§ 5326. — Special procurements.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 49USC5326]
TITLE 49--TRANSPORTATION
SUBTITLE III--GENERAL AND INTERMODAL PROGRAMS
CHAPTER 53--MASS TRANSPORTATION
Sec. 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, Sec. 1(d), July 5, 1994, 108 Stat. 826; Pub. L. 103-
429, Sec. 6(11), Oct. 31, 1994, 108 Stat. 4379; Pub. L. 105-178, title
III, Sec. 3023(a), (b), June 9, 1998, 112 Stat. 364.)
Historical and Revision Notes
Pub. L. 103-272
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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, Sec. 12(l); added Dec. 18, 1991,
Pub. L. 102-240, Sec. 3019, 105 Stat.
2109; Oct. 6, 1992, Pub. L. 102-388,
Sec. 502(j), 106 Stat. 1567.
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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, Sec. 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, Sec. 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, Sec. 3023(a)(3), (4), inserted
heading and realigned margins.
Subsec. (c). Pub. L. 105-178, Sec. 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, Sec. 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.
Section Referred to in Other Sections
This section is referred to in section 5334 of this title.
