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A case study : the Las Vegas freeway and arterial management aystem : use af a systems manager contractor to procure ITS
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    Procurement of Intelligent Transportation System (ITS) projects using Federal-aid funds can present challenges that are not typically observed in traditional transportation projects. Many roadway improvement projects involve the two-step "Design-Bid-Build" process. This process is one in which the design contractor is chosen based on their qualifications, and the construction contractor is chosen based on the lowest cost estimate. However, ITS projects do not necessarily fit the normal definition of construction. These projects often involve application of complex telecommunications, computer, software, sensing, and electronics technologies that make it very difficult for agencies to develop specifications needed for bidding purposes. This can result in unrealistic bids and problems ensuring product quality. Many ITS projects are stand-alone in nature, and do not have to be procured under rules for construction. The installation of field devices and communications infrastructure often meets the definition of construction. However, if a project involves the development of software for the purpose of integrating field devices, then it does not meet this definition. The purpose of this series is to show that other procurement options are available under Federal-aid regulations for projects that do not meet the definition of construction. This study is one of a series that outlines procurement practices that can be used for ITS projects. The scope of this document is limited to Federal-aid procurement regulations and does not describe specific procurement issues that are apparent in state or local regulations. Some states may have regulations in place that are more stringent than the federal requirements. Some states also have regulations that exist for "high tech" projects. It is therefore recommended that state and local agencies review their respective statutory requirements in determining the legal implications of using a particular contracting technique. (11 p.)
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