in RCW 39.10.320 and 39.10.350. 2
(8) The department of transportation is not subject to the 3
certification requirements under this section to use the design-build 4
procedure, the progressive design-build procedure, or any general 5
contractor/construction manager contracting procedure on individual 6
projects.7
Sec. 204. RCW 39.10.280 and 2014 c 42 s 2 are each amended to 8
read as follows: 9
(1) A public body not certified under RCW 39.10.270 must apply 10
for approval from the committee to use the design-build or general 11
contractor/construction manager contracting procedure on a project. A 12
public body seeking approval must submit to the committee an 13
application in a format and manner as prescribed by the committee. 14
The application must include a description of the public body's 15
qualifications, a description of the project, the public body's 16
intended use of alternative contracting procedures, and, if 17
applicable, a declaration that the public body has elected to procure 18
the project as a heavy civil construction project.19
(2) To approve a proposed project, the committee shall determine 20
that: 21
(a) The alternative contracting procedure will provide a 22
substantial fiscal benefit or the use of the traditional method of 23
awarding contracts in lump sum to the low responsive bidder is not 24
practical for meeting desired quality standards or delivery 25
schedules; 26
(b) The proposed project meets the requirements for using the 27
alternative contracting procedure as described in RCW 39.10.300 or 28
39.10.340; 29
(c) The public body has the necessary experience or qualified 30
team to carry out the alternative contracting procedure including, 31
but not limited to: (i) Project delivery knowledge and experience; 32
(ii) sufficient personnel with construction experience to administer 33
the contract; (iii) a written management plan that shows clear and 34
logical lines of authority; (iv) the necessary and appropriate 35
funding and time to properly manage the job and complete the project; 36
(v) continuity of project management team, including personnel with 37
experience managing projects of similar scope and size to the project 38
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being proposed; and (vi) necessary and appropriate construction 1
budget; 2
(d) For design-build projects, public body personnel or 3
consultants are knowledgeable in the design-build process and are 4
able to oversee and administer the contract; and 5
(e) The public body has resolved any audit findings related to 6
previous public works projects in a manner satisfactory to the 7
committee. 8
(3) The committee shall, if practicable, make its determination 9
at the public meeting during which a submittal is reviewed. Public 10
comments must be considered before a determination is made.11
(4) Within ((ten)) 10 business days after the public meeting, the 12
committee shall provide a written determination to the public body, 13
and make its determination available to the public on the committee's 14
website. If the committee fails to make a written determination 15
within ((ten)) 10 business days of the public meeting, the request of 16
the public body to use the alternative contracting procedure on the 17
requested project shall be deemed approved. 18
(5) Failure of the committee to meet within ((sixty)) 60 calendar 19
days of a public body's application to use an alternative contracting 20
procedure on a project shall be deemed an approval of the 21
application. 22
(6) The department of transportation is not subject to the 23
project approval requirements under this section.24
Sec. 205. RCW 43.131.408 and 2023 c 395 s 36 are each amended to 25
read as follows: 26
The following acts or parts of acts, as now existing or hereafter 27
amended, are each repealed, effective June 30, 2032:28
(1) RCW 39.10.200 and 2023 c 395 s 4, 2010 1st sp.s. c 21 s 2, 29
2007 c 494 s 1, & 1994 c 132 s 1; 30
(2) RCW 39.10.210 and 2023 c 395 s 5, 2021 c 230 s 1, 2019 c 212 31
s 1, 2014 c 42 s 1, & 2013 c 222 s 1; 32
(3) RCW 39.10.220 and 2023 c 395 s 6, 2021 c 230 s 2, 2013 c 222 33
s 2, 2007 c 494 s 102, & 2005 c 377 s 1; 34
(4) RCW 39.10.230 and 2023 c 395 s 7, 2021 c 230 s 3, 2013 c 222 35
s 3, 2010 1st sp.s. c 21 s 3, 2009 c 75 s 1, 2007 c 494 s 103, & 2005 36
c 377 s 2; 37
(5) RCW 39.10.240 and 2023 c 395 s 8, 2021 c 230 s 4, 2013 c 222 38
s 4, & 2007 c 494 s 104; 39
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(6) RCW 39.10.250 and 2021 c 230 s 5, 2019 c 212 s 2, 2013 c 222 1
s 5, 2009 c 75 s 2, & 2007 c 494 s 105; 2
(7) RCW 39.10.260 and 2013 c 222 s 6 & 2007 c 494 s 106;3
(8) RCW 39.10.270 and 2025 c ... s 203 (section 203 of this act), 4
2019 c 212 s 3, 2017 c 211 s 1, 2013 c 222 s 7, 2009 c 75 s 3, & 2007 5
c 494 s 107; 6
(9) RCW 39.10.280 and 2025 c ... s 204 (section 204 of this act), 7
2014 c 42 s 2, 2013 c 222 s 8, & 2007 c 494 s 108; 8
(10) RCW 39.10.290 and 2007 c 494 s 109; 9
(11) RCW 39.10.300 and 2021 c 230 s 6, 2019 c 212 s 4, 2013 c 222 10
s 9, 2009 c 75 s 4, & 2007 c 494 s 201; 11
(12) RCW 39.10.320 and 2019 c 212 s 5, 2013 c 222 s 10, 2007 c 12
494 s 203, & 1994 c 132 s 7; 13
(13) RCW 39.10.330 and 2023 c 395 s 9, 2021 c 230 s 7, 2019 c 212 14
s 6, 2014 c 19 s 1, 2013 c 222 s 11, 2009 c 75 s 5, & 2007 c 494 s 15
204; 16
(14) RCW 39.10.340 and 2014 c 42 s 3, 2013 c 222 s 12, & 2007 c 17
494 s 301; 18
(15) RCW 39.10.350 and 2021 c 230 s 8, 2014 c 42 s 4, & 2007 c 19
494 s 302; 20
(16) RCW 39.10.360 and 2023 c 395 s 10, 2021 c 230 s 9, 2014 c 21
42 s 5, 2013 c 222 s 13, 2009 c 75 s 6, & 2007 c 494 s 303;22
(17) RCW 39.10.370 and 2021 c 230 s 10, 2014 c 42 s 6, & 2007 c 23
494 s 304; 24
(18) RCW 39.10.380 and 2023 c 395 s 11, 2021 c 230 s 11, 2013 c 25
222 s 14, & 2007 c 494 s 305; 26
(19) RCW 39.10.385 and 2023 c 395 s 12, 2021 c 230 s 12, 2013 c 27
222 s 15, & 2010 c 163 s 1; 28
(20) RCW 39.10.390 and 2021 c 230 s 13, 2014 c 42 s 7, 2013 c 222 29
s 16, & 2007 c 494 s 306; 30
(21) RCW 39.10.400 and 2021 c 230 s 14, 2013 c 222 s 17, & 2007 c 31
494 s 307; 32
(22) RCW 39.10.410 and 2007 c 494 s 308; 33
(23) RCW 39.10.420 and 2019 c 212 s 7, 2017 c 136 s 1, & 2016 c 34
52 s 1; 35
(24) RCW 39.10.430 and 2021 c 230 s 15, 2019 c 212 s 8, & 2007 c 36
494 s 402; 37
(25) RCW 39.10.440 and 2021 c 230 s 16, 2019 c 212 s 9, 2015 c 38
173 s 1, 2013 c 222 s 19, & 2007 c 494 s 403; 39
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(26) RCW 39.10.450 and 2019 c 212 s 10, 2012 c 102 s 2, & 2007 c 1
494 s 404; 2
(27) RCW 39.10.460 and 2021 c 230 s 17, 2012 c 102 s 3, & 2007 c 3
494 s 405; 4
(28) RCW 39.10.470 and 2019 c 212 s 11, 2014 c 19 s 2, 2005 c 274 5
s 275, & 1994 c 132 s 10; 6
(29) RCW 39.10.480 and 1994 c 132 s 9; 7
(30) RCW 39.10.490 and 2021 c 230 s 18, 2013 c 222 s 20, 2007 c 8
494 s 501, & 2001 c 328 s 5; 9
(31) RCW 39.10.900 and 1994 c 132 s 13; 10
(32) RCW 39.10.901 and 1994 c 132 s 14; 11
(33) RCW 39.10.903 and 2007 c 494 s 510; 12
(34) RCW 39.10.904 and 2007 c 494 s 512; 13
(35) RCW 39.10.905 and 2007 c 494 s 513; and 14
(36) RCW 39.10.908 and 2023 c 395 s 13 and 2021 c 230 s 19.15
III. ALLIANCE CONTRACTING16
NEW SECTION. Sec. 301. The joint transportation committee, in 17
collaboration with the department of transportation, must evaluate 18
the alliance contracting procedure as a potential alternative 19
contracting procedure for delivering transportation-related projects. 20
By July 1, 2027, the joint transportation committee must submit an 21
evaluation report to the transportation committees of the 22
legislature, including any findings and recommended statutory 23
changes. For purposes of this section, "alliance contracting 24
procedure" means a method of contracting under which the department 25
of transportation and one or more service providers, including the 26
designers and constructors, collaborate on the delivery of a project 27
using contractually established financial incentives to encourage 28
project performance and cooperation among all participants.29
IV. MISCELLANEOUS30
NEW SECTION. Sec. 401. The following acts or parts of acts are 31
each repealed:32
(1) RCW 47.29.010 (Finding— Intent) and 2006 c 334 s 48 & 2005 c 33
317 s 1; 34
(2) RCW 47.29.020 (Definitions) and 2005 c 317 s 2;35
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(3) RCW 47.29.030 (Transportation commission powers and duties) 1
and 2005 c 317 s 3; 2
(4) RCW 47.29.040 (Purpose) and 2005 c 317 s 4;3
(5) RCW 47.29.050 (Eligible projects) and 2005 c 317 s 5;4
(6) RCW 47.29.060 (Eligible financing) and 2008 c 122 s 18 & 2005 5
c 317 s 6; 6
(7) RCW 47.29.070 (Use of federal funds and similar revenues) and 7
2005 c 317 s 7; 8
(8) RCW 47.29.080 (Other sources of funds or property) and 2005 c 9
317 s 8; 10
(9) RCW 47.29.090 (Project review, evaluation, and selection) and 11
2005 c 317 s 9; 12
(10) RCW 47.29.100 (Administrative fee) and 2005 c 317 s 10;13
(11) RCW 47.29.110 (Funds for proposal evaluation and 14
negotiation) and 2005 c 317 s 11; 15
(12) RCW 47.29.120 (Expert consultation) and 2005 c 317 s 12;16
(13) RCW 47.29.130 (Contracted studies) and 2005 c 317 s 13;17
(14) RCW 47.29.140 (Partnership agreements) and 2005 c 317 s 14;18
(15) RCW 47.29.150 (Public involvement and participation) and 19
2005 c 317 s 15; 20
(16) RCW 47.29.160 (Approval and execution) and 2005 c 317 s 16;21
(17) RCW 47.29.170 (Unsolicited proposals) and 2017 c 313 s 711, 22
2015 1st sp.s. c 10 s 704, 2013 c 306 s 708, 2011 c 367 s 701, 2009 c 23
470 s 702, 2007 c 518 s 702, 2006 c 370 s 604, & 2005 c 317 s 17;24
(18) RCW 47.29.180 (Advisory committees) and 2005 c 317 s 18;25
(19) RCW 47.29.190 (Confidentiality) and 2005 c 317 s 19;26
(20) RCW 47.29.200 (Prevailing wages) and 2005 c 317 s 20;27
(21) RCW 47.29.210 (Government agreements) and 2005 c 317 s 21;28
(22) RCW 47.29.220 (Eminent domain) and 2005 c 317 s 22;29
(23) RCW 47.29.230 (Transportation innovative partnership 30
account) and 2005 c 317 s 23; 31
(24) RCW 47.29.240 (Use of account) and 2005 c 317 s 24;32
(25) RCW 47.29.250 (Issuing bonds and other obligations) and 2005 33
c 317 s 25; 34
(26) RCW 47.29.260 (Study and report) and 2005 c 317 s 26;35
(27) RCW 47.29.270 (Federal laws) and 2005 c 317 s 27;36
(28) RCW 47.29.280 (Expert review panel on proposed project 37
agreements— Creation— Authority) and 2006 c 334 s 49; and38
(29) RCW 47.29.290 (Expert review panel on proposed project 39
agreements— Execution of agreements) and 2006 c 334 s 50.40
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NEW SECTION. Sec. 402. Sections 101 through 118 of this act 1
constitute a new chapter in Title 47 RCW.2
NEW SECTION. Sec. 403. Sections 101 through 118 and 401 of this 3
act take effect July 1, 2026.4
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