DESIGN-BUILD CONTRACTING.

SEC. 139. [49 U.S.C. 47104 note] DESIGN-BUILD CONTRACTING. (a) Pilot Program.—The Administrator may establish a pilot program under which design-build contracts may be used to carry out up to 7 projects at airports in the United States with a grant awarded under section 47104 of title 49, United States Code. A sponsor of an airport may submit an application to the Administrator to carry out a project otherwise eligible for assistance under chapter 471 of such title under the pilot program. (b) Use of Design-Build Contracts.—Under the pilot program, the Administrator may approve an application of an airport sponsor under this section to authorize the airport sponsor to award a design-build contract using a selection process permitted under applicable State or local law if— (1) the Administrator approves the application using criteria established by the Administrator; (2) the design-build contract is in a form that is approved by the Administrator; (3) the Administrator is satisfied that the contract will be executed pursuant to competitive procedures and contains a schematic design adequate for the Administrator to approve the grant; (4) use of a design-build contract will be cost effective and expedite the project; (5) the Administrator is satisfied that there will be no conflict of interest; and (6) the Administrator is satisfied that the selection process will be as open, fair, and objective as the competitive bid system and that at least three or more bids will be submitted for each project under the selection process. (c) Reimbursement of Costs.—The Administrator may reimburse an airport sponsor for design and construction costs incurred before a grant is made pursuant to this section if the project is approved by the Administrator in advance and is carried out in accordance with all administrative and statutory requirements that would have been applicable under chapter 471 of title 49, United States Code, if the project were carried out after a grant agreement had been executed. (d) Design-Build Contract Defined.—In this section, the term “design-build contract” means an agreement that provides for both design and construction of a project by a contractor. (e) Expiration of Authority.—The authority of the Administrator to carry out the pilot program under this section shall expire on September 30, 2003.