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Competitive Mileage Contracting Initiative 

"What is it? How does it work?"

This innovative approach to road construction involves awarding contracts to two private companies to build different sections of the same road project simultaneously. This means that each company will start working from opposite ends of the road and meet each other in the middle. The payment for the work will be based on the completed mileage, rather than the time taken to complete the project.

 

 Here are the reasons why Nevada should consider this system:​

 

  • Efficiency and Speed: The proposed change incentivizes companies to complete their designated segments promptly, while also giving them the chance to outperform their competitor. This competitive environment may even drive contractors to excel further by attempting to claim additional segments from their rival company, ultimately resulting in even faster project delivery.

 

  • Cost-Effectiveness: With payment based on completed mileage, taxpayers only pay for tangible progress. This incentivizes contractors to minimize costs and maximize productivity, ultimately delivering better value for public investment.

 

  • Quality Assurance: The system's competitive nature ensures rigorous quality control. Contractors must adhere to strict standards to receive payment, leading to higher-quality road infrastructure across Nevada.

 

  • Risk Mitigation: By engaging multiple contractors simultaneously, we spread the risk of delays or issues affecting one contractor. If one company encounters challenges, others can continue working, minimizing project disruptions.

Several countries around the world have successfully implemented competitive mileage contracting systems for road construction:

  • Australia: The Australian government has utilized this approach for various road projects, leading to improved efficiency and cost savings.

  • Canada: Canadian provinces such as British Columbia have adopted competitive mileage contracting to accelerate road construction and enhance project outcomes.

  • United States: Some states, including Texas and Florida, have experimented with similar contracting models for specific projects, yielding positive results in terms of efficiency and quality.

By adopting this proven approach, Nevada can enhance the effectiveness of its road construction efforts, ensuring that our infrastructure meets the needs of our growing population while optimizing taxpayer dollars. Let's work together to build a more efficient and resilient road network for the future of Nevada.

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Section 1: Short Title

This Act may be cited as the "Nevada Competitive Road Construction and Transportation Reform Act."

Section 2: Objectives

The objectives of this Act are to establish a legal framework for implementing a competitive road construction system, ensuring balanced financing for freeways and residential areas, and reforming transportation services through privatization.

Section 3: Competitive Road Construction System

  1. The Nevada Department of Transportation (NDOT) is hereby authorized to establish and implement a competitive road construction system for the development and maintenance of road infrastructure projects within the state.

  2. Under this system, NDOT shall have the authority to award contracts to two or more private companies for the construction of different segments of the same road project simultaneously.

  3. Each contracted company shall be responsible for constructing their designated segments, starting from opposite ends of the road and working towards the middle.

  4. Payment for the work completed by each company shall be based on the completed mileage of their respective segments, as certified by NDOT inspectors.

Section 4: Financing

  1. Freeways and other toll-based infrastructure projects shall be financed primarily through user fees, tolls, or other forms of direct payment by those utilizing such infrastructure.

  2. Residential areas and routine maintenance of roads and infrastructure shall be financed using public funding, including but not limited to government revenue sources.

Section 5: Transportation Department Reform

  1. The functions of the Nevada Department of Transportation (NDOT) shall be streamlined to focus primarily on strategic planning, oversight, and regulatory functions related to road infrastructure.

  2. Operational aspects of public transportation, including but not limited to bus services, shall be subject to privatization to enhance efficiency and innovation in service delivery.

Section 6: Contractor Selection, Oversight, and Monitoring

  1. NDOT shall develop and implement procedures for the fair and transparent selection of contractors to participate in the competitive road construction system.

  2. Contractor selection criteria shall include, but not be limited to, past performance, technical capability, and financial stability.

  3. NDOT shall establish mechanisms for the oversight and monitoring of projects under the competitive road construction system to ensure compliance with contractual obligations and quality standards.

Section 7: Implementation Guidelines

NDOT shall develop and promulgate guidelines, rules, and regulations necessary for the implementation of the competitive road construction system.

Section 8: Funding

Private financing sources shall be utilized for toll-based infrastructure projects, while public funding shall be allocated for residential areas and maintenance as outlined in Section 4.

Section 9: Effective Date

This Act shall take effect immediately upon passage.

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