CONTRACTS.

SEC. 111. CONTRACTS. (a) Letting of Contracts.—Section 112(b) of title 23, United States Code, is amended by inserting “or that an emergency exists” before the period at the end of the first sentence. (b) Contracting for Engineering and Design Services.—Section 112(b) of such title is further amended by striking out “Construction” and inserting in lieu thereof “(1) In general.—Subject to paragraph (2), construction” and by adding at the end thereof the following new paragraph: “(2) Contracting for engineering and design services.— “(A) General rule.—Each contract for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural related services with respect to a project subject to the provisions of subsection (a) of this section shall be awarded in the same manner as a contract for architectural and engineering services is negotiated under title IX of the Federal Property and Administrative Services Act of 1949 or equivalent State qualifications-based requirements. “(B) Applicability.— “(i) In a complying state.—If, on the date of the enactment of this paragraph, the services described in subparagraph (A) may be awarded in a State in the manner described in subparagraph (A), subparagraph (A) shall apply in such State beginning on such date of enactment, except to the extent that such State adopts by statute a formal procedure for the procurement of such services. “(ii) In a noncomplying state.—In the case of any other State, subparagraph (A) shall apply in such State beginning on the earlier of (I) August 1, 1989, or (II) the 10th day following the close of the 1st regular session of the legislature of a State which begins after the date of the enactment of this paragraph, except to the extent that such State adopts or has adopted by statute a formal procedure for the procurement of the services described in subparagraph (A).”. (c) Standardized Contract Clause Concerning Site Conditions.—Section 112 of such title is amended by redesignating subsection (e), and any references thereto, as subsection (f), and by inserting after subsection (d) the following new subsection: “(e) Standardized Contract Clause Concerning Site Conditions.— 101 STAT. 148 “(1) General rule.—The Secretary shall issue regulations establishing and requiring, for inclusion in each contract entered into with respect to any project approved under section 106 of this title a contract clause, developed in accordance with guidelines established by the Secretary, which equitably addresses each of the following: “(A) Site conditions. “(B) Suspensions of work ordered by the State (other than a suspension of work caused by the fault of the contractor or by weather). “(C) Material changes in the scope of work specified in the contract. The guidelines established by the Secretary shall not require arbitration. “(2) Limitation on applicability.—Paragraph (1) shall apply in a State except to the extent that such State adopts or has adopted by statute a formal procedure for the development of a contract clause described in paragraph (1) or adopts or has adopted a statute which does not permit inclusion of such a contract clause.”. (d) Conforming Amendments.—Section 112(b) of such title is further amended— (1) by inserting “Bidding Requirements.—” after “(b)”; and (2) by indenting paragraph (1), as designated by subsection (a) of this section, and aligning such paragraph with paragraph (2), as added by such subsection.