SPECIAL PROCUREMENTS.

SEC. 3023. SPECIAL PROCUREMENTS. (a) Turnkey System Projects.— Section 5326(a) is amended— (1) by striking paragraph (1) and inserting the following: “(1) Turnkey system project defined.— In this subsection, the term ‘turnkey system project’ means a project under which a recipient enters into a contract with a seller, firm, or consortium of firms to design and build a mass transportation system or an operable segment thereof that meets specific performance criteria. Such project may also include an option to finance, or operate for a period of time, the system or segment or any combination of designing, building, operating, or maintaining such system or segment.”; (2) in paragraph (2)— (A) by inserting “Selection of turnkey projects.—” after “(2)”; and (B) by inserting “or an operable segment of a mass transportation system” after “transportation system”; (3) in paragraph (3) by inserting “Demonstrations.—” after “(3)”; and (4) by aligning paragraphs (2) and (3) with paragraph (1) of such section, as amended by paragraph (1) of this section. (b) Technical Amendment.— Section 5326 is amended by striking subsection (c) and inserting the following: “(c) Acquiring Rolling Stock.— A recipient of financial assistance under this chapter may enter into a contract to expend that assistance to acquire rolling stock— “(1) based on— “(A) initial capital costs; or “(B) performance, standardization, life cycle costs, and other factors; or “(2) with a party selected through a competitive procurement process. “(d) Procuring Associated Capital Maintenance Items.— A recipient of assistance under section 5307 procuring an associated capital maintenance item under section 5307(b) may enter into a contract directly with the original manufacturer or supplier of the item to be replaced, without receiving prior approval of the Secretary, if the recipient first certifies in writing to the Secretary that— “(1) the manufacturer or supplier is the only source for the item; and “(2) the price of the item is no more than the price that similar customers pay for the item.”. (c) Conforming Amendment.— Section 5334(b)(4) is amended by striking “5323(a)(2), (c) and (e), 5324(c), and 5325 of this title” and inserting “5323(a)(2), 5323(c), 5323(e), 5324(c), 5325(a), 5325(b), 5326(c), and 5326(d)”.