SB315 - Authorizes the Department of Transportation to enter into a progressive design-build contract for a certain project. (BDR S-626)

- 83rd Session (2025) Senate Bill No. 315–Senator Daly CHAPTER.......... AN ACT relating to transportation; authorizing the Department of Transportation to enter into a progressive design-build contract for a certain project; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Under existing law, the Department of Transportation is authorized to contract with a design-build team with respect to a project for the design and construction, reconstruction or improvement of highways in certain circumstances. (NRS 408.3875-408.3888) Section 8 of this bill authorizes the Department to enter into one or more progressive design-build contracts for the preconstruction, final design and construction of the project consisting of improvements to Interstate 80 East between Vista Boulevard in Sparks, Nevada and USA Parkway (State Route 439) in Storey County, Nevada. Section 9 of this bill requires the Department to advertise a solicitation for the project on its Internet website. Section 10 of this bill provides for the issuance of a request for proposals in a one-step procurement process, and a request for qualifications in a two-step procurement process. Section 10 prescribes the procedure for the review of submissions and the selection of an applicant. Section 10 authorizes the Department to negotiate to enter into a contract for preconstruction services with a progressive design-build team. If the Department enters into a progressive design-build contract with a progressive design-build team pursuant to section 10, section 11 of this bill authorizes the Department, after the progressive design-build team has progressed in the design for project, or any portion thereof, in a sufficient manner to determine the cost of the final design and construction of the project, to enter into negotiations with the progressive design-build team for a contract or a contract amendment to complete final design and construction of the project, or any portion thereof. If such negotiations fail, section 11 requires the Department to terminate negotiations and authorizes the Department to: (1) enter into a separate contract with a qualified person who was a member of the progressive design-build team to complete the design of the project, or portion thereof; or (2) undertake a new procurement under a different procurement method. Section 12 of this bill prescribes the requirements for a progressive design-build contract entered into pursuant to section 11. Section 12.5 of this bill prescribes the requirements for a contract with a design professional for the provision of services for the project. Section 13 of the bill provides for the confidentiality of certain information and documents concerning the project. Section 14 of this bill authorizes the Department to employ a registered architect or licensed professional engineer as a consultant to assist the Department in overseeing the preconstruction and construction of the project. Sections 2-7 of this bill define relevant terms for this bill. – 2 – - 83rd Session (2025) EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. As used in sections 1 to 14, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 2 to 7, inclusive, of this act have the meanings ascribed to them in those sections. Sec. 2. “Department” means the Department of Transportation. Sec. 3. “Preconstruction services” means services performed before and leading up to construction. The term includes, without limitation: 1. A portion or all of the preliminary, advanced or final design; 2. Assisting the Department with: (a) The environmental review process; (b) The process for obtaining permits; and (c) Determining whether any scheduling or constructability problems exist that would delay or impact construction or increase the price of the project, or portions of the project; 3. Estimating the cost of the project, or portions of the project, including, without limitation, labor, materials and equipment, and determining whether the project, or portions of the project, can be constructed within the budget of the Department; 4. Conducting due diligence and investigations of sites; and 5. Undertaking preliminary construction work approved by the Department. Sec. 4. “Prime contractor” means a person who: 1. Enters into one or more contracts to design and construct the project, or a portion thereof; 2. Coordinates work performed on the project; 3. Uses its own workforce to perform all, or a portion, of the design and construction of the project; and 4. Enters into one or more contracts for the services of a subcontractor, supplier or independent contractor on the project or is responsible for making payments to subcontractors, suppliers or independent contractors on the project. Sec. 5. “Progressive design-build” means a procurement method in which the Department selects a progressive design-build team, in one or more steps, to enter into a contract with the Department to perform preconstruction services that may progress to the completion of the final design and construction of the project, – 3 – - 83rd Session (2025) or a portion thereof, upon negotiation and approval by the Department of a price and other terms and conditions. Sec. 6. “Progressive design-build team” means a team that consists of: 1. At least one person who is licensed as a general engineering contractor or a general building contractor pursuant to chapter 624 of NRS. 2. At least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS or is licensed as a professional engineer pursuant to chapter 625 of NRS. Sec. 7. “Project” means the project for which the Department is authorized to enter into a contract with a progressive design-build team pursuant to section 8 of this act. Sec. 8. Notwithstanding any other provision of law, the Department may enter into one or more contracts for carrying out the project consisting of improvements to Interstate 80 East between Vista Boulevard in Sparks, Nevada, and USA Parkway (State Route 439) in Storey County, Nevada, by: 1. Selecting a progressive design-build team pursuant to section 10 of this act; and 2. Entering into a single contract or separate contracts with the progressive design-build team: (a) For preconstruction services. (b) Except as otherwise provided in section 11 of this act, for the final design and construction of the project. Sec. 9. 1. The Department shall advertise a solicitation for a progressive design-build team for the project on the Internet website of the Department. 2. A solicitation advertised pursuant to subsection 1 must include, without limitation: (a) A description of the project; (b) An estimate of the cost to construct the project; (c) A description of the work that the Department expects the progressive design-build team to perform; (d) The estimated date of completion of the construction work on the project; (e) The date by which proposals in a one-step procurement process, or a statement of qualifications in a two-step procurement process, must be submitted to the Department; (f) A statement setting forth the requirement that the prime contractor be qualified to bid on a public work pursuant to NRS 338.1379; – 4 – - 83rd Session (2025) (g) A statement setting forth the requirement that the members of the progressive design-build team possess the licenses and certificates necessary to carry out their respective functions in this State; (h) A list of the factors and relative weight assigned to each factor that the Department will use to evaluate the progressive design-build teams who submit their proposals or qualifications for the project; and (i) Notice that a progressive design-build team desiring to submit its proposal in a one-step procurement process, or its statement of qualifications in a two-step procurement process, for the project must include with its submission the information used by the Department to evaluate the submissions of the applicants pursuant to section 10 of this act. Sec. 10. 1. The Department shall prepare and issue: (a) In a one-step procurement process, a request for proposals containing the elements described in subsections 2, 3 and 4; or (b) In a two-step procurement process, a request for qualifications containing the elements described in subsections 2 and 3 followed by a request for proposals containing the elements described in subsection 4. 2. The eligibility requirements that must be demonstrated by applicants include, without limitation: (a) Evidence of the ability of the applicant to obtain necessary bonding for the work required by the Department to be performed; (b) Evidence of the ability of the applicant to obtain such insurance as may be required by law, including, without limitation, evidence of the ability of any member of the progressive design- build team who is licensed as a professional engineer pursuant to chapter 625 of NRS to obtain professional liability insurance in an amount not to exceed $1,000,000 in the aggregate; (c) Evidence that the prime contractor is qualified to bid on a public work pursuant to NRS 338.1379; (d) Evidence that the members of the progressive design-build team possess the licenses and certificates necessary to carry out their functions in this State; and (e) A statement of whether the applicant has been: (1) Found liable for breach of contract with respect to a previous project, other than a breach of contract for a legitimate cause, during the 5 years immediately preceding the date on which the solicitation was advertised pursuant to section 9 of this act; and (2) Disqualified from being awarded a contract pursuant to NRS 338.017, 338.13895, 338.1475 or 408.333. – 5 – - 83rd Session (2025) 3. The qualification requirements must set forth: (a) The factors that the Department will use to qualify a progressive design-build team, including, without limitation, the relative weight to be assigned to each factor. Such factors may include, without limitation: (1) The professional qualifications and experience of the applicant; and (2) The performance history of the members of the progressive design-build team concerning other recent, similar projects completed by those members, if any. (b) The date by which statements of qualifications must be submitted to the Department. 4. The request for proposals must set forth: (a) The factors that the Department will use to select a progressive design-build team, including, without limitation, the relative weight to be assigned to each factor. Such factors may include, without limitation: (1) The professional qualifications and experience of the applicant; (2) The performance history of the members of the progressive design-build team concerning other recent, similar projects completed by those members, if any; (3) The proposed plan to manage and carry out the preconstruction phase of the project; (4) The proposed plan to manage and carry out the final design and construction phase of the project; (5) The proposed conceptual and technical approach to the project; (6) The proposed approach to pricing and estimating the cost of the final design and construction of the project, which must comply with NRS 625.530; and (7) Cost information, which must be prepared in compliance with NRS 625.530. (b) The date by which the proposals must be submitted to the Department. (c) The requirement that the proposal comply with the provisions of NRS 338.141. 5. After the deadline for submission of a statement of qualifications or proposals, the Department shall review the submissions. The Department may evaluate submissions based solely upon the information provided in the statement of qualifications or proposals of each applicant. After review of the submissions, the Department may interview some or all of the – 6 – - 83rd Session (2025) applicants to further evaluate which applicant offers the best value for the project. 6. For each request for qualifications or proposals, the Department shall rank the applicants and generate a final list of eligible applicants that participated in the request for qualifications or proposals before entering into negotiations for one or more contracts to which the request for qualifications or proposals applies. The ranking of the statements of qualifications or proposals must assign a relative weight of 5 percent to the possession by the applicant of a certificate of eligibility to receive a preference in bidding on public works if the applicant submits a signed affidavit that the applicant meets the requirements of subsection 1 of NRS 338.0117. 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, the provisions of this subsection do not apply insofar as their application would preclude or reduce federal assistance. 7. If the Department issues a request for qualifications pursuant to this section, the Department must select at least two but not more than five applicants from the final list of eligible applicants who submitted statements of qualifications and send the selected applicants a request for proposals which includes the information contained in subsection 4. 8. If applicants are required to submit cost information with their proposals for the preconstruction phase of the project, the evaluation must be on a pass or fail basis or based on not more than 20 percent of the scoring, as the Department deems appropriate. 9. If the submissions in response to a request for proposals provide sufficient information to determine which eligible applicant has offered the best value to the public, the Department may enter into negotiations with that applicant concerning contract terms and award a contract for preconstruction services to that applicant. Such a contract must provide for the subsequent negotiations of terms governing the construction phase of the project. If the Department is unable to negotiate a satisfactory contract with that applicant for preconstruction services, the Department may undertake negotiations with a separate eligible applicant that participated in the request for propo [Text truncated for display. Full text available on LegiScan.]