If the department develops a concept for private participation in a turnpike project, it will solicit participation in accordance with the requirements of this section:

1. (1) The department will set forth the basic criteria for professional expertise, financial capability, and end-product expectations in a request for proposal (RFP) and will publish it at a minimum in the Texas Register and in one or more newspapers of general circulation in this state. The department may also elect to furnish the RFP to businesses in the private sector that the department otherwise believes might be interested and qualified to participate in the turnpike project which is the subject of the RFP.
2. (2) At its sole option, the department may elect to furnish conceptual designs, fundamental details, or detailed plans of the proposed project in the RFP. The RFP may request one or more conceptual approaches to bring the turnpike project to fruition.
3. (3) The department may elect for the RFP to require that solicited proposals be submitted and evaluated according to a two-phase process. In that case, the first phase will require that a conceptual proposal be submitted for prequalification or "conceptual" review; the second phase then will consist of the submission from all or a "short-list" of the original proposers of detailed documentation regarding the turnpike project. The RFP may require that a portion of the total proposal review fee (as specified in the RFP) be tendered with the submittal in each phase of a two-phase process. Alternatively, the RFP may provide for a single-phase submission and evaluation process. The determination of whether to utilize a two-phase or a single-phase procedure shall be based on the relative complexity of the turnpike project which is the subject of the RFP, as determined in the sole discretion of the department.
4. (4) The proposals will be evaluated by the department as to their feasibility (including the reasonableness of the financial plan), realistic time frame, assumptions (including those related to ownership, legal liability, law enforcement and operation of the project), forecasts, financial exposure and benefit to the department, compatibility with other planned or existing transportation facilities, likelihood of obtaining necessary approvals and other support, cost and pricing, toll rates and projected usage, scheduling, environmental impact, manpower availability, use of technology, governmental liaison, and project coordination, with attention to efficiency, quality of finished product and such other criteria, including conformity with department policies, guidelines and standards, as may be deemed appropriate by the department to maximize the overall performance of the project and the resulting benefits to the state. Specific evaluation criteria and requests for pertinent information will be set forth in the RFP.
5. (5) In accordance with the terms of the RFP, each proposer will be evaluated to determine its financial condition, management stability, technological capability, experience, staffing, organizational structure, project commitment, and such other qualities that the department considers relevant to the successful completion of the project.
6. (6) Based on the evaluation described under paragraphs (4) and (5) of this section, the department will rank all proposals that are complete, responsive to the RFP, and in conformance with the requirements of this subchapter. The proposers will be notified in writing of the department's rankings.
7. (7) Final selection of any proposal will be dependent, in part, on the adequacy of the financial plan presented in that proposal. The department will review the adequacy of the financial plan presented in the proposal and determine if it is based on reasonable financial assumptions.

8. (8) Only if a proposal is determined to be financially feasible and to provide a reasonable basis for further development of the proposal will the department then attempt to negotiate an exclusive development agreement with that party to construct, maintain, repair, operate, extend or expand the turnpike project. The Attorney General or the Attorney General's designated representative will be included in the negotiations with the proposer. If an exclusive development agreement satisfactory to the department cannot be negotiated with that proposer, the department will formally end negotiations with that proposer and, in its sole discretion, either:

   1. (A) reject all proposals;
   2. (B) terminate or suspend the evaluation of all proposals;
   3. (C) cancel the RFP;
   4. (D) modify the RFP and recommence the submission of proposals; or
   5. (E) proceed to the next most highly ranked proposal and attempt to negotiate an exclusive development agreement with that party in accordance with this paragraph.

Source Note:The provisions of this §27.4 adopted to be effective July 18, 2002, 27 TexReg 6377.