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HB 2894

FIRE DISTRICTS--DESIGN-BUILD

104th Regular Session Introduced by Cristina Castro and 3 co-sponsors

Illinois authorizes design-build for fire districts and local governments, adopts two-phase selection, clarified scope rules, and CPI-based small-contract thresholds (effective 9/1/2025).

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · HB 2894

HB 2894 — Fire Districts: Design‑Build (Summary)

Status / Effective date
- Introduced in Illinois by Rep. Jay Hoffman (HB 2894).
- Passed both chambers, enrolled, signed by the Governor (record shows signature in June 2025).
- Effective date reported as September 1, 2025 (documents also reference July 1, 2025 for one section); the operative effective date for most provisions is 9/1/2025 per legislative actions.

Note: The full document file included text from an unrelated Arizona HB 2894 (silver/seek‑and‑find alerts). This summary focuses on the Illinois enactment titled “Fire Districts — Design‑Build” and related amendments.

Purpose
- Explicitly authorize and clarify the use of the design‑build procurement method by Illinois local governments — including counties, municipalities, and fire protection districts — and to amend related selection and small‑contract rules affecting architecture/engineering procurement.

Key provisions and changes
1. Fire protection districts
- Adds an express authorization allowing fire protection districts to enter into design‑build contracts. (House Amendment No. 1 clarifies that competitive bidding provisions do not prohibit use of design‑build and authorizes districts to use design‑build consistent with competitive selection of the design‑builder.)

  1. Counties and municipalities — design‑build scope & selection

    • Removes a prior statutory requirement that counties/municipalities develop preliminary design plans as part of the scope/performance criteria (streamlines the scope development requirement).
    • Confirms scope and performance criteria must reasonably inform bidders about programmatic needs, schedule, budget and the level/type of design deliverables required in proposals (renderings, drawings, specifications).
    • Requires scope/performance criteria be prepared by a design professional or public art designer (either county/municipal employee or contracted) and prohibits that preparer from bidding on the project.
    • Allows design‑build contracts to be conditioned on subsequent refinements in scope and price and permits owner modifications in scope without necessarily invalidating the contract.

  2. Two‑phase selection procedure (Phase I qualifications, Phase II technical/cost)

    • Reaffirms a two‑phase process: Phase I shortlists firms on qualifications; Phase II evaluates technical and cost proposals.
    • Specifies mandatory Phase I evaluation criteria (examples: personnel experience, similar project experience, financial capability, timeliness of past performance, references, consultant qualifications, and efforts to meet Business Enterprise (MBE/WBE/PWD) goals and Illinois Human Rights Act §2‑105).
    • Permits additional relevant criteria at the agency’s discretion and requires the agency to maintain evaluation scoring records for protest transparency.
    • Clarifies that a design‑build entity shall not be disqualified solely because it previously was awarded projects under other state procurement laws.
    • Allows a county/municipality to proceed to Phase II with a single Phase I respondent if doing so is in the public entity’s discretion and best interest.
    • Limits shortlists to at least 2 and no more than 6 firms where practicable.

  3. Small contract threshold for A/E/land surveying procurements

    • Amends the Architectural, Engineering and Land Surveying Qualifications Based Selection Act: raises/clarifies the threshold below which the formal qualifications‑based process does not apply.
    • Transitional thresholds: $25,000 for contracts entered before the amendatory act’s effective date; $40,000 for contracts entered on/after the act’s effective date and before Jan 1, 2027.
    • Beginning Jan 1, 2027 the maximum threshold will be indexed annually to the CPI‑U (12‑month change through prior September) and rounded to the nearest $10.

Who is affected
- Local governments (counties, municipalities, and fire protection districts) that procure design and construction services.
- Architecture, engineering, land surveying and construction firms, and integrated design‑build teams — especially those participating in public design‑build procurements.
- Minority/Women/Persons with Disabilities business enterprises (continued applicability of utilization goals).
- Public owners and project managers (new/clarified procurement duties and documentation requirements).

Procedural / implementation notes
- Agencies must retain evaluation scoring and comply with the stated Phase I/Phase II procedures; they can modify project scope post‑award within limits described.
- The design professional who prepares scope documents cannot compete for that project.
- No direct state appropriation or specific funding mechanism is included in the text provided.
- The CPI indexing for small contract thresholds begins in 2027; changes to procurement practice (e.g., allowing single‑respondent Phase II) take effect on the statute’s effective date.

Potential impacts (practical effects)
- Greater flexibility for local governments and fire districts to use design‑build to speed delivery and integrate design/construction responsibility.
- Clarifies procurement protections (e.g., conflict prohibitions, DBE goals, protest transparency) while broadening allowable procurement approaches.
- May increase competition and streamline procurements for certain projects, but could raise concerns from stakeholders preferring traditional low‑bid or separate design/bid/build methods.

Compiled from official sources — confirm details with the bill’s official record.

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