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.
~
EXPLANATION – Matter in
bolded italics is new; matter between brackets
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 thereto1-2
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 the1-4
construction, alteration or repair of a public work pursuant to the1-5
provisions of:1-6
(a) Sections 3 to 11, inclusive, of this act; or1-7
(b) NRS 338.143, 338.145 and 338.147.1-8
2. The provisions of sections 3 to 11, inclusive, of this act and NRS1-9
338.143, 338.145 and 338.147 do not apply with respect to contracts for1-10
the construction, reconstruction, improvement and maintenance of1-11
highways that are awarded by the department of transportation pursuant1-12
to NRS 408.313 to 408.433, inclusive.1-13
Sec. 3. 1. Except as otherwise provided in section 6 of this act, a1-14
public body shall not accept a bid on a contract for a public work unless1-15
the person who submits the bid has qualified pursuant to section 5 of this1-16
act to bid on that contract.2-1
2. The governing body of each local government that sponsors or2-2
finances a public work may adopt criteria for the qualification of bidders2-3
on contracts for public works of the local government. If a governing2-4
body adopts criteria pursuant to this subsection, the governing body shall2-5
use the criteria to determine the qualification of bidders on contracts for2-6
public works of the local government.2-7
3. The state public works board shall adopt criteria for the2-8
qualification of bidders on contracts for public works of this state. The2-9
criteria adopted by the state public works board pursuant to this2-10
subsection must be used by the state public works board to determine the2-11
qualification of bidders on contracts for public works of this state.2-12
4. Before adopting criteria pursuant to this section, the state public2-13
works board or a governing body shall hold at least one public hearing to2-14
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 before2-16
the hearing to:2-17
(a) Construction trade associations; and2-18
(b) Labor unions representing trades in the building industry.2-19
Sec. 4. The criteria adopted by the state public works board or a2-20
governing body pursuant to section 3 of this act to determine whether an2-21
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 whether2-23
an applicant is qualified to bid on a contract for a public work does not2-24
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 public2-29
agency or person in this state or any other state; and2-30
(d) Whether the applicant has been disqualified from being awarded2-31
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, a2-33
person who wishes to qualify as a bidder on a contract for a public work2-34
must submit an application to the state public works board or the2-35
governing body.2-36
2. Upon receipt of an application pursuant to subsection 1, the state2-37
public works board or the governing body shall:2-38
(a) Investigate the applicant to determine whether he is qualified to2-39
bid on the contract; and2-40
(b) After conducting the investigation, determine whether the2-41
applicant is qualified to bid on the contract. The determination must be2-42
made within 30 days after receipt of the application.3-1
3. The state public works board or the governing body shall notify3-2
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 the3-4
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 use3-6
any criteria other than the criteria described in section 4 of this act in3-7
determining whether to approve or deny an application.3-8
5. Financial information and other data pertaining to the net worth3-9
of an applicant which is gathered by or provided to the state public works3-10
board or a governing body to determine the financial ability of an3-11
applicant to perform a contract is confidential and not open to public3-12
inspection.3-13
Sec. 6. A public body may accept a bid on a contract for a public3-14
work from a person who does not qualify pursuant to section 5 of this act3-15
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 general3-18
building contracting, or in both branches, and:3-19
(a) At the time he submits his bid, he provides a bid bond equal to 103-20
percent of the amount of the bid; and3-21
(b) At the time the contract is awarded, he provides a performance3-22
bond, a labor and material bond, and a guaranty bond, each equal to 1003-23
percent of the amount of the contract; or3-24
2. A contractor’s license issued by the state contractors’ board that is3-25
designated in any classification if he:3-26
(a) Has, in the 5 years immediately preceding the submission of the3-27
bid, been found to be a responsible contractor in the classification in3-28
which his contractor’s license is designated;3-29
(b) Provides a bid bond, a performance bond, a guaranty bond, and a3-30
labor and material bond in such amounts as the state public works board3-31
or governing body may require; and3-32
(c) Employs a person determined by the state contractors’ board to be3-33
qualified to supervise each classification of construction upon which the3-34
person submitting the bid is bidding.3-35
Sec. 7. 1. If, within 10 days after receipt of the notice denying his3-36
application, the applicant files a written request for a hearing with the3-37
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 103-39
days after receipt of the request. The hearing must be held not later than3-40
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 the3-42
board or governing body. At least 10 days before the date set for the3-43
hearing, the board or governing body shall serve the applicant with4-1
written notice of the hearing. The notice may be served by personal4-2
delivery to the applicant or by certified mail to the last known business or4-3
residential address of the applicant.4-4
3. The board or governing body shall issue a decision on the matter4-5
within 5 days after the hearing and notify the applicant, in writing, of its4-6
decision within 5 days after it is issued. The decision of the board or4-7
governing body is a final decision for purposes of judicial review.4-8
Sec. 8. 1. Except as otherwise provided in subsection 7 and NRS4-9
338.1906 and 338.1907, this state, or a local government that awards a4-10
contract for the construction, alteration or repair of a public work in4-11
accordance with paragraph (a) of subsection 1 of section 2 of this act, or4-12
a public officer, public employee or other person responsible for4-13
awarding a contract for the construction, alteration or repair of a public4-14
work who represents the state or the local government, shall not:4-15
(a) Commence such a project for which the estimated cost exceeds4-16
$100,000 unless it advertises in a newspaper of general circulation in this4-17
state for bids for the project; or4-18
(b) Divide such a project into separate portions to avoid the4-19
requirements of paragraph (a).4-20
2. Except as otherwise provided in subsection 7, a public body that4-21
maintains a list of properly licensed contractors who are interested in4-22
receiving offers to bid on public works projects for which the estimated4-23
cost is more than $25,000 but less than $100,000 shall solicit bids from4-24
not more than three of the contractors on the list for a contract of that4-25
value for the construction, alteration or repair of a public work. The4-26
public body shall select contractors from the list in such a manner as to4-27
afford each contractor an equal opportunity to bid on a public works4-28
project. A properly licensed contractor must submit a written request4-29
annually to the public body to remain on the list. Offers for bids which4-30
are made pursuant to this subsection must be sent by certified mail.4-31
3. Each advertisement for bids must include a provision that sets4-32
forth:4-33
(a) The requirement that a contractor must be qualified pursuant to4-34
section 5 of this act to bid on the contract or must be exempt from4-35
meeting such qualifications pursuant to section 6 of this act; and4-36
(b) The period during which an application to qualify as a bidder on4-37
the contract must be submitted.4-38
4. Approved plans and specifications for the bids must be on file at a4-39
place and time stated in the advertisement for the inspection of all4-40
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 be5-2
rejected if the person responsible for awarding the contract determines5-3
that:5-4
(a) The bidder is not a qualified bidder pursuant to section 5 of this5-5
act, unless the bidder is exempt from meeting such qualifications5-6
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 offered5-9
does not conform to the approved plan or specifications; or5-10
(d) The public interest would be served by such a rejection.5-11
6. Before the state or a local government may commence a project5-12
subject to the provisions of this section, based upon a determination that5-13
the public interest would be served by rejecting any bids received in5-14
response to an advertisement for bids, it shall prepare and make5-15
available for public inspection a written statement containing:5-16
(a) A list of all persons, including supervisors, whom the state or the5-17
local government intends to assign to the project, together with their5-18
classifications and an estimate of the direct and indirect costs of their5-19
labor;5-20
(b) A list of all equipment that the state or the local government5-21
intends to use on the project, together with an estimate of the number of5-22
hours each item of equipment will be used and the hourly cost to use5-23
each item of equipment;5-24
(c) An estimate of the cost of administrative support for the persons5-25
assigned to the project;5-26
(d) An estimate of the total cost of the project; and5-27
(e) An estimate of the amount of money the state or the local5-28
government expects to save by rejecting the bids and performing the5-29
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 and5-33
maintenance of highways subject to NRS 408.323 or 408.327;5-34
(c) Normal maintenance of the property of a school district; or5-35
(d) The Las Vegas Valley water district created pursuant to chapter5-36
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) of5-40
subsection 1 of section 2 of this act, or a public officer, public employee5-41
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 local5-43
government, shall not:6-1
(a) Commence such a project for which the estimated cost exceeds6-2
$100,000 unless it advertises in a newspaper of general circulation in this6-3
state for bids for the project; or6-4
(b) Divide such a project into separate portions to avoid the6-5
requirements of paragraph (a).6-6
2. Except as otherwise provided in subsection 7, a public body that6-7
maintains a list of properly licensed contractors who are interested in6-8
receiving offers to bid on public works projects for which the estimated6-9
cost is more than $25,000 but less than $100,000 shall solicit bids from6-10
not more than three of the contractors on the list for a contract of that6-11
value for the construction, alteration or repair of a public work. The6-12
public body shall select contractors from the list in such a manner as to6-13
afford each contractor an equal opportunity to bid on a public works6-14
project. A properly licensed contractor must submit a written request6-15
annually to the public body to remain on the list. Offers for bids which6-16
are made pursuant to this subsection must be sent by certified mail.6-17
3. Each advertisement for bids must include a provision that sets6-18
forth:6-19
(a) The requirement that a contractor must be qualified pursuant to6-20
section 5 of this act to bid on the contract or must be exempt from6-21
meeting such qualifications pursuant to section 6 of this act; and6-22
(b) The period during which an application to qualify as a bidder on6-23
the contract must be submitted.6-24
4. Approved plans and specifications for the bids must be on file at a6-25
place and time stated in the advertisement for the inspection of all6-26
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 be6-29
rejected if the person responsible for awarding the contract determines6-30
that:6-31
(a) The bidder is not a qualified bidder pursuant to section 5 of this6-32
act, unless the bidder is exempt from meeting such qualifications6-33
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 offered6-36
does not conform to the approved plan or specifications; or6-37
(d) The public interest would be served by such a rejection.6-38
6. Before the state or a local government may commence a project6-39
subject to the provisions of this section, based upon a determination that6-40
the public interest would be served by rejecting any bids received in6-41
response to an advertisement for bids, it shall prepare and make6-42
available for public inspection a written statement containing:7-1
(a) A list of all persons, including supervisors, whom the state or the7-2
local government intends to assign to the project, together with their7-3
classifications and an estimate of the direct and indirect costs of their7-4
labor;7-5
(b) A list of all equipment that the state or the local government7-6
intends to use on the project, together with an estimate of the number of7-7
hours each item of equipment will be used and the hourly cost to use7-8
each item of equipment;7-9
(c) An estimate of the cost of administrative support for the persons7-10
assigned to the project;7-11
(d) An estimate of the total cost of the project; and7-12
(e) An estimate of the amount of money the state or the local7-13
government expects to save by rejecting the bids and performing the7-14
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 and7-18
maintenance of highways subject to NRS 408.323 or 408.327;7-19
(c) Normal maintenance of the property of a school district; or7-20
(d) The Las Vegas Valley water district created pursuant to chapter7-21
167, Statutes of Nevada 1947.7-22
Sec. 10. 1. A public body awarding a contract for a public work7-23
shall not award the contract to a person who, at the time of the bid, is not7-24
properly licensed under the provisions of chapter 624 of NRS or if the7-25
contract would exceed the limit of his license. A subcontractor named by7-26
the contractor who is not properly licensed for that portion of the work7-27
shall be deemed unacceptable. If the subcontractor is deemed7-28
unacceptable, the contractor shall provide an acceptable subcontractor7-29
before the award of the contract.7-30
2. If, after awarding the contract, the public body discovers that the7-31
person to whom the contract was awarded is not licensed, or that the7-32
contract would exceed his license, the public body shall reject the bid and7-33
may accept the next lowest bid for that public work from a responsive7-34
bidder who was determined by the public body to be a qualified bidder7-35
pursuant to section 5 of this act or was exempt from meeting such7-36
qualifications pursuant to section 6 of this act without requiring that new7-37
bids be submitted.7-38
Sec. 11. 1. A public body shall award a contract for a public work7-39
to the contractor who submits the best bid.7-40
2. Except as otherwise provided in subsection 4 or limited by7-41
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 bidder8-2
pursuant to section 5 of this act or is exempt from meeting such8-3
qualifications pursuant to section 6 of this act; and8-4
(b) At the time he submits his bid, provides to the public body proof of8-5
the payment of:8-6
(1) The sales and use taxes imposed pursuant to chapters 372, 3748-7
and 377 of NRS on materials used for construction of not less than8-8
$5,000 for each consecutive 12-month period for 60 months immediately8-9
preceding the submission of his bid;8-10
(2) The motor vehicle privilege tax imposed pursuant to chapter 3718-11
of NRS on the vehicles used in the operation of his business of not less8-12
than $5,000 for each consecutive 12-month period for 60 months8-13
immediately preceding the submission of his bid; or8-14
(3) Any combination of those sales and use taxes and motor vehicle8-15
privilege tax,8-16
shall be deemed to have submitted a better bid than a competing8-17
contractor who has not provided proof of the payment of those taxes if8-18
the amount of his bid is not more than 5 percent higher than the amount8-19
bid by the competing contractor.8-20
3. A contractor who has previously provided the public body8-21
awarding a contract with the proof of payment required pursuant to8-22
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 of8-25
federal assistance or reduces the amount of that assistance for a8-26
particular public work because of the provisions of subsection 2, those8-27
provisions do not apply if the application of those provisions would8-28
preclude or reduce federal assistance for that work. The provisions of8-29
subsection 2 do not apply to any contract for a public work which is8-30
expected to cost less than $250,000.8-31
5. Except as otherwise provided in subsection 6, if a bid is submitted8-32
by two or more contractors as a joint venture or by one of them as a joint8-33
venturer, the provisions of subsection 2 apply only if both or all of the8-34
joint venturers separately meet the requirements of that subsection.8-35
6. Except as otherwise provided in subsection 8, if a bid is submitted8-36
by a joint venture and one or more of the joint venturers has8-37
responsibility for the performance of the contract as described in8-38
subsection 7, the provisions of subsection 2 apply only to those joint8-39
venturers who have that responsibility.8-40
7. For the purposes of subsection 6, a joint venturer has8-41
responsibility for the performance of a contract if he has at least one of8-42
the following duties or obligations delegated to him in writing in the8-43
contract creating the joint venture:9-1
(a) Supplying the labor necessary to perform the contract and paying9-2
the labor and any related taxes and benefits;9-3
(b) Supplying the equipment necessary to perform the contract and9-4
paying any charges related to the equipment;9-5
(c) Contracting with and making payments to any subcontractors; or9-6
(d) Performing the recordkeeping for the joint venture and making9-7
any payments to persons who provide goods or services related to the9-8
performance of the contract.9-9
8. The provisions of subsection 6 do not apply to a joint venture9-10
which is formed for the sole purpose of circumventing any of the9-11
requirements of this section.9-12
Sec. 12. NRS 338.010 is hereby amended to read as follows: 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 a9-16
workman or workmen employed by them on public works by the day and9-17
not under a contract in writing.9-18
2. "Eligible bidder" means a person who was9-19
(a) Found to be a responsible contractor by a9-20
government which awarded a contract for a public work9-21
with paragraph (b) of subsection 1 of section 2 of this act; or9-22
(b) Determined by a public body which awarded a contract for a9-23
public work pursuant to sections 3 to 11, inclusive, of this act, to be9-24
qualified to bid on that contract pursuant to section 5 of this act or was9-25
exempt from meeting such qualifications pursuant to section 6 of this9-26
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 required9-30
pursuant to chapter 612 of NRS; or9-31
(c) Provide and secure compensation for employees required pursuant to9-32
chapters 616A to 617, inclusive, of NRS.9-33
4. "Public body" means the state, county, city, town, school district or9-34
any public agency of this state or its political subdivisions sponsoring or9-35
financing a public work.9-36
5. "Public work" means any project for the new construction, repair or9-37
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 public10-2
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 with10-6
public funds; and10-7
(10)10-8
as a whole exceeds $20,000. Each separate unit which is a part of a project10-9
is included in the cost of the project for the purpose of determining whether10-10
a project meets this threshold.10-11
(b) A building for the University and Community College System of10-12
Nevada of which 25 percent or more of the costs of the building as a whole10-13
are paid from money appropriated by10-14
money.10-15
6. "Wages" means:10-16
(a) The basic hourly rate of pay; and10-17
(b) The amount of pension, health and welfare, vacation and holiday10-18
pay, the cost of apprenticeship training or other similar programs or other10-19
bona fide fringe benefits which are a benefit to the workman.10-20
7. "Workman" means a skilled mechanic, skilled workman, semiskilled10-21
mechanic, semiskilled workman or unskilled workman.10-22
Sec. 13. NRS 338.0115 is hereby amended to read as follows: 338.0115 1. Except as otherwise provided in subsection 2, the10-24
provisions of this chapter and chapters 332 and 339 of NRS do not apply to10-25
a contract under which a private developer, for the benefit of a private10-26
development, constructs a water or sewer line extension and any related10-27
appurtenances:10-28
(a) Which qualify as a public work pursuant to NRS 338.010; and10-29
(b) For which he will receive a monetary contribution or refund from a10-30
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 not10-32
responsible for paying all of the initial construction costs of the project, the10-33
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: 338.143 1. Except as otherwise provided in subsection 6 and NRS10-37
10-38
338.1907, a local government that awards a contract for the10-39
construction, alteration or repair of a public work in accordance with10-40
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 the10-42
construction, alteration or repair of a public work10-43
local government, shall not:11-1
(a) Commence such a project11-2
$100,00011-3
11-4
(b) Divide such a project into separate portions to avoid the11-5
requirements of paragraph (a).11-6
2. Except as otherwise provided in subsection 6, a11-7
government that maintains a list of properly licensed contractors who are11-8
interested in receiving offers to bid on public works projects for which the11-9
estimated cost is more than $25,000 but less than $100,000 shall solicit11-10
bids from not more than three of the contractors on the list for a contract of11-11
that value for the construction, alteration or repair of a public work. The11-12
11-13
such a manner as to afford each contractor an equal opportunity to bid on a11-14
public works project. A properly licensed contractor must submit a written11-15
request annually to the11-16
list. Offers for bids which are made pursuant to this subsection must be sent11-17
by certified mail.11-18
3. Approved plans and specifications for the bids must be on file at a11-19
place and time stated in the advertisement for the inspection of all persons11-20
desiring to bid thereon and for other interested persons. Contracts for the11-21
project must be awarded on the basis of bids received.11-22
4. Any11-23
may be rejected if the person responsible for awarding the contract11-24
determines that:11-25
(a) The bidder is not responsive or responsible;11-26
(b) The quality of the services, materials, equipment or labor offered11-27
does not conform to the approved plan or specifications; or11-28
(c) The public interest would be served by such a rejection.11-29
5. Before11-30
government may commence a project subject to the provisions of this11-31
section, based upon a determination that the public interest would be served11-32
by rejecting any bids received in response to an advertisement for bids, it11-33
shall prepare and make available for public inspection a written statement11-34
containing:11-35
(a) A list of all persons, including supervisors,11-36
11-37
project, together with their classifications and an estimate of the direct and11-38
indirect costs of their labor;11-39
(b) A list of all equipment that the11-40
government intends to use on the project, together with an estimate of the11-41
number of hours each item of equipment will be used and the hourly cost to11-42
use each item of equipment;12-1
(c) An estimate of the cost of administrative support for the persons12-2
assigned to the project;12-3
(d) An estimate of the total cost of the project; and12-4
(e) An estimate of the amount of money the12-5
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 and12-10
maintenance of highways subject to NRS 408.323 or 408.327;12-11
(c) Normal maintenance of the property of a school district; or12-12
(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: 338.143 1. Except as otherwise provided in subsection 6,12-16
12-17
contract for the construction, alteration or repair of a public work in12-18
accordance with paragraph (b) of subsection 1 of section 2 of this act, or12-19
a public officer, public employee or other person responsible for awarding12-20
a contract for the construction, alteration or repair of a public work12-21
represents that local government, shall not:12-22
(a) Commence such a project12-23
$100,00012-24
12-25
(b) Divide such a project into separate portions to avoid the12-26
requirements of paragraph (a).12-27
2. Except as otherwise provided in subsection 6, a12-28
government that maintains a list of properly licensed contractors who are12-29
interested in receiving offers to bid on public works projects for which the12-30
estimated cost is more than $25,000 but less than $100,000 shall solicit12-31
bids from not more than three of the contractors on the list for a contract of12-32
that value for the construction, alteration or repair of a public work. The12-33
12-34
such a manner as to afford each contractor an equal opportunity to bid on a12-35
public works project. A properly licensed contractor must submit a written12-36
request annually to the12-37
list. Offers for bids which are made pursuant to this subsection must be sent12-38
by certified mail.12-39
3. Approved plans and specifications for the bids must be on file at a12-40
place and time stated in the advertisement for the inspection of all persons12-41
desiring to bid thereon and for other interested persons. Contracts for the12-42
project must be awarded on the basis of bids received.13-1
4. Any13-2
may be rejected if the person responsible for awarding the contract13-3
determines that:13-4
(a) The bidder is not responsive or responsible;13-5
(b) The quality of the services, materials, equipment or labor offered13-6
does not conform to the approved plan or specifications; or13-7
(c) The public interest would be served by such a rejection.13-8
5. Before13-9
government may commence a project subject to the provisions of this13-10
section, based upon a determination that the public interest would be served13-11
by rejecting any bids received in response to an advertisement for bids, it13-12
shall prepare and make available for public inspection a written statement13-13
containing:13-14
(a) A list of all persons, including supervisors,13-15
13-16
project, together with their classifications and an estimate of the direct and13-17
indirect costs of their labor;13-18
(b) A list of all equipment that the13-19
government intends to use on the project, together with an estimate of the13-20
number of hours each item of equipment will be used and the hourly cost to13-21
use each item of equipment;13-22
(c) An estimate of the cost of administrative support for the persons13-23
assigned to the project;13-24
(d) An estimate of the total cost of the project; and13-25
(e) An estimate of the amount of money the13-26
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 and13-31
maintenance of highways subject to NRS 408.323 or 408.327;13-32
(c) Normal maintenance of the property of a school district; or13-33
(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: 338.145 1. A13-37
for a public work shall not award the contract to a person who, at the time13-38
of the bid, is not properly licensed under the provisions of chapter 624 of13-39
NRS or if the contract would exceed the limit of his license. A13-40
subcontractor named by the contractor who is not properly licensed for that13-41
portion of the work shall be deemed unacceptable. If the subcontractor is13-42
deemed unacceptable, the contractor shall provide an acceptable13-43
subcontractor before the award of the contract.14-1
2. If, after awarding the contract, the14-2
discovers that the person to whom the contract was awarded is not licensed,14-3
or that the contract would exceed his license, the14-4
government shall reject the bid and may accept the next lowest bid for that14-5
public work from a responsive and responsible bidder without requiring14-6
that new bids be submitted.14-7
Sec. 17. NRS 338.147 is hereby amended to read as follows: 338.147 1. A14-9
for a public work to the contractor who submits the best bid.14-10
2. Except as otherwise provided in subsection 4 or limited by14-11
subsection 5, for the purposes of this section, a contractor who:14-12
(a) Has been found to be a responsible contractor by the14-13
local government; and14-14
(b) At the time he submits his bid, provides to the14-15
government proof of the payment of:14-16
(1) The sales and use taxes imposed pursuant to chapters 372, 37414-17
and 377 of NRS on materials used for construction of not less than $5,00014-18
for each consecutive 12-month period for 60 months immediately14-19
preceding the submission of his bid;14-20
(2) The motor vehicle privilege tax imposed pursuant to chapter 37114-21
of NRS on the vehicles used in the operation of his business of not less than14-22
$5,000 for each consecutive 12-month period for 60 months immediately14-23
preceding the submission of his bid; or14-24
(3) Any combination of such sales and use taxes and motor vehicle14-25
privilege tax,14-26
shall be deemed to have submitted a better bid than a competing contractor14-27
who has not provided proof of the payment of those taxes if the amount of14-28
his bid is not more than 5 percent higher than the amount bid by the14-29
competing contractor.14-30
3. A contractor who has previously provided the14-31
government awarding a contract with the proof of payment required14-32
pursuant to subsection 2 may update such proof on or before April 1, July14-33
1, September 1 and December 1 rather than with each bid.14-34
4. If any federal statute or regulation precludes the granting of federal14-35
assistance or reduces the amount of that assistance for a particular public14-36
work because of the provisions of subsection 2, those provisions do not14-37
apply insofar as their application would preclude or reduce federal14-38
assistance for that work. The provisions of subsection 2 do not apply to any14-39
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 submitted14-41
by two or more contractors as a joint venture or by one of them as a joint14-42
venturer, the provisions of subsection 2 apply only if both or all of the joint14-43
venturers separately meet the requirements of that subsection.15-1
6. Except as otherwise provided in subsection 8, if a bid is submitted15-2
by a joint venture and one or more of the joint venturers has responsibility15-3
for the performance of the contract as described in subsection 7, the15-4
provisions of subsection 2 apply only to those joint venturers who have15-5
such responsibility.15-6
7. For the purposes of subsection 6, a joint venturer has responsibility15-7
for the performance of a contract if he has at least one of the following15-8
duties or obligations delegated to him in writing in the contract creating the15-9
joint venture:15-10
(a) Supplying the labor necessary to perform the contract and paying the15-11
labor and any related taxes and benefits;15-12
(b) Supplying the equipment necessary to perform the contract and15-13
paying any charges related to the equipment;15-14
(c) Contracting with and making payments to any subcontractors; or15-15
(d) Performing the recordkeeping for the joint venture and making any15-16
payments to persons who provide goods or services related to the15-17
performance of the contract.15-18
8. The provisions of subsection 6 do not apply to a joint venture which15-19
is formed for the sole purpose of circumventing any of the requirements of15-20
this section.15-21
Sec. 18. NRS 338.1906 is hereby amended to read as follows: 338.1906 1. Upon request by or consultation with an officer or15-23
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 appropriate15-25
energy retrofit coordinator may request the approval of the state board of15-26
examiners to advertise a request for proposals to retrofit a building, or any15-27
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 portion15-29
thereof, more efficient.15-30
2. Upon approval of the state board of examiners, the coordinator shall15-31
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 use15-35
of energy and the retrofitting;15-36
(c) Where and how specifications of the requirements for the initial15-37
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 received15-39
by the coordinator; and15-40
(e) The date and time when responses will be opened.16-1
3. The request for proposals must be published in at least one16-2
newspaper of general circulation in the state.16-3
4. After receiving the proposals but before making a decision on the16-4
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 the16-7
proposals;16-8
(c) Whether the proposals conform with the terms of the request for16-9
proposals;16-10
(d) The prices of the proposals; and16-11
(e) Any other factor disclosed in the request for proposals.16-12
5. The coordinator shall determine the relative weight of each factor16-13
before a request for proposals is advertised. The weight of each factor must16-14
not be disclosed before the date proposals are required to be submitted to16-15
the coordinator.16-16
6. After reviewing the proposals, if the coordinator determines that16-17
sufficient energy could be saved to justify retrofitting the building or16-18
buildings, or portion thereof, the coordinator shall select the best proposal16-19
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 financing16-21
the audit and retrofit , which may include an installment contract, a shared16-22
savings contract or any other contract for a reasonable financing16-23
arrangement. Such a contract may commit the state to make payments16-24
beyond the biennium in which the contract is executed , but the interest due16-25
on any debt created pursuant to this section must be paid at least16-26
semiannually, payments must be made on the principal at least annually and16-27
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 board16-29
of examiners shall evaluate any projects that would utilize shared savings16-30
as a method of payment or any method of financing that would commit the16-31
state to make payments beyond the biennium in which the contract is16-32
executed to ensure that:16-33
(a) The amount of energy to be saved will likely justify the cost of the16-34
retrofit;16-35
(b) The state is likely to continue to occupy the building for the entire16-36
period required to recoup the cost of the retrofit in energy savings; and16-37
(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 shall16-39
execute the contract and notify:16-40
(a) The state board of examiners of the total amount of money16-41
committed by the contract per year; and17-1
(b) Each officer or employee who is responsible for the budget of a17-2
department, board, commission, agency or other entity which occupies a17-3
portion of a building that will be retrofitted of the amount of money it will17-4
be required to pay annually for its portion of the retrofit.17-5
9. The total amount of money committed beyond the biennium for all17-6
contracts executed pursuant to this section must not exceed $5,000,000 at17-7
any one time.17-8
10. The legislature hereby pledges that a tax will be levied to pay the17-9
principal and interest on any indebtedness resulting from a contract17-10
executed pursuant to this section as they become due if the required17-11
payments will not be made by the entity that executed the contract from its17-12
budgeted accounts and the proceeds from any such taxes are hereby17-13
specially appropriated for this purpose.17-14
11.17-15
which a request for proposals is advertised and the contract is awarded17-16
pursuant to the provisions of this section.17-17
Sec. 19. NRS 338.1907 is hereby amended to read as follows: 338.1907 1. The governing body of a local government may17-19
designate one or more energy retrofit coordinators for the buildings17-20
occupied by the local government.17-21
2. If such a coordinator is designated, upon request by or consultation17-22
with an officer or employee of the local government who is responsible for17-23
the budget of a department, board, commission or other entity of the local17-24
government, the coordinator may request the approval of the governing17-25
body to advertise a request for proposals to retrofit a building, or any17-26
portion thereof, that is occupied by the department, board, commission or17-27
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 prepare17-30
a request for proposals for the retrofitting of one or more buildings, or any17-31
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 use17-34
of energy and the retrofitting;17-35
(c) Where and how specifications of the requirements for the initial17-36
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 received17-38
by the coordinator; and17-39
(e) The date and time when responses will be opened.17-40
4. The request for proposals must be published in at least one17-41
newspaper of general circulation in the county in which the local17-42
government is located.18-1
5. After receiving the proposals but before making a decision on the18-2
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 the18-5
proposals;18-6
(c) Whether the proposals conform with the terms of the request for18-7
proposals;18-8
(d) The prices of the proposals; and18-9
(e) Any other factor disclosed in the request for proposals.18-10
6. The coordinator shall determine the relative weight of each factor18-11
before a request for proposals is advertised. The weight of each factor must18-12
not be disclosed before the date proposals are required to be submitted to18-13
the coordinator.18-14
7. After reviewing the proposals, if the coordinator determines that18-15
sufficient energy could be saved to justify retrofitting the building or18-16
buildings, or portion thereof, the coordinator shall select the best proposal18-17
and request the approval of the governing body to award the contract. The18-18
request for approval must include the proposed method of financing the18-19
audit and retrofit , which may include an installment contract, a shared18-20
savings contract or any other contract for a reasonable financing18-21
arrangement. Such a contract may commit the local government to make18-22
payments beyond the fiscal year in which the contract is executed or18-23
beyond the terms of office of the governing body, or both.18-24
8. Before approving a retrofit pursuant to this section, the governing18-25
body shall evaluate any projects that would utilize shared savings as a18-26
method of payment or any method of financing that would commit the local18-27
government to make payments beyond the fiscal year in which the contract18-28
is executed or beyond the terms of office of the governing body to ensure18-29
that:18-30
(a) The amount of energy to be saved will likely justify the cost of the18-31
retrofit; and18-32
(b) The local government is likely to continue to occupy the building for18-33
the entire period required to recoup the cost of the retrofit in energy18-34
savings.18-35
9. Upon approval of the governing body, the coordinator shall execute18-36
the contract and notify each officer or employee who is responsible for the18-37
budget of a department, board, commission or other entity which occupies a18-38
portion of a building that will be retrofitted of the amount of money it will18-39
be required to pay annually for its portion of the retrofit.18-40
10. NRS 338.14318-41
project for which a request for proposals is advertised and the contract is18-42
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 October19-4
1, 1999.19-5
2. Sections 9 and 15 of this act become effective at 12:01 a.m. on May19-6
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 SECTION341.147 Qualification of bidders on contracts for public works:
19-11
Regulations; advertising; renewal; confidentiality of certain19-12
information provided to board.19-13
1. The board shall adopt regulations establishing the criteria and19-14
procedures for determining the qualification of applicants to be bidders on19-15
contracts for public works projects of this state. The board shall use the19-16
criteria and procedures to award contracts for public works projects of this19-17
state.19-18
2. The criteria adopted by the board pursuant to subsection 1 must19-19
include, without limitation, an evaluation of:19-20
(a) The financial ability of the applicant to provide the necessary bond19-21
for the contract;19-22
(b) The principal personnel of the applicant;19-23
(c) The performance history of the applicant concerning other recent19-24
projects completed by the applicant in this state;19-25
(d) Any breach of contract of the applicant on a prior contract, other19-26
than a breach for legitimate cause;19-27
(e) Whether the applicant has ever been disqualified from being19-28
awarded a contract pursuant to NRS 338.017 or 338.145; and19-29
(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 to19-33
bid on a contract for a public works project of this state based on the19-34
criteria established pursuant to this section;19-35
(b) Notifying an applicant of the determination of the board regarding19-36
his application; and19-37
(c) A hearing and appeal by an applicant whose application for19-38
qualification has been denied by the board.20-1
4. The board shall, not less than 45 days before advertising for bids20-2
concerning a public works project, notify by advertisement in a newspaper20-3
of general circulation in this state that the contract for the public works20-4
project requires a determination that the applicant is qualified to bid on the20-5
contract pursuant to this section.20-6
5. An applicant determined to be qualified by the board pursuant to this20-7
section must apply each year to renew his qualification in the manner20-8
provided in the regulations adopted pursuant to this section.20-9
6. Any information and data pertaining to the net worth of an applicant20-10
which are gathered by or provided to the board for a determination of20-11
qualification pursuant to this section are confidential and not open to public20-12
inspection.~