Senate Bill No. 473–Committee on Government Affairs

 

March 23, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Authorizes public bodies to use indefinite quantity contracts for certain public works projects. (BDR 28‑746)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to public works projects; authorizing public bodies to use indefinite quantity contracts for certain public works projects; 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 10, inclusive, of this act.

1-3    Sec. 2.  As used in sections 2 to 10, inclusive, of this act, the words

1-4  and terms defined in sections 3 and 4 of this act have the meanings

1-5  ascribed to them in those sections.

1-6    Sec. 3.  “Indefinite quantity contract” means a contract which:

1-7    1.  Provides for the completion of various public works as set forth in

1-8  a catalog of construction tasks developed pursuant to section 6 of this

1-9  act; and

1-10    2.  Requires a public body to award a minimum dollar amount of

1-11  work to the contractor.

1-12    Sec. 4.  “Normal business hours” means 6 a.m. to 6 p.m., Monday

1-13  through Friday, except legal holidays declared pursuant to NRS 236.015.

1-14    Sec. 5.  1.  A public body may award an indefinite quantity contract

1-15  to a successful bidder pursuant to sections 2 to 10, inclusive, of this act.

1-16    2.  Except as otherwise provided in this section, a public body that

1-17  desires to award an indefinite quantity contract must accept bids and

1-18  award the contract in the manner provided for bidding and awarding a

1-19  contract for a public work pursuant to NRS 338.1375 to 338.1389,

1-20  inclusive. A public body that is a local government may accept bids and

1-21  award an indefinite quantity contract in the manner provided for bidding

1-22  and awarding a contract for a public work pursuant to NRS 338.143,

1-23  338.145 and 338.147.

2-1    3.  For the purposes of NRS 338.1385 and 338.143, an indefinite

2-2  quantity contract shall be deemed to be a project for which the estimated

2-3  cost exceeds $100,000.

2-4    4.  After awarding an indefinite quantity contract, a public body may

2-5  issue orders for work pursuant to section 10 of this act without

2-6  complying with the provisions of NRS 338.1375 to 338.1389, inclusive, or

2-7  the provisions of NRS 338.143, 338.145 and 338.147.

2-8    5.  For the purposes of NRS 338.400 to 338.645, inclusive:

2-9    (a) An order for work issued pursuant to section 10 of this act is a

2-10  contract; and

2-11    (b) An indefinite quantity contract is not a contract.

2-12    Sec. 6.  A public body that desires to award an indefinite quantity

2-13  contract must develop:

2-14    1.  A catalog of construction tasks which must:

2-15    (a) Contain a list of public works that may be requested of the

2-16  contractor pursuant to the indefinite quantity contract;

2-17    (b) Define what constitutes a unit of each public work listed in the

2-18  catalog; and

2-19    (c) Set forth a per-unit price for each public work listed in the catalog,

2-20  the price of which must be based upon prevailing wages and local costs

2-21  for materials and equipment necessary to perform a unit of the public

2-22  work; and

2-23    2.  Specifications and standard drawings, if appropriate, for each

2-24  public work listed in the catalog of construction tasks.

2-25    Sec. 7.  An advertisement for bids on an indefinite quantity contract

2-26  must include an address from which a bidder may obtain a copy of the

2-27  catalog of construction tasks developed pursuant to section 6 of this act

2-28  and the specifications and standards for the public works contained in

2-29  the catalog.

2-30    Sec. 8.  1.  A contractor who desires to bid on an indefinite quantity

2-31  contract must submit as a bid:

2-32    (a) An adjustment factor for work which is subject to the provisions of

2-33  NRS 338.020 to 338.090, inclusive, and which is performed during

2-34  normal business hours that is calculated by determining the percentage

2-35  of the per-unit prices established by the public body for which the

2-36  contractor agrees to complete the public works contained in the catalog

2-37  of construction tasks during normal business hours;

2-38    (b) An adjustment factor for work which is subject to the provisions of

2-39  NRS 338.020 to 338.090, inclusive, and which is performed during times

2-40  other than normal business hours that is calculated by determining the

2-41  percentage of the per-unit prices established by the public body for which

2-42  the contractor agrees to complete any of the public works contained in

2-43  the catalog of construction tasks during times other than normal

2-44  business hours;

2-45    (c) An adjustment factor for work which is not subject to the

2-46  provisions of NRS 338.020 to 338.090, inclusive, and which is performed

2-47  during normal business hours that is calculated by determining the

2-48  percentage of the per-unit prices established by the public body for which

3-1  the contractor agrees to complete any of the public works contained in

3-2  the catalog of construction tasks during normal business hours; and

3-3    (d) An adjustment factor for work which is not subject to the

3-4  provisions of NRS 338.020 to 338.090, inclusive, and which is performed

3-5  at times other than normal business hours that is calculated by

3-6  determining the percentage of the per-unit prices established by the

3-7  public body for which the contractor agrees to complete any of the public

3-8  works contained in the catalog of construction tasks during times other

3-9  than normal business hours.

3-10    2.  A contractor who submits a bid on an indefinite quantity contract

3-11  is not required to submit the information described in NRS 338.141 with

3-12  his bid.

3-13    Sec. 9.  An indefinite quantity contract must include, without

3-14  limitation:

3-15    1.  The adjustment factors submitted pursuant to section 8 of this act 

3-16  by the contractor;

3-17    2.  A minimum dollar amount of work which the public body agrees

3-18  to provide to the contractor pursuant to the contract;

3-19    3.  A method for amending the catalog of construction tasks to

3-20  include additional public works and a formula for determining a per-unit

3-21  price for public works that are added to the catalog of construction tasks;

3-22    4.  A method for issuing orders for work to the contractor;

3-23    5.  A method for resolving disputes between a public body and the

3-24  contractor who is a party to the indefinite quantity contract; and

3-25    6.  A method for annually reviewing and revising, if necessary, the

3-26  adjustment factors submitted pursuant to section 8 of this act. The

3-27  method must be based upon a price index of construction costs that is

3-28  nationally recognized in the construction industry, as determined by the

3-29  public body.

3-30    Sec. 10.  1.  If a public body desires to have a public work completed

3-31  pursuant to an indefinite quantity contract, the public body must describe

3-32  the scope of work to the contractor in writing.

3-33    2.  After receiving the description of the scope of work pursuant to

3-34  subsection 1, the contractor shall prepare and submit to the public body a

3-35  proposal in writing that must include, without limitation:

3-36    (a) An estimated cost of the project determined pursuant to
subsection 3;

3-37    (b) A schedule for completing the project; and

3-38    (c) The information required to be submitted with a bid on a contract

3-39  for public work pursuant to NRS 338.141.

3-40    3.  The estimated cost of a project submitted pursuant to subsection 2

3-41  must be in an amount equal to the number of units of the project to be

3-42  completed by the contractor during normal business hours multiplied by

3-43  the adjusted price for work performed during normal business hours plus

3-44  the number of units of the project to be completed during times other

3-45  than normal business hours multiplied by the adjusted price for work

3-46  performed during times other than normal business hours. The adjusted

3-47  price for work performed during normal business hours is equal to the

3-48  per-unit price of the public work set forth in the catalog of construction

4-1  tasks pursuant to section 6 of this act multiplied by the appropriate

4-2  adjustment factor submitted pursuant to section 8 of this act for work

4-3  performed during normal business hours. The adjusted price for work

4-4  performed during times other than normal business hours is equal to the

4-5  per-unit price of the public work set forth in the catalog of construction

4-6  tasks pursuant to section 6 of this act multiplied by the appropriate

4-7  adjustment factor submitted pursuant to section 8 of this act for work

4-8  performed during times other than normal business hours.

4-9    4.  After receiving a proposal pursuant to subsection 2, a public body

4-10  shall review the proposal and:

4-11    (a) If the public body agrees with the proposal, submit an order for

4-12  work to the contractor that must include, without limitation:

4-13      (1) The scope of work for the project;

4-14      (2) The estimated cost of the project; and

4-15      (3) The schedule for completing the project; or

4-16    (b) If the public body does not agree with the proposal, reject the

4-17  proposal.

4-18    5.  If a public body rejects a proposal pursuant to subsection 4, the

4-19  contractor may amend the proposal and resubmit the proposal to the

4-20  public body.

4-21    6.  A public body shall not:

4-22    (a) Issue an order for work pursuant to this section for a project with

4-23  an estimated cost of more than $1,000,000; or

4-24    (b) Divide a project into separate portions to avoid the requirements of

4-25  paragraph (a).

4-26    Sec. 11.  NRS 338.141 is hereby amended to read as follows:

4-27    338.141  1.  Except as otherwise provided in subsection 2[,] and

4-28  section 8 of this act, each bid submitted to any officer, department, board

4-29  or commission for the construction of any public work or improvement

4-30  must include:

4-31    (a) The name of each subcontractor who will provide labor or a portion

4-32  of the work or improvement to the contractor for which he will be paid an

4-33  amount exceeding 5 percent of the prime contractor’s total bid. Within 2

4-34  hours after the completion of the opening of the bids, the general

4-35  contractors who submitted the three lowest bids must submit a list of the

4-36  name of each subcontractor who will provide labor or a portion of the work

4-37  or improvement to the contractor for which he will be paid an amount

4-38  exceeding 1 percent of the prime contractor’s total bid or $50,000,

4-39  whichever is greater, and the number of the license issued to the

4-40  subcontractor pursuant to chapter 624 of NRS. If a general contractor fails

4-41  to submit such a list within the required time, his bid shall be deemed not

4-42  responsive.

4-43    (b) A description of the portion of the work or improvement which each

4-44  subcontractor named in the bid will complete.

4-45    2.  The contractor shall list in his bid pursuant to subsection 1 the name

4-46  of a subcontractor for each portion of the project that will be completed by

4-47  a subcontractor.

4-48    3.  A contractor whose bid is accepted shall not substitute any person

4-49  for a subcontractor who is named in the bid, unless:

5-1    (a) The awarding authority objects to the subcontractor, requests in

5-2  writing a change in the subcontractor and pays any increase in costs

5-3  resulting from the change; or

5-4    (b) The substitution is approved by the awarding authority and:

5-5       (1) The subcontractor, after having a reasonable opportunity, fails or

5-6  refuses to execute a written contract with the contractor which was offered

5-7  to the subcontractor with the same terms that all other subcontractors on

5-8  the project were offered;

5-9       (2) The named subcontractor files for bankruptcy or becomes

5-10  insolvent; or

5-11      (3) The named subcontractor fails or refuses to perform his

5-12  subcontract within a reasonable time or is unable to furnish a performance

5-13  bond and payment bond pursuant to NRS 339.025.

5-14    Sec. 12.  This act becomes effective on July 1, 2001.

 

5-15  H