A. The selection procedure shall use a competitive sealed qualifications-based proposal method that conforms with Sections 13-1-111 through 13-1-117 N.M. Stat. Ann. and results in a professional services contract. The contract scope of work shall be divided into two separate but related phases:

(1)     phase one for design consultation and preconstruction services; and

(2)     phase two for project construction.

B. The department shall issue a separate request for proposals for each project that uses a construction manager general contractor delivery method.

C. The department’s request for proposals for a construction manager general contractor contract shall contain, at a minimum, the following elements:

(1)     a statement of the minimum qualifications for the construction manager general contractor, including requirements for:

(a) a contractor’s license for the type of work to be performed, issued pursuant to the Construction Industries Licensing Act [N.M. Stat. Ann. Chapter 60, Article 13];

(b) registration pursuant to Section 13-4-13.1 N.M. Stat. Ann.; (c) minimum bond capacity;

(d) the ability to self-perform, with its own organization, a minimum percentage of construction work as required and defined in the department’s standard specifications for highway and bridge construction, current edition; and

(e) current registration as a prequalified contractor pursuant to rule promulgated by the department;

(2)     the procedures for submitting proposals, the criteria for evaluation of qualifications and the relative weight of the criteria;

(3)     the form of contract to be awarded;

(4)     a listing or description of the types of preconstruction and construction services that will be required;

(5)     identification of requirements for liability insurance, a proposal bond pursuant to Section 13-1-146 N.M. Stat. Ann. and performance and payment bonds pursuant to Section 13-4-18 N.M. Stat. Ann.;

(6)     a description of the method to be used for pricing or negotiation of construction manager general contractor fees for the scope of services; and

(7)     preferences as allowed by law in the Procurement Code for New-Mexico- based businesses and others.

D. The department shall use a selection committee for the evaluation of the qualifications submitted by offerors and shall determine the offerors that qualify for award of the construction manager general contractor contract. The department shall establish a construction manager general contractor selection committee by rule. The selection committee shall rank the offerors and provide a recommendation to the department identifying the offeror most qualified based on the highest ranking score.

E. Nothing in this section precludes the selection committee from recommending the termination of the selection procedure pursuant to Section 13-1-131 N.M. Stat. Ann..

F. The department shall promulgate rules for the selection process and award of contract that include interviews with top-ranked offerors, price negotiations and the authority to terminate negotiations.

G. The department rules shall address the processes applicable to the award of a contract for construction management and construction services, including the process for conducting contract negotiations with the construction manager general contractor for construction of the project or work packages associated with the project in accordance with contract documents and specifications.

H. The department shall secure and use an independent cost estimate for the project or each work package associated with the project to validate the negotiated costs for the construction management and construction services contract. The independent cost estimate shall remain confidential until notice of award of the construction contract.

I. The construction manager general contractor shall submit a guaranteed maximum price proposal for construction management and construction services for the project or work packages associated with the project.

J. Negotiations may begin between the department and the construction manager general contractor for the construction services before completion of the design work. Upon successful negotiation, the department shall execute the contract with the construction manager general contractor for construction of the project or work packages associated with the project.

K. Negotiations shall be terminated if the department is unable to reach a price agreement with the construction manager general contractor. In the event that negotiations are terminated, the department may competitively bid the construction phase of the project, in accordance with the department’s procedures applicable to public works construction projects. The construction manager general contractor may be allowed to bid or provide subcontract services for the project, unless prohibited by Section 10-16-13 N.M. Stat. Ann..

L. Data developed during the design services and the construction manager general contractor’s preconstruction services, unless otherwise protected by law, shall be made available to all bidders.

M. After a construction manager general contractor contract is awarded for the preconstruction services, the department shall make the names of each offeror and the ranking and evaluation scores for each available for public inspection.