2004 US Code
Title 49 - TRANSPORTATION
SUBTITLE III - GENERAL AND INTERMODAL PROGRAMS
CHAPTER 53 - MASS TRANSPORTATION
Sec. 5326 - Special procurements

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§5326. Special procurements

(a) Turnkey System Projects.—

(1) Turnkey system project defined.—In this subsection, the term “turnkey system project” means a project under which a recipient enters into a contract with a seller, firm, or consortium of firms to design and build a mass transportation system or an operable segment thereof that meets specific performance criteria. Such project may also include an option to finance, or operate for a period of time, the system or segment or any combination of designing, building, operating, or maintaining such system or segment.

(2) Selection of turnkey projects.—To advance new technologies and lower the cost of a capital project for a new mass transportation system or an operable segment of a mass transportation system, the Secretary of Transportation shall allow solicitation for a turnkey system project to be financed under this chapter to be awarded conditionally before United States Government requirements have been met on the project if the award is made without prejudice to carrying out those requirements. Government financial assistance under this chapter may be made available for the project after the recipient complies with Government requirements.

(3) Demonstrations.—To develop guidelines applying generally to turnkey system projects, the Secretary may approve at least 2 projects for an initial demonstration phase. The results of the demonstration projects (and other projects using this procurement method on December 18, 1991) shall be considered in developing guidelines to carry out this subsection.

(b) Multiyear Rolling Stock.—(1) A recipient procuring rolling stock with Government financial assistance under this chapter may make a multiyear contract to buy the rolling stock and replacement parts under which the recipient has an option to buy additional rolling stock or replacement parts for not more than 5 years after the date of the original contract.

(2) The Secretary shall allow at least 2 recipients to act on a cooperative basis to procure rolling stock in compliance with this subsection and other Government procurement requirements.

(c) Acquiring Rolling Stock.—A recipient of financial assistance under this chapter may enter into a contract to expend that assistance to acquire rolling stock—

(1) based on—

(A) initial capital costs; or

(B) performance, standardization, life cycle costs, and other factors; or

(2) with a party selected through a competitive procurement process.

(d) Procuring Associated Capital Maintenance Items.—A recipient of assistance under section 5307 procuring an associated capital maintenance item under section 5307(b) may enter into a contract directly with the original manufacturer or supplier of the item to be replaced, without receiving prior approval of the Secretary, if the recipient first certifies in writing to the Secretary that—

(1) the manufacturer or supplier is the only source for the item; and

(2) the price of the item is no more than the price that similar customers pay for the item.

(Pub. L. 103–272, §1(d), July 5, 1994, 108 Stat. 826; Pub. L. 103–429, §6(11), Oct. 31, 1994, 108 Stat. 4379; Pub. L. 105–178, title III, §3023(a), (b), June 9, 1998, 112 Stat. 364.)

Historical and Revision Notes
Pub. L. 103–272

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
5326	49 App.:1608(l).	July 9, 1964, Pub. L. 88–365, 78 Stat. 302, §12(l); added Dec. 18, 1991, Pub. L. 102–240, §3019, 105 Stat. 2109; Oct. 6, 1992, Pub. L. 102–388, §502(j), 106 Stat. 1567.

In subsection (a)(1), the word “individual” is omitted as surplus.

In subsection (a)(2), the word “relevant” is omitted as surplus.

In subsection (b)(1), the word “contract” is substituted for “agreement” for consistency in this section.

In subsection (b)(2), the words “form a consortium (or otherwise” are omitted as surplus.

In subsection (c), before clause (1), the words “a procurement contract” are substituted for “in connection with a procurement” for clarity. In clause (1), the words “including smaller and medium sized agencies” are omitted as surplus.

Pub. L. 103–429

This amends 49:5326(a)(3) to provide consistent terminology in 49:5326.

Amendments

1998—Subsec. (a)(1). Pub. L. 105–178, §3023(a)(1), added par. (1) and struck out former par. (1) which read as follows: “In this subsection, ‘turnkey system project’ means a project under which a recipient makes a contract with a seller, firm, or consortium of firms to construct a mass transportation system that meets specific performance criteria and that the seller operates for a period of time.”

Subsec. (a)(2). Pub. L. 105–178, §3023(a)(2), (4), inserted heading, inserted “or an operable segment of a mass transportation system” after “transportation system” in text, and realigned margins.

Subsec. (a)(3). Pub. L. 105–178, §3023(a)(3), (4), inserted heading and realigned margins.

Subsec. (c). Pub. L. 105–178, §3023(b), added subsec. (c) and struck out heading and text of former subsec. (c). Text read as follows: “A recipient may award a procurement contract under this chapter to other than the lowest bidder when the award furthers an objective consistent with the purposes of this chapter, including improved long-term operating efficiency and lower long-term costs. Not later than March 17, 1992, the Secretary shall—

“(1) make appropriate changes in existing procedures to make the policy stated in this subsection readily practicable for all mass transportation authorities; and

“(2) prescribe guidance that clarifies and carries out the policy.”

Subsec. (d). Pub. L. 105–178, §3023(b), added subsec. (d).

1994—Subsec. (a)(3). Pub. L. 103–429 substituted “guidelines” for “regulations” after “develop”.

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–429 effective July 5, 1994, see section 9 of Pub. L. 103–429, set out as a note under section 321 of this title.