USA Statutes : nevada
Title : Title 27 - PUBLIC PROPERTY AND PURCHASING
Chapter : CHAPTER 332 - PURCHASING: LOCAL GOVERNMENTS
This chapter may be cited as the Local
Government Purchasing Act.
(Added to NRS by 1975, 1536)
For the purpose of this
chapter, unless the context otherwise requires, “local government” means:
1. Every political subdivision or other entity which has the right
to levy or receive money from ad valorem taxes or other taxes or from any
mandatory assessments, including counties, cities, towns, school
districts and other districts organized pursuant to chapters 244 , 309 , 318 , 379 , 450 , 473 , 474 , 539 , 541 , 543 and 555 of NRS.
2. The Las Vegas Valley Water District created pursuant to the
provisions of chapter 167, Statutes of Nevada 1947, as amended.
3. County fair and recreation boards and convention authorities
created pursuant to the provisions of NRS 244A.597 to 244A.655 , inclusive.
4. District boards of health created pursuant to the provisions of
NRS 439.362 or 439.370 .
5. The Nevada Rural Housing Authority.
(Added to NRS by 1975, 1536; A 1977, 536; 1995, 814; 2003, 2261
; 2005, 2478 )
As used in this chapter, unless
the context otherwise requires:
1. “Authorized representative” means a person designated by the
governing body to be responsible for the development, award and proper
administration of all purchases and contracts for a local government or a
department, division, agency, board or unit of a local government made
pursuant to this chapter.
2. “Chief administrative officer” means the person directly
responsible to the governing body for the administration of that
particular entity.
3. “Evaluator” means an authorized representative, officer,
employee, representative, agent, consultant or member of a governing body
who has participated in:
(a) The evaluation of bids;
(b) Negotiations concerning purchasing by a local government; or
(c) The review or approval of the award, modification or extension
of a contract.
4. “Governing body” means the board, council, commission or other
body in which the general legislative and fiscal powers of the local
government are vested.
5. “Proprietary information” means:
(a) Any trade secret or confidential business information that is
contained in a bid submitted to a governing body or its authorized
representative on a particular contract; or
(b) Any other trade secret or confidential business information
submitted to a governing body or its authorized representative by a
bidder and designated as proprietary by the governing body or its
authorized representative.
Ê As used in this subsection, “confidential business information” means
any information relating to the amount or source of any income, profits,
losses or expenditures of a person, including data relating to cost,
price, or the customers of a bidder which is submitted in support of a
bid. The term does not include the amount of a bid submitted to a
governing body or its authorized representative.
6. “Trade secret” has the meaning ascribed to it in NRS 600A.030
.
(Added to NRS by 1975, 1536; A 1985, 514; 1995, 1731; 2001, 1314
)
PROCEDURES FOR LOCAL GOVERNMENT PURCHASING
Bidding Procedures
1. Except as otherwise provided by specific statute:
(a) A governing body or its authorized representative shall
advertise all contracts for which the estimated amount required to
perform the contract exceeds $25,000.
(b) A governing body or its authorized representative may enter
into a contract of any nature without advertising if the estimated amount
required to perform the contract is $25,000 or less.
(c) If the estimated amount required to perform the contract is
more than $10,000 but not more than $25,000, requests for bids must be
submitted or caused to be submitted by the governing body or its
authorized representative to two or more persons capable of performing
the contract, if available. The governing body or its authorized
representative shall maintain a record of all requests for bids and all
bids received for the contract for at least 7 years after the date of
execution of the contract.
2. This section does not prohibit a governing body or its
authorized representative from advertising for or requesting bids
regardless of the estimated amount to perform the contract.
(Added to NRS by 1993, 2553; A 1999, 1682 ; 2003, 667 ; 2005, 2551 )
1. The advertisement required by paragraph (a) of subsection 1 of
NRS 332.039 must be published at least
once and not less than 7 days before the opening of bids. The
advertisement must be by notice to bid and must be published in a
newspaper qualified pursuant to chapter 238
of NRS that has a general circulation within the county wherein the local
government, or a major portion thereof, is situated.
2. The notice must state:
(a) The nature, character or object of the contract.
(b) If plans and specifications are to constitute part of the
contract, where the plans and specifications may be seen.
(c) The time and place where bids will be received and opened.
(d) Such other matters as may properly pertain to giving notice to
bid.
(Added to NRS by 1975, 1536; A 1979, 172; 1983, 1659; 1993, 2554;
1999, 1036 ; 2003, 667 ; 2005, 2552 )
1. A governing body or its authorized representative may use
on-line bidding to receive bids submitted in response to a request for
bids. The governing body or its authorized representative shall not use
on-line bidding as the exclusive means of receiving bids for the request
for bids.
2. A request for bids for which bids may be submitted pursuant to
subsection 1 must designate a date and time at which bids may be
submitted and may designate a date and time after which bids will no
longer be received.
3. A governing body or its authorized representative may require
bidders to:
(a) Register before the date and time at which bids may be
submitted; and
(b) Agree to terms, conditions or requirements of the request for
bids to facilitate on-line bidding.
4. The procedures established by a governing body or its
authorized representative for the purposes of conducting on-line bidding
must not conflict with the provisions of this chapter.
5. As used in this section, “on-line bidding” means a process by
which bidders submit bids for a contract on a secure website on the
Internet or its successor, if any, which is established and maintained
for that purpose.
(Added to NRS by 2001, 1314 ; A 2005, 2552 )
1. Except as otherwise provided in this subsection, proprietary
information does not constitute public information and is confidential. A
person shall not disclose proprietary information unless:
(a) The disclosure is made for the purpose of a civil,
administrative or criminal investigation or proceeding; and
(b) The person receiving the information represents in writing that
protections exist under applicable law to preserve the integrity,
confidentiality and security of the information.
2. A bid which contains a provision that requires negotiation or
evaluation by the governing body or an evaluator may not be disclosed
until the bid is recommended for the award of a contract.
(Added to NRS by 1995, 1731; A 2001, 1315 ; 2005, 2553 )
1. If a governing body or its authorized representative has
advertised for or requested bids in letting a contract, the governing
body or its authorized representative must, except as otherwise provided
in subsection 2, award the contract to the lowest responsive and
responsible bidder. The lowest responsive and responsible bidder may be
judged on the basis of:
(a) Price;
(b) Conformance to specifications;
(c) Qualifications;
(d) Past performance;
(e) Performance or delivery date;
(f) Quality and utility of services, supplies, materials or
equipment offered and the adaptability of those services, supplies,
materials or equipment to the required purpose of the contract;
(g) The best interests of the public; and
(h) Such other criteria as may be set forth by the governing body
or its authorized representative in the advertisement or request for
bids, as applicable, that pertains to the contract.
2. The governing body or its authorized representative:
(a) Shall give preference to recycled products if:
(1) The product meets the applicable standards;
(2) The product can be substituted for a comparable
nonrecycled product; and
(3) The product costs no more than a comparable nonrecycled
product.
(b) May give preference to recycled products if:
(1) The product meets the applicable standards;
(2) The product can be substituted for a comparable
nonrecycled product; and
(3) The product costs no more than 5 percent more than a
comparable nonrecycled product.
(c) May purchase recycled paper products if the specific recycled
paper product is:
(1) Available at a price which is not more than 10 percent
higher than that of paper products made from virgin material;
(2) Of adequate quality; and
(3) Available to the purchaser within a reasonable period.
3. If after the lowest responsive and responsible bidder has been
awarded the contract, during the term of the contract he does not supply
goods or services in accordance with the bid specifications, or if he
repudiates the contract, the governing body or its authorized
representative may reaward the contract to the next lowest responsive and
responsible bidder without requiring that new bids be submitted.
Reawarding the contract to the next lowest responsive and responsible
bidder is not a waiver of any liability of the initial bidder awarded the
contract.
4. As used in this section:
(a) “Postconsumer waste” means a finished material which would
normally be disposed of as a solid waste having completed its life cycle
as a consumer item.
(b) “Recycled paper product” means all paper and wood-pulp products
containing in some combination at least 50 percent of its total weight:
(1) Postconsumer waste; and
(2) Secondary waste,
Ê but does not include fibrous waste generated during the manufacturing
process such as fibers recovered from wastewater or trimmings of paper
machine rolls, wood slabs, chips, sawdust or other wood residue from a
manufacturing process.
(c) “Secondary waste” means fragments of products or finished
products of a manufacturing process which has converted a virgin resource
into a commodity of real economic value.
(Added to NRS by 1975, 1537; A 1991, 375, 1673, 2191; 1999, 1683
; 2001, 1315 ; 2003, 618 ; 2005, 2553 )
1. A person who submits a bid on a contract that is required to be
advertised pursuant to paragraph (a) of subsection 1 of NRS 332.039
may, after the bids are opened and
within the period specified by the governing body or its authorized
representative, file with the governing body or its authorized
representative a notice of protest regarding the awarding of the contract.
2. A notice of protest must include a written statement setting
forth with specificity the reasons the person filing the notice believes
the applicable provisions of law were violated.
3. A person filing a notice of protest may be required by the
governing body or its authorized representative, at the time the notice
of protest is filed, to post a bond with a good and solvent surety
authorized to do business in this State or submit other security, in a
form approved by the governing body or its authorized representative, to
the governing body or its authorized representative who shall hold the
bond or other security until a determination is made on the protest. A
bond posted or other security submitted with a notice of protest must be
in an amount equal to the lesser of:
(a) Twenty-five percent of the total value of the bid submitted by
the person filing the notice of protest; or
(b) Two hundred fifty thousand dollars.
4. A notice of protest filed in accordance with the provisions of
this section operates as a stay of action in relation to the awarding of
any contract until a determination is made by the governing body or its
authorized representative on the protest.
5. A person who submits an unsuccessful bid may not seek any type
of judicial intervention until the governing body or its authorized
representative has made a determination on the protest and awarded the
contract.
6. A governing body or its authorized representative is not liable
for any costs, expenses, attorney’s fees, loss of income or other damages
sustained by a person who submits a bid, whether or not the person files
a notice of protest pursuant to this section.
7. If the protest is upheld, the bond posted or other security
submitted with the notice of protest must be returned to the person who
posted the bond or submitted the security. If the protest is rejected, a
claim may be made against the bond or other security by the governing
body or its authorized representative in an amount equal to the expenses
incurred by the governing body or its authorized representative because
of the unsuccessful protest. Any money remaining after the claim has been
satisfied must be returned to the person who posted the bond or submitted
the security.
(Added to NRS by 2005, 2551 )
Any or all bids received in
response to a request for bids may be rejected by the governing body or
its authorized representative if such governing body or its authorized
representative determines that any such bidder is not responsive or
responsible or that the quality of the services, supplies, materials,
equipment or labor offered does not conform to requirements or if the
public interest would be served by such a rejection.
(Added to NRS by 1975, 1537)
In
determining the responsibility of any bidder, the governing body or its
authorized representative:
1. Shall consider the possession of and limit on any required
license of the bidder; and
2. May consider the:
(a) Financial responsibility of the bidder;
(b) Experience of the bidder;
(c) Adequacy of the equipment of the bidder;
(d) Past performance of the bidder;
(e) Performance or delivery date; and
(f) Ability of the bidder to perform the contract.
(Added to NRS by 1975, 1537; A 1983, 914; 2001, 1316 ; 2003, 619 )
1. No contract awarded may be assigned to any other person without
the consent of the governing body or its authorized representative.
2. No contract awarded or any portion thereof may be assigned to
any person who was declared by the governing body or its authorized
representative not to be a responsible person to perform the particular
contract.
(Added to NRS by 1975, 1537; A 1999, 1684 ; 2001, 1316 )
1. A bid bond, performance bond, payment bond or any combination
thereof, with sufficient surety, in such amount as may be determined
necessary by the governing body or its authorized representative, may be
required of each bidder or contractor on a particular contract.
2. Any such bonds may be to insure proper performance of the
contract and save, indemnify and keep harmless the local government
against all loss, damages, claims, liabilities, judgments, costs and
expenses which may accrue against the local government in consequence of
the awarding of the contract.
3. If a local government requires such a bond, it shall not also
require a detailed financial statement from each bidder on the contract.
(Added to NRS by 1975, 1537; A 1983, 914)
Exceptions to Requirements for Competitive Bidding
1. For the purposes of this section, an “emergency” is one which:
(a) Results from the occurrence of a disaster including, but not
limited to, fire, flood, hurricane, riot, power outage or disease; or
(b) May lead to impairment of the health, safety or welfare of the
public if not immediately attended to.
2. If the authorized representative, chief administrative officer
or governing body of the local government determines that an emergency
exists affecting the public health, safety or welfare, a contract or
contracts necessary to contend with the emergency may be let without
complying with the requirements of this chapter. If such emergency action
was taken by the authorized representative or chief administrative
officer, he shall report it to the governing body at its next regularly
scheduled meeting.
(Added to NRS by 1975, 1537; A 1999, 1682 )—(Substituted in revision for NRS 332.055)
1. Contracts which by their nature are not adapted to award by
competitive bidding, including contracts for:
(a) Items which may only be contracted from a sole source;
(b) Professional services;
(c) Additions to and repairs and maintenance of equipment which may
be more efficiently added to, repaired or maintained by a certain person;
(d) Equipment which, by reason of the training of the personnel or
of an inventory of replacement parts maintained by the local government
is compatible with existing equipment;
(e) Perishable goods;
(f) Insurance;
(g) Hardware and associated peripheral equipment and devices for
computers;
(h) Software for computers;
(i) Books, library materials and subscriptions;
(j) Motor vehicle fuel purchased by a local law enforcement agency
for use in an undercover investigation;
(k) Motor vehicle fuel for use in a vehicle operated by a local law
enforcement agency or local fire department if such fuel is not available
within the vehicle’s assigned service area from a fueling station owned
by the State of Nevada or a local government;
(l) Purchases made with money in a store fund for prisoners in a
jail or local detention facility for the provision and maintenance of a
canteen for the prisoners;
(m) Supplies, materials or equipment that are available pursuant to
an agreement with a vendor that has entered into an agreement with the
General Services Administration or another governmental agency located
within or outside this State;
(n) Items for resale through a retail outlet operated in this State
by a local government or the State of Nevada;
(o) Commercial advertising within a recreational facility operated
by a county fair and recreation board;
(p) Goods or services purchased from organizations or agencies
whose primary purpose is the training and employment of handicapped
persons; and
(q) The design of, and equipment and services associated with,
systems of communication,
Ê are not subject to the requirements of this chapter for competitive
bidding, as determined by the governing body or its authorized
representative.
2. The purchase of equipment for use by a local law enforcement
agency in the course of an undercover investigation is not subject to the
requirements of this chapter for competitive bidding, as determined by
the governing body or its authorized representative, if:
(a) The equipment is an electronic or mechanical device which by
design is intended to monitor and document in a clandestine manner
suspected criminal activity; or
(b) Purchasing the equipment pursuant to such requirements would
limit or compromise the use of such equipment by an agency authorized to
conduct such investigations.
3. The purchase of personal safety equipment for use by a response
agency or any other local governmental agency is not subject to the
requirements of this chapter for competitive bidding, as determined by
the governing body or its authorized representative, if:
(a) The personal safety equipment will be used by personnel of the
response agency or other local governmental agency in preventing,
responding to or providing services of recovery or relief in connection
with emergencies, acts of terrorism or other natural or man-made
disasters in which the health, safety or welfare of those personnel may
be compromised, impaired or otherwise threatened; and
(b) The cost of the personal safety equipment is comparable to the
cost of similar personal safety equipment that is available for purchase
by the public.
4. The governing body of a hospital required to comply with the
provisions of this chapter, or its authorized representative, may
purchase goods commonly used by the hospital, under a contract awarded
pursuant to NRS 332.065 , without
additional competitive bidding even if at the time the contract was
awarded:
(a) The vendor supplying such goods to the person awarded the
contract was not identified as a supplier to be used by the person
awarded the contract; or
(b) The vendor was identified as a supplier but was not identified
as the supplier of such goods.
Ê The governing body of the hospital shall make available for public
inspection each such contract and records related to those purchases.
5. This section does not prohibit a governing body or its
authorized representative from advertising for or requesting bids.
6. As used in this section:
(a) “Act of terrorism” has the meaning ascribed to it in NRS
239C.030 .
(b) “Personal safety equipment” means safety equipment that
personnel of a response agency or other local governmental agency:
(1) Use in the course of preventing, responding to or
providing services of recovery or relief in connection with emergencies,
acts of terrorism or other natural or man-made disasters; or
(2) Wear or otherwise carry on a regular basis.
Ê The term includes, without limitation, firearms, boots, bulletproof
vests or other types of body armor, protective garments, protective
eyewear, gloves, helmets, and any specialized apparatus, equipment or
materials approved or recommended by the United States Department of
Homeland Security.
(c) “Response agency” means an agency of a local government that
provides services related to law enforcement, firefighting, emergency
medical care or public safety.
(Added to NRS by 1975, 1538; A 1987, 296, 1484; 1991, 337, 349,
648, 1934, 1935; 1997, 132; 1999, 889, 1684; 2001, 1317; 2003, 620, 2262;
2005, 226, 2554)
1. A governing body of a local government or its authorized
representative may award, without complying with the requirements for
competitive bidding set forth in this chapter, a contract for services or
for the purchase of supplies, materials, equipment or labor to an
organization or agency whose primary purpose is the training and
employment of persons with a mental or physical disability, including,
without limitation, a community-based training center for the care and
training of mentally and functionally retarded persons described in
chapter 435 of NRS.
2. An organization or agency that wishes to submit a bid for such
a contract must establish a fair-market price for those services,
supplies, materials, equipment or labor by conducting a market survey and
must include the survey with the bid submitted to the local government.
(Added to NRS by 2001, 1535 )
1. Nothing in this chapter prohibits a governing body or its
authorized representative from contracting for interstate or intrastate
carriage of persons or property with a certificated common or contract
carrier at the rates set forth in the officially approved tariff of such
carrier.
2. Nothing in this section prohibits a governing body or its
authorized representative from soliciting informal rate quotations.
3. Nothing in this chapter prohibits a governing body or its
authorized representative from obtaining supplies, materials, equipment
or services on a voluntary basis from the Purchasing Division of the
Department of Administration pursuant to NRS 333.470 .
(Added to NRS by 1975, 1538; A 1991, 618; 1993, 1564)
1. Except as otherwise provided by law, if the governing body or
its authorized representative determines that the supplies, materials or
equipment can be purchased at any public auction, closeout sale,
bankruptcy sale, sale of merchandise left after an exhibition, or other
similar sale at a reasonable savings over the cost of like merchandise
and below the market cost in the community, a contract or contracts may
be let or the purchase made without complying with the requirements of
this chapter for competitive bidding.
2. The documentation for the purchase or acquisition must be
summarized for the next regularly scheduled meeting of the governing
body, together with written justification showing the savings involved.
(Added to NRS by 1975, 1538; A 1983, 845; 2001, 1318 )
1. Except as otherwise provided in subsection 2, when a governing
body or its authorized representative has advertised for or requested
bids in letting a contract and no responsible bids are received, the
governing body or its authorized representative may let the contract
without competitive bidding not less than 7 days after it publishes a
notice stating that no bids were received on the contract and that the
contract may be let without further bidding.
2. A governing body or its authorized representative shall
entertain any bid which is submitted after it publishes such notice and
before the expiration of the waiting period.
(Added to NRS by 1977, 463; A 1999, 1685 )
GENERAL POWERS AND DUTIES OF LOCAL GOVERNMENTS
A
governing body or its authorized representative may solicit and accept
trade-in allowances for personal property of the public entity which has
been determined by the governing body or its authorized representative to
be no longer required for public use in any manner authorized by law.
(Added to NRS by 1975, 1539; A 1999, 1685 ; 2001, 1319 )
1. Except as otherwise provided in subsection 2 and NRS 244.1505
and 334.070 , all sales of personal property of the local
government must be made, as nearly as possible, under the same conditions
and limitations as required by this chapter in the purchase of personal
property. The governing body or its authorized representative may dispose
of personal property of the local government by any manner, including,
without limitation, at public auction, if the governing body or its
authorized representative determines that the property is no longer
required for public use and deems such action desirable and in the best
interests of the local government.
2. The board of trustees of a school district may donate surplus
personal property of the school district to a charter school that is
located within the school district without regard to:
(a) The provisions of this chapter; or
(b) Any statute, regulation, ordinance or resolution that requires:
(1) The posting of notice or public advertising.
(2) The inviting or receiving of competitive bids.
(3) The selling or leasing of personal property by contract
or at a public auction.
3. The provisions of this chapter do not apply to the purchase,
sale, lease or transfer of real property by the governing body.
(Added to NRS by 1975, 1539; A 1983, 1248; 1999, 1685 , 3320 , 3322 ; 2001, 238 , 1319 )
1. A governing body or its authorized representative and the State
of Nevada may join or use the contracts of local governments located
within or outside this State with the authorization of the contracting
vendor. The originally contracting local government is not liable for the
obligations of the governmental entity which joins or uses the contract.
2. A governing body or its authorized representative may join or
use the contracts of the State of Nevada or another state with the
authorization of the contracting vendor. The State of Nevada or other
state is not liable for the obligations of the local government which
joins or uses the contract.
(Added to NRS by 1975, 1539; A 1985, 357; 1999, 1686 ; 2001, 1320 ; 2003, 2263 ; 2005, 2556 )
1. Each county of this state whose population is 100,000 or more,
must be a member of the Commission to Study Governmental Purchasing which
is composed of all purchasing agents of the local governments within
those counties. Each county whose population is less than 100,000 may
participate as a voting member of the Commission. The members shall
select a Chairman from among their number.
2. The Commission shall meet no less than quarterly or at the call
of the Chairman to study practices in governmental purchasing and laws
relating thereto and shall make recommendations with respect to those
laws to the next regular session of the Legislature.
(Added to NRS by 1975, 1540; A 1979, 537; 1985, 358)
1. A governing body may provide maintenance services for vehicles
which belong to, and may purchase motor vehicle fuel to sell to:
(a) Any public agency or organization which is supported by tax
money; and
(b) Any private agency or organization which is incorporated as a
nonprofit corporation pursuant to chapter 81
or 82 of NRS,
Ê and which uses the vehicles and fuel in specially providing
transportation to the elderly or handicapped.
2. The governing body shall establish regulations for determining
the eligibility of applicants for maintenance services and fuel pursuant
to this section.
3. The costs of all maintenance services and fuel provided
pursuant to this section must be paid for by the agency or organization
which receives the service or fuel.
(Added to NRS by 1979, 88; A 1981, 239; 1991, 1313)
A nonprofit corporation that provides ambulance services
pursuant to a franchise agreement with a local government may obtain
supplies, materials and equipment on a voluntary basis through the
facilities of the local government.
(Added to NRS by 1995, 1731)
Approval by a governing
body of an application for a federal categorical grant does not dispense
with the requirements of this chapter for approval by the governing body
of the letting of any contract.
(Added to NRS by 1975, 1540)
PERFORMANCE CONTRACTS FOR OPERATING COST-SAVINGS MEASURES
As used in NRS 332.300 to 332.440 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 332.310 to 332.350
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 2003, 3049 )
“Building” means any structure,
building or facility, including any equipment, furnishings or appliances
within the structure, building or facility, that is owned or operated by
a local government. The term includes, without limitation, occupied and
unoccupied structures, buildings and facilities, and any other
improvements owned or operated by a local government that incur operating
costs.
(Added to NRS by 2003, 3049 )
“Operating cost
savings” means any expenses that are eliminated or avoided on a long-term
basis as a result of the installation or modification of equipment, or
services performed by a qualified service company. The term does not
include any savings that are realized solely because of a shift in the
cost of personnel or other similar short-term cost savings.
(Added to NRS by 2003, 3049 )
“Operating
cost-savings measure” means any improvement, repair or alteration to a
building, or any equipment, fixture or furnishing to be added or used in
a building that is designed to reduce operating costs, including those
costs related to electrical energy and demand, thermal energy, water
consumption, waste disposal and contract-labor costs, and increase the
operating efficiency of the building for the appointed functions that are
cost-effective. The term includes, without limitation:
1. Procurement of low-cost energy supplies, including electricity
and natural gas.
2. Procurement of cost savings as a result of outsourcing energy
needs for electrical power, heating and cooling.
3. Operational or maintenance labor savings resulting from reduced
costs for maintenance contracts as provided through reduction of required
maintenance or operating tasks, including, without limitation,
replacement of filters and lighting products, and equipment failures.
4. Investment in equipment, products and materials, and strategies
for building operation, or any combination thereof, designed to reduce
energy and other utility expenses, including, without limitation:
(a) Costs for materials and labor required to replace old equipment
with new, more efficient equipment.
(b) Storm windows or doors, caulking or weather stripping,
multiglazed windows or doors, heat-absorbing or heat-reflective glazed or
coated windows or doors, reductions in glass area, and other
modifications to windows and doors that will reduce energy consumption.
(c) Automated or computerized energy control systems.
(d) Replacement of, or modifications to, heating, ventilation or
air-conditioning systems.
(e) Replacement of, or modifications to, lighting fixtures.
(f) Improvements to the indoor air quality of a building that
conform to all requirements of an applicable building code.
(g) Energy recovery systems.
(h) Systems for combined cooling, heating and power that produce
steam or other forms of energy, for use primarily within the building or
a complex of buildings.
(i) Installation of, or modifications to, existing systems for
daylighting, including lighting control systems.
(j) Installation of, or modification to, technologies that use
renewable or alternative energy sources.
(k) Programs relating to building operation that reduce operating
costs, including, without limitation, computerized programs, training and
other similar activities.
(l) Programs for improvement of steam traps to reduce operating
costs.
(m) Devices that reduce water consumption in buildings, for lawns
and for other irrigation applications.
(n) Any additional improvements to building infrastructures that
produce energy and operating cost savings, significantly reduce energy
consumption or increase the operating efficiency of the buildings for
their appointed functions, provided that such improvements comply with
applicable building codes.
(o) Trash compaction and waste minimization.
5. Investment in educational programs relating to occupational
behavior that are designed to reduce the consumption of energy or water,
or both, and the generation of waste.
(Added to NRS by 2003, 3049 )
“Performance
contract” means a contract between a local government and a qualified
service company for the evaluation, recommendation and implementation of
one or more operating cost-savings measures.
(Added to NRS by 2003, 3050 )
“Qualified
service company” means a person with a record of established projects or
a person with demonstrated technical, operational, financial and
managerial capabilities to design and carry out operating cost-savings
measures and other similar building improvements, and who has the ability
to secure necessary financial measures to ensure related guarantees for
operating cost savings.
(Added to NRS by 2003, 3050 )
1. Notwithstanding any provision of this chapter and chapter 338
of NRS to the contrary, a local government may enter into a
performance contract with a qualified service company for the purchase
and installation of an operating cost-savings measure to reduce costs
related to energy, water and the disposal of waste, and related labor
costs. Such a performance contract may be in the form of an installment
payment contract or a lease-purchase contract. Any operating cost-savings
measures put into place as a result of a performance contract must comply
with all applicable building codes.
2. The local government shall determine those companies that
satisfy the requirements of qualified service companies for the purposes
of NRS 332.300 to 332.440 , inclusive. The local government shall prepare
and issue a request for qualifications to not less than three potential
qualified service companies.
3. In sending out a request for qualifications, the local
government:
(a) Shall attempt to identify at least one potential qualified
service company located within this state; and
(b) May consider whether and to what extent the companies to which
the request for qualifications will be sent will use local contractors.
4. The local government shall use objective criteria to determine
those companies that satisfy the requirements of qualified service
companies. The objective criteria for evaluation must include the
following areas as substantive factors to assess the capability of such
companies:
(a) Design;
(b) Engineering;
(c) Installation;
(d) Maintenance and repairs associated with performance contracts;
(e) Experience in conversions to different sources of energy or
fuel and other services related to operating cost-savings measures
provided that is done in association with a comprehensive energy, water
or waste disposal cost-savings retrofit;
(f) Monitoring projects after the projects are installed;
(g) Data collection and reporting of savings;
(h) Overall project experience and qualifications;
(i) Management capability;
(j) Ability to access long-term financing;
(k) Experience with projects of similar size and scope; and
(l) Such other factors determined by the local government to be
relevant and appropriate to the ability of a company to perform the
project.
Ê In determining whether a company satisfies the requirements of a
qualified service company, the local government shall also consider the
financial health of the company as evidenced by its financial statements
and ratings and whether the company holds the appropriate licenses
required for the design, engineering and construction to be completed.
5. The local government shall compile a list of those companies
that it determines satisfy the requirements of qualified service
companies. If the local government is interested in entering into a
performance contract, the local government shall notify each appropriate
qualified service company and coordinate an opportunity for each such
qualified service company to:
(a) Perform a preliminary and comprehensive audit and assessment of
all potential operating cost-savings measures that might be implemented
within the buildings of the local government, including any operating
cost-savings measures specifically requested by the local government; and
(b) Submit a proposal and make a related presentation to the local
government for all such operating cost-savings measures that the
qualified service company determines would be practicable to implement.
6. The local government shall:
(a) Evaluate the proposals and presentations made pursuant to
subsection 5; and
(b) Select a qualified service company,
Ê pursuant to the provisions of this chapter for evaluating and awarding
contracts.
7. The qualified service company selected by the local government
pursuant to subsection 6 shall prepare a financial-grade operational
audit. Except as otherwise provided in this subsection, the audit
prepared by the qualified service company becomes, upon acceptance, a
part of the final performance contract and the costs incurred by the
qualified service company in preparing the audit shall be deemed to be
part of the performance contract. If, after the audit is prepared, the
local government decides not to execute the performance contract, the
local government shall pay the qualified service company that prepared
the audit the costs incurred by the qualified service company in
preparing the audit if the local government has specifically appropriated
money for that purpose.
8. The local government shall retain the professional services of
a third-party consultant with the requisite technical expertise to assist
the local government in reviewing the operating cost-savings measures
proposed by the qualified service company and may procure sufficient
funding from the qualified service company, through negotiation, to pay
for the third-party consultant. Such a third-party consultant must be
certified by the Association of Energy Engineers as a “Certified Energy
Manager” or hold similar credentials from a comparable nationally
recognized organization. A third-party consultant retained pursuant to
this subsection shall work on behalf of the local government in
coordination with the qualified service company.
(Added to NRS by 2003, 3051 )
1. A performance contract may be financed through a person other
than the qualified service company.
2. A performance contract may be structured as:
(a) A performance contract that guarantees operating cost savings,
which includes, without limitation, the design and installation of
equipment, the operation and maintenance, if applicable, of any of the
operating cost-savings measures and the guaranteed annual savings which
must meet or exceed the total annual contract payments to be made by the
local government, including any financing charges to be incurred by the
local government over the life of the performance contract. The local
government may require that these savings be verified annually or over a
sufficient period that demonstrates savings.
(b) A shared-savings contract which includes provisions mutually
agreed upon by the local government and qualified service company as to
the negotiated rate of payments based upon operating cost savings and a
stipulated maximum consumption level of energy or water, or both energy
and water, over the life of the contract.
(Added to NRS by 2003, 3052 )
1. A performance contract must provide that all payments, other
than any obligations that become due if the contract is terminated before
the contract expires, must be made over time.
2. Except as otherwise provided in this subsection, a performance
contract, and the payments provided thereunder, may extend beyond the
fiscal year in which the performance contract becomes effective for costs
incurred in future fiscal years. The performance contract may extend for
a term not to exceed 15 years. The length of a performance contract may
reflect the useful life of the operating cost-savings measure being
installed or purchased under the performance contract.
3. The period over which payments are made on a performance
contract must equal the period over which the operating cost savings are
amortized. Payments on a performance contract must not commence until the
operating cost-savings measures have been installed by the qualified
service company.
(Added to NRS by 2003, 3053 )
If a performance
contract entered into pursuant to NRS 332.300 to 332.440 ,
inclusive, requires the employment of skilled mechanics, skilled workmen,
semiskilled mechanics, semiskilled workmen or unskilled labor to perform
the performance contract, the performance contract must include a
provision relating to the prevailing wage as required pursuant to NRS
338.020 to 338.090 , inclusive.
(Added to NRS by 2003, 3053 )
Notwithstanding any provision of NRS 332.300 to 332.440 ,
inclusive, to the contrary, a performance contract entered into pursuant
to NRS 332.300 to 332.440 , inclusive, must include a clause that sets
out the rights of the local government and the qualified service company
if the local government does not appropriate sufficient money for
payments to be continued under the performance contract.
(Added to NRS by 2003, 3053 )
A
local government may reinvest any savings realized under a performance
contract whenever practical into operating cost-savings measures provided
the local government is satisfying all its other obligations under the
performance contract.
(Added to NRS by 2003, 3053 )
1. During the term of a performance contract, the qualified
service company shall monitor the reductions in energy or water
consumption and other operating cost savings attributable to the
operating cost-savings measure purchased or installed under the
performance contract, and shall, at least once a year or at such other
intervals specified in the performance contract, prepare and provide a
report to the local government documenting the performance of the
operating cost-savings measures.
2. A performance contract must identify the methodology that the
local government will use to validate the cost savings identified by the
qualified service company.
3. A qualified service company and the local government may agree
to make modifications in the calculation of savings based on:
(a) Subsequent material changes to the baseline consumption of
energy or water identified at the beginning of the term of the
performance contract.
(b) A change in utility rates.
(c) A change in the number of days in the billing cycle of a
utility.
(d) A change in the total square footage of the building.
(e) A change in the operational schedule, and any corresponding
change in the occupancy and indoor temperature, of the building.
(f) A material change in the weather.
(g) A material change in the amount of equipment or lighting used
at the building.
(h) Any other change which reasonably would be expected to modify
the use of energy or the cost of energy.
(Added to NRS by 2003, 3053 )
A qualified service company shall provide to the
Office of Energy within the Office of the Governor information concerning
each performance contract which the qualified service company enters into
pursuant to NRS 332.300 to 332.440
, inclusive, including, without
limitation, the name of the project, the local government for which the
project is being carried out and the expected operating cost savings. The
Office of Energy may report any energy savings realized as a result of
such performance contracts to the United States Department of Energy
pursuant to 42 U.S.C. § 13385.
(Added to NRS by 2003, 3054 )
A performance contract must include appropriate
financial mechanisms determined to be necessary by the city or county
treasurer, as appropriate, to guarantee that operating cost savings are
realized by the local government if the actual cost savings do not meet
the predicted cost savings.
(Added to NRS by 2003, 3054 )
PROHIBITIONS AND PENALTIES
1. Except as otherwise provided in NRS 281.230 , 281.505 and
281.555 , a member of the governing body
may not be interested, directly or indirectly, in any contract entered
into by the governing body, but the governing body may purchase supplies,
not to exceed $1,500 in the aggregate in any 1 calendar month from a
member of such governing body, when not to do so would be of great
inconvenience due to a lack of any other local source.
2. An evaluator may not be interested, directly or indirectly, in
any contract awarded by such governing body or its authorized
representative.
3. A member of a governing body who furnishes supplies in the
manner permitted by subsection 1 may not vote on the allowance of the
claim for such supplies.
4. A violation of this section is a misdemeanor and, in the case
of a member of a governing body, cause for removal from office.
(Added to NRS by 1975, 1539; A 2001, 1318 ; 2003, 891 )—(Substituted in revision for NRS 332.155)
1. Before a contract is awarded, a person who has bid on the
contract or an officer, employee, representative, agent or consultant of
such a person shall not:
(a) Make an offer or promise of future employment or business
opportunity to, or engage in a discussion of future employment or
business opportunity with, an evaluator or member of the governing body
offering the contract;
(b) Offer, give or promise to offer or give money, a gratuity or
any other thing of value to an evaluator or member of the governing body
offering the contract; or
(c) Solicit or obtain from an officer, employee or member of the
governing body offering the contract, any proprietary information
regarding the contract.
2. A person who violates any of the provisions of subsection 1 is
guilty of a gross misdemeanor and shall be punished by imprisonment in
the county jail for not more than 1 year, or by a fine of not less than
$2,000 nor more than $50,000, or by both fine and imprisonment.
(Added to NRS by 1995, 1731; A 2001, 1318 )—(Substituted in revision for NRS 332.161)
1. Any agreement or collusion among bidders or prospective bidders
in restraint of freedom of competition by agreement to bid a fixed price,
or otherwise, shall render the bids of such bidders void.
2. Advance disclosures of proprietary information or any other
information to any particular bidder which would give that particular
bidder any advantage over any other interested bidder in advance of the
opening of bids, whether in response to advertising or an informal
request for bids, made or permitted by a member of the governing body or
an employee or representative thereof, shall operate to void all bids
received in response to that particular request for bids.
(Added to NRS by 1975, 1539; A 2001, 1319 ; 2005, 2556 )
1. On and after October 1, 2005, a governing body or its
authorized representative shall not purchase an information system or
system of communication for use by a response agency unless the system
complies with the plan established pursuant to subsection 5 of NRS
239C.160 .
2. On and after October 1, 2005, any grant or other money received
by a local government from the Federal Government for the purchase of an
information system or system of communication for use by a response
agency must not be used to purchase such a system unless the system
complies with the plan established pursuant to subsection 5 of NRS
239C.160 .
3. As used in this section:
(a) “Information system” has the meaning ascribed to it in NRS
239C.060 .
(b) “Response agency” has the meaning ascribed to it in NRS
239C.080 .
(c) “System of communication” has the meaning ascribed to it in NRS
239C.100 .
(Added to NRS by 2003, 2463 ; A 2005, 932 )
