Assembly Bill No. 298–Committee on Government Affairs

February 22, 1999

____________

Referred to Committee on Government Affairs

 

SUMMARY—Requires bidders on public works projects to qualify before bidding in certain circumstances. (BDR 28-991)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to public works projects; requiring the adoption of criteria for the qualification of bidders on certain contracts for public works; making an exemption for local governments and the department of transportation in certain circumstances; requiring a person to qualify before bidding on such contracts in certain circumstances; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 338 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 11, inclusive, of this act.

1-3 Sec. 2. 1. A local government shall award a contract for the

1-4 construction, alteration or repair of a public work pursuant to the

1-5 provisions of:

1-6 (a) Sections 3 to 11, inclusive, of this act; or

1-7 (b) NRS 338.143, 338.145 and 338.147.

1-8 2. The provisions of sections 3 to 11, inclusive, of this act and NRS

1-9 338.143, 338.145 and 338.147 do not apply with respect to contracts for

1-10 the construction, reconstruction, improvement and maintenance of

1-11 highways that are awarded by the department of transportation pursuant

1-12 to NRS 408.313 to 408.433, inclusive.

1-13 Sec. 3. 1. Except as otherwise provided in section 6 of this act, a

1-14 public body shall not accept a bid on a contract for a public work unless

1-15 the person who submits the bid has qualified pursuant to section 5 of this

1-16 act to bid on that contract.

2-1 2. The governing body of each local government that sponsors or

2-2 finances a public work may adopt criteria for the qualification of bidders

2-3 on contracts for public works of the local government. If a governing

2-4 body adopts criteria pursuant to this subsection, the governing body shall

2-5 use the criteria to determine the qualification of bidders on contracts for

2-6 public works of the local government.

2-7 3. The state public works board shall adopt criteria for the

2-8 qualification of bidders on contracts for public works of this state. The

2-9 criteria adopted by the state public works board pursuant to this

2-10 subsection must be used by the state public works board to determine the

2-11 qualification of bidders on contracts for public works of this state.

2-12 4. Before adopting criteria pursuant to this section, the state public

2-13 works board or a governing body shall hold at least one public hearing to

2-14 solicit and evaluate public opinion regarding the criteria to be adopted.

2-15 Notice of such a hearing must be provided by mail at least 10 days before

2-16 the hearing to:

2-17 (a) Construction trade associations; and

2-18 (b) Labor unions representing trades in the building industry.

2-19 Sec. 4. The criteria adopted by the state public works board or a

2-20 governing body pursuant to section 3 of this act to determine whether an

2-21 applicant is qualified to bid on a contract for a public work:

2-22 1. Must be adopted in such a form that the determination of whether

2-23 an applicant is qualified to bid on a contract for a public work does not

2-24 require or allow the exercise of discretion by any one person.

2-25 2. May include only:

2-26 (a) The financial ability of the applicant to perform the contract;

2-27 (b) The principal personnel of the applicant;

2-28 (c) Whether the applicant has breached any contracts with a public

2-29 agency or person in this state or any other state; and

2-30 (d) Whether the applicant has been disqualified from being awarded

2-31 the contract pursuant to NRS 338.017 or 338.145.

2-32 Sec. 5. 1. Except as otherwise provided in section 6 of this act, a

2-33 person who wishes to qualify as a bidder on a contract for a public work

2-34 must submit an application to the state public works board or the

2-35 governing body.

2-36 2. Upon receipt of an application pursuant to subsection 1, the state

2-37 public works board or the governing body shall:

2-38 (a) Investigate the applicant to determine whether he is qualified to

2-39 bid on the contract; and

2-40 (b) After conducting the investigation, determine whether the

2-41 applicant is qualified to bid on the contract. The determination must be

2-42 made within 30 days after receipt of the application.

3-1 3. The state public works board or the governing body shall notify

3-2 each applicant in writing of its determination. If an application is denied,

3-3 the notice must set forth the reasons for the denial and inform the

3-4 applicant of his right to a hearing pursuant to section 7 of this act.

3-5 4. The state public works board or the governing body shall not use

3-6 any criteria other than the criteria described in section 4 of this act in

3-7 determining whether to approve or deny an application.

3-8 5. Financial information and other data pertaining to the net worth

3-9 of an applicant which is gathered by or provided to the state public works

3-10 board or a governing body to determine the financial ability of an

3-11 applicant to perform a contract is confidential and not open to public

3-12 inspection.

3-13 Sec. 6. A public body may accept a bid on a contract for a public

3-14 work from a person who does not qualify pursuant to section 5 of this act

3-15 if the person holds:

3-16 1. An unlimited contractor’s license issued by the state contractors’

3-17 board in the branch of general engineering contracting or general

3-18 building contracting, or in both branches, and:

3-19 (a) At the time he submits his bid, he provides a bid bond equal to 10

3-20 percent of the amount of the bid; and

3-21 (b) At the time the contract is awarded, he provides a performance

3-22 bond, a labor and material bond, and a guaranty bond, each equal to 100

3-23 percent of the amount of the contract; or

3-24 2. A contractor’s license issued by the state contractors’ board that is

3-25 designated in any classification if he:

3-26 (a) Has, in the 5 years immediately preceding the submission of the

3-27 bid, been found to be a responsible contractor in the classification in

3-28 which his contractor’s license is designated;

3-29 (b) Provides a bid bond, a performance bond, a guaranty bond, and a

3-30 labor and material bond in such amounts as the state public works board

3-31 or governing body may require; and

3-32 (c) Employs a person determined by the state contractors’ board to be

3-33 qualified to supervise each classification of construction upon which the

3-34 person submitting the bid is bidding.

3-35 Sec. 7. 1. If, within 10 days after receipt of the notice denying his

3-36 application, the applicant files a written request for a hearing with the

3-37 state public works board or the governing body of the local government,

3-38 the board or governing body shall set the matter for a hearing within 10

3-39 days after receipt of the request. The hearing must be held not later than

3-40 20 days after the receipt of the request for a hearing.

3-41 2. The hearing must be held at a time and place prescribed by the

3-42 board or governing body. At least 10 days before the date set for the

3-43 hearing, the board or governing body shall serve the applicant with

4-1 written notice of the hearing. The notice may be served by personal

4-2 delivery to the applicant or by certified mail to the last known business or

4-3 residential address of the applicant.

4-4 3. The board or governing body shall issue a decision on the matter

4-5 within 5 days after the hearing and notify the applicant, in writing, of its

4-6 decision within 5 days after it is issued. The decision of the board or

4-7 governing body is a final decision for purposes of judicial review.

4-8 Sec. 8. 1. Except as otherwise provided in subsection 7 and NRS

4-9 338.1906 and 338.1907, this state, or a local government that awards a

4-10 contract for the construction, alteration or repair of a public work in

4-11 accordance with paragraph (a) of subsection 1 of section 2 of this act, or

4-12 a public officer, public employee or other person responsible for

4-13 awarding a contract for the construction, alteration or repair of a public

4-14 work who represents the state or the local government, shall not:

4-15 (a) Commence such a project for which the estimated cost exceeds

4-16 $100,000 unless it advertises in a newspaper of general circulation in this

4-17 state for bids for the project; or

4-18 (b) Divide such a project into separate portions to avoid the

4-19 requirements of paragraph (a).

4-20 2. Except as otherwise provided in subsection 7, a public body that

4-21 maintains a list of properly licensed contractors who are interested in

4-22 receiving offers to bid on public works projects for which the estimated

4-23 cost is more than $25,000 but less than $100,000 shall solicit bids from

4-24 not more than three of the contractors on the list for a contract of that

4-25 value for the construction, alteration or repair of a public work. The

4-26 public body shall select contractors from the list in such a manner as to

4-27 afford each contractor an equal opportunity to bid on a public works

4-28 project. A properly licensed contractor must submit a written request

4-29 annually to the public body to remain on the list. Offers for bids which

4-30 are made pursuant to this subsection must be sent by certified mail.

4-31 3. Each advertisement for bids must include a provision that sets

4-32 forth:

4-33 (a) The requirement that a contractor must be qualified pursuant to

4-34 section 5 of this act to bid on the contract or must be exempt from

4-35 meeting such qualifications pursuant to section 6 of this act; and

4-36 (b) The period during which an application to qualify as a bidder on

4-37 the contract must be submitted.

4-38 4. Approved plans and specifications for the bids must be on file at a

4-39 place and time stated in the advertisement for the inspection of all

4-40 persons desiring to bid thereon and for other interested persons.

4-41 Contracts for the project must be awarded on the basis of bids received.

5-1 5. Any bids received in response to an advertisement for bids may be

5-2 rejected if the person responsible for awarding the contract determines

5-3 that:

5-4 (a) The bidder is not a qualified bidder pursuant to section 5 of this

5-5 act, unless the bidder is exempt from meeting such qualifications

5-6 pursuant to section 6 of this act;

5-7 (b) The bidder is not responsive;

5-8 (c) The quality of the services, materials, equipment or labor offered

5-9 does not conform to the approved plan or specifications; or

5-10 (d) The public interest would be served by such a rejection.

5-11 6. Before the state or a local government may commence a project

5-12 subject to the provisions of this section, based upon a determination that

5-13 the public interest would be served by rejecting any bids received in

5-14 response to an advertisement for bids, it shall prepare and make

5-15 available for public inspection a written statement containing:

5-16 (a) A list of all persons, including supervisors, whom the state or the

5-17 local government intends to assign to the project, together with their

5-18 classifications and an estimate of the direct and indirect costs of their

5-19 labor;

5-20 (b) A list of all equipment that the state or the local government

5-21 intends to use on the project, together with an estimate of the number of

5-22 hours each item of equipment will be used and the hourly cost to use

5-23 each item of equipment;

5-24 (c) An estimate of the cost of administrative support for the persons

5-25 assigned to the project;

5-26 (d) An estimate of the total cost of the project; and

5-27 (e) An estimate of the amount of money the state or the local

5-28 government expects to save by rejecting the bids and performing the

5-29 project itself.

5-30 7. This section does not apply to:

5-31 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

5-32 (b) Any work of construction, reconstruction, improvement and

5-33 maintenance of highways subject to NRS 408.323 or 408.327;

5-34 (c) Normal maintenance of the property of a school district; or

5-35 (d) The Las Vegas Valley water district created pursuant to chapter

5-36 167, Statutes of Nevada 1947.

5-37 Sec. 9. 1. Except as otherwise provided in subsection 7, this state,

5-38 or a local government that awards a contract for the construction,

5-39 alteration or repair of a public work in accordance with paragraph (a) of

5-40 subsection 1 of section 2 of this act, or a public officer, public employee

5-41 or other person responsible for awarding a contract for the construction,

5-42 alteration or repair of a public work who represents the state or the local

5-43 government, shall not:

6-1 (a) Commence such a project for which the estimated cost exceeds

6-2 $100,000 unless it advertises in a newspaper of general circulation in this

6-3 state for bids for the project; or

6-4 (b) Divide such a project into separate portions to avoid the

6-5 requirements of paragraph (a).

6-6 2. Except as otherwise provided in subsection 7, a public body that

6-7 maintains a list of properly licensed contractors who are interested in

6-8 receiving offers to bid on public works projects for which the estimated

6-9 cost is more than $25,000 but less than $100,000 shall solicit bids from

6-10 not more than three of the contractors on the list for a contract of that

6-11 value for the construction, alteration or repair of a public work. The

6-12 public body shall select contractors from the list in such a manner as to

6-13 afford each contractor an equal opportunity to bid on a public works

6-14 project. A properly licensed contractor must submit a written request

6-15 annually to the public body to remain on the list. Offers for bids which

6-16 are made pursuant to this subsection must be sent by certified mail.

6-17 3. Each advertisement for bids must include a provision that sets

6-18 forth:

6-19 (a) The requirement that a contractor must be qualified pursuant to

6-20 section 5 of this act to bid on the contract or must be exempt from

6-21 meeting such qualifications pursuant to section 6 of this act; and

6-22 (b) The period during which an application to qualify as a bidder on

6-23 the contract must be submitted.

6-24 4. Approved plans and specifications for the bids must be on file at a

6-25 place and time stated in the advertisement for the inspection of all

6-26 persons desiring to bid thereon and for other interested persons.

6-27 Contracts for the project must be awarded on the basis of bids received.

6-28 5. Any bids received in response to an advertisement for bids may be

6-29 rejected if the person responsible for awarding the contract determines

6-30 that:

6-31 (a) The bidder is not a qualified bidder pursuant to section 5 of this

6-32 act, unless the bidder is exempt from meeting such qualifications

6-33 pursuant to section 6 of this act;

6-34 (b) The bidder is not responsive or responsible;

6-35 (c) The quality of the services, materials, equipment or labor offered

6-36 does not conform to the approved plan or specifications; or

6-37 (d) The public interest would be served by such a rejection.

6-38 6. Before the state or a local government may commence a project

6-39 subject to the provisions of this section, based upon a determination that

6-40 the public interest would be served by rejecting any bids received in

6-41 response to an advertisement for bids, it shall prepare and make

6-42 available for public inspection a written statement containing:

7-1 (a) A list of all persons, including supervisors, whom the state or the

7-2 local government intends to assign to the project, together with their

7-3 classifications and an estimate of the direct and indirect costs of their

7-4 labor;

7-5 (b) A list of all equipment that the state or the local government

7-6 intends to use on the project, together with an estimate of the number of

7-7 hours each item of equipment will be used and the hourly cost to use

7-8 each item of equipment;

7-9 (c) An estimate of the cost of administrative support for the persons

7-10 assigned to the project;

7-11 (d) An estimate of the total cost of the project; and

7-12 (e) An estimate of the amount of money the state or the local

7-13 government expects to save by rejecting the bids and performing the

7-14 project itself.

7-15 7. This section does not apply to:

7-16 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

7-17 (b) Any work of construction, reconstruction, improvement and

7-18 maintenance of highways subject to NRS 408.323 or 408.327;

7-19 (c) Normal maintenance of the property of a school district; or

7-20 (d) The Las Vegas Valley water district created pursuant to chapter

7-21 167, Statutes of Nevada 1947.

7-22 Sec. 10. 1. A public body awarding a contract for a public work

7-23 shall not award the contract to a person who, at the time of the bid, is not

7-24 properly licensed under the provisions of chapter 624 of NRS or if the

7-25 contract would exceed the limit of his license. A subcontractor named by

7-26 the contractor who is not properly licensed for that portion of the work

7-27 shall be deemed unacceptable. If the subcontractor is deemed

7-28 unacceptable, the contractor shall provide an acceptable subcontractor

7-29 before the award of the contract.

7-30 2. If, after awarding the contract, the public body discovers that the

7-31 person to whom the contract was awarded is not licensed, or that the

7-32 contract would exceed his license, the public body shall reject the bid and

7-33 may accept the next lowest bid for that public work from a responsive

7-34 bidder who was determined by the public body to be a qualified bidder

7-35 pursuant to section 5 of this act or was exempt from meeting such

7-36 qualifications pursuant to section 6 of this act without requiring that new

7-37 bids be submitted.

7-38 Sec. 11. 1. A public body shall award a contract for a public work

7-39 to the contractor who submits the best bid.

7-40 2. Except as otherwise provided in subsection 4 or limited by

7-41 subsection 5, for the purposes of this section, a contractor who:

8-1 (a) Has been determined by the public body to be a qualified bidder

8-2 pursuant to section 5 of this act or is exempt from meeting such

8-3 qualifications pursuant to section 6 of this act; and

8-4 (b) At the time he submits his bid, provides to the public body proof of

8-5 the payment of:

8-6 (1) The sales and use taxes imposed pursuant to chapters 372, 374

8-7 and 377 of NRS on materials used for construction of not less than

8-8 $5,000 for each consecutive 12-month period for 60 months immediately

8-9 preceding the submission of his bid;

8-10 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

8-11 of NRS on the vehicles used in the operation of his business of not less

8-12 than $5,000 for each consecutive 12-month period for 60 months

8-13 immediately preceding the submission of his bid; or

8-14 (3) Any combination of those sales and use taxes and motor vehicle

8-15 privilege tax,

8-16 shall be deemed to have submitted a better bid than a competing

8-17 contractor who has not provided proof of the payment of those taxes if

8-18 the amount of his bid is not more than 5 percent higher than the amount

8-19 bid by the competing contractor.

8-20 3. A contractor who has previously provided the public body

8-21 awarding a contract with the proof of payment required pursuant to

8-22 subsection 2 may update that proof on or before April 1, July 1,

8-23 September 1 and December 1 rather than with each bid.

8-24 4. If any federal statute or regulation precludes the granting of

8-25 federal assistance or reduces the amount of that assistance for a

8-26 particular public work because of the provisions of subsection 2, those

8-27 provisions do not apply if the application of those provisions would

8-28 preclude or reduce federal assistance for that work. The provisions of

8-29 subsection 2 do not apply to any contract for a public work which is

8-30 expected to cost less than $250,000.

8-31 5. Except as otherwise provided in subsection 6, if a bid is submitted

8-32 by two or more contractors as a joint venture or by one of them as a joint

8-33 venturer, the provisions of subsection 2 apply only if both or all of the

8-34 joint venturers separately meet the requirements of that subsection.

8-35 6. Except as otherwise provided in subsection 8, if a bid is submitted

8-36 by a joint venture and one or more of the joint venturers has

8-37 responsibility for the performance of the contract as described in

8-38 subsection 7, the provisions of subsection 2 apply only to those joint

8-39 venturers who have that responsibility.

8-40 7. For the purposes of subsection 6, a joint venturer has

8-41 responsibility for the performance of a contract if he has at least one of

8-42 the following duties or obligations delegated to him in writing in the

8-43 contract creating the joint venture:

9-1 (a) Supplying the labor necessary to perform the contract and paying

9-2 the labor and any related taxes and benefits;

9-3 (b) Supplying the equipment necessary to perform the contract and

9-4 paying any charges related to the equipment;

9-5 (c) Contracting with and making payments to any subcontractors; or

9-6 (d) Performing the recordkeeping for the joint venture and making

9-7 any payments to persons who provide goods or services related to the

9-8 performance of the contract.

9-9 8. The provisions of subsection 6 do not apply to a joint venture

9-10 which is formed for the sole purpose of circumventing any of the

9-11 requirements of this section.

9-12 Sec. 12. NRS 338.010 is hereby amended to read as follows:

9-13 338.010 As used in this chapter:

9-14 1. "Day labor" means all cases where public bodies, their officers,

9-15 agents or employees, hire, supervise and pay the wages thereof directly to a

9-16 workman or workmen employed by them on public works by the day and

9-17 not under a contract in writing.

9-18 2. "Eligible bidder" means a person who was [found] :

9-19 (a) Found to be a responsible contractor by a [public body] local

9-20 government which awarded a contract for a public work [.] in accordance

9-21 with paragraph (b) of subsection 1 of section 2 of this act; or

9-22 (b) Determined by a public body which awarded a contract for a

9-23 public work pursuant to sections 3 to 11, inclusive, of this act, to be

9-24 qualified to bid on that contract pursuant to section 5 of this act or was

9-25 exempt from meeting such qualifications pursuant to section 6 of this

9-26 act.

9-27 3. "Offense" means failing to:

9-28 (a) Pay the prevailing wage required pursuant to this chapter;

9-29 (b) Pay the contributions for unemployment compensation required

9-30 pursuant to chapter 612 of NRS; or

9-31 (c) Provide and secure compensation for employees required pursuant to

9-32 chapters 616A to 617, inclusive, of NRS.

9-33 4. "Public body" means the state, county, city, town, school district or

9-34 any public agency of this state or its political subdivisions sponsoring or

9-35 financing a public work.

9-36 5. "Public work" means any project for the new construction, repair or

9-37 reconstruction of:

9-38 (a) A project financed in whole or in part from public money for:

9-39 (1) Public buildings;

9-40 (2) Jails and prisons;

9-41 (3) Public roads;

9-42 (4) Public highways;

9-43 (5) Public streets and alleys;

10-1 (6) Public utilities which are financed in whole or in part by public

10-2 money;

10-3 (7) Publicly owned water mains and sewers;

10-4 (8) Public parks and playgrounds;

10-5 (9) Public convention facilities which are financed at least in part with

10-6 public funds; and

10-7 (10) [All] Any other publicly owned works and property whose cost

10-8 as a whole exceeds $20,000. Each separate unit which is a part of a project

10-9 is included in the cost of the project for the purpose of determining whether

10-10 a project meets this threshold.

10-11 (b) A building for the University and Community College System of

10-12 Nevada of which 25 percent or more of the costs of the building as a whole

10-13 are paid from money appropriated by [the] this state or from federal

10-14 money.

10-15 6. "Wages" means:

10-16 (a) The basic hourly rate of pay; and

10-17 (b) The amount of pension, health and welfare, vacation and holiday

10-18 pay, the cost of apprenticeship training or other similar programs or other

10-19 bona fide fringe benefits which are a benefit to the workman.

10-20 7. "Workman" means a skilled mechanic, skilled workman, semiskilled

10-21 mechanic, semiskilled workman or unskilled workman.

10-22 Sec. 13. NRS 338.0115 is hereby amended to read as follows:

10-23 338.0115 1. Except as otherwise provided in subsection 2, the

10-24 provisions of this chapter and chapters 332 and 339 of NRS do not apply to

10-25 a contract under which a private developer, for the benefit of a private

10-26 development, constructs a water or sewer line extension and any related

10-27 appurtenances:

10-28 (a) Which qualify as a public work pursuant to NRS 338.010; and

10-29 (b) For which he will receive a monetary contribution or refund from a

10-30 public body as reimbursement for a portion of the costs of the project.

10-31 2. If, pursuant to the provisions of such a contract, the developer is not

10-32 responsible for paying all of the initial construction costs of the project, the

10-33 provisions of NRS 338.013 to 338.090, inclusive, and 338.140 to 338.147,

10-34 inclusive, and sections 2 to 11, inclusive, of this act apply to the contract.

10-35 Sec. 14. NRS 338.143 is hereby amended to read as follows:

10-36 338.143 1. Except as otherwise provided in subsection 6 and NRS

10-37 [338.1906 and 338.1907, an agency or political subdivision of the state,]

10-38 338.1907, a local government that awards a contract for the

10-39 construction, alteration or repair of a public work in accordance with

10-40 paragraph (b) of subsection 1 of section 2 of this act, or a public officer,

10-41 public employee or other person responsible for awarding a contract for the

10-42 construction, alteration or repair of a public work [,] who represents that

10-43 local government, shall not:

11-1 (a) Commence such a project [,] for which the estimated cost exceeds

11-2 $100,000 [,] unless it advertises in a newspaper of general circulation in

11-3 [the] this state for bids for the project; or

11-4 (b) Divide such a project into separate portions to avoid the

11-5 requirements of paragraph (a).

11-6 2. Except as otherwise provided in subsection 6, a [public body] local

11-7 government that maintains a list of properly licensed contractors who are

11-8 interested in receiving offers to bid on public works projects for which the

11-9 estimated cost is more than $25,000 but less than $100,000 shall solicit

11-10 bids from not more than three of the contractors on the list for a contract of

11-11 that value for the construction, alteration or repair of a public work. The

11-12 [public body] local government shall select contractors from the list in

11-13 such a manner as to afford each contractor an equal opportunity to bid on a

11-14 public works project. A properly licensed contractor must submit a written

11-15 request annually to the [public body] local government to remain on the

11-16 list. Offers for bids which are made pursuant to this subsection must be sent

11-17 by certified mail.

11-18 3. Approved plans and specifications for the bids must be on file at a

11-19 place and time stated in the advertisement for the inspection of all persons

11-20 desiring to bid thereon and for other interested persons. Contracts for the

11-21 project must be awarded on the basis of bids received.

11-22 4. Any [or all] bids received in response to an advertisement for bids

11-23 may be rejected if the person responsible for awarding the contract

11-24 determines that:

11-25 (a) The bidder is not responsive or responsible;

11-26 (b) The quality of the services, materials, equipment or labor offered

11-27 does not conform to the approved plan or specifications; or

11-28 (c) The public interest would be served by such a rejection.

11-29 5. Before [an agency or political subdivision of the state] a local

11-30 government may commence a project subject to the provisions of this

11-31 section, based upon a determination that the public interest would be served

11-32 by rejecting any bids received in response to an advertisement for bids, it

11-33 shall prepare and make available for public inspection a written statement

11-34 containing:

11-35 (a) A list of all persons, including supervisors, [who the agency or

11-36 political subdivision] whom the local government intends to assign to the

11-37 project, together with their classifications and an estimate of the direct and

11-38 indirect costs of their labor;

11-39 (b) A list of all equipment that the [agency or political subdivision] local

11-40 government intends to use on the project, together with an estimate of the

11-41 number of hours each item of equipment will be used and the hourly cost to

11-42 use each item of equipment;

12-1 (c) An estimate of the cost of administrative support for the persons

12-2 assigned to the project;

12-3 (d) An estimate of the total cost of the project; and

12-4 (e) An estimate of the amount of money the [agency or political

12-5 subdivision] local government expects to save by rejecting the bids and

12-6 performing the project itself.

12-7 6. This section does not apply to:

12-8 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

12-9 (b) Any work of construction, reconstruction, improvement and

12-10 maintenance of highways subject to NRS 408.323 or 408.327;

12-11 (c) Normal maintenance of the property of a school district; or

12-12 (d) The Las Vegas Valley water district created pursuant to chapter 167,

12-13 Statutes of Nevada 1947.

12-14 Sec. 15. NRS 338.143 is hereby amended to read as follows:

12-15 338.143 1. Except as otherwise provided in subsection 6, [an agency

12-16 or political subdivision of the state,] a local government that awards a

12-17 contract for the construction, alteration or repair of a public work in

12-18 accordance with paragraph (b) of subsection 1 of section 2 of this act, or

12-19 a public officer, public employee or other person responsible for awarding

12-20 a contract for the construction, alteration or repair of a public work [,] who

12-21 represents that local government, shall not:

12-22 (a) Commence such a project [,] for which the estimated cost exceeds

12-23 $100,000 [,] unless it advertises in a newspaper of general circulation in

12-24 [the] this state for bids for the project; or

12-25 (b) Divide such a project into separate portions to avoid the

12-26 requirements of paragraph (a).

12-27 2. Except as otherwise provided in subsection 6, a [public body] local

12-28 government that maintains a list of properly licensed contractors who are

12-29 interested in receiving offers to bid on public works projects for which the

12-30 estimated cost is more than $25,000 but less than $100,000 shall solicit

12-31 bids from not more than three of the contractors on the list for a contract of

12-32 that value for the construction, alteration or repair of a public work. The

12-33 [public body] local government shall select contractors from the list in

12-34 such a manner as to afford each contractor an equal opportunity to bid on a

12-35 public works project. A properly licensed contractor must submit a written

12-36 request annually to the [public body] local government to remain on the

12-37 list. Offers for bids which are made pursuant to this subsection must be sent

12-38 by certified mail.

12-39 3. Approved plans and specifications for the bids must be on file at a

12-40 place and time stated in the advertisement for the inspection of all persons

12-41 desiring to bid thereon and for other interested persons. Contracts for the

12-42 project must be awarded on the basis of bids received.

13-1 4. Any [or all] bids received in response to an advertisement for bids

13-2 may be rejected if the person responsible for awarding the contract

13-3 determines that:

13-4 (a) The bidder is not responsive or responsible;

13-5 (b) The quality of the services, materials, equipment or labor offered

13-6 does not conform to the approved plan or specifications; or

13-7 (c) The public interest would be served by such a rejection.

13-8 5. Before [an agency or political subdivision of the state] a local

13-9 government may commence a project subject to the provisions of this

13-10 section, based upon a determination that the public interest would be served

13-11 by rejecting any bids received in response to an advertisement for bids, it

13-12 shall prepare and make available for public inspection a written statement

13-13 containing:

13-14 (a) A list of all persons, including supervisors, [who the agency or

13-15 political subdivision] whom the local government intends to assign to the

13-16 project, together with their classifications and an estimate of the direct and

13-17 indirect costs of their labor;

13-18 (b) A list of all equipment that the [agency or political subdivision] local

13-19 government intends to use on the project, together with an estimate of the

13-20 number of hours each item of equipment will be used and the hourly cost to

13-21 use each item of equipment;

13-22 (c) An estimate of the cost of administrative support for the persons

13-23 assigned to the project;

13-24 (d) An estimate of the total cost of the project; and

13-25 (e) An estimate of the amount of money the [agency or political

13-26 subdivision] local government expects to save by rejecting the bids and

13-27 performing the project itself.

13-28 6. This section does not apply to:

13-29 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

13-30 (b) Any work of construction, reconstruction, improvement and

13-31 maintenance of highways subject to NRS 408.323 or 408.327;

13-32 (c) Normal maintenance of the property of a school district; or

13-33 (d) The Las Vegas Valley water district created pursuant to chapter 167,

13-34 Statutes of Nevada 1947.

13-35 Sec. 16. NRS 338.145 is hereby amended to read as follows:

13-36 338.145 1. A [public body] local government awarding a contract

13-37 for a public work shall not award the contract to a person who, at the time

13-38 of the bid, is not properly licensed under the provisions of chapter 624 of

13-39 NRS or if the contract would exceed the limit of his license. A

13-40 subcontractor named by the contractor who is not properly licensed for that

13-41 portion of the work shall be deemed unacceptable. If the subcontractor is

13-42 deemed unacceptable, the contractor shall provide an acceptable

13-43 subcontractor before the award of the contract.

14-1 2. If, after awarding the contract, the [public body] local government

14-2 discovers that the person to whom the contract was awarded is not licensed,

14-3 or that the contract would exceed his license, the [public body] local

14-4 government shall reject the bid and may accept the next lowest bid for that

14-5 public work from a responsive and responsible bidder without requiring

14-6 that new bids be submitted.

14-7 Sec. 17. NRS 338.147 is hereby amended to read as follows:

14-8 338.147 1. A [public body] local government shall award a contract

14-9 for a public work to the contractor who submits the best bid.

14-10 2. Except as otherwise provided in subsection 4 or limited by

14-11 subsection 5, for the purposes of this section, a contractor who:

14-12 (a) Has been found to be a responsible contractor by the [public body;]

14-13 local government; and

14-14 (b) At the time he submits his bid, provides to the [public body] local

14-15 government proof of the payment of:

14-16 (1) The sales and use taxes imposed pursuant to chapters 372, 374

14-17 and 377 of NRS on materials used for construction of not less than $5,000

14-18 for each consecutive 12-month period for 60 months immediately

14-19 preceding the submission of his bid;

14-20 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

14-21 of NRS on the vehicles used in the operation of his business of not less than

14-22 $5,000 for each consecutive 12-month period for 60 months immediately

14-23 preceding the submission of his bid; or

14-24 (3) Any combination of such sales and use taxes and motor vehicle

14-25 privilege tax,

14-26 shall be deemed to have submitted a better bid than a competing contractor

14-27 who has not provided proof of the payment of those taxes if the amount of

14-28 his bid is not more than 5 percent higher than the amount bid by the

14-29 competing contractor.

14-30 3. A contractor who has previously provided the [public body] local

14-31 government awarding a contract with the proof of payment required

14-32 pursuant to subsection 2 may update such proof on or before April 1, July

14-33 1, September 1 and December 1 rather than with each bid.

14-34 4. If any federal statute or regulation precludes the granting of federal

14-35 assistance or reduces the amount of that assistance for a particular public

14-36 work because of the provisions of subsection 2, those provisions do not

14-37 apply insofar as their application would preclude or reduce federal

14-38 assistance for that work. The provisions of subsection 2 do not apply to any

14-39 contract for a public work which is expected to cost less than $250,000.

14-40 5. Except as otherwise provided in subsection 6, if a bid is submitted

14-41 by two or more contractors as a joint venture or by one of them as a joint

14-42 venturer, the provisions of subsection 2 apply only if both or all of the joint

14-43 venturers separately meet the requirements of that subsection.

15-1 6. Except as otherwise provided in subsection 8, if a bid is submitted

15-2 by a joint venture and one or more of the joint venturers has responsibility

15-3 for the performance of the contract as described in subsection 7, the

15-4 provisions of subsection 2 apply only to those joint venturers who have

15-5 such responsibility.

15-6 7. For the purposes of subsection 6, a joint venturer has responsibility

15-7 for the performance of a contract if he has at least one of the following

15-8 duties or obligations delegated to him in writing in the contract creating the

15-9 joint venture:

15-10 (a) Supplying the labor necessary to perform the contract and paying the

15-11 labor and any related taxes and benefits;

15-12 (b) Supplying the equipment necessary to perform the contract and

15-13 paying any charges related to the equipment;

15-14 (c) Contracting with and making payments to any subcontractors; or

15-15 (d) Performing the recordkeeping for the joint venture and making any

15-16 payments to persons who provide goods or services related to the

15-17 performance of the contract.

15-18 8. The provisions of subsection 6 do not apply to a joint venture which

15-19 is formed for the sole purpose of circumventing any of the requirements of

15-20 this section.

15-21 Sec. 18. NRS 338.1906 is hereby amended to read as follows:

15-22 338.1906 1. Upon request by or consultation with an officer or

15-23 employee of the state who is responsible for the budget of a department,

15-24 board, commission, agency or other entity of the state, the appropriate

15-25 energy retrofit coordinator may request the approval of the state board of

15-26 examiners to advertise a request for proposals to retrofit a building, or any

15-27 portion thereof, that is occupied by the department, board, commission,

15-28 agency or other entity, to make the use of energy in the building, or portion

15-29 thereof, more efficient.

15-30 2. Upon approval of the state board of examiners, the coordinator shall

15-31 prepare a request for proposals for the retrofitting of one or more buildings,

15-32 or any portion thereof, which includes:

15-33 (a) The name and location of the coordinator;

15-34 (b) A brief description of the requirements for the initial audit of the use

15-35 of energy and the retrofitting;

15-36 (c) Where and how specifications of the requirements for the initial

15-37 audit of the use of energy and the retrofitting may be obtained;

15-38 (d) The date and time not later than which proposals must be received

15-39 by the coordinator; and

15-40 (e) The date and time when responses will be opened.

16-1 3. The request for proposals must be published in at least one

16-2 newspaper of general circulation in the state.

16-3 4. After receiving the proposals but before making a decision on the

16-4 proposals, the coordinator shall consider:

16-5 (a) The best interests of the state;

16-6 (b) The experience and financial stability of the persons submitting the

16-7 proposals;

16-8 (c) Whether the proposals conform with the terms of the request for

16-9 proposals;

16-10 (d) The prices of the proposals; and

16-11 (e) Any other factor disclosed in the request for proposals.

16-12 5. The coordinator shall determine the relative weight of each factor

16-13 before a request for proposals is advertised. The weight of each factor must

16-14 not be disclosed before the date proposals are required to be submitted to

16-15 the coordinator.

16-16 6. After reviewing the proposals, if the coordinator determines that

16-17 sufficient energy could be saved to justify retrofitting the building or

16-18 buildings, or portion thereof, the coordinator shall select the best proposal

16-19 and request the approval of the board of examiners to award the contract.

16-20 The request for approval must include the proposed method of financing

16-21 the audit and retrofit , which may include an installment contract, a shared

16-22 savings contract or any other contract for a reasonable financing

16-23 arrangement. Such a contract may commit the state to make payments

16-24 beyond the biennium in which the contract is executed , but the interest due

16-25 on any debt created pursuant to this section must be paid at least

16-26 semiannually, payments must be made on the principal at least annually and

16-27 the debt must be fully repaid on or before May 1, 2013.

16-28 7. Before approving a retrofit pursuant to this section, the state board

16-29 of examiners shall evaluate any projects that would utilize shared savings

16-30 as a method of payment or any method of financing that would commit the

16-31 state to make payments beyond the biennium in which the contract is

16-32 executed to ensure that:

16-33 (a) The amount of energy to be saved will likely justify the cost of the

16-34 retrofit;

16-35 (b) The state is likely to continue to occupy the building for the entire

16-36 period required to recoup the cost of the retrofit in energy savings; and

16-37 (c) The limitation set forth in subsection 9 will not be exceeded.

16-38 8. Upon approval of the state board of examiners, the coordinator shall

16-39 execute the contract and notify:

16-40 (a) The state board of examiners of the total amount of money

16-41 committed by the contract per year; and

17-1 (b) Each officer or employee who is responsible for the budget of a

17-2 department, board, commission, agency or other entity which occupies a

17-3 portion of a building that will be retrofitted of the amount of money it will

17-4 be required to pay annually for its portion of the retrofit.

17-5 9. The total amount of money committed beyond the biennium for all

17-6 contracts executed pursuant to this section must not exceed $5,000,000 at

17-7 any one time.

17-8 10. The legislature hereby pledges that a tax will be levied to pay the

17-9 principal and interest on any indebtedness resulting from a contract

17-10 executed pursuant to this section as they become due if the required

17-11 payments will not be made by the entity that executed the contract from its

17-12 budgeted accounts and the proceeds from any such taxes are hereby

17-13 specially appropriated for this purpose.

17-14 11. [NRS 338.143] Section 8 of this act does not apply to a project for

17-15 which a request for proposals is advertised and the contract is awarded

17-16 pursuant to the provisions of this section.

17-17 Sec. 19. NRS 338.1907 is hereby amended to read as follows:

17-18 338.1907 1. The governing body of a local government may

17-19 designate one or more energy retrofit coordinators for the buildings

17-20 occupied by the local government.

17-21 2. If such a coordinator is designated, upon request by or consultation

17-22 with an officer or employee of the local government who is responsible for

17-23 the budget of a department, board, commission or other entity of the local

17-24 government, the coordinator may request the approval of the governing

17-25 body to advertise a request for proposals to retrofit a building, or any

17-26 portion thereof, that is occupied by the department, board, commission or

17-27 other entity, to make the use of energy in the building, or portion thereof,

17-28 more efficient.

17-29 3. Upon approval of the governing body, the coordinator shall prepare

17-30 a request for proposals for the retrofitting of one or more buildings, or any

17-31 portion thereof, which includes:

17-32 (a) The name and location of the coordinator;

17-33 (b) A brief description of the requirements for the initial audit of the use

17-34 of energy and the retrofitting;

17-35 (c) Where and how specifications of the requirements for the initial

17-36 audit of the use of energy and the retrofitting may be obtained;

17-37 (d) The date and time not later than which proposals must be received

17-38 by the coordinator; and

17-39 (e) The date and time when responses will be opened.

17-40 4. The request for proposals must be published in at least one

17-41 newspaper of general circulation in the county in which the local

17-42 government is located.

18-1 5. After receiving the proposals but before making a decision on the

18-2 proposals, the coordinator shall consider:

18-3 (a) The best interests of the local government;

18-4 (b) The experience and financial stability of the persons submitting the

18-5 proposals;

18-6 (c) Whether the proposals conform with the terms of the request for

18-7 proposals;

18-8 (d) The prices of the proposals; and

18-9 (e) Any other factor disclosed in the request for proposals.

18-10 6. The coordinator shall determine the relative weight of each factor

18-11 before a request for proposals is advertised. The weight of each factor must

18-12 not be disclosed before the date proposals are required to be submitted to

18-13 the coordinator.

18-14 7. After reviewing the proposals, if the coordinator determines that

18-15 sufficient energy could be saved to justify retrofitting the building or

18-16 buildings, or portion thereof, the coordinator shall select the best proposal

18-17 and request the approval of the governing body to award the contract. The

18-18 request for approval must include the proposed method of financing the

18-19 audit and retrofit , which may include an installment contract, a shared

18-20 savings contract or any other contract for a reasonable financing

18-21 arrangement. Such a contract may commit the local government to make

18-22 payments beyond the fiscal year in which the contract is executed or

18-23 beyond the terms of office of the governing body, or both.

18-24 8. Before approving a retrofit pursuant to this section, the governing

18-25 body shall evaluate any projects that would utilize shared savings as a

18-26 method of payment or any method of financing that would commit the local

18-27 government to make payments beyond the fiscal year in which the contract

18-28 is executed or beyond the terms of office of the governing body to ensure

18-29 that:

18-30 (a) The amount of energy to be saved will likely justify the cost of the

18-31 retrofit; and

18-32 (b) The local government is likely to continue to occupy the building for

18-33 the entire period required to recoup the cost of the retrofit in energy

18-34 savings.

18-35 9. Upon approval of the governing body, the coordinator shall execute

18-36 the contract and notify each officer or employee who is responsible for the

18-37 budget of a department, board, commission or other entity which occupies a

18-38 portion of a building that will be retrofitted of the amount of money it will

18-39 be required to pay annually for its portion of the retrofit.

18-40 10. NRS 338.143 [does] and section 8 of this act do not apply to a

18-41 project for which a request for proposals is advertised and the contract is

18-42 awarded pursuant to the provisions of this section.

19-1 Sec. 20. NRS 341.147 is hereby repealed.

19-2 Sec. 21. 1. This section and sections 2 to 8, inclusive, 10 to 14,

19-3 inclusive, and 16 to 20, inclusive, of this act become effective on October

19-4 1, 1999.

19-5 2. Sections 9 and 15 of this act become effective at 12:01 a.m. on May

19-6 1, 2013.

19-7 3. Sections 8, 14, 18 and 19 of this act expire by limitation on May 1,

19-8 2013.

 

19-9 TEXT OF REPEALED SECTION

 

19-10 341.147 Qualification of bidders on contracts for public works:

19-11 Regulations; advertising; renewal; confidentiality of certain

19-12 information provided to board.

19-13 1. The board shall adopt regulations establishing the criteria and

19-14 procedures for determining the qualification of applicants to be bidders on

19-15 contracts for public works projects of this state. The board shall use the

19-16 criteria and procedures to award contracts for public works projects of this

19-17 state.

19-18 2. The criteria adopted by the board pursuant to subsection 1 must

19-19 include, without limitation, an evaluation of:

19-20 (a) The financial ability of the applicant to provide the necessary bond

19-21 for the contract;

19-22 (b) The principal personnel of the applicant;

19-23 (c) The performance history of the applicant concerning other recent

19-24 projects completed by the applicant in this state;

19-25 (d) Any breach of contract of the applicant on a prior contract, other

19-26 than a breach for legitimate cause;

19-27 (e) Whether the applicant has ever been disqualified from being

19-28 awarded a contract pursuant to NRS 338.017 or 338.145; and

19-29 (f) The safety program and safety record of the applicant.

19-30 3. The regulations adopted pursuant to this section must include,

19-31 without limitation, a procedure and deadlines for:

19-32 (a) Investigating an applicant and determining whether he is qualified to

19-33 bid on a contract for a public works project of this state based on the

19-34 criteria established pursuant to this section;

19-35 (b) Notifying an applicant of the determination of the board regarding

19-36 his application; and

19-37 (c) A hearing and appeal by an applicant whose application for

19-38 qualification has been denied by the board.

20-1 4. The board shall, not less than 45 days before advertising for bids

20-2 concerning a public works project, notify by advertisement in a newspaper

20-3 of general circulation in this state that the contract for the public works

20-4 project requires a determination that the applicant is qualified to bid on the

20-5 contract pursuant to this section.

20-6 5. An applicant determined to be qualified by the board pursuant to this

20-7 section must apply each year to renew his qualification in the manner

20-8 provided in the regulations adopted pursuant to this section.

20-9 6. Any information and data pertaining to the net worth of an applicant

20-10 which are gathered by or provided to the board for a determination of

20-11 qualification pursuant to this section are confidential and not open to public

20-12 inspection.

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