PUBLIC LAW 105-178-JUNE 9, 1998 112 STAT. 229 for proposed projects on any Federal-aid highway shall be accompanied by a value engineering analysis or other cost reduction analysis.". (b) FINANCIAL PLAN. — Section 106 of such title (as amended by subsection (a)(2)), is amended by adding at the end the following: 23 USC 106. "(h) FINANCIAL PLAN.—^A recipient of Federal financial assistance for a project under this title with an estimated total cost of $1,000,000,000 or more shall submit to the Secretary an annual financial plan for the project. The plan shall be based on detailed annual estimates of the cost to complete the remaining elements of the project and on reasonable assumptions, as determined by the Secretary, of future increases in the cost- to complete the project.". (c) LIFE CYCLE COST ANALYSIS.— Section 106 of such title (as amended by subsection (a)(2)), is amended by striking subsection (f) and inserting the following: "( f) LIFE-CYCLE COST ANALYSIS.— " (1) USE OF LIFE-CYCLE COST ANALYSIS. —The Secretary shall develop recommendations for the States to conduct lifecycle cost analyses. The recommendations shall be based on the principles contained in section 2 of Executive Order No. 12893 and shall be developed in consultation with the American Association of State Highway and Transportation Officials. The Secretary shall not require a State to conduct a life-cycle cost analysis for any project as a result of the recommendations required under this subsection. "(2) LIFE-CYCLE COST ANALYSIS DEFINED.—In this subsection, the term 'life-cycle cost analysis' means a process for evaluating the total economic worth of a usable project segment by analyzing initial costs and discounted future costs, such as maintenance, user costs, reconstruction, rehabilitation, restoring, and resurfacing costs, over the life of the project segment.". (d) CONFORMING AMENDMENT. — The analysis for chapter 1 of such title is amended by striking the item relating to section 106 and inserting the following: "106. Project approval and oversight.". SEC. 1306. STANDARDS. (a) ELIMINATION OF GUIDELINES AND ANNUAL CERTIFICATION REQUIREMENTS.— Section 109 of title 23, United States Code, is amended— (1) by striking subsection (m); and (2) by redesignating subsections (n) through (q) as subsections (m) through (p), respectively. (b) SAFETY STANDARDS. —Section 109 of such title (as amended by subsection (a)), is amended by adding at the end the following: "(q) PHASE CONSTRUCTION.—Safety considerations for a project under this title may be met by phase construction consistent with the operative safety management system established in accordance with section 303 or in accordance with a statewide transportation improvement program approved by the Secretary.". SEC. 1307. DESIGN-BUILD CONTRACTING. (a) AUTHORITY. —Section 112(b) of title 23, United States Code, is amended—
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