Section 1503 of the Act eliminates the $50 million floor on the size of contracts that can use design-build contracting without special approval.
The Act also eliminates an obstacle contained in FHWA's existing design-build rule, relating to the ability of transportation agencies to take certain preliminary actions prior to receipt of NEPA approval for a project. Specifically, the FHWA rule prohibited agencies from issuing requests for proposals and entering into contracts until after issuance of NEPA approval. This has been a particular problem for public-private partnerships where the expectation is that the private sector partner will be involved in the project definition process. Section 1503 directs the Secretary to revise the regulations applicable to design-build contracts to permit transportation agencies to proceed with certain actions relating to design-build contracts, prior to receipt of final NEPA approval. Specifically, the regulations may not require compliance with section 102 of the National Environmental Policy Act of 1969 prior to any agency: (a) issuing requests for proposals; (b) proceeding with awards of design-build contracts; or (c) issuing notices to proceed with preliminary design work under design -build contracts. The Act directs the Secretary to issue the revised regulations not later than 90 days after the date of enactment of SAFETEA-LU.