Senate Bill No. 61–Committee on Government Affairs
CHAPTER..........
AN ACT relating to public works projects; authorizing certain public bodies to contract with a design-build team for certain public works projects; removing certain requirements for providing notice of certain hearings; removing certain requirements for advertising for preliminary proposals from design-build teams for certain projects; changing certain requirements for the contents of a request for preliminary proposals; authorizing a public body and the department of transportation to select finalists for submitting a final proposal within a certain period; requiring a public body and the department of transportation to consider the degree to which a preliminary proposal is responsive to certain requirements when selecting finalists; changing certain requirements for a request for final proposals; removing the date for expiration of provisions relating to the use of design-build teams on 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:
Section 1. NRS 338.1385 is hereby amended to read as follows:
338.1385 1. Except as otherwise provided in subsection [7 and-
NRS- 338.1906 and 338.1907,] 8, this state, or a local government that
awards a contract for the construction, alteration or repair of a public work
in accordance with paragraph (a) of subsection 1 of NRS 338.1373, or a
public officer, public employee or other person responsible for awarding a
contract for the construction, alteration or repair of a public work who
represents the state or the local government, shall not:
(a) Commence such a project for which the estimated cost exceeds
$100,000 unless it advertises in a newspaper of general circulation in this
state for bids for the project; or
(b) Divide such a project into separate portions to avoid the
requirements of paragraph (a).
2. Except as otherwise provided in subsection [7,] 8, a public body that
maintains a list of properly licensed contractors who are interested in
receiving offers to bid on public works projects for which the estimated
cost is more than $25,000 but less than $100,000 shall solicit bids from
not more than three of the contractors on the list for a contract of that
value for the construction, alteration or repair of a public work. The public
body shall select contractors from the list in such a manner as to afford
each contractor an equal opportunity to bid on a public works project. A
properly licensed contractor must submit a written request annually to the
public body to remain on the list. Offers for bids which are made pursuant
to this subsection must be sent by certified mail.
3. Each advertisement for bids must include a provision that sets forth:
(a) The requirement that a contractor must be qualified pursuant to NRS
338.1379 to bid on the contract or must be exempt from meeting such
qualifications pursuant to NRS 338.1383; and
(b) The period during which an application to qualify as a bidder on the
contract must be submitted.
4. Approved plans and specifications for the bids must be on file at a
place and time stated in the advertisement for the inspection of all persons
desiring to bid thereon and for other interested persons. Contracts for the
project must be awarded on the basis of bids received.
5. Any bids received in response to an advertisement for bids may be
rejected if the person responsible for awarding the contract determines that:
(a) The bidder is not a qualified bidder pursuant to NRS 338.1379,
unless the bidder is exempt from meeting such qualifications pursuant to
NRS 338.1383;
(b) The bidder is not responsive;
(c) The quality of the services, materials, equipment or labor offered
does not conform to the approved plan or specifications; or
(d) The public interest would be served by such a rejection.
6. Before the state or a local government may commence a project
subject to the provisions of this section, based upon a determination that
the public interest would be served by rejecting any bids received in
response to an advertisement for bids, it shall prepare and make available
for public inspection a written statement containing:
(a) A list of all persons, including supervisors, whom the state or the
local government intends to assign to the project, together with their
classifications and an estimate of the direct and indirect costs of their
labor;
(b) A list of all equipment that the state or the local government intends
to use on the project, together with an estimate of the number of hours
each item of equipment will be used and the hourly cost to use each item
of equipment;
(c) An estimate of the cost of administrative support for the persons
assigned to the project;
(d) An estimate of the total cost of the project; and
(e) An estimate of the amount of money the state or the local
government expects to save by rejecting the bids and performing the
project itself.
7. In preparing the estimated cost of a project pursuant to
subsection 6, the state or a local government must include the fair
market value of, or, if known, the actual cost of, all materials, supplies,
labor and equipment to be used for the project.
8. This section does not apply to:
(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;
(b) Any work of construction, reconstruction, improvement and
maintenance of highways subject to NRS 408.323 or 408.327;
(c) Normal maintenance of the property of a school district;
(d) The Las Vegas Valley water district created pursuant to chapter 167,
Statutes of Nevada 1947, the Moapa Valley water district created pursuant
to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district
created pursuant to chapter 100, Statutes of Nevada 1993; or
(e) The design and construction of a public work for which a public
body contracts with a design-build team pursuant to NRS 338.1711 to
338.1727, inclusive.
Sec. 2. NRS 338.1389 is hereby amended to read as follows:
338.1389 1. Except as otherwise provided in NRS 338.1385 and
338.1711 to 338.1727, inclusive, a public body shall award a contract for a
public work to the contractor who submits the best bid.
2. Except as otherwise provided in subsection 8 or limited by
subsection 9, for the purposes of this section, a contractor who:
(a) Has been determined by the public body to be a qualified bidder
pursuant to NRS 338.1379 or is exempt from meeting such requirements
pursuant to NRS 338.1373 or 338.1383; and
(b) At the time he submits his bid, provides to the public body a copy of
a certificate of eligibility to receive a preference in bidding on public
works issued to him by the state contractors’ board pursuant to subsection
3,
shall be deemed to have submitted a better bid than a competing contractor
who has not provided a copy of such a valid certificate of eligibility if the
amount of his bid is not more than 5 percent higher than the amount bid by
the competing contractor.
3. The state contractors’ board shall issue a certificate of eligibility to
receive a preference in bidding on public works to a general contractor
who is licensed pursuant to the provisions of chapter 624 of NRS and
submits to the board an affidavit from a certified public accountant setting
forth that the general contractor has:
(a) Paid:
(1) The sales and use taxes imposed pursuant to chapters 372, 374
and 377 of NRS on materials used for construction in this state, including,
without limitation, construction that is undertaken or carried out on land
within the boundaries of this state that is managed by the Federal
Government or is on an Indian reservation or Indian colony, of not less
than $5,000 for each consecutive 12-month period for 60 months
immediately preceding the submission of the affidavit from the certified
public accountant;
(2) The governmental services tax imposed pursuant to chapter 371
of NRS on the vehicles used in the operation of his business in this state of
not less than $5,000 for each consecutive 12-month period for 60 months
immediately preceding the submission of the affidavit from the certified
public accountant; or
(3) Any combination of such sales and use taxes and governmental
services tax; or
(b) Acquired, by inheritance, gift or transfer through a stock option plan
for employees, all the assets and liabilities of a viable, operating
construction firm that possesses a:
(1) License as a general contractor pursuant to the provisions of
chapter 624 of NRS; and
(2) Certificate of eligibility to receive a preference in bidding on
public works.
4. For the purposes of complying with the requirements set forth in
paragraph (a) of subsection 3, a general contractor shall be deemed to have
paid:
(a) Sales and use taxes and governmental services taxes that were paid
in this state by an affiliate or parent company of the contractor, if the
affiliate or parent company is also a general contractor; and
(b) Sales and use taxes that were paid in this state by a joint venture in
which the contractor is a participant, in proportion to the amount of
interest the contractor has in the joint venture.
5. A contractor who has received a certificate of eligibility to receive a
preference in bidding on public works from the state contractors’ board
pursuant to subsection 3 shall, at the time for the annual renewal of his
contractors’ license pursuant to NRS 624.283, submit to the board an
affidavit from a certified public accountant setting forth that the contractor
has, during the immediately preceding 12 months, paid the taxes required
pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold
such a certificate.
6. A contractor who fails to submit an affidavit to the board pursuant
to subsection 5 ceases to be eligible to receive a preference in bidding on
public works unless he reapplies for and receives a certificate of eligibility
pursuant to subsection 3.
7. If a contractor who applies to the state contractors’ board for a
certificate of eligibility to receive a preference in bidding on public works
submits false information to the board regarding the required payment of
taxes, the contractor is not eligible to receive a preference in bidding on
public works for a period of 5 years after the date on which the board
becomes aware of the submission of the false information.
8. If any federal statute or regulation precludes the granting of federal
assistance or reduces the amount of that assistance for a particular public
work because of the provisions of subsection 2, those provisions do not
apply insofar as their application would preclude or reduce federal
assistance for that work. The provisions of subsection 2 do not apply to
any contract for a public work which is expected to cost less than
$250,000.
9. [Except as otherwise provided in subsection 2 of NRS 338.1727, if]
If a bid is submitted by two or more contractors as a joint venture or by
one of them as a joint venturer, the provisions of subsection 2 apply only if
both or all of the joint venturers separately meet the requirements of that
subsection.
10. The state contractors’ board shall adopt regulations and may assess
reasonable fees relating to the certification of contractors for a preference
in bidding on public works.
11. A person or entity who believes that a contractor wrongfully holds
a certificate of eligibility to receive a preference in bidding on public
works may challenge the validity of the certificate by filing a written
objection with the public body to which the contractor has submitted a bid
or proposal on a contract for the construction of a public work. A written
objection authorized pursuant to this subsection must:
(a) Set forth proof or substantiating evidence to support the belief of the
person or entity that the contractor wrongfully holds a certificate of
eligibility to receive a preference in bidding on public works; and
(b) Be filed with the public body at or after the time at which the
contractor submitted the bid or proposal to the public body and before the
time at which the public body awards the contract for which the bid or
proposal was submitted.
12. If a public body receives a written objection pursuant to subsection
11, the public body shall determine whether the objection is accompanied
by the proof or substantiating evidence required pursuant to paragraph (a)
of that subsection. If the public body determines that the objection is not
accompanied by the required proof or substantiating evidence, the public
body shall dismiss the objection and may proceed immediately to award
the contract. If the public body determines that the objection is
accompanied by the required proof or substantiating evidence, the public
body shall determine whether the contractor qualifies for the certificate
pursuant to the provisions of this section and may proceed to award the
contract accordingly.
Sec. 3. NRS 338.143 is hereby amended to read as follows:
338.143 1. Except as otherwise provided in subsection [6 and NRS
338.1907,] 7, a local government that awards a contract for the
construction, alteration or repair of a public work in accordance with
paragraph (b) of subsection 1 of NRS 338.1373, or a public officer, public
employee or other person responsible for awarding a contract for the
construction, alteration or repair of a public work who represents that local
government, shall not:
(a) Commence such a project for which the estimated cost exceeds
$100,000 unless it advertises in a newspaper of general circulation in this
state for bids for the project; or
(b) Divide such a project into separate portions to avoid the
requirements of paragraph (a).
2. Except as otherwise provided in subsection [6,] 7, a local
government that maintains a list of properly licensed contractors who are
interested in receiving offers to bid on public works projects for which the
estimated cost is more than $25,000 but less than $100,000 shall solicit
bids from not more than three of the contractors on the list for a contract of
that value for the construction, alteration or repair of a public work. The
local government shall select contractors from the list in such a manner as
to afford each contractor an equal opportunity to bid on a public works
project. A properly licensed contractor must submit a written request
annually to the local government to remain on the list. Offers for bids
which are made pursuant to this subsection must be sent by certified mail.
3. Approved plans and specifications for the bids must be on file at a
place and time stated in the advertisement for the inspection of all persons
desiring to bid thereon and for other interested persons. Contracts for the
project must be awarded on the basis of bids received.
4. Any bids received in response to an advertisement for bids may be
rejected if the person responsible for awarding the contract determines
that:
(a) The bidder is not responsive or responsible;
(b) The quality of the services, materials, equipment or labor offered
does not conform to the approved plan or specifications; or
(c) The public interest would be served by such a rejection.
5. Before a local government may commence a project subject to the
provisions of this section, based upon a determination that the public
interest would be served by rejecting any bids received in response to an
advertisement for bids, it shall prepare and make available for public
inspection a written statement containing:
(a) A list of all persons, including supervisors, whom the local
government intends to assign to the project, together with their
classifications and an estimate of the direct and indirect costs of their
labor;
(b) A list of all equipment that the local government intends to use on
the project, together with an estimate of the number of hours each item of
equipment will be used and the hourly cost to use each item of equipment;
(c) An estimate of the cost of administrative support for the persons
assigned to the project;
(d) An estimate of the total cost of the project; and
(e) An estimate of the amount of money the local government expects to
save by rejecting the bids and performing the project itself.
6. In preparing the estimated cost of a project pursuant to
subsection 5, a local government must include the fair market value of,
or, if known, the actual cost of, all materials, supplies, labor and
equipment to be used for the project.
7. This section does not apply to:
(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;
(b) Any work of construction, reconstruction, improvement and
maintenance of highways subject to NRS 408.323 or 408.327;
(c) Normal maintenance of the property of a school district;
(d) The Las Vegas Valley water district created pursuant to chapter 167,
Statutes of Nevada 1947, the Moapa Valley water district created pursuant
to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district
created pursuant to chapter 100, Statutes of Nevada 1993; or
(e) The design and construction of a public work for which a public
body contracts with a design-build team pursuant to NRS 338.1711 to
338.1727, inclusive.
Sec. 4. NRS 338.147 is hereby amended to read as follows:
338.147 1. Except as otherwise provided in NRS 338.143 and
338.1711 to 338.1727, inclusive, a local government shall award a
contract for a public work to the contractor who submits the best bid.
2. Except as otherwise provided in subsection 8 or limited by
subsection 9, for the purposes of this section, a contractor who:
(a) Has been found to be a responsible and responsive contractor by the
local government; and
(b) At the time he submits his bid, provides to the local government a
copy of a certificate of eligibility to receive a preference in bidding on
public works issued to him by the state contractors’ board pursuant to
subsection 3,
shall be deemed to have submitted a better bid than a competing contractor
who has not provided a copy of such a valid certificate of eligibility if the
amount of his bid is not more than 5 percent higher than the amount bid by
the competing contractor.
3. The state contractors’ board shall issue a certificate of eligibility to
receive a preference in bidding on public works to a general contractor
who is licensed pursuant to the provisions of chapter 624 of NRS and
submits to the board an affidavit from a certified public accountant setting
forth that the general contractor has:
(a) Paid:
(1) The sales and use taxes imposed pursuant to chapters 372, 374
and 377 of NRS on materials used for construction in this state, including,
without limitation, construction that is undertaken or carried out on land
within the boundaries of this state that is managed by the Federal
Government or is on an Indian reservation or Indian colony, of not less
than $5,000 for each consecutive 12-month period for 60 months
immediately preceding the submission of the affidavit from the certified
public accountant;
(2) The governmental services tax imposed pursuant to chapter 371
of NRS on the vehicles used in the operation of his business in this state of
not less than $5,000 for each consecutive 12-month period for 60 months
immediately preceding the submission of the affidavit from the certified
public accountant; or
(3) Any combination of such sales and use taxes and governmental
services tax; or
(b) Acquired, by inheritance, gift or transfer through a stock option plan
for employees, all the assets and liabilities of a viable, operating
construction firm that possesses a:
(1) License as a general contractor pursuant to the provisions of
chapter 624 of NRS; and
(2) Certificate of eligibility to receive a preference in bidding on
public works.
4. For the purposes of complying with the requirements set forth in
paragraph (a) of subsection 3, a general contractor shall be deemed to have
paid:
(a) Sales and use taxes and governmental services taxes that were paid
in this state by an affiliate or parent company of the contractor, if the
affiliate or parent company is also a general contractor; and
(b) Sales and use taxes that were paid in this state by a joint venture in
which the contractor is a participant, in proportion to the amount of
interest the contractor has in the joint venture.
5. A contractor who has received a certificate of eligibility to receive a
preference in bidding on public works from the state contractors’ board
pursuant to subsection 3 shall, at the time for the annual renewal of his
contractors’ license pursuant to NRS 624.283, submit to the board an
affidavit from a certified public accountant setting forth that the contractor
has, during the immediately preceding 12 months, paid the taxes required
pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold
such a certificate.
6. A contractor who fails to submit an affidavit to the board pursuant
to subsection 5 ceases to be eligible to receive a preference in bidding on
public works unless he reapplies for and receives a certificate of eligibility
pursuant to subsection 3.
7. If a contractor who applies to the state contractors’ board for a
certificate of eligibility to receive a preference in bidding on public works
submits false information to the board regarding the required payment of
taxes, the contractor is not eligible to receive a preference in bidding on
public works for a period of 5 years after the date on which the board
becomes aware of the submission of the false information.
8. If any federal statute or regulation precludes the granting of federal
assistance or reduces the amount of that assistance for a particular public
work because of the provisions of subsection 2, those provisions do not
apply insofar as their application would preclude or reduce federal
assistance for that work. The provisions of subsection 2 do not apply to
any contract for a public work which is expected to cost less than
$250,000.
9. [Except as otherwise provided in subsection 2 of NRS 338.1727 and
subsection 2 of NRS 408.3886 if] If a bid is submitted by two or more
contractors as a joint venture or by one of them as a joint venturer, the
provisions of subsection 2 apply only if both or all of the joint venturers
separately meet the requirements of that subsection.
10. The state contractors’ board shall adopt regulations and may assess
reasonable fees relating to the certification of contractors for a preference
in bidding on public works.
11. A person or entity who believes that a contractor wrongfully holds
a certificate of eligibility to receive a preference in bidding on public
works may challenge the validity of the certificate by filing a written
objection with the public body to which the contractor has submitted a bid
or proposal on a contract for the completion of a public work. A written
objection authorized pursuant to this subsection must:
(a) Set forth proof or substantiating evidence to support the belief of the
person or entity that the contractor wrongfully holds a certificate of
eligibility to receive a preference in bidding on public works; and
(b) Be filed with the public body at or after the time at which the
contractor submitted the bid or proposal to the public body and before the
time at which the public body awards the contract for which the bid or
proposal was submitted.
12. If a public body receives a written objection pursuant to subsection
11, the public body shall determine whether the objection is accompanied
by the proof or substantiating evidence required pursuant to paragraph (a)
of that subsection. If the public body determines that the objection is not
accompanied by the required proof or substantiating evidence, the public
body shall dismiss the objection and may proceed immediately to award
the contract. If the public body determines that the objection is
accompanied by the required proof or substantiating evidence, the public
body shall determine whether the contractor qualifies for the certificate
pursuant to the provisions of this section and may proceed to award the
contract accordingly.
Sec. 5. NRS 338.1711 is hereby amended to read as follows:
338.1711 1. Except as otherwise provided in this section, a public
body shall contract with a prime contractor for the construction of a public
work for which the estimated cost exceeds $100,000.
2. A public body may contract with a design-build team for the design
and construction of a public work that is a discrete project if the public
body determines that:
(a) The public work is:
(1) A plant or facility for the treatment and pumping of water or the
treatment and disposal of wastewater or sewage, the estimated cost of
which exceeds $100,000,000; or
(2) Any other type of public work, except a stand-alone underground
utility project, the estimated cost of which exceeds $30,000,000; and
(b) Contracting with a design-build team will enable the public body to:
(1) Design and construct the public work at a cost that is significantly
lower than the cost that the public body would incur to design and
construct the public work using a different method;
(2) Design and construct the public work in a shorter time than would
be required to design and construct the public work using a different
method, if exigent circumstances require that the public work be designed
and constructed within a short time; or
(3) Ensure that the design and construction of the public work is
properly coordinated, if the public work is unique, highly technical and
complex in nature.
3. [In a county whose population is 400,000 or more, a public body
that is responsible for financing public works may, for its own public
works and those financed by a different public body, including, without
limitation, an airport if the airport is owned and operated as a department
of the public body,] Each state agency and each local government may
contract with a design-build team once in each fiscal year for the design
and construction of a public work if the [public] governing body of the
entity that is responsible for financing the public work determines that:
(a) The estimated cost of the public work is [at least $5,000,000] :
(1) At least $250,000 but less than $30,000,000 [;] if the public work
is the construction of a park and appurtenances thereto, the
rehabilitation or remodeling of a public building, or the construction of
an addition to a public building;
(2) At least $500,000 but less than $30,000,000 if the public work is
the construction of a new public building;
(3) At least $5,000,000 but less than $100,000,000 if the public work
is the construction, alteration or repair of a plant or facility for the
treatment and pumping of water or the treatment and disposal of
wastewater or sewage; or
(4) At least $5,000,000 but less than $30,000,000 if the public work
is the construction, alteration or repair of any other fixed works as
described in subsection 2 of NRS 624.215; and
(b) Contracting with a design-build team will enable the public body to:
(1) Design and construct the public work at a cost that is significantly
lower than the cost that the public body would incur to design and
construct the public work using a different method;
(2) Design and construct the public work in a shorter time than would
be required to design and construct the public work using a different
method, if exigent circumstances require that the public work be designed
and constructed within a short time; or
(3) Ensure that the design and construction of the public work is
properly coordinated, if the public work is unique, highly technical and
complex in nature.
4. Notwithstanding the provisions of subsections 1, 2 and 3, a public
body may contract with:
(a) A nonprofit organization for the design and construction of a project
to restore, enhance or develop wetlands.
(b) A prime contractor, specialty contractor or design-build team with
respect to a public work if the public body determines that the public work
is:
(1) Not part of a larger public work; and
(2) Limited in scope to:
(I) Removal of asbestos;
(II) Replacement of equipment or systems for heating, ventilation
and air-conditioning;
(III) Replacement of a roof;
(IV) Landscaping; or
(V) Restoration, enhancement or development of wetlands.
5. As used in this section, “state agency” includes an agency,
bureau, board, commission, department, division or any other unit of the
legislative department, judicial department or executive department of
state government or the University and Community College System of
Nevada.
Sec. 6. NRS 338.1713 is hereby amended to read as follows:
338.1713 1. A public body shall not contract with a design-build
team with respect to a public work unless the governing body of the public
body makes the determinations, at a public hearing, that are required
pursuant to subsection 2, 3 or 4 of NRS 338.1711, as applicable.
2. A public body that is required to hold a public hearing pursuant to
this section shall publish notice of the hearing [at least once each week for
3 consecutive weeks in:
(a) A newspaper of general circulation published in the county in which
the public work is proposed to be constructed or, if there is no such
newspaper, in a newspaper of general circulation in the county published
in this state; and
(b) A] in a newspaper of general circulation in this state.
Sec. 7. NRS 338.1723 is hereby amended to read as follows:
338.1723 1. A public body shall advertise for preliminary proposals
for the design and construction of a public work by a design-build team [at
least twice each week for 3 consecutive weeks in:
(a) A newspaper of general circulation published in the county in which
the public work is proposed to be constructed or, if there is no such
newspaper, in a newspaper of general circulation in the county published
in this state; and
(b) A] in a newspaper of general circulation in this state.
2. A request for preliminary proposals published pursuant to
subsection 1 must include, without limitation:
(a) A description of the public work to be designed and constructed;
(b) Separate estimates of the costs of designing and constructing the
public work;
(c) The dates on which it is anticipated that the separate phases of the
design and construction of the public work will begin and end;
(d) The date by which preliminary proposals must be submitted to the
public body, which must not be less than 30 days after the date that the
request for preliminary proposals is first published in a newspaper
pursuant to subsection 1; and
(e) A statement setting forth the place and time in which a design-build
team desiring to submit a proposal for the public work may obtain the
information necessary to submit a proposal, including, without limitation,
the information set forth in subsection 3.
3. A public body shall maintain at the time and place set forth in the
request for preliminary proposals the following information for
inspection by a design-build team desiring to submit a proposal for the
public work:
(a) The extent to which designs must be completed for both preliminary
and final proposals and any other requirements for the design and
construction of the public work that the public body determines to be
necessary;
[(e)] (b) A list of the requirements set forth in NRS 338.1721;
[(f)] (c) A list of the factors that the public body will use to evaluate
design-build teams who submit a proposal for the public work, including,
without limitation:
(1) The relative weight to be assigned to each factor[;] pursuant to
NRS 338.1727; and
(2) A disclosure of whether the factors that are not related to cost are,
when considered as a group, more or less important in the process of
evaluation than the factor of cost;
[(g)] (d) Notice that a design-build team desiring to submit a proposal
for the public work must include with its proposal the information used by
the public body to determine finalists among the design-build teams
submitting proposals pursuant to subsection 2 of NRS 338.1725 and a
description of that information;
[(h)] (e) A statement that a design-build team whose prime contractor
holds a certificate of eligibility to receive a preference in bidding on public
works issued pursuant to NRS 338.1389 or 338.147 should submit a copy
of the certificate of eligibility with its proposal;
[(i)] and
(f) A statement as to whether a design-build team that is selected as a
finalist pursuant to NRS 338.1725 but is not awarded the design-build
contract pursuant to NRS 338.1727 will be partially reimbursed for the
cost of preparing a final proposal and, if so, an estimate of the amount of
the partial reimbursement . [; and
(j) The date by which preliminary proposals must be submitted to the
public body, which must not be less than 30 days or more than 60 days
after the date on which the request for preliminary proposals is first
published in a newspaper pursuant to subsection 1.]
Sec. 8. NRS 338.1725 is hereby amended to read as follows:
338.1725 1. [At least 30 days after the date by which preliminary
proposals must be submitted to the public body, the] The public body shall
select at least three but not more than five finalists from among the design
-build teams that submitted preliminary proposals. If the public body does
not receive at least three preliminary proposals from design-build teams
that the public body determines to be qualified pursuant to this section and
NRS 338.1721, the public body may not contract with a design-build team
for the design and construction of the public work.
2. The public body shall select finalists pursuant to subsection 1 by:
(a) Verifying that each design-build team which submitted a
preliminary proposal satisfies the requirements of NRS 338.1721; and
(b) Conducting an evaluation of the qualifications of each design-build
team that submitted a preliminary proposal, including, without limitation,
an evaluation of:
(1) The professional qualifications and experience of the members of
the design-build team;
(2) The performance history of the members of the design-build team
concerning other recent, similar projects completed by those members, if
any;
(3) The safety programs established and the safety records
accumulated by the members of the design-build team; [and]
(4) The proposed plan of the design-build team to manage the design
and construction of the public work that sets forth in detail the ability of
the design-build team to design and construct the public work[.] ; and
(5) The degree to which the preliminary proposal is responsive to
the requirements of the public body for the submittal of a preliminary
proposal.
Sec. 9. NRS 338.1727 is hereby amended to read as follows:
338.1727 1. After selecting the finalists pursuant to NRS 338.1725,
the public body shall provide to each finalist a request for final proposals
for the public work. The request for final proposals must:
(a) Set forth the factors that the public body will use to select a design
-build team to design and construct the public work, including the relative
weight to be assigned to each factor; and
(b) Set forth the date by which final proposals must be submitted to the
public body.
2. Except as otherwise provided in this subsection, in assigning the
relative weight to each factor for selecting a design-build team pursuant
to subsection 1, the public body shall assign, without limitation, a
relative weight of 5 percent to the possession of a certificate of eligibility
to receive a preference in bidding on public works and a relative weight
of at least 30 percent to the proposed cost of design and construction of
the public work. If any federal statute or regulation precludes the
granting of federal assistance or reduces the amount of that assistance
for a particular public work because of the provisions of this subsection
relating to preference in bidding on public works, those provisions of
this subsection do not apply insofar as their application would preclude
or reduce federal assistance for that public work.
3. A final proposal submitted by a design-build team pursuant to this
section must be prepared thoroughly, be responsive to the criteria that the
public body will use to select a design-build team to design and construct
the public work described in subsection 1 and comply with the provisions
of NRS 338.141. [If the cost of construction is a factor in the selection of a
design-build team, a design-build team whose prime contractor has
submitted with its proposal a certificate of eligibility to receive a
preference in bidding on public works issued pursuant to NRS 338.1389 or
338.147 shall be deemed to have submitted a better proposal than a
competing design-build team whose prime contractor has not submitted
such a certificate of eligibility if the amount proposed by the design-build
team is not more than 5 percent higher than the amount proposed by the
competing design-build team.
3. At least 30 days after]
4. After receiving the final proposals for the public work, the public
body shall:
(a) Select the most cost-effective and responsive final proposal, using
the criteria set forth pursuant to [subsection 1;] subsections 1 and 2; or
(b) Reject all the final proposals.
[4.] 5. If a public body selects a final proposal pursuant to paragraph
(a) of subsection [3,] 4, the public body shall, at its next regularly
scheduled meeting:
(a) Review and ratify the selection.
(b) Award the design-build contract to the design-build team whose
proposal is selected.
(c) Partially reimburse the unsuccessful finalists if partial
reimbursement was provided for in the request for preliminary proposals
pursuant to paragraph [(i)] (f) of subsection [2] 3 of NRS 338.1723. The
amount of reimbursement must not exceed, for each unsuccessful finalist,
3 percent of the total amount to be paid to the design-build team as set
forth in the design-build contract.
(d) Make available to the public a summary setting forth the factors
used by the public body to select the successful design-build team and the
ranking of the design-build teams who submitted final proposals. The
public body shall not release to a third party, or otherwise make public,
financial or proprietary information submitted by a design-build team.
[5.] 6. A contract awarded pursuant to this section must specify:
(a) An amount that is the maximum amount that the public body will
pay for the performance of all the work required by the contract, excluding
any amount related to costs that may be incurred as a result of unexpected
conditions or occurrences as authorized by the contract;
(b) An amount that is the maximum amount that the public body will
pay for the performance of the professional services required by the
contract; and
(c) A date by which performance of the work required by the contract
must be completed.
[6.] 7. A design-build team to whom a contract is awarded pursuant to
this section shall:
(a) Assume overall responsibility for ensuring that the design and
construction of the public work is completed in a satisfactory manner; and
(b) Use the work force of the prime contractor on the design-build team
to construct at least 15 percent of the public work.
Sec. 10. NRS 408.215 is hereby amended to read as follows:
408.215 1. The director has charge of all the records of the
department, keeping records of all proceedings pertaining to the
department and keeping on file information, plans, specifications,
estimates, statistics and records prepared by the department, except those
financial statements described in NRS 408.333 and the financial or
proprietary information described in paragraph (d) of subsection [4] 5 of
NRS 408.3886, which must not become matters of public record.
2. The director may photograph, microphotograph or film or dispose of
the records of the department referred to in subsection 1 as provided in
NRS 239.051, 239.080 and 239.085.
3. The director shall maintain an index or record of deeds or other
references of title or interests in and to all lands or interests in land owned
or acquired by the department.
4. The director shall adopt such regulations as may be necessary to
carry out and enforce the provisions of this chapter.
Sec. 11. NRS 408.3881 is hereby amended to read as follows:
408.3881 1. The department shall not contract with a design-build
team with respect to a project unless the board makes the determinations,
at a public meeting, that are required pursuant to NRS 408.388.
2. If the department is required to hold a public meeting pursuant to
this section, the department shall publish notice of the meeting [at least
once each week for 3 consecutive weeks in:
(a) A newspaper of general circulation published in each county in
which the project is proposed to be constructed or, if there is no such
newspaper, in a newspaper of general circulation in each county published
in this state; and
(b) A] in a newspaper of general circulation in this state.
Sec. 12. NRS 408.3883 is hereby amended to read as follows:
408.3883 1. The department shall advertise for preliminary proposals
for the design and construction of a project by a design-build team [at least
twice each week for 3 consecutive weeks in:
(a) A newspaper of general circulation published in each county in
which the project is proposed to be constructed or, if there is no such
newspaper, in a newspaper of general circulation in each county published
in this state; and
(b) A] in a newspaper of general circulation in this state.
2. A request for preliminary proposals published pursuant to
subsection 1 must include, without limitation:
(a) A description of the proposed project;
(b) Separate estimates of the costs of designing and constructing the
project;
(c) The dates on which it is anticipated that the separate phases of the
design and construction of the project will begin and end;
(d) The date by which preliminary proposals must be submitted to the
department, which must not be less than 30 days after the date that the
request for preliminary proposals is first published in a newspaper
pursuant to subsection 1; and
(e) A statement setting forth the place and time in which a design-build
team desiring to submit a proposal for the project may obtain the
information necessary to submit a proposal, including, without limitation,
the information set forth in subsection 3.
3. The department shall maintain at the time and place set forth in
the request for preliminary proposals the following information for
inspection by a design-build team desiring to submit a proposal for the
project:
(a) The extent to which designs must be completed for both preliminary
and final proposals and any other requirements for the design and
construction of the project that the department determines to be necessary;
[(e)] (b) A list of the requirements set forth in NRS 408.3884;
[(f)] (c) A list of the factors that the department will use to evaluate
design-build teams who submit a proposal for the project, including,
without limitation:
(1) The relative weight to be assigned to each factor[;] pursuant to
NRS 408.3886; and
(2) A disclosure of whether the factors that are not related to cost are,
when considered as a group, more or less important in the process of
evaluation than the factor of cost;
[(g)] (d) Notice that a design-build team desiring to submit a proposal
for the project must include with its proposal the information used by the
department to determine finalists among the design-build teams submitting
proposals pursuant to subsection 2 of NRS 408.3885 and a description of
that information;
[(h)] (e) A statement that a design-build team whose prime contractor
holds a certificate of eligibility to receive a preference in bidding on public
works issued pursuant to NRS 338.1389 or 338.147 should submit a copy
of the certificate of eligibility with its proposal;
[(i)] and
(f) A statement as to whether a bidding design-build team that is
selected as a finalist pursuant to NRS 408.3885 but is not awarded the
design-build contract pursuant to NRS 408.3886 will be partially
reimbursed for the cost of preparing a final proposal and, if so, an estimate
of the amount of the partial reimbursement . [; and
(j) The date by which preliminary proposals must be submitted to the
department, which must not be less than 30 days or more than 60 days
after the date on which the request for preliminary proposals is first
published in a newspaper pursuant to subsection 1.]
Sec. 13. NRS 408.3885 is hereby amended to read as follows:
408.3885 1. [At least 30 days after the date by which preliminary
proposals must be submitted to the department, the] The department shall
select at least three but not more than five finalists from among the design
-build teams that submitted preliminary proposals. If the department does
not receive at least three preliminary proposals from design-build teams
that the department determines to be qualified pursuant to this section and
NRS 408.3884, the department may not contract with a design-build team
for the design and construction of the project.
2. The department shall select finalists pursuant to subsection 1 by:
(a) Verifying that each design-build team which submitted a
preliminary proposal satisfies the requirements of NRS 408.3884; and
(b) Conducting an evaluation of the qualifications of each design-build
team that submitted a preliminary proposal, including, without limitation,
an evaluation of:
(1) The professional qualifications and experience of the members of
the design-build team;
(2) The performance history of the members of the design-build team
concerning other recent, similar projects completed by those members, if
any;
(3) The safety programs established and the safety records
accumulated by the members of the design-build team; [and]
(4) The proposed plan of the design-build team to manage the design
and construction of the project that sets forth in detail the ability of the
design-build team to design and construct the project[.] ; and
(5) The degree to which the preliminary proposal is responsive to
the requirements of the department for the submittal of a preliminary
proposal.
Sec. 14. NRS 408.3886 is hereby amended to read as follows:
408.3886 1. After selecting the finalists pursuant to NRS 408.3885,
the department shall provide to each finalist a request for final proposals
for the project. The request for final proposals must:
(a) Set forth the factors that the department will use to select a design
-build team to design and construct the project, including the relative
weight to be assigned to each factor; and
(b) Set forth the date by which final proposals must be submitted to the
department.
2. Except as otherwise provided in this subsection, in assigning the
relative weight to each factor for selecting a design-build team pursuant
to subsection 1, the department shall assign, without limitation, a
relative weight of 5 percent to the possession of a certificate of eligibility
to receive a preference in bidding on public works and a relative weight
of at least 30 percent for the proposed cost of design and construction of
the project. If any federal statute or regulation precludes the granting of
federal assistance or reduces the amount of that assistance for a
particular project because of the provisions of this subsection relating to
preference in bidding on public works, those provisions of this
subsection do not apply insofar as their application would preclude or
reduce federal assistance for that project.
3. A final proposal submitted by a design-build team pursuant to this
section must be prepared thoroughly, be responsive to the criteria that the
department will use to select a design-build team to design and construct
the project described in subsection 1 and comply with the provisions of
NRS 338.141. [If the cost of construction is a factor in the selection of a
design-build team, a design-build team whose prime contractor has
submitted with its proposal a certificate of eligibility to receive a
preference in bidding on public works issued pursuant to NRS 338.1389 or
338.147 shall be deemed to have submitted a better proposal than a
competing design-build team whose prime contractor has not submitted
such a certificate of eligibility if the amount proposed by the design-build
team is not more than 5 percent higher than the amount proposed by the
competing design-build team.
3. At least 30 days after]
4. After receiving the final proposals for the project, the department
shall:
(a) Select the most cost-effective and responsive final proposal, using
the criteria set forth pursuant to [subsection 1;] subsections 1 and 2; or
(b) Reject all the final proposals.
[4.] 5. If the department selects a final proposal pursuant to paragraph
(a) of subsection [3,] 4, the department shall hold a public meeting to:
(a) Review and ratify the selection.
(b) Award the design-build contract to the design-build team whose
proposal is selected.
(c) Partially reimburse the unsuccessful finalists if partial
reimbursement was provided for in the request for preliminary proposals
pursuant to paragraph [(i)] (f) of subsection [2] 3 of NRS 408.3883. The
amount of reimbursement must not exceed, for each unsuccessful finalist,
three percent of the total amount to be paid to the design-build team as set
forth in the design-build contract.
(d) Make available to the public a summary setting forth the factors
used by the department to select the successful design-build team and the
ranking of the design-build teams who submitted final proposals. The
department shall not release to a third party, or otherwise make public,
financial or proprietary information submitted by a design-build team.
[5.] 6. A contract awarded pursuant to this section must specify:
(a) An amount that is the maximum amount that the department will pay
for the performance of all the work required by the contract, excluding any
amount related to costs that may be incurred as a result of unexpected
conditions or occurrences as authorized by the contract;
(b) An amount that is the maximum amount that the department will
pay for the performance of the professional services required by the
contract; and
(c) A date by which performance of the work required by the contract
must be completed.
[6.] 7. A design-build team to whom a contract is awarded pursuant to
this section shall:
(a) Assume overall responsibility for ensuring that the design and
construction of the project is completed in a satisfactory manner; and
(b) Use the work force of the prime contractor on the design-build team
to construct at least 15 percent of the project.
Sec. 15. Section 21 of Assembly Bill No. 298 of the 1999 session as
last amended by section 35.6 of chapter 627, Statutes of Nevada 1999, at
page 3497, is hereby amended to read as follows:
Sec. 21. 1. This section and sections 2 to 7, inclusive, 10 to 14,
inclusive, and 16 to [19, inclusive, and] 20 , inclusive, of this act
become effective on October 1, 1999.
2. Section 8 of this act becomes effective on October 1, 1999, and
expires by limitation on [October 1, 2003.
3. Sections 19.2 and 19.6 of this act become effective on October
1, 2003.
4. Sections 15 and 19.4] May 1, 2013.
3. Section 15 of this act [become] becomes effective at 12:01 a.m.
on May 1, 2013.
[5.] 4. Sections 14, 18[, 19 and 19.2] and 19 of this act expire by
limitation on May 1, 2013.
Sec. 16. Section 38 of chapter 627, Statutes of Nevada 1999, at page
3504, is hereby amended to read as follows:
Sec. 38. 1. This section and sections [35.4 and] 1 to 9,
inclusive, 14 to 35, inclusive, 35.6 and 36 of this act become
effective on October 1, 1999.
2. [Sections 1 to 9, inclusive, 14 to 35, inclusive, 36 and] Section
37 of this act [become] becomes effective on October 1, 1999, and
[expire] expires by limitation on October 1, 2003.
3. Sections 10, 13 and 35.8 of this act become effective at 12:01
a.m. on October 1, 1999 . [, and expire by limitation on October 1,
2003.]
4. Section 11 of this act becomes effective at 12:01 a.m. on
October 1, 1999, and expires by limitation on May 1, 2013.
[5. Section 13.5 of this act becomes effective at 12:01 a.m. on
October 1, 2003.
6. Section 35.2 of this act becomes effective at 12:01 a.m. on
October 1, 2003 and expires by limitation on May 1, 2013.
7. Section 12 of this act becomes effective at 12:02 a.m. on May 1,
2013.]
Sec. 17. Sections 12, 13.5, 35.2 and 35.4 of chapter 627, Statutes of
Nevada 1999, at pages 3476, 3479, 3490 and 3491, respectively, are
hereby repealed.
Sec. 18. 1. This section and sections 5 to 17, inclusive, of this act
become effective on July 1, 2001.
2. Sections 2 and 4 of this act become effective at 12:01 a.m. on
July 1, 2001.
3. Section 1 of this act becomes effective on May 1, 2013.
4. Section 3 of this act becomes effective at 12:03 a.m. on May 1,
2013.
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