Committee hears bill to adopt qualifications‑based selection for state engineering contracts

The House Committee on Regulatory Reform heard testimony and discussion on House Bill 4774, a measure sponsored by Representative Fairbairn that would change how the state solicits professional engineering and architectural services for higher‑cost design projects.

Rep. Fairbairn introduced the bill and invited Ronald Brenke, executive director of the American Council of Engineering Companies of Michigan, to explain how qualifications‑based selection (QBS) differs from a lowest‑price approach. Brenke told the committee the federal Brooks Act and 44 states use QBS for procuring these services and that selecting firms based on demonstrated competence and experience, then negotiating fees afterward, leads to better design outcomes and long‑term savings. He said the bill is aimed at projects with design costs over $250,000 and noted QBS can reduce construction claims, encourage innovation, and improve lifecycle costs.

Committee members asked clarifying questions about the practical effects of the change. Brenke said the bill provides process details not currently codified in Michigan statute and that similar legislation passed both chambers in a prior session but was not signed by the governor after concerns from the Department of Technology, Management & Budget (DTMB). He said the bill would not apply to projects below the $250,000 threshold and that proponents believe early selection based on qualifications enables better negotiated scopes and value engineering.

No committee vote was taken at this session. Sponsors and ACEC representatives said they were available to answer further questions as the bill advances through the committee process.

Ending: The committee received testimony but took no final action; the bill remains at the committee stage pending further consideration.