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Nrs: Chapter 332 - Purchasing: Local Governments


Published: 2015

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[Rev. 2/10/2015 5:01:23

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CHAPTER 332 - PURCHASING: LOCAL GOVERNMENTS

GENERAL PROVISIONS

NRS 332.005           Short

title.

NRS 332.015           “Local

government” defined.

NRS 332.025           Other

terms defined.

PROCEDURES FOR LOCAL GOVERNMENT PURCHASING

Bidding Procedures

NRS 332.039           Advertisements

or requests for bid on contract.

NRS 332.045           Advertisement

to be by notice to bid; publication; contents of notice.

NRS 332.047           On-line

bidding.

NRS 332.061           Limitation

on disclosure of proprietary information and of bid containing provision

requiring negotiation or evaluation.

NRS 332.065           Award

of contract for which bids have been advertised or requested: Lowest responsive

and responsible bidder; preference given to recycled products; reawarding

contract.

NRS 332.068           Notice

of protest of award of contract: Period for filing; contents; posting and

disposition of bond or security; stay of action; immunity of governing body

from liability to bidder.

NRS 332.075           Rejection

of bids.

NRS 332.085           Determination

of bidder’s responsibility.

NRS 332.095           Assignment

of contracts.

NRS 332.105           Bidders’

bonds.

 

Exceptions to Requirements for Competitive Bidding

NRS 332.112           Emergency

contracts.

NRS 332.115           Contracts

not adapted to award by competitive bidding; purchase of equipment by local law

enforcement agency, response agency or other local governmental agency;

purchase of goods commonly used by hospital.

NRS 332.117           Award

of contract to nonprofit organization or agency for training and employment of

persons with mental or physical disabilities.

NRS 332.135           Contracts

with carriers; solicitation of informal rate quotations; contracts with

Purchasing Division of Department of Administration.

NRS 332.146           Auction,

closeout and bankruptcy sales; sale of merchandise left after exhibition.

NRS 332.148           Failure

to receive responsible bids.

GENERAL POWERS AND DUTIES OF LOCAL GOVERNMENTS

NRS 332.175           Trade-in

allowances for personal property.

NRS 332.185           Sale

of personal property of public entity; public auctions; donation of surplus

personal property by school district; chapter inapplicable to transactions

regarding real property.

NRS 332.195           Joinder

or mutual use of contracts by governmental entities.

NRS 332.201           Duty

of governing body of certain counties to report to Office of Economic

Development concerning local emerging small businesses.

NRS 332.215           Commission

to Study Governmental Purchasing: Members; meetings; duties.

NRS 332.221           Provision

of maintenance services and purchase of motor vehicle fuel for sale to public

agencies or nonprofit corporations; regulations.

NRS 332.223           Use

of facilities of local government by nonprofit corporation that provides

ambulance services pursuant to franchise agreement.

NRS 332.225           Requirements

of chapter unaffected by approval by governing body of application for federal

grant.

PERFORMANCE CONTRACTS FOR OPERATING COST-SAVINGS MEASURES

NRS 332.300           Definitions.

NRS 332.310           “Building”

defined.

NRS 332.320           “Operating

cost savings” defined.

NRS 332.330           “Operating

cost-savings measure” defined.

NRS 332.340           “Performance

contract” defined.

NRS 332.350           “Qualified

service company” defined.

NRS 332.351           Qualification

as qualified service company; investigation and determination by local

governments; confidentiality of certain information.

NRS 332.352           Criteria

for qualification as qualified service company.

NRS 332.353           Additional

circumstance in which person may be deemed qualified service company.

NRS 332.357           Duty

of Office of Energy to provide information and educational resources; authority

of Office of Energy to provide support to local government; fees;

administration of account for fees; application for and receipt of other money

for account; regulations.

NRS 332.360           Authority

of local government to enter into performance contract; purpose of performance

contract; operational audits; third-party consultants.

NRS 332.362           Duty

of board of trustees of school district to adopt policy concerning performance

contracts; requirements for policy; annual report.

NRS 332.370           Financing

and structure of performance contract.

NRS 332.371           Requirements

for performance contract that guarantees operating cost savings.

NRS 332.380           Period

over which payments become due.

NRS 332.390           Prevailing

wage requirement; duty of qualified service company to furnish bonds before

entering into certain performance contracts.

NRS 332.400           Rights

of local government and qualified service company if insufficient money

appropriated by local government to make payments.

NRS 332.410           Reinvestment

of savings realized under contract.

NRS 332.420           Monitoring

of cost savings attributable to operating cost-savings measures.

NRS 332.430           Qualified

service company to provide information concerning performance contract to

Office of Energy.

NRS 332.431           Duty

of local governments to report to Legislature.

NRS 332.440           Financial

mechanisms to guarantee operational cost savings are realized.

PROHIBITIONS AND PENALTIES

NRS 332.800           Interest

of member of governing body or evaluator in contract prohibited; exception;

penalty.

NRS 332.810           Prohibited

acts by bidders before award of contract; penalty.

NRS 332.820           Effect

of collusion among bidders or advance disclosures.

NRS 332.830           Purchase

of information system or system of communication for use by response agency.

_________

NOTE:                    The section added to chapter 332 by

section 1 of chapter 159, Statutes of Nevada 1995, has been codified as NRS 237.020.

_________

GENERAL PROVISIONS

      NRS 332.005  Short title.  This

chapter may be cited as the Local Government Purchasing Act.

      (Added to NRS by 1975, 1536)

      NRS 332.015  “Local government” defined.  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)

      NRS 332.025  Other terms defined.  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

      NRS 332.039  Advertisements or requests for bid on contract.

      1.  Except as otherwise provided by

specific statute:

      (a) A governing body or its authorized

representative shall advertise all contracts for which the estimated annual

amount required to perform the contract exceeds $50,000.

      (b) A governing body or its authorized

representative may enter into a contract of any nature without advertising if

the estimated annual amount required to perform the contract is $50,000 or

less.

      (c) If the estimated annual amount required to

perform the contract is more than $25,000 but not more than $50,000, 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 annual amount required to perform

the contract.

      (Added to NRS by 1993, 2553; A 1999, 1682; 2003, 667; 2005, 2551; 2007, 496)

      NRS 332.045  Advertisement to be by notice to bid; publication; contents of

notice.

      1.  The advertisement required by paragraph

(a) of subsection 1 of NRS 332.039 must be by

notice to bid and must be published:

      (a) 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 at least once and not less than 7 days before the opening

of bids; and

      (b) On the Internet website of the local

government, if the local government maintains an Internet website, every day

for not less than 7 days before the opening of bids.

      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; 2011, 1863)

      NRS 332.047  On-line bidding.

      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)

      NRS 332.061  Limitation on disclosure of proprietary information and of bid

containing provision requiring negotiation or evaluation.

      1.  Except as otherwise provided in this

subsection and NRS 239.0115,

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; 2007, 2088)

      NRS 332.065  Award of contract for which bids have been advertised or

requested: Lowest responsive and responsible bidder; preference given to

recycled products; reawarding contract.

      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 or she does not supply goods or services in accordance with the bid

specifications, or if he or she 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)

      NRS 332.068  Notice of protest of award of contract: Period for filing;

contents; posting and disposition of bond or security; stay of action; immunity

of governing body from liability to bidder.

      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)

      NRS 332.075  Rejection of bids.  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)

      NRS 332.085  Determination of bidder’s responsibility.  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)

      NRS 332.095  Assignment of contracts.

      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)

      NRS 332.105  Bidders’ bonds.

      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

      NRS 332.112  Emergency contracts.

      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 or she 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)

      NRS 332.115  Contracts not adapted to award by competitive bidding; purchase

of equipment by local law enforcement agency, response agency or other local

governmental agency; purchase of goods commonly used by hospital.

      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 persons with disabilities; 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)

      NRS 332.117  Award of contract to nonprofit organization or agency for

training and employment of persons with mental or physical disabilities.

      1.  In accordance with the Program to

Encourage and Facilitate Purchases by Agencies of Commodities and Services From

Organizations established pursuant to NRS

334.025, 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 a nonprofit

organization or agency whose primary purpose is the training and employment of

persons with a mental or physical disability, including, without limitation, a

provider of jobs and day training services certified pursuant to NRS 435.130 to 435.310, inclusive.

      2.  A nonprofit organization or agency

that:

      (a) Wishes to submit a bid for such a contract

must:

             (1) Register with the Rehabilitation

Division of the Department of Employment, Training and Rehabilitation as

required pursuant to NRS 334.025; and

             (2) 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.

      (b) Is awarded such a contract must report

quarterly to the Rehabilitation Division as required pursuant to NRS 334.025.

      3.  As used in this section, “nonprofit

organization or agency” means an organization or agency that is recognized as

exempt pursuant to the provisions of 26 U.S.C. § 501(c)(3).

      (Added to NRS by 2001, 1535; A 2007, 2493; 2009, 2237)

      NRS 332.135  Contracts with carriers; solicitation of informal rate

quotations; contracts with Purchasing Division of Department of Administration.

      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)

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

after exhibition.

      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)

      NRS 332.148  Failure to receive responsible bids.

      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

      NRS 332.175  Trade-in allowances for personal property.  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)

      NRS 332.185  Sale of personal property of public entity; public auctions;

donation of surplus personal property by school district; chapter inapplicable

to transactions regarding real property.

      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 any other school

district in this State or 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; 2013, 1488)

      NRS 332.195  Joinder or mutual use of contracts by governmental entities.

      1.  Except as otherwise provided in this

section:

      (a) 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.

      (b) 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.

      2.  A governing body or its authorized

representative or the State of Nevada shall not join or use a contract pursuant

to this section if a contractor’s license issued pursuant to chapter 624 of NRS is required for any portion

of the work to be performed under the contract.

      (Added to NRS by 1975, 1539; A 1985, 357; 1999, 1686; 2001, 1320; 2003, 2263; 2005, 2556; 2013, 69)

      NRS 332.201  Duty of governing body of certain counties to report to Office

of Economic Development concerning local emerging small businesses.

      1.  The governing body or its authorized

representative in a county whose population is 100,000 or more shall submit a

report every 6 months to the Office. The report must include, without

limitation, for the period since the last report:

      (a) The number of local emerging small businesses

that the governing body or its authorized representative solicited to submit a

bid or proposal to the governing body or its authorized representative for a

local purchasing contract;

      (b) The number of local emerging small businesses

that submitted a bid or proposal to the governing body or its authorized

representative for a local purchasing contract;

      (c) The number of local purchasing contracts that

were awarded by the governing body or its authorized representative to local

emerging small businesses;

      (d) The total number of dollars’ worth of local

purchasing contracts that were awarded by the governing body or its authorized

representative to local emerging small businesses; and

      (e) Any other information deemed relevant by the

Office.

      2.  The report required pursuant to

subsection 1 must be submitted within 90 days after:

      (a) The end of each fiscal year; and

      (b) The end of each calendar year.

      3.  As used in this section:

      (a) “Local emerging small business” has the

meaning ascribed to it in NRS 231.1402.

      (b) “Local purchasing contract” means a contract

awarded pursuant to the provisions of this chapter for which the estimated cost

is $50,000 or less. The term does not include a contract for which a

procurement card is used.

      (c) “Office” means the Office of Economic

Development.

      (d) “Procurement card” means a charge card issued

to a governing body or its authorized representative for the purpose of

purchasing goods and services pursuant to the provisions of this chapter.

      (Added to NRS by 2013, 3689)

      NRS 332.215  Commission to Study Governmental Purchasing: Members; meetings;

duties.

      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 Chair from among their number.

      2.  The Commission shall meet no less than

quarterly or at the call of the Chair 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)

      NRS 332.221  Provision of maintenance services and purchase of motor vehicle

fuel for sale to public agencies or nonprofit corporations; regulations.

      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 persons with disabilities.

      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)

      NRS 332.223  Use of facilities of local government by nonprofit corporation

that provides ambulance services pursuant to franchise agreement.  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)

      NRS 332.225  Requirements of chapter unaffected by approval by governing body

of application for federal grant.  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

      NRS 332.300  Definitions.  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; A 2009, 965; 2013, 2119)

      NRS 332.310  “Building” defined.  “Building”

means any existing structure, building or facility, including any equipment,

furnishings or appliances within the existing structure, building or facility,

that is owned or operated by a local government. The term includes, without

limitation, occupied and unoccupied existing structures, buildings and

facilities, and any other existing improvements owned or operated by a local

government that incur operating costs.

      (Added to NRS by 2003, 3049; A 2009, 965)

      NRS 332.320  “Operating cost savings” defined.  “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)

      NRS 332.330  “Operating cost-savings measure” defined.  “Operating cost-savings measure”:

      1.  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,

without limitation, 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.

      2.  Includes, without limitation:

      (a) 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.

      (b) 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:

             (1) Costs for materials and labor required

to replace old equipment with new, more efficient equipment.

             (2) 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.

             (3) Automated or computerized energy

control systems.

             (4) Replacement of, or modifications to,

heating, ventilation or air-conditioning systems.

             (5) Replacement of, or modifications to,

lighting fixtures.

             (6) Improvements to the indoor air quality

of a building that conform to all requirements of an applicable building code.

             (7) Energy recovery systems.

             (8) 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.

             (9) Installation of, or modifications to,

existing systems for daylighting, including lighting control systems.

             (10) Installation of, or modification to,

technologies that use renewable or alternative energy sources.

             (11) Programs relating to building

operation that reduce operating costs, including, without limitation,

computerized programs, training and other similar activities.

             (12) Programs for improvement of steam

traps to reduce operating costs.

             (13) Devices that reduce water consumption

in buildings, for lawns and for other irrigation applications.

             (14) 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.

             (15) Trash compaction and waste

minimization.

             (16) Ground source systems for heating and

cooling.

      (c) Investment in educational programs relating

to the operation and maintenance of any equipment installed to reduce operating

costs.

      3.  Does not include the construction of a

new building or any addition to a building that increases the square footage of

the building.

      (Added to NRS by 2003, 3049; A 2009, 965)

      NRS 332.340  “Performance contract” defined.  “Performance

contract” means a written 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; A 2009, 966)

      NRS 332.350  “Qualified service company” defined.  “Qualified

service company” means a person who is qualified to bid on a performance

contract pursuant to NRS 332.351 or 332.353.

      (Added to NRS by 2003, 3050; A 2009, 966)

      NRS 332.351  Qualification as qualified service company; investigation and

determination by local governments; confidentiality of certain information.

      1.  Except as otherwise provided in NRS 332.353, a person who wishes to qualify as a

qualified service company and submit a proposal for a performance contract with

a local government must file an application with the local government.

      2.  Upon receipt of an application pursuant

to subsection 1, the local government shall:

      (a) Investigate the applicant to determine

whether the applicant is qualified to bid on a performance contract; and

      (b) After conducting the investigation, determine

whether the applicant is qualified to bid on a performance contract.

      3.  The local government shall notify each

applicant in writing of its determination.

      4.  The local government may determine an

applicant is qualified to bid:

      (a) On a specific project; or

      (b) On more than one project over a period of

time to be determined by the local government.

      5.  Except as otherwise provided in NRS 332.353, the local government shall use only the

criteria described in NRS 332.352 in determining

whether to approve or deny an application.

      6.  Except as otherwise provided in NRS 239.0115, financial information and

other data pertaining to the net worth of an applicant which is gathered by or

provided to a local government to determine the financial ability of an

applicant to perform a contract is confidential and not open to public

inspection.

      (Added to NRS by 2009, 962)

      NRS 332.352  Criteria for qualification as qualified service company.

      1.  Except as otherwise provided in NRS 332.353, a local government shall use the

following criteria for determining whether a person satisfies the requirements

to be a qualified service company pursuant to NRS

332.360:

      (a) The financial ability of the applicant to

perform the work required by the local government;

      (b) Whether the applicant possesses a business

license issued pursuant to chapter 76 of NRS;

      (c) Whether the applicant possesses a valid

contractor’s license issued pursuant to chapter

624 of NRS of a class corresponding to the work required by the local

government and, if engineering work is required, whether the applicant

possesses a valid license as a professional engineer issued pursuant to chapter 625 of NRS;

      (d) Whether the applicant has the ability to

obtain the necessary bonding for the work required by the local government;

      (e) Whether the applicant has successfully

completed an appropriate number of projects as determined by the local

government, but not to exceed five projects, during the 5 years immediately

preceding the date of application of similar size, scope or type as the work

required by the local government;

      (f) Whether the principal personnel employed by

the applicant have the necessary professional qualifications and experience for

the work required by the local government;

      (g) Whether the applicant has breached any

contracts with a public agency or person in this State or any other state

during the 5 years immediately preceding the date of application;

      (h) Whether the applicant has been disqualified

from being awarded a contract by any governing body in the State of Nevada;

      (i) Whether the applicant has been convicted of a

violation for discrimination in employment during the 2 years immediately

preceding the date of application;

      (j) Whether the applicant has the ability to

obtain and maintain insurance coverage for public liability and property damage

within limits sufficient to protect the applicant and all the subcontractors of

the applicant from claims for personal injury, accidental death and damage to

property that may arise in connection with the work required by the local

government;

      (k) Whether the applicant has established a

safety program that complies with the requirements of chapter 618 of NRS;

      (l) Whether the applicant has been disciplined or

fined by the State Contractors’ Board or another state or federal agency for

conduct that relates to the ability of the applicant to perform the work

required by the local government;

      (m) Whether, during the 5 years immediately

preceding the date of application, the applicant has filed as a debtor under

the provisions of the United States Bankruptcy Code;

      (n) Whether the application is truthful and

complete; and

      (o) Whether, during the 5 years immediately

preceding the date of the application, the applicant has, as a result of causes

within the control of the applicant or a subcontractor or supplier of the

applicant, failed to perform any contract:

             (1) In the manner specified by the

contract and any change orders initiated or approved by the person or

governmental entity that awarded the contract or its authorized representative;

             (2) Within the time specified by the

contract unless extended by the person or governmental entity that awarded the

contract or its authorized representative; or

             (3) For the amount of money specified in

the contract or as modified by any change orders initiated or approved by the

person or governmental entity that awarded the contract or its authorized

representative.

Ê Evidence of

the failures described in this subsection may include, without limitation, the assessment

of liquidated damages against the applicant, the forfeiture of any bonds posted

by the applicant, an arbitration award granted against the applicant or a

decision by a court of law against the applicant.

      2.  Except as otherwise provided in NRS 332.353, in addition to the criteria described in

subsection 1, the local government may use any other relevant criteria that are

necessary to determine whether a person satisfies the requirements to be a

qualified service company pursuant to NRS 332.360.

      (Added to NRS by 2009, 963)

      NRS 332.353  Additional circumstance in which person may be deemed qualified

service company.  Notwithstanding

the provisions of NRS 332.352, a governing body may

deem a person a qualified service company if the person has been determined by:

      1.  The State Public Works Division of the

Department of Administration or a local government pursuant to NRS 338.1379 to be qualified to bid on a

public work; or

      2.  Another local government pursuant to NRS 332.351 to be qualified as a qualified service

company.

      (Added to NRS by 2009, 964)

      NRS 332.357  Duty of Office of Energy to provide information and educational

resources; authority of Office of Energy to provide support to local

government; fees; administration of account for fees; application for and

receipt of other money for account; regulations.

      1.  The Office of Energy shall:

      (a) Provide to local governments information and

educational resources relating to operating cost-savings measures and

performance contracts.

      (b) Include on the Internet website maintained by

the Office, if any, information and educational resources relating to operating

cost-savings measures and performance contracts.

      2.  The Office of Energy may, upon

receiving a request from a local government for support relating to operating

cost-savings measures:

      (a) Provide to the local government support

relating to operating cost-savings measures; and

      (b) Charge and collect a fee from the local

government for the provision of any support described in paragraph (a).

      3.  All fees charged and collected by the

Office of Energy pursuant to subsection 2 must be accounted for separately in

the State General Fund. The Director of the Office of Energy shall administer

the account. Money in the account must be used only to pay the costs incurred

by the Office of Energy to provide support to local governments pursuant to

subsection 2 and is hereby authorized for expenditure as a continuing

appropriation for this purpose.

      4.  The Director of the Office of Energy

may apply for and accept any gift, donation, bequest, grant or other source of

money for deposit in the account. The interest and income earned on money in

the account, after deducting any applicable charges, must be credited to the

account. Money that remains in the account at the end of the fiscal year does

not revert to the State General Fund, and the balance in the account must be

carried forward to the next fiscal year.

      5.  A local government may include in a

performance contract the amount of any fee charged by the Office of Energy

pursuant to subsection 2.

      6.  The Director of the Office of Energy

may adopt regulations to carry out the provisions of this section, including,

without limitation, regulations which establish the amount of the fees to be

charged and collected by the Office of Energy pursuant to subsection 2.

      (Added to NRS by 2013, 2119)

      NRS 332.360  Authority of local government to enter into performance

contract; purpose of performance contract; operational audits; third-party

consultants.

      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.  If a 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.

      3.  The local government shall:

      (a) Evaluate the proposals and presentations made

pursuant to subsection 2; and

      (b) Select a qualified service company,

Ê pursuant to

the provisions of NRS 332.300 to 332.440, inclusive.

      4.  The local government may enter into a

contract with the Office of Energy or retain the professional services of a

third-party consultant with the requisite technical expertise to assist the

local government in evaluating the proposals and presentations pursuant to

subsection 3. If the local government retains the professional services of a

third-party consultant, the third-party consultant must possess a business

license issued pursuant to chapter 76 of NRS

and any other applicable licenses issued by a licensing board in this State in

the same discipline in which the consultant will be advising the local

government.

      5.  The qualified service company selected

by the local government pursuant to subsection 3 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.

      6.  The local government shall enter into a

contract with the Office of Energy or 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 costs incurred

by the Office of Energy or the third-party consultant. If the local government

retains the professional services of a third-party consultant, the third-party

consultant must be licensed pursuant to chapter

625 of NRS and certified by the Association of Energy Engineers as a

“Certified Energy Manager” or hold similar credentials from a comparable

nationally recognized organization. The Office of Energy or a third-party

consultant retained pursuant to this subsection shall work on behalf and for

the benefit of the local government in coordination with the qualified service

company.

      (Added to NRS by 2003, 3051; A 2009, 967; 2013, 2120)

      NRS 332.362  Duty of board of trustees of school district to adopt policy

concerning performance contracts; requirements for policy; annual report.

      1.  The board of trustees of a school

district shall adopt a policy setting forth the process for evaluating whether

work to be performed on a building will be performed pursuant to a performance

contract. The policy must include, without limitation:

      (a) The criteria for determining the work which

will be evaluated pursuant to the policy;

      (b) The requirement that the board of trustees or

its designee evaluate whether the work to be performed:

             (1) Consists primarily of one or more

operating cost-savings measures;

             (2) Qualifies to be performed pursuant to

a performance contract with a return on investment that the board of trustees

determines would make entering into a performance contract in the best interest

of the school district; and

             (3) Would be more reasonably included

under an existing performance contract rather than a new performance contract;

and

      (c) The requirement that the board of trustees or

its designee, if it determines not to enter into a performance contract,

document the reasons for that determination.

      2.  The board of trustees of a school

district shall cause to be prepared an annual report which sets forth the

operating cost-savings measures, if any, that:

      (a) Were identified in a financial-grade

operational audit submitted to the board of trustees pursuant to subsection 5

of NRS 332.360 during the immediately preceding

year; and

      (b) Were not included in a performance contract

during the immediately preceding year.

      3.  As used in this section, “operating

cost-savings measure” means an 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) Trash compaction and waste minimization.

      (o) Ground source systems for heating and

cooling.

      (Added to NRS by 2013, 2118)

      NRS 332.370  Financing and structure of performance contract.

      1.  A performance contract may be financed

through a person other than the qualified service company.

      2.  A performance contract must be

structured to guarantee 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.

      (Added to NRS by 2003, 3052; A 2009, 968)

      NRS 332.371  Requirements for performance contract that guarantees operating

cost savings.  A performance

contract that guarantees operating cost savings must identify the specific

dollar amount and units or percentages of consumption that the qualified

service company anticipates will be eliminated or avoided on a long-term basis

as a result of the operating cost-savings measures that the local government is

implementing.

      (Added to NRS by 2009, 965)

      NRS 332.380  Period over which payments become due.

      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)

      NRS 332.390  Prevailing wage requirement; duty of qualified service company

to furnish bonds before entering into certain performance contracts.

      1.  If a performance contract entered into

pursuant to NRS 332.300 to 332.440,

inclusive, requires the employment of skilled mechanics, skilled workers,

semiskilled mechanics, semiskilled workers 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.

      2.  Before a qualified service company

enters into a performance contract pursuant to NRS

332.300 to 332.440, inclusive, that exceeds

$100,000, the qualified service company must furnish to the contracting body

any bonds required pursuant to NRS 339.025.

The provisions of chapter 339 of NRS apply to

any performance contract described in this subsection.

      (Added to NRS by 2003, 3053; A 2009, 969)

      NRS 332.400  Rights of local government and qualified service company if

insufficient money appropriated by local government to make payments.  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)

      NRS 332.410  Reinvestment of savings realized under contract.  A local government may reinvest any savings

realized under a performance contract whenever practical into other operating

cost-savings measures provided the local government:

      1.  Is satisfying all its other obligations

under the performance contract; and

      2.  Complies with the requirements of NRS 332.300 to 332.440,

inclusive, when reinvesting the savings into other operating cost-savings

measures.

      (Added to NRS by 2003, 3053; A 2009, 969)

      NRS 332.420  Monitoring of cost savings attributable to operating

cost-savings measures.

      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)

      NRS 332.430  Qualified service company to provide information concerning

performance contract to Office of Energy.  A

qualified service company shall provide to the Office of Energy 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 2009, 1405;

2011, 2078)

      NRS 332.431  Duty of local governments to report to Legislature.

      1.  Each local government that enters into

a performance contract pursuant to NRS 332.300 to 332.440, inclusive, shall, on or before February 1 of

each year, prepare and submit a report to the Director of the Legislative

Counsel Bureau for transmittal to the Legislature if the Legislature is in

session, or to the Interim Finance Committee if the Legislature is not in

session.

      2.  The report required pursuant to

subsection 1 must include, without limitation:

      (a) The status of the construction and financing

of the operating cost-savings measures described in the performance contract.

      (b) The cumulative amount of operating

cost-savings that have resulted from the operating cost-savings measures.

      (c) The amount of operating cost-savings that are

projected for the future.

      (d) Any other information required by the

Legislature or Interim Finance Committee.

      (Added to NRS by 2009, 965)

      NRS 332.440  Financial mechanisms to guarantee operational cost savings are

realized.  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

      NRS 332.800  Interest of member of governing body or evaluator in contract

prohibited; exception; penalty.

      1.  Except as otherwise provided in NRS 281.230 and 281A.430, 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 person who violates this section is

guilty of a misdemeanor and, in the case of a member of a governing body, a

violation is cause for removal from office.

      (Added to NRS by 1975, 1539; A 2001, 1318; 2003, 891; 2013, 3786)—(Substituted

in revision for NRS 332.155)

      NRS 332.810  Prohibited acts by bidders before award of contract; penalty.

      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:

             (1) Any proprietary information regarding

the contract; or

             (2) Any information regarding a bid on the

contract submitted by another person, unless such information is available to

the general public.

      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 364 days, 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; 2007, 2468; 2013, 982)

      NRS 332.820  Effect of collusion among bidders or advance disclosures.

      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)

      NRS 332.830  Purchase of information system or system of communication for

use by response agency.

      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 6

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 6 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; 2011, 2886)