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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