Senate Bill No. 392–Committee on Government Affairs

 

March 18, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Establishes pilot program for use of indefinite quantity contracts by Clark County School District for certain public works. (BDR S‑1277)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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

 

AN ACT relating to public works; establishing a pilot program for the use of indefinite quantity contracts by the Clark County School District for certain public works; 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.  As used in sections 1 to 10, inclusive, of this act,

1-2  unless the context otherwise requires, the words and terms defined

1-3  in sections 2, 3 and 4 of this act have the meanings ascribed to them

1-4  in those sections.

1-5  Sec.  2.  “Indefinite quantity contract” means a competitively

1-6  bid contract for a fixed period between the Clark County School

1-7  District and a contractor in which the contractor agrees to complete

1-8  an indefinite quantity of units of work on public works for a fixed

1-9  unit price and which provides for the use of work orders to define

1-10  the scope of the public works.

1-11      Sec.  3.  “Normal business hours” means 6 a.m. to 6 p.m.,

1-12  Monday through Friday, except legal holidays declared pursuant to

1-13  NRS 236.015.

1-14      Sec.  4.  “Public work” means:

1-15      1.  The repair, reconstruction, alteration, renovation,

1-16  improvement, installation or demolition of a building, facility or

2-1  other structure that is owned, leased or operated by the Clark

2-2  County School District;

2-3  2.  The painting or repainting of a building, facility or other

2-4  structure that is owned, leased or operated by the Clark County

2-5  School District;

2-6  3.  The routine, recurring or usual maintenance work for the

2-7  preservation or protection of a building, facility or other structure

2-8  that is owned, leased or operated by the Clark County School

2-9  District; and

2-10      4.  Landscape maintenance, including, without limitation, the

2-11  repair or replacement of irrigation systems, on property owned,

2-12  leased or operated by the Clark County School District.

2-13      Sec.  5.  1.  The Clark County School District may award an

2-14  indefinite quantity contract pursuant to sections 1 to 10, inclusive, of

2-15  this act.

2-16      2.  Except as otherwise provided in this section, if the Clark

2-17  County School District desires to award an indefinite quantity

2-18  contract, the Clark County School District must accept bids and

2-19  award the indefinite quantity contract in the manner provided for

2-20  bidding and awarding a contract pursuant to NRS 338.1377 to

2-21  338.1389, inclusive, or 338.143, 338.145 and 338.147.

2-22      3.  For the purposes of NRS 338.1385 or 338.143, an indefinite

2-23  quantity contract shall be deemed to be a project for which the

2-24  estimated cost exceeds $100,000.

2-25      4.  After awarding an indefinite quantity contract, the Clark

2-26  County School District may issue work orders pursuant to section

2-27  10 of this act without complying with the provisions of NRS

2-28  338.1377 to 338.1389, inclusive, or 338.143, 338.145 and 338.147.

2-29      5.  For the purposes of NRS 338.400 to 338.645, inclusive:

2-30      (a) A work order issued pursuant to section 10 of this act is a

2-31  contract; and

2-32      (b) An indefinite quantity contract is not a contract.

2-33      Sec.  6.  If the Clark County School District desires to award

2-34  an indefinite quantity contract, the Clark County School District

2-35  must develop:

2-36      1.  A catalog of construction tasks which must:

2-37      (a) Contain a list of public works that may be requested of the

2-38  contractor pursuant to the indefinite quantity contract;

2-39      (b) Define what constitutes a unit of each public work listed in

2-40  the catalog; and

2-41      (c) Set forth a per-unit price for each public work listed in the

2-42  catalog; and

2-43      2.  Specifications and standard drawings, if appropriate, for

2-44  each public work listed in the catalog of construction tasks.

3-1  Sec.  7.  An advertisement for bids on an indefinite quantity

3-2  contract must state the location at which a bidder may obtain a copy

3-3  of the catalog of construction tasks developed pursuant to section 6

3-4  of this act for the indefinite quantity contract and any specifications

3-5  and standard drawings developed for the public works contained in

3-6  the catalog.

3-7  Sec.  8.  1.  A contractor who desires to bid on an indefinite

3-8  quantity contract must submit to the Clark County School District as

3-9  a bid:

3-10      (a) An adjustment factor for work which is subject to the

3-11  provisions of NRS 338.020 to 338.090, inclusive, and which is

3-12  performed during normal business hours that is calculated by

3-13  determining the percentage of the per-unit prices established by the

3-14  Clark County School District for which the contractor agrees to

3-15  complete any of the public works contained in the catalog of

3-16  construction tasks developed pursuant to section 6 of this act during

3-17  normal business hours;

3-18      (b) An adjustment factor for work which is subject to the

3-19  provisions of NRS 338.020 to 338.090, inclusive, and which is

3-20  performed during times other than normal business hours that is

3-21  calculated by determining the percentage of the per-unit prices

3-22  established by the Clark County School District for which the

3-23  contractor agrees to complete any of the public works contained in

3-24  the catalog of construction tasks developed pursuant to section 6 of

3-25  this act during times other than normal business hours;

3-26      (c) An adjustment factor for work which is not subject to the

3-27  provisions of NRS 338.020 to 338.090, inclusive, and which is

3-28  performed during normal business hours that is calculated by

3-29  determining the percentage of the per-unit prices established by the

3-30  Clark County School District for which the contractor agrees to

3-31  complete any of the public works contained in the catalog of

3-32  construction tasks developed pursuant to section 6 of this act during

3-33  normal business hours; and

3-34      (d) An adjustment factor for work which is not subject to the

3-35  provisions of NRS 338.020 to 338.090, inclusive, and which is

3-36  performed during times other than normal business hours that is

3-37  calculated by determining the percentage of the per-unit prices

3-38  established by the Clark County School District for which the

3-39  contractor agrees to complete any of the public works contained in

3-40  the catalog of construction tasks developed pursuant to section 6 of

3-41  this act during times other than normal business hours.

3-42      2.  A contractor who submits a bid on an indefinite quantity

3-43  contract is not required to submit the information described in NRS

3-44  338.141 with his bid.

4-1  Sec.  9.  1.  An indefinite quantity contract must include,

4-2  without limitation:

4-3  (a) The adjustment factors submitted pursuant to section 8 of

4-4  this act by the contractor;

4-5  (b) A minimum dollar amount of work that the Clark County

4-6  School District agrees to provide to the contractor pursuant to the

4-7  contract;

4-8  (c) A maximum dollar amount of work that the Clark County

4-9  School District may provide to the contractor pursuant to the

4-10  indefinite quantity contract, which must not exceed $5,000,000;

4-11      (d) A method for amending the catalog of construction tasks

4-12  developed pursuant to section 6 of this act to include additional

4-13  public works and a formula for determining a per-unit price for any

4-14  public work that is added to the catalog of construction tasks;

4-15      (e) A method for issuing work orders to the contractor;

4-16      (f) A method for resolving disputes between the Clark County

4-17  School District and the contractor; and

4-18      (g) A method for annually reviewing and revising, if necessary,

4-19  the adjustment factors submitted pursuant to section 8 of this act.

4-20  The method must be based upon a price index of construction costs

4-21  that is nationally recognized in the construction industry, as

4-22  determined by the Clark County School District.

4-23      2.  The term of an indefinite quantity contract must be:

4-24      (a) Not more than 1 year or until the expiration of any extension

4-25  or renewal of the indefinite quantity contract; or

4-26      (b) Until completion of the maximum dollar amount of work set

4-27  forth in the indefinite quantity contract,

4-28  whichever occurs earlier.

4-29      3.  An indefinite quantity contract may be renewed or extended

4-30  once for a period of not more than 1 year upon the agreement of the

4-31  Clark County School District and the contractor who is a party to

4-32  the indefinite quantity contract. Any extension or renewal of an

4-33  indefinite quantity contract must be priced on the basis of the

4-34  catalog of construction tasks developed pursuant to section 6 of this

4-35  act for the indefinite quantity contract.

4-36      Sec.  10.  1.  If the Clark County School District desires to

4-37  have a public work completed pursuant to an indefinite quantity

4-38  contract, the Clark County School District must describe the scope

4-39  of work in writing to the contractor who was awarded the indefinite

4-40  quantity contract.

4-41      2.  After receiving the description of the scope of work pursuant

4-42  to subsection 1, the contractor shall prepare and submit to the Clark

4-43  County School District a proposal in writing that must include,

4-44  without limitation:

5-1  (a) An estimated cost of the public work as determined pursuant

5-2  to subsection 3;

5-3  (b) A schedule for completing the public work; and

5-4  (c) The information required to be submitted with a bid on a

5-5  contract pursuant to NRS 338.141.

5-6  3.  The estimated cost of a public work submitted pursuant to

5-7  subsection 2 must be in an amount equal to the number of units of

5-8  the public work to be completed by the contractor during normal

5-9  business hours multiplied by the adjusted price for work performed

5-10  during normal business hours plus the number of units of the public

5-11  work to be completed during times other than normal business hours

5-12  multiplied by the adjusted price for work performed during times

5-13  other than normal business hours. The adjusted price for work

5-14  performed during normal business hours is equal to the per-unit

5-15  price of the public work set forth in the catalog of construction tasks

5-16  developed pursuant to section 6 of this act multiplied by the

5-17  appropriate adjustment factor submitted pursuant to section 8 of this

5-18  act for work performed during normal business hours. The adjusted

5-19  price for work performed during times other than normal business

5-20  hours is equal to the per-unit price of the public work set forth in the

5-21  catalog of construction tasks developed pursuant to section 6 of this

5-22  act multiplied by the appropriate adjustment factor submitted

5-23  pursuant to section 8 of this act for work performed during other

5-24  than normal business hours.

5-25      4.  After receiving a proposal pursuant to subsection 2, the

5-26  Clark County School District shall review the proposal and:

5-27      (a) If the Clark County School District agrees with the proposal,

5-28  submit a work order to the contractor that must include, without

5-29  limitation:

5-30          (1) The scope of work of the public work;

5-31          (2) The estimated cost of the public work; and

5-32          (3) The schedule for completing the public work; or

5-33      (b) If the Clark County School District does not agree with the

5-34  proposal, reject the proposal.

5-35      5.  If the Clark County School District rejects a proposal

5-36  pursuant to subsection 4, the contractor may amend the proposal and

5-37  resubmit the proposal to the Clark County School District.

5-38      6.  The Clark County School District shall not:

5-39      (a) Issue a work order pursuant to this section for a public work

5-40  with an estimated cost of more than $500,000; or

5-41      (b) Divide a public work into separate portions to avoid the

5-42  requirements of paragraph (a).

 

 

6-1  Sec.  11.  This act becomes effective on July 1, 2003, and

6-2  expires by limitation on July 1, 2005.

 

6-3  H