Assembly Bill No. 519–Committee on Transportation

 

(On Behalf of the Department of Transportation)

 

March 24, 2003

____________

 

Referred to Committee on Transportation

 

SUMMARY—Revises provisions relating to awarding of design-build contracts by Department of Transportation. (BDR 35‑542)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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

 

AN ACT relating to the Department of Transportation; authorizing the Department, in carrying out the process for awarding design-build contracts, to request revised final proposals under certain circumstances; establishing procedures for requesting and evaluating revised final proposals; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 408 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  If the Department determines that no final proposal

1-4  received pursuant to NRS 408.3886 is cost-effective and

1-5  responsive and the Department further determines that requesting

1-6  revised final proposals pursuant to this section will likely result in

1-7  the submission of a satisfactory proposal, the Department shall

1-8  prepare and provide to each finalist a request for revised final

1-9  proposals for the project.

1-10      2.  In conjunction with preparing a request for revised final

1-11  proposals pursuant to this section, the Department may:

1-12      (a) Alter the scope of the project; and

2-1  (b) Revise the estimates of the costs of designing and

2-2  constructing the project.

2-3  3.  A request for revised final proposals prepared pursuant to

2-4  this section must:

2-5  (a) Set forth the date by which revised final proposals must be

2-6  submitted to the Department;

2-7  (b) If the Department has altered the scope of the project, set

2-8  forth an updated description of the project;

2-9  (c) If the Department has revised the estimates of the costs of

2-10  designing and constructing the project, set forth updated estimates

2-11  for those costs; and

2-12      (d) Set forth the factors that the Department will use to select a

2-13  design-build team to design and construct the project, including

2-14  the relative weight to be assigned to each factor. The factors and

2-15  relative weights required to be set forth pursuant to this paragraph

2-16  need not be the same as those which were set forth in the request

2-17  for final proposals pursuant to NRS 408.3886.

2-18      4.  Except as otherwise provided in this subsection, in

2-19  assigning the relative weight to each factor for selecting a design-

2-20  build team pursuant to subsection 3, the Department shall assign,

2-21  without limitation, a relative weight of 5 percent to the possession

2-22  of a certificate of eligibility to receive a preference in bidding on

2-23  public works and a relative weight of at least 30 percent for the

2-24  proposed cost of design and construction of the project. If any

2-25  federal statute or regulation precludes the granting of federal

2-26  assistance or reduces the amount of that assistance for a

2-27  particular project because of the provisions of this subsection

2-28  relating to preference in bidding on public works, those provisions

2-29  of this subsection do not apply insofar as their application would

2-30  preclude or reduce federal assistance for that project.

2-31      5.  A revised final proposal submitted by a design-build team

2-32  pursuant to this section must be prepared thoroughly, be

2-33  responsive to the criteria that the Department will use to select a

2-34  design-build team to design and construct the project described in

2-35  subsection 3 and comply with the provisions of NRS 338.141.

2-36      6.  After receiving the revised final proposals for the project,

2-37  the Department shall:

2-38      (a) Select the most cost-effective and responsive revised final

2-39  proposal, using the criteria set forth pursuant to subsections 3 and

2-40  4; or

2-41      (b) Reject all the revised final proposals.

2-42      7.  If the Department selects a revised final proposal pursuant

2-43  to paragraph (a) of subsection 6, the Department shall hold a

2-44  public meeting to:

2-45      (a) Review and ratify the selection.

3-1  (b) Award the design-build contract to the design-build team

3-2  whose proposal is selected.

3-3  (c) Partially reimburse the unsuccessful finalists who

3-4  submitted revised final proposals if partial reimbursement was

3-5  provided for in the request for preliminary proposals pursuant to

3-6  paragraph (f) of subsection 3 of NRS 408.3883. The amount of

3-7  reimbursement must not exceed, for each unsuccessful finalist

3-8  who submitted a revised final proposal, 3 percent of the total

3-9  amount to be paid to the design-build team as set forth in the

3-10  design-build contract.

3-11      (d) Make available to the public a summary setting forth the

3-12  factors used by the Department to select the successful design-

3-13  build team and the ranking of the design-build teams who

3-14  submitted revised final proposals. The Department shall not

3-15  release to a third party, or otherwise make public, financial or

3-16  proprietary information submitted by a design-build team.

3-17      8.  A contract awarded pursuant to this section must specify:

3-18      (a) An amount that is the maximum amount that the

3-19  Department will pay for the performance of all the work required

3-20  by the contract, excluding any amount related to costs that may be

3-21  incurred as a result of unexpected conditions or occurrences as

3-22  authorized by the contract;

3-23      (b) An amount that is the maximum amount that the

3-24  Department will pay for the performance of the professional

3-25  services required by the contract; and

3-26      (c) A date by which performance of the work required by the

3-27  contract must be completed.

3-28      9.  A design-build team to whom a contract is awarded

3-29  pursuant to this section shall:

3-30      (a) Assume overall responsibility for ensuring that the design

3-31  and construction of the project is completed in a satisfactory

3-32  manner; and

3-33      (b) Use the workforce of the prime contractor on the design-

3-34  build team to construct at least 15 percent of the project.

3-35      Sec. 2.  NRS 408.215 is hereby amended to read as follows:

3-36      408.215  1.  The Director has charge of all the records of the

3-37  Department, keeping records of all proceedings pertaining to the

3-38  Department and keeping on file information, plans, specifications,

3-39  estimates, statistics and records prepared by the Department, except

3-40  those financial statements described in NRS 408.333 and the

3-41  financial or proprietary information described in paragraph (d) of

3-42  subsection 5 of NRS 408.3886[,] and paragraph (d) of subsection

3-43  7 of section 1 of this act, which must not become matters of public

3-44  record.

4-1  2.  The Director may photograph, microphotograph or film or

4-2  dispose of the records of the Department referred to in subsection 1

4-3  as provided in NRS 239.051, 239.080 and 239.085.

4-4  3.  The Director shall maintain an index or record of deeds or

4-5  other references of title or interests in and to all lands or interests in

4-6  land owned or acquired by the Department.

4-7  4.  The Director shall adopt such regulations as may be

4-8  necessary to carry out and enforce the provisions of this chapter.

4-9  Sec. 3.  NRS 408.3875 is hereby amended to read as follows:

4-10      408.3875  As used in NRS 408.3875 to 408.3887, inclusive,

4-11  and section 1 of this act, unless the context otherwise requires, the

4-12  words and terms defined in NRS 408.3876 to 408.3879, inclusive,

4-13  have the meanings ascribed to them in those sections.

4-14      Sec. 4.  NRS 408.3882 is hereby amended to read as follows:

4-15      408.3882  If the Department desires to contract with a design-

4-16  build team pursuant to NRS 408.388 and 408.3881, the Department

4-17  must select the design-build team in accordance with NRS 408.3883

4-18  to 408.3886, inclusive[.] , and section 1 of this act.

4-19      Sec. 5.  NRS 408.3883 is hereby amended to read as follows:

4-20      408.3883  1.  The Department shall advertise for preliminary

4-21  proposals for the design and construction of a project by a design-

4-22  build team in a newspaper of general circulation in this state.

4-23      2.  A request for preliminary proposals published pursuant to

4-24  subsection 1 must include, without limitation:

4-25      (a) A description of the proposed project;

4-26      (b) Separate estimates of the costs of designing and constructing

4-27  the project;

4-28      (c) The dates on which it is anticipated that the separate phases

4-29  of the design and construction of the project will begin and end;

4-30      (d) The date by which preliminary proposals must be submitted

4-31  to the Department, which must not be less than 30 days after the

4-32  date that the request for preliminary proposals is first published in a

4-33  newspaper pursuant to subsection 1; and

4-34      (e) A statement setting forth the place and time in which a

4-35  design-build team desiring to submit a proposal for the project may

4-36  obtain the information necessary to submit a proposal, including,

4-37  without limitation, the information set forth in subsection 3.

4-38      3.  The Department shall maintain at the time and place set

4-39  forth in the request for preliminary proposals the following

4-40  information for inspection by a design-build team desiring to submit

4-41  a proposal for the project:

4-42      (a) The extent to which designs must be completed for [both

4-43  preliminary and] preliminary, final and, if applicable, revised final

4-44  proposals and any other requirements for the design and

5-1  construction of the project that the Department determines to be

5-2  necessary;

5-3  (b) A list of the requirements set forth in NRS 408.3884;

5-4  (c) A list of the factors that the Department will use to evaluate

5-5  design-build teams who submit a proposal for the project, including,

5-6  without limitation:

5-7       (1) The relative weight to be assigned to each factor pursuant

5-8  to NRS 408.3886; and

5-9       (2) A disclosure of whether the factors that are not related to

5-10  cost are, when considered as a group, more or less important in the

5-11  process of evaluation than the factor of cost;

5-12      (d) Notice that a design-build team desiring to submit a proposal

5-13  for the project must include with its proposal the information used

5-14  by the Department to determine finalists among the design-build

5-15  teams submitting proposals pursuant to subsection 2 of NRS

5-16  408.3885 and a description of that information;

5-17      (e) A statement that a design-build team whose prime contractor

5-18  holds a certificate of eligibility to receive a preference in bidding on

5-19  public works issued pursuant to NRS 338.1389 or 338.147 should

5-20  submit a copy of the certificate of eligibility with its proposal; and

5-21      (f) A statement as to whether a bidding design-build team that is

5-22  selected as a finalist pursuant to NRS 408.3885 but is not awarded

5-23  the design-build contract pursuant to NRS 408.3886 or section 1 of

5-24  this act will be partially reimbursed for the cost of preparing a final

5-25  proposal or revised final proposal and, if so, an estimate of the

5-26  amount of the partial reimbursement.

5-27      Sec. 6.  NRS 408.3886 is hereby amended to read as follows:

5-28      408.3886  1.  After selecting the finalists pursuant to NRS

5-29  408.3885, the Department shall provide to each finalist a request for

5-30  final proposals for the project. The request for final proposals must:

5-31      (a) Set forth the factors that the Department will use to select a

5-32  design-build team to design and construct the project, including the

5-33  relative weight to be assigned to each factor; and

5-34      (b) Set forth the date by which final proposals must be

5-35  submitted to the Department.

5-36      2.  Except as otherwise provided in this subsection, in assigning

5-37  the relative weight to each factor for selecting a design-build team

5-38  pursuant to subsection 1, the Department shall assign, without

5-39  limitation, a relative weight of 5 percent to the possession of a

5-40  certificate of eligibility to receive a preference in bidding on public

5-41  works and a relative weight of at least 30 percent for the proposed

5-42  cost of design and construction of the project. If any federal statute

5-43  or regulation precludes the granting of federal assistance or reduces

5-44  the amount of that assistance for a particular project because of the

5-45  provisions of this subsection relating to preference in bidding on

6-1  public works, those provisions of this subsection do not apply

6-2  insofar as their application would preclude or reduce federal

6-3  assistance for that project.

6-4  3.  A final proposal submitted by a design-build team pursuant

6-5  to this section must be prepared thoroughly, be responsive to the

6-6  criteria that the Department will use to select a design-build team to

6-7  design and construct the project described in subsection 1 and

6-8  comply with the provisions of NRS 338.141.

6-9  4.  After receiving the final proposals for the project, the

6-10  Department shall:

6-11      (a) Select the most cost-effective and responsive final proposal,

6-12  using the criteria set forth pursuant to subsections 1 and 2; [or]

6-13      (b) Reject all the final proposals[.] ; or

6-14      (c) Request revised final proposals pursuant to section 1 of this

6-15  act.

6-16      5.  If the Department selects a final proposal pursuant to

6-17  paragraph (a) of subsection 4, the Department shall hold a public

6-18  meeting to:

6-19      (a) Review and ratify the selection.

6-20      (b) Award the design-build contract to the design-build team

6-21  whose proposal is selected.

6-22      (c) Partially reimburse the unsuccessful finalists if partial

6-23  reimbursement was provided for in the request for preliminary

6-24  proposals pursuant to paragraph (f) of subsection 3 of NRS

6-25  408.3883. The amount of reimbursement must not exceed, for each

6-26  unsuccessful finalist, [three] 3 percent of the total amount to be paid

6-27  to the design-build team as set forth in the design-build contract.

6-28      (d) Make available to the public a summary setting forth the

6-29  factors used by the Department to select the successful design-build

6-30  team and the ranking of the design-build teams who submitted final

6-31  proposals. The Department shall not release to a third party, or

6-32  otherwise make public, financial or proprietary information

6-33  submitted by a design-build team.

6-34      6.  A contract awarded pursuant to this section must specify:

6-35      (a) An amount that is the maximum amount that the Department

6-36  will pay for the performance of all the work required by the

6-37  contract, excluding any amount related to costs that may be incurred

6-38  as a result of unexpected conditions or occurrences as authorized by

6-39  the contract;

6-40      (b) An amount that is the maximum amount that the Department

6-41  will pay for the performance of the professional services required by

6-42  the contract; and

6-43      (c) A date by which performance of the work required by the

6-44  contract must be completed.

7-1  7.  A design-build team to whom a contract is awarded pursuant

7-2  to this section shall:

7-3  (a) Assume overall responsibility for ensuring that the design

7-4  and construction of the project is completed in a satisfactory

7-5  manner; and

7-6  (b) Use the workforce of the prime contractor on the design-

7-7  build team to construct at least 15 percent of the project.

 

7-8  H