2005 Nevada Revised Statutes - Chapter 332 — Purchasing: Local Governments

CHAPTER 332 - PURCHASING: LOCAL GOVERNMENTS

GENERAL PROVISIONS

NRS 332.005 Shorttitle.

NRS 332.015 Localgovernment defined.

NRS 332.025 Otherterms defined.

PROCEDURES FOR LOCAL GOVERNMENT PURCHASING

Bidding Procedures

NRS 332.039 Advertisementsor requests for bid on contract.

NRS 332.045 Publicationof notice to bid.

NRS 332.047 On-linebidding.

NRS 332.061 Limitationon disclosure of proprietary information and of bid containing provisionrequiring negotiation or evaluation.

NRS 332.065 Awardof contract for which bids have been advertised or requested: Lowest responsiveand responsible bidder; preference given to recycled products; reawardingcontract.

NRS 332.068 Noticeof protest of award of contract: Period for filing; contents; posting anddisposition of bond or security; stay of action; immunity of governing bodyfrom liability to bidder.

NRS 332.075 Rejectionof bids.

NRS 332.085 Determinationof bidders responsibility.

NRS 332.095 Assignmentof contracts.

NRS 332.105 Biddersbonds.

 

Exceptions to Requirements for Competitive Bidding

NRS 332.112 Emergencycontracts.

NRS 332.115 Contractsnot adapted to award by competitive bidding; purchase of equipment by local lawenforcement agency, response agency or other local governmental agency; purchaseof goods commonly used by hospital.

NRS 332.117 Awardof contract to organization or agency for training and employment of personswith mental or physical disabilities.

NRS 332.135 Contractswith carriers; solicitation of informal rate quotations; contracts withPurchasing Division of Department of Administration.

NRS 332.146 Auction,closeout and bankruptcy sales; sale of merchandise left after exhibition.

NRS 332.148 Failureto receive responsible bids.

GENERAL POWERS AND DUTIES OF LOCAL GOVERNMENTS

NRS 332.175 Trade-inallowances for personal property.

NRS 332.185 Saleof personal property of public entity; public auctions; donation of surpluspersonal property by school district to charter school; chapter inapplicable totransactions regarding real property.

NRS 332.195 Joinderor mutual use of contracts by governmental entities.

NRS 332.215 Commissionto Study Governmental Purchasing: Members; meetings; duties.

NRS 332.221 Provisionof maintenance services and purchase of motor vehicle fuel for sale to publicagencies or nonprofit corporations; regulations.

NRS 332.223 Useof facilities of local government by nonprofit corporation that providesambulance services pursuant to franchise agreement.

NRS 332.225 Requirementsof chapter unaffected by approval by governing body of application for federalgrant.

PERFORMANCE CONTRACTS FOR OPERATING COST-SAVINGS MEASURES

NRS 332.300 Definitions.

NRS 332.310 Buildingdefined.

NRS 332.320 Operatingcost savings defined.

NRS 332.330 Operatingcost-savings measure defined.

NRS 332.340 Performancecontract defined.

NRS 332.350 Qualifiedservice company defined.

NRS 332.360 Purposeof contract; procedure for selection of qualified service company by localgovernment; operational audit required; third-party consultant.

NRS 332.370 Financingand structure of performance contract.

NRS 332.380 Periodover which payments become due.

NRS 332.390 Prevailingwage requirement.

NRS 332.400 Rightsof local government and qualified service company if insufficient moneyappropriated by local government to make payments.

NRS 332.410 Reinvestmentof savings realized under contract.

NRS 332.420 Monitoringof cost savings attributable to operating cost-savings measures.

NRS 332.430 Informationconcerning performance contract provided to Office of Energy.

NRS 332.440 Financialmechanisms to guarantee operational cost savings are realized.

PROHIBITIONS AND PENALTIES

NRS 332.800 Interestof member of governing body or evaluator in contract prohibited; exception;penalty.

NRS 332.810 Prohibitedacts by bidders before award of contract; penalty.

NRS 332.820 Effectof collusion among bidders or advance disclosures.

NRS 332.830 Purchaseof information system or system of communication for use by response agency.

_________

NOTE: The section added to chapter 332 bysection 1 of chapter 159, Statutes of Nevada 1995, has been codified as NRS 237.020.

GENERAL PROVISIONS

NRS 332.005 Shorttitle. This chapter may be cited as the LocalGovernment Purchasing Act.

(Added to NRS by 1975, 1536)

NRS 332.015 Localgovernment defined. For the purpose of thischapter, unless the context otherwise requires, local government means:

1. Every political subdivision or other entity whichhas the right to levy or receive money from ad valorem taxes or other taxes orfrom any mandatory assessments, including counties, cities, towns, schooldistricts and other districts organized pursuant to chapters244, 309, 318,379, 450, 473, 474, 539, 541, 543 and 555 ofNRS.

2. The Las Vegas Valley Water District createdpursuant to the provisions of chapter 167, Statutes of Nevada 1947, as amended.

3. County fair and recreation boards and conventionauthorities created pursuant to the provisions of NRS 244A.597 to 244A.655, inclusive.

4. District boards of health created pursuant to theprovisions 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)

NRS 332.025 Otherterms defined. As used in this chapter, unlessthe context otherwise requires:

1. Authorized representative means a persondesignated by the governing body to be responsible for the development, awardand proper administration of all purchases and contracts for a local governmentor a department, division, agency, board or unit of a local government madepursuant to this chapter.

2. Chief administrative officer means the persondirectly responsible to the governing body for the administration of thatparticular entity.

3. Evaluator means an authorized representative,officer, employee, representative, agent, consultant or member of a governingbody who has participated in:

(a) The evaluation of bids;

(b) Negotiations concerning purchasing by a localgovernment; or

(c) The review or approval of the award, modificationor extension of a contract.

4. Governing body means the board, council,commission or other body in which the general legislative and fiscal powers ofthe local government are vested.

5. Proprietary information means:

(a) Any trade secret or confidential businessinformation that is contained in a bid submitted to a governing body or itsauthorized representative on a particular contract; or

(b) Any other trade secret or confidential businessinformation submitted to a governing body or its authorized representative by abidder and designated as proprietary by the governing body or its authorizedrepresentative.

As used inthis subsection, confidential business information means any informationrelating to the amount or source of any income, profits, losses or expendituresof a person, including data relating to cost, price, or the customers of abidder which is submitted in support of a bid. The term does not include theamount 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

NRS 332.039 Advertisementsor requests for bid on contract.

1. Except as otherwise provided by specific statute:

(a) A governing body or its authorized representativeshall advertise all contracts for which the estimated amount required toperform the contract exceeds $25,000.

(b) A governing body or its authorized representativemay enter into a contract of any nature without advertising if the estimatedamount required to perform the contract is $25,000 or less.

(c) If the estimated amount required to perform thecontract is more than $10,000 but not more than $25,000, requests for bids mustbe submitted or caused to be submitted by the governing body or its authorizedrepresentative to two or more persons capable of performing the contract, ifavailable. The governing body or its authorized representative shall maintain arecord of all requests for bids and all bids received for the contract for atleast 7 years after the date of execution of the contract.

2. This section does not prohibit a governing body orits authorized representative from advertising for or requesting bidsregardless of the estimated amount to perform the contract.

(Added to NRS by 1993, 2553; A 1999, 1682; 2003, 667; 2005, 2551)

NRS 332.045 Publicationof notice to bid.

1. The advertisement required by paragraph (a) ofsubsection 1 of NRS 332.039 must bepublished 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 newspaperqualified pursuant to chapter 238 of NRS thathas a general circulation within the county wherein the local government, or amajor 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 partof 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 togiving notice to bid.

(Added to NRS by 1975, 1536; A 1979, 172; 1983, 1659;1993, 2554; 1999,1036; 2003, 667;2005, 2552)

NRS 332.047 On-linebidding.

1. A governing body or its authorized representativemay use on-line bidding to receive bids submitted in response to a request forbids. The governing body or its authorized representative shall not use on-linebidding as the exclusive means of receiving bids for the request for bids.

2. A request for bids for which bids may be submittedpursuant to subsection 1 must designate a date and time at which bids may besubmitted and may designate a date and time after which bids will no longer bereceived.

3. A governing body or its authorized representativemay require bidders to:

(a) Register before the date and time at which bids maybe submitted; and

(b) Agree to terms, conditions or requirements of therequest for bids to facilitate on-line bidding.

4. The procedures established by a governing body orits authorized representative for the purposes of conducting on-line biddingmust not conflict with the provisions of this chapter.

5. As used in this section, on-line biddingmeans a process by which bidders submit bids for a contract on a secure websiteon the Internet or its successor, if any, which is established and maintainedfor that purpose.

(Added to NRS by 2001, 1314; A 2005, 2552)

NRS 332.061 Limitationon disclosure of proprietary information and of bid containing provisionrequiring negotiation or evaluation.

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 inwriting that protections exist under applicable law to preserve the integrity,confidentiality and security of the information.

2. A bid which contains a provision that requiresnegotiation or evaluation by the governing body or an evaluator may not bedisclosed until the bid is recommended for the award of a contract.

(Added to NRS by 1995, 1731; A 2001, 1315; 2005, 2553)

NRS 332.065 Awardof contract for which bids have been advertised or requested: Lowest responsiveand responsible bidder; preference given to recycled products; reawardingcontract.

1. If a governing body or its authorizedrepresentative has advertised for or requested bids in letting a contract, thegoverning body or its authorized representative must, except as otherwiseprovided in subsection 2, award the contract to the lowest responsive andresponsible bidder. The lowest responsive and responsible bidder may be judgedon 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 thegoverning body or its authorized representative in the advertisement or requestfor bids, as applicable, that pertains to the contract.

2. The governing body or its authorizedrepresentative:

(a) Shall give preference to recycled products if:

(1) The product meets the applicable standards;

(2) The product can be substituted for acomparable nonrecycled product; and

(3) The product costs no more than a comparablenonrecycled product.

(b) May give preference to recycled products if:

(1) The product meets the applicable standards;

(2) The product can be substituted for acomparable nonrecycled product; and

(3) The product costs no more than 5 percentmore than a comparable nonrecycled product.

(c) May purchase recycled paper products if thespecific recycled paper product is:

(1) Available at a price which is not more than10 percent higher than that of paper products made from virgin material;

(2) Of adequate quality; and

(3) Available to the purchaser within areasonable period.

3. If after the lowest responsive and responsiblebidder has been awarded the contract, during the term of the contract he doesnot supply goods or services in accordance with the bid specifications, or ifhe repudiates the contract, the governing body or its authorized representativemay reaward the contract to the next lowest responsive and responsible bidderwithout requiring that new bids be submitted. Reawarding the contract to thenext lowest responsive and responsible bidder is not a waiver of any liabilityof the initial bidder awarded the contract.

4. As used in this section:

(a) Postconsumer waste means a finished materialwhich would normally be disposed of as a solid waste having completed its lifecycle as a consumer item.

(b) Recycled paper product means all paper andwood-pulp products containing in some combination at least 50 percent of itstotal weight:

(1) Postconsumer waste; and

(2) Secondary waste,

but does notinclude fibrous waste generated during the manufacturing process such as fibersrecovered 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 orfinished products of a manufacturing process which has converted a virginresource 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)

NRS 332.068 Noticeof protest of award of contract: Period for filing; contents; posting anddisposition of bond or security; stay of action; immunity of governing bodyfrom liability to bidder.

1. A person who submits a bid on a contract that isrequired to be advertised pursuant to paragraph (a) of subsection 1 of NRS 332.039 may, after the bids are openedand within the period specified by the governing body or its authorized representative,file with the governing body or its authorized representative a notice ofprotest regarding the awarding of the contract.

2. A notice of protest must include a writtenstatement setting forth with specificity the reasons the person filing thenotice believes the applicable provisions of law were violated.

3. A person filing a notice of protest may be requiredby the governing body or its authorized representative, at the time the noticeof protest is filed, to post a bond with a good and solvent surety authorizedto do business in this State or submit other security, in a form approved bythe governing body or its authorized representative, to the governing body orits authorized representative who shall hold the bond or other security until adetermination is made on the protest. A bond posted or other security submittedwith a notice of protest must be in an amount equal to the lesser of:

(a) Twenty-five percent of the total value of the bidsubmitted by the person filing the notice of protest; or

(b) Two hundred fifty thousand dollars.

4. A notice of protest filed in accordance with theprovisions of this section operates as a stay of action in relation to theawarding of any contract until a determination is made by the governing body orits authorized representative on the protest.

5. A person who submits an unsuccessful bid may notseek any type of judicial intervention until the governing body or itsauthorized representative has made a determination on the protest and awardedthe contract.

6. A governing body or its authorized representativeis not liable for any costs, expenses, attorneys fees, loss of income or otherdamages sustained by a person who submits a bid, whether or not the personfiles a notice of protest pursuant to this section.

7. If the protest is upheld, the bond posted or othersecurity submitted with the notice of protest must be returned to the personwho posted the bond or submitted the security. If the protest is rejected, aclaim may be made against the bond or other security by the governing body orits authorized representative in an amount equal to the expenses incurred bythe governing body or its authorized representative because of the unsuccessfulprotest. Any money remaining after the claim has been satisfied must bereturned to the person who posted the bond or submitted the security.

(Added toNRS by 2005, 2551)

NRS 332.075 Rejectionof bids. Any or all bids received in responseto a request for bids may be rejected by the governing body or its authorizedrepresentative if such governing body or its authorized representativedetermines that any such bidder is not responsive or responsible or that thequality of the services, supplies, materials, equipment or labor offered doesnot conform to requirements or if the public interest would be served by such arejection.

(Added to NRS by 1975, 1537)

NRS 332.085 Determinationof bidders responsibility. In determining theresponsibility of any bidder, the governing body or its authorizedrepresentative:

1. Shall consider the possession of and limit on anyrequired 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)

NRS 332.095 Assignmentof contracts.

1. No contract awarded may be assigned to any otherperson without the consent of the governing body or its authorizedrepresentative.

2. No contract awarded or any portion thereof may beassigned to any person who was declared by the governing body or its authorizedrepresentative not to be a responsible person to perform the particularcontract.

(Added to NRS by 1975, 1537; A 1999, 1684; 2001, 1316)

NRS 332.105 Biddersbonds.

1. A bid bond, performance bond, payment bond or anycombination thereof, with sufficient surety, in such amount as may bedetermined 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 performanceof the contract and save, indemnify and keep harmless the local governmentagainst all loss, damages, claims, liabilities, judgments, costs and expenseswhich may accrue against the local government in consequence of the awarding ofthe contract.

3. If a local government requires such a bond, itshall not also require a detailed financial statement from each bidder on thecontract.

(Added to NRS by 1975, 1537; A 1983, 914)

Exceptions to Requirements for Competitive Bidding

NRS 332.112 Emergencycontracts.

1. For the purposes of this section, an emergency isone which:

(a) Results from the occurrence of a disasterincluding, but not limited to, fire, flood, hurricane, riot, power outage ordisease; or

(b) May lead to impairment of the health, safety orwelfare of the public if not immediately attended to.

2. If the authorized representative, chiefadministrative officer or governing body of the local government determinesthat an emergency exists affecting the public health, safety or welfare, acontract or contracts necessary to contend with the emergency may be letwithout complying with the requirements of this chapter. If such emergencyaction was taken by the authorized representative or chief administrativeofficer, he shall report it to the governing body at its next regularlyscheduled meeting.

(Added to NRS by 1975, 1537; A 1999, 1682)(Substitutedin revision for NRS 332.055)

NRS 332.115 Contractsnot adapted to award by competitive bidding; purchase of equipment by local lawenforcement agency, response agency or other local governmental agency;purchase of goods commonly used by hospital.

1. Contracts which by their nature are not adapted toaward by competitive bidding, including contracts for:

(a) Items which may only be contracted from a solesource;

(b) Professional services;

(c) Additions to and repairs and maintenance ofequipment which may be more efficiently added to, repaired or maintained by acertain person;

(d) Equipment which, by reason of the training of thepersonnel or of an inventory of replacement parts maintained by the localgovernment is compatible with existing equipment;

(e) Perishable goods;

(f) Insurance;

(g) Hardware and associated peripheral equipment anddevices for computers;

(h) Software for computers;

(i) Books, library materials and subscriptions;

(j) Motor vehicle fuel purchased by a local lawenforcement agency for use in an undercover investigation;

(k) Motor vehicle fuel for use in a vehicle operated bya local law enforcement agency or local fire department if such fuel is notavailable within the vehicles assigned service area from a fueling stationowned by the State of Nevada or a local government;

(l) Purchases made with money in a store fund forprisoners in a jail or local detention facility for the provision andmaintenance of a canteen for the prisoners;

(m) Supplies, materials or equipment that are availablepursuant to an agreement with a vendor that has entered into an agreement withthe General Services Administration or another governmental agency locatedwithin or outside this State;

(n) Items for resale through a retail outlet operatedin this State by a local government or the State of Nevada;

(o) Commercial advertising within a recreationalfacility operated by a county fair and recreation board;

(p) Goods or services purchased from organizations oragencies whose primary purpose is the training and employment of handicappedpersons; and

(q) The design of, and equipment and servicesassociated with, systems of communication,

are notsubject to the requirements of this chapter for competitive bidding, as determinedby the governing body or its authorized representative.

2. The purchase of equipment for use by a local lawenforcement agency in the course of an undercover investigation is not subjectto the requirements of this chapter for competitive bidding, as determined bythe governing body or its authorized representative, if:

(a) The equipment is an electronic or mechanical devicewhich by design is intended to monitor and document in a clandestine mannersuspected criminal activity; or

(b) Purchasing the equipment pursuant to suchrequirements would limit or compromise the use of such equipment by an agencyauthorized to conduct such investigations.

3. The purchase of personal safety equipment for useby a response agency or any other local governmental agency is not subject tothe requirements of this chapter for competitive bidding, as determined by thegoverning body or its authorized representative, if:

(a) The personal safety equipment will be used bypersonnel of the response agency or other local governmental agency inpreventing, responding to or providing services of recovery or relief inconnection with emergencies, acts of terrorism or other natural or man-madedisasters in which the health, safety or welfare of those personnel may becompromised, impaired or otherwise threatened; and

(b) The cost of the personal safety equipment iscomparable to the cost of similar personal safety equipment that is availablefor purchase by the public.

4. The governing body of a hospital required to complywith the provisions of this chapter, or its authorized representative, maypurchase goods commonly used by the hospital, under a contract awarded pursuantto NRS 332.065, without additionalcompetitive bidding even if at the time the contract was awarded:

(a) The vendor supplying such goods to the personawarded the contract was not identified as a supplier to be used by the personawarded the contract; or

(b) The vendor was identified as a supplier but was notidentified as the supplier of such goods.

The governingbody of the hospital shall make available for public inspection each suchcontract and records related to those purchases.

5. This section does not prohibit a governing body orits authorized representative from advertising for or requesting bids.

6. As used in this section:

(a) Act of terrorism has the meaning ascribed to itin NRS 239C.030.

(b) Personal safety equipment means safety equipmentthat personnel of a response agency or other local governmental agency:

(1) Use in the course of preventing, respondingto 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.

The termincludes, without limitation, firearms, boots, bulletproof vests or other typesof body armor, protective garments, protective eyewear, gloves, helmets, andany specialized apparatus, equipment or materials approved or recommended bythe United States Department of Homeland Security.

(c) Response agency means an agency of a localgovernment 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)

 

NRS 332.117 Awardof contract to organization or agency for training and employment of personswith mental or physical disabilities.

1. A governing body of a local government or itsauthorized representative may award, without complying with the requirementsfor competitive bidding set forth in this chapter, a contract for services orfor the purchase of supplies, materials, equipment or labor to an organizationor agency whose primary purpose is the training and employment of persons witha mental or physical disability, including, without limitation, acommunity-based training center for the care and training of mentally andfunctionally retarded persons described in chapter435 of NRS.

2. An organization or agency that wishes to submit abid for such a contract must establish a fair-market price for those services,supplies, materials, equipment or labor by conducting a market survey and mustinclude the survey with the bid submitted to the local government.

(Added to NRS by 2001, 1535)

NRS 332.135 Contractswith carriers; solicitation of informal rate quotations; contracts withPurchasing Division of Department of Administration.

1. Nothing in this chapter prohibits a governing bodyor its authorized representative from contracting for interstate or intrastatecarriage of persons or property with a certificated common or contract carrierat the rates set forth in the officially approved tariff of such carrier.

2. Nothing in this section prohibits a governing bodyor its authorized representative from soliciting informal rate quotations.

3. Nothing in this chapter prohibits a governing bodyor its authorized representative from obtaining supplies, materials, equipmentor services on a voluntary basis from the Purchasing Division of the Departmentof Administration pursuant to NRS 333.470.

(Added to NRS by 1975, 1538; A 1991, 618; 1993, 1564)

NRS 332.146 Auction,closeout and bankruptcy sales; sale of merchandise left after exhibition.

1. Except as otherwise provided by law, if thegoverning 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 similarsale at a reasonable savings over the cost of like merchandise and below themarket cost in the community, a contract or contracts may be let or thepurchase made without complying with the requirements of this chapter forcompetitive bidding.

2. The documentation for the purchase or acquisitionmust be summarized for the next regularly scheduled meeting of the governingbody, together with written justification showing the savings involved.

(Added to NRS by 1975, 1538; A 1983, 845; 2001, 1318)

NRS 332.148 Failureto receive responsible bids.

1. Except as otherwise provided in subsection 2, whena governing body or its authorized representative has advertised for orrequested bids in letting a contract and no responsible bids are received, thegoverning body or its authorized representative may let the contract withoutcompetitive bidding not less than 7 days after it publishes a notice statingthat no bids were received on the contract and that the contract may be letwithout further bidding.

2. A governing body or its authorized representativeshall entertain any bid which is submitted after it publishes such notice andbefore the expiration of the waiting period.

(Added to NRS by 1977, 463; A 1999, 1685)

GENERAL POWERS AND DUTIES OF LOCALGOVERNMENTS

NRS 332.175 Trade-inallowances for personal property. A governingbody or its authorized representative may solicit and accept trade-inallowances for personal property of the public entity which has been determinedby the governing body or its authorized representative to be no longer requiredfor public use in any manner authorized by law.

(Added to NRS by 1975, 1539; A 1999, 1685; 2001, 1319)

NRS 332.185 Saleof personal property of public entity; public auctions; donation of surpluspersonal property by school district to charter school; chapter inapplicable totransactions regarding real property.

1. Except as otherwise provided in subsection 2 and NRS 244.1505 and 334.070, all sales of personal property ofthe local government must be made, as nearly as possible, under the sameconditions and limitations as required by this chapter in the purchase ofpersonal property. The governing body or its authorized representative maydispose of personal property of the local government by any manner, including,without limitation, at public auction, if the governing body or its authorizedrepresentative determines that the property is no longer required for publicuse and deems such action desirable and in the best interests of the localgovernment.

2. The board of trustees of a school district maydonate surplus personal property of the school district to a charter schoolthat is located within the school district without regard to:

(a) The provisions of this chapter; or

(b) Any statute, regulation, ordinance or resolutionthat requires:

(1) The posting of notice or public advertising.

(2) The inviting or receiving of competitivebids.

(3) The selling or leasing of personal propertyby contract or at a public auction.

3. The provisions of this chapter do not apply to thepurchase, 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)

NRS 332.195 Joinderor mutual use of contracts by governmental entities.

1. A governing body or its authorized representativeand the State of Nevada may join or use the contracts of local governmentslocated within or outside this State with the authorization of the contractingvendor. The originally contracting local government is not liable for theobligations of the governmental entity which joins or uses the contract.

2. A governing body or its authorized representativemay join or use the contracts of the State of Nevada or another state with theauthorization of the contracting vendor. The State of Nevada or other state isnot liable for the obligations of the local government which joins or uses thecontract.

(Added to NRS by 1975, 1539; A 1985, 357; 1999, 1686; 2001, 1320; 2003, 2263; 2005, 2556)

NRS 332.215 Commissionto Study Governmental Purchasing: Members; meetings; duties.

1. Each county of this state whose population is100,000 or more, must be a member of the Commission to Study GovernmentalPurchasing which is composed of all purchasing agents of the local governmentswithin those counties. Each county whose population is less than 100,000 mayparticipate as a voting member of the Commission. The members shall select aChairman from among their number.

2. The Commission shall meet no less than quarterly orat the call of the Chairman to study practices in governmental purchasing andlaws relating thereto and shall make recommendations with respect to those lawsto the next regular session of the Legislature.

(Added to NRS by 1975, 1540; A 1979, 537; 1985, 358)

NRS 332.221 Provisionof maintenance services and purchase of motor vehicle fuel for sale to publicagencies or nonprofit corporations; regulations.

1. A governing body may provide maintenance servicesfor vehicles which belong to, and may purchase motor vehicle fuel to sell to:

(a) Any public agency or organization which issupported by tax money; and

(b) Any private agency or organization which isincorporated as a nonprofit corporation pursuant to chapter81 or 82 of NRS,

and whichuses the vehicles and fuel in specially providing transportation to the elderlyor handicapped.

2. The governing body shall establish regulations fordetermining the eligibility of applicants for maintenance services and fuelpursuant to this section.

3. The costs of all maintenance services and fuelprovided pursuant to this section must be paid for by the agency ororganization which receives the service or fuel.

(Added to NRS by 1979, 88; A 1981, 239; 1991, 1313)

NRS 332.223 Useof facilities of local government by nonprofit corporation that providesambulance services pursuant to franchise agreement. Anonprofit corporation that provides ambulance services pursuant to a franchiseagreement with a local government may obtain supplies, materials and equipmenton a voluntary basis through the facilities of the local government.

(Added to NRS by 1995, 1731)

NRS 332.225 Requirementsof chapter unaffected by approval by governing body of application for federalgrant. Approval by a governing body of anapplication for a federal categorical grant does not dispense with therequirements of this chapter for approval by the governing body of the lettingof any contract.

(Added to NRS by 1975, 1540)

PERFORMANCE CONTRACTS FOR OPERATING COST-SAVINGS MEASURES

NRS 332.300 Definitions. As used in NRS 332.300to 332.440, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 332.310 to 332.350, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 2003, 3049)

NRS 332.310 Buildingdefined. Building means any structure,building or facility, including any equipment, furnishings or appliances withinthe structure, building or facility, that is owned or operated by a localgovernment. The term includes, without limitation, occupied and unoccupiedstructures, buildings and facilities, and any other improvements owned oroperated by a local government that incur operating costs.

(Added to NRS by 2003, 3049)

NRS 332.320 Operatingcost savings defined. Operating costsavings means any expenses that are eliminated or avoided on a long-term basisas a result of the installation or modification of equipment, or servicesperformed by a qualified service company. The term does not include any savingsthat are realized solely because of a shift in the cost of personnel or othersimilar short-term cost savings.

(Added to NRS by 2003, 3049)

NRS 332.330 Operatingcost-savings measure defined. Operatingcost-savings measure means any improvement, repair or alteration to abuilding, or any equipment, fixture or furnishing to be added or used in abuilding that is designed to reduce operating costs, including those costsrelated to electrical energy and demand, thermal energy, water consumption,waste disposal and contract-labor costs, and increase the operating efficiencyof the building for the appointed functions that are cost-effective. The termincludes, without limitation:

1. Procurement of low-cost energy supplies, includingelectricity and natural gas.

2. Procurement of cost savings as a result ofoutsourcing energy needs for electrical power, heating and cooling.

3. Operational or maintenance labor savings resultingfrom reduced costs for maintenance contracts as provided through reduction ofrequired 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 toreduce energy and other utility expenses, including, without limitation:

(a) Costs for materials and labor required to replaceold equipment with new, more efficient equipment.

(b) Storm windows or doors, caulking or weatherstripping, multiglazed windows or doors, heat-absorbing or heat-reflectiveglazed or coated windows or doors, reductions in glass area, and othermodifications 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, lightingfixtures.

(f) Improvements to the indoor air quality of abuilding that conform to all requirements of an applicable building code.

(g) Energy recovery systems.

(h) Systems for combined cooling, heating and powerthat produce steam or other forms of energy, for use primarily within the buildingor a complex of buildings.

(i) Installation of, or modifications to, existingsystems for daylighting, including lighting control systems.

(j) Installation of, or modification to, technologiesthat use renewable or alternative energy sources.

(k) Programs relating to building operation that reduceoperating costs, including, without limitation, computerized programs, trainingand other similar activities.

(l) Programs for improvement of steam traps to reduceoperating costs.

(m) Devices that reduce water consumption in buildings,for lawns and for other irrigation applications.

(n) Any additional improvements to buildinginfrastructures that produce energy and operating cost savings, significantlyreduce energy consumption or increase the operating efficiency of the buildingsfor their appointed functions, provided that such improvements comply withapplicable building codes.

(o) Trash compaction and waste minimization.

5. Investment in educational programs relating tooccupational behavior that are designed to reduce the consumption of energy orwater, or both, and the generation of waste.

(Added to NRS by 2003, 3049)

NRS 332.340 Performancecontract defined. Performance contractmeans a contract between a local government and a qualified service company forthe evaluation, recommendation and implementation of one or more operatingcost-savings measures.

(Added to NRS by 2003, 3050)

NRS 332.350 Qualifiedservice company defined. Qualified servicecompany means a person with a record of established projects or a person withdemonstrated technical, operational, financial and managerial capabilities todesign and carry out operating cost-savings measures and other similar buildingimprovements, and who has the ability to secure necessary financial measures toensure related guarantees for operating cost savings.

(Added to NRS by 2003, 3050)

NRS 332.360 Purposeof contract; procedure for selection of qualified service company by localgovernment; operational audit required; third-party consultant.

1. Notwithstanding any provision of this chapter and chapter 338 of NRS to the contrary, a localgovernment may enter into a performance contract with a qualified servicecompany for the purchase and installation of an operating cost-savings measureto reduce costs related to energy, water and the disposal of waste, and relatedlabor costs. Such a performance contract may be in the form of an installmentpayment contract or a lease-purchase contract. Any operating cost-savingsmeasures put into place as a result of a performance contract must comply withall applicable building codes.

2. The local government shall determine thosecompanies that satisfy the requirements of qualified service companies for thepurposes of NRS 332.300 to 332.440, inclusive. The local governmentshall prepare and issue a request for qualifications to not less than threepotential qualified service companies.

3. In sending out a request for qualifications, thelocal government:

(a) Shall attempt to identify at least one potentialqualified service company located within this state; and

(b) May consider whether and to what extent thecompanies to which the request for qualifications will be sent will use localcontractors.

4. The local government shall use objective criteriato determine those companies that satisfy the requirements of qualified servicecompanies. The objective criteria for evaluation must include the followingareas as substantive factors to assess the capability of such companies:

(a) Design;

(b) Engineering;

(c) Installation;

(d) Maintenance and repairs associated with performancecontracts;

(e) Experience in conversions to different sources ofenergy or fuel and other services related to operating cost-savings measuresprovided that is done in association with a comprehensive energy, water orwaste disposal cost-savings retrofit;

(f) Monitoring projects after the projects areinstalled;

(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 localgovernment to be relevant and appropriate to the ability of a company toperform the project.

Indetermining whether a company satisfies the requirements of a qualified servicecompany, the local government shall also consider the financial health of thecompany as evidenced by its financial statements and ratings and whether the companyholds the appropriate licenses required for the design, engineering and constructionto be completed.

5. The local government shall compile a list of thosecompanies that it determines satisfy the requirements of qualified servicecompanies. If the local government is interested in entering into a performancecontract, the local government shall notify each appropriate qualified servicecompany and coordinate an opportunity for each such qualified service companyto:

(a) Perform a preliminary and comprehensive audit andassessment of all potential operating cost-savings measures that might beimplemented within the buildings of the local government, including anyoperating cost-savings measures specifically requested by the local government;and

(b) Submit a proposal and make a related presentationto the local government for all such operating cost-savings measures that thequalified service company determines would be practicable to implement.

6. The local government shall:

(a) Evaluate the proposals and presentations madepursuant to subsection 5; and

(b) Select a qualified service company,

pursuant tothe provisions of this chapter for evaluating and awarding contracts.

7. The qualified service company selected by the localgovernment pursuant to subsection 6 shall prepare a financial-grade operationalaudit. Except as otherwise provided in this subsection, the audit prepared bythe qualified service company becomes, upon acceptance, a part of the finalperformance contract and the costs incurred by the qualified service company inpreparing 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 theperformance contract, the local government shall pay the qualified servicecompany that prepared the audit the costs incurred by the qualified servicecompany in preparing the audit if the local government has specifically appropriatedmoney for that purpose.

8. The local government shall retain the professionalservices of a third-party consultant with the requisite technical expertise toassist the local government in reviewing the operating cost-savings measuresproposed by the qualified service company and may procure sufficient fundingfrom the qualified service company, through negotiation, to pay for thethird-party consultant. Such a third-party consultant must be certified by theAssociation of Energy Engineers as a Certified Energy Manager or hold similarcredentials from a comparable nationally recognized organization. A third-partyconsultant retained pursuant to this subsection shall work on behalf of thelocal government in coordination with the qualified service company.

(Added to NRS by 2003, 3051)

NRS 332.370 Financingand structure of performance contract.

1. A performance contract may be financed through aperson other than the qualified service company.

2. A performance contract may be structured as:

(a) A performance contract that guarantees operatingcost savings, which includes, without limitation, the design and installationof equipment, the operation and maintenance, if applicable, of any of theoperating cost-savings measures and the guaranteed annual savings which mustmeet or exceed the total annual contract payments to be made by the localgovernment, including any financing charges to be incurred by the localgovernment over the life of the performance contract. The local government mayrequire that these savings be verified annually or over a sufficient periodthat demonstrates savings.

(b) A shared-savings contract which includes provisionsmutually agreed upon by the local government and qualified service company asto the negotiated rate of payments based upon operating cost savings and astipulated maximum consumption level of energy or water, or both energy andwater, over the life of the contract.

(Added to NRS by 2003, 3052)

NRS 332.380 Periodover which payments become due.

1. A performance contract must provide that allpayments, other than any obligations that become due if the contract isterminated before the contract expires, must be made over time.

2. Except as otherwise provided in this subsection, aperformance contract, and the payments provided thereunder, may extend beyondthe fiscal year in which the performance contract becomes effective for costsincurred in future fiscal years. The performance contract may extend for a termnot to exceed 15 years. The length of a performance contract may reflect theuseful life of the operating cost-savings measure being installed or purchasedunder the performance contract.

3. The period over which payments are made on aperformance contract must equal the period over which the operating costsavings are amortized. Payments on a performance contract must not commenceuntil the operating cost-savings measures have been installed by the qualifiedservice company.

(Added to NRS by 2003, 3053)

NRS 332.390 Prevailingwage requirement. If a performance contract enteredinto pursuant to NRS 332.300 to 332.440, inclusive, requires the employmentof skilled mechanics, skilled workmen, semiskilled mechanics, semiskilledworkmen or unskilled labor to perform the performance contract, the performancecontract must include a provision relating to the prevailing wage as requiredpursuant to NRS 338.020 to 338.090, inclusive.

(Added to NRS by 2003, 3053)

NRS 332.400 Rightsof local government and qualified service company if insufficient moneyappropriated by local government to make payments. Notwithstandingany provision of NRS 332.300 to 332.440, inclusive, to the contrary, aperformance contract entered into pursuant to NRS332.300 to 332.440, inclusive, mustinclude a clause that sets out the rights of the local government and the qualifiedservice company if the local government does not appropriate sufficient moneyfor payments to be continued under the performance contract.

(Added to NRS by 2003, 3053)

NRS 332.410 Reinvestmentof savings realized under contract. A localgovernment may reinvest any savings realized under a performance contract wheneverpractical into operating cost-savings measures provided the local government issatisfying all its other obligations under the performance contract.

(Added to NRS by 2003, 3053)

NRS 332.420 Monitoringof cost savings attributable to operating cost-savings measures.

1. During the term of a performance contract, thequalified service company shall monitor the reductions in energy or waterconsumption and other operating cost savings attributable to the operatingcost-savings measure purchased or installed under the performance contract, andshall, at least once a year or at such other intervals specified in theperformance contract, prepare and provide a report to the local governmentdocumenting the performance of the operating cost-savings measures.

2. A performance contract must identify themethodology that the local government will use to validate the cost savingsidentified by the qualified service company.

3. A qualified service company and the localgovernment may agree to make modifications in the calculation of savings basedon:

(a) Subsequent material changes to the baselineconsumption of energy or water identified at the beginning of the term of theperformance contract.

(b) A change in utility rates.

(c) A change in the number of days in the billing cycleof a utility.

(d) A change in the total square footage of thebuilding.

(e) A change in the operational schedule, and anycorresponding 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 orlighting used at the building.

(h) Any other change which reasonably would be expectedto modify the use of energy or the cost of energy.

(Added to NRS by 2003, 3053)

NRS 332.430 Informationconcerning performance contract provided to Office of Energy. A qualified service company shall provide to the Office ofEnergy within the Office of the Governor information concerning eachperformance contract which the qualified service company enters into pursuantto NRS 332.300 to 332.440, inclusive, including, without limitation,the name of the project, the local government for which the project is beingcarried out and the expected operating cost savings. The Office of Energy mayreport any energy savings realized as a result of such performance contracts tothe United States Department of Energy pursuant to 42 U.S.C. 13385.

(Added to NRS by 2003, 3054)

NRS 332.440 Financialmechanisms to guarantee operational cost savings are realized. A performance contract must include appropriate financialmechanisms determined to be necessary by the city or county treasurer, asappropriate, to guarantee that operating cost savings are realized by the localgovernment if the actual cost savings do not meet the predicted cost savings.

(Added to NRS by 2003, 3054)

PROHIBITIONS AND PENALTIES

NRS 332.800 Interestof member of governing body or evaluator in contract prohibited; exception;penalty.

1. Except as otherwise provided in NRS 281.230, 281.505 and 281.555, a member of the governing body maynot be interested, directly or indirectly, in any contract entered into by thegoverning 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 governingbody, when not to do so would be of great inconvenience due to a lack of anyother local source.

2. An evaluator may not be interested, directly orindirectly, in any contract awarded by such governing body or its authorizedrepresentative.

3. A member of a governing body who furnishes suppliesin the manner permitted by subsection 1 may not vote on the allowance of theclaim for such supplies.

4. A violation of this section is a misdemeanor and, inthe case of a member of a governing body, cause for removal from office.

(Added to NRS by 1975, 1539; A 2001, 1318; 2003, 891)(Substitutedin revision for NRS 332.155)

NRS 332.810 Prohibitedacts by bidders before award of contract; penalty.

1. Before a contract is awarded, a person who has bidon the contract or an officer, employee, representative, agent or consultant ofsuch a person shall not:

(a) Make an offer or promise of future employment orbusiness opportunity to, or engage in a discussion of future employment orbusiness opportunity with, an evaluator or member of the governing bodyoffering the contract;

(b) Offer, give or promise to offer or give money, agratuity or any other thing of value to an evaluator or member of the governingbody offering the contract; or

(c) Solicit or obtain from an officer, employee ormember of the governing body offering the contract, any proprietary informationregarding the contract.

2. A person who violates any of the provisions ofsubsection 1 is guilty of a gross misdemeanor and shall be punished byimprisonment in the county jail for not more than 1 year, or by a fine of notless than $2,000 nor more than $50,000, or by both fine and imprisonment.

(Added to NRS by 1995, 1731; A 2001, 1318)(Substitutedin revision for NRS 332.161)

NRS 332.820 Effectof collusion among bidders or advance disclosures.

1. Any agreement or collusion among bidders orprospective bidders in restraint of freedom of competition by agreement to bida fixed price, or otherwise, shall render the bids of such bidders void.

2. Advance disclosures of proprietary information orany other information to any particular bidder which would give that particularbidder any advantage over any other interested bidder in advance of the openingof 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 orrepresentative thereof, shall operate to void all bids received in response tothat particular request for bids.

(Added to NRS by 1975, 1539; A 2001, 1319; 2005, 2556)

NRS 332.830 Purchaseof information system or system of communication for use by response agency.

1. On and after October 1, 2005, a governing body orits authorized representative shall not purchase an information system orsystem of communication for use by a response agency unless the system complieswith the plan established pursuant to subsection 5 of NRS 239C.160.

2. On and after October 1, 2005, any grant or othermoney received by a local government from the Federal Government for thepurchase of an information system or system of communication for use by aresponse agency must not be used to purchase such a system unless the systemcomplies 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 itin NRS 239C.060.

(b) Response agency has the meaning ascribed to it inNRS 239C.080.

(c) System of communication has the meaning ascribedto it in NRS 239C.100.

(Added to NRS by 2003, 2463; A 2005, 932)

 

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