112 STAT. 230 PUBLIC LAW 105-178—JUNE 9, 1998 (1) in the first sentence of paragraph (1) by striking "paragraph (2)" and inserting "paragraphs (2) and (3)"; (2) in paragraph (2)(A) by striking "Each" and inserting "Subject to paragraph (3), each"; and (3) by adding at the end the following: "(3) DESIGN-BUILD CONTRACTING. — "(A) IN GENERAL.—^A State transportation department or local transportation agency may award a design-build contract for a qualified project described in subparagraph (C) using any procurement process permitted by applicable State and local law. "(B) LIMITATION ON FINAL DESIGN.—Final design under a design-build contract referred to in subparagraph (A) shall not commence before compliance with section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332). "(C) QUALIFIED PROJECTS.^A qualified project referred to in subparagraph (A) is a project under this chapter for which— "(i) the Secretary has approved the use of designbuild contracting described in subparagraph (A) under criteria specified in regulations issued by the Secretary; and "(ii) the total costs are estimated to exceed— "(I) in the case of a project that involves installation of an intelligent transportation system, $5,000,000; and "(II) in the case of any other project, $50,000,000. "(D) DESIGN-BUILD CONTRACT DEFINED. —In this paragraph, the term 'design-build contract' means an agreement that provides for design and construction of a project by a contractor, regardless of whether the agreement is in the form of a design-build contract, a franchise agreement, or any other form of contract approved by the Secretary.". (b) INAPPLICABILITY OF STANDARDIZED CONTRACT CLAUSE 23 USC 112. REQUIREMENT.— Section 112(e)(2) of such title is amended— (1) by striking "Paragraph" and inserting the following: "(A) STATE LAW.— Paragraph"; (2) by adding at the end the following: "(B) DESIGN-BUILD CONTRACTS.— Paragraph (1) shall not apply to any design-build contract approved under subsection (b)(3)."; and (3) by aligning the remainder of the text of subparagraph (A) (as designated by paragraph (1) of this subsection) with subparagraph (B) of such section (as added by paragraph (2) of this subsection). 23 USC 112 note. (c) REGULATIONS.— (1) IN GENERAL.—Not later than the effective date specified in subsection (e), after consultation with the American Association of State Highway and Transportation Officials and representatives from affected industries, the Secretary shall issue regulations to carry out the amendments made by this section. (2) CONTENTS. —The regulations shall— (A) identify the criteria to be used by the Secretary in approving the use by a State transportation department
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