(2) PRIVATE
CONTRACT.—The term ‘‘private 
contract’’ means an agreement between a govern-
ment agency and a private contractor. 
(3) GOVERNMENT AGENCY.—The term ‘‘govern-
ment agency’’ means a State, local, regional, inter-
regional, or other governmental entity that receives 
Federal funds to carry out surface transportation 
projects. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
(5) SURFACE TRANSPORTATION PROJECT.—The 
term ‘‘surface transportation project’’ means a 
project eligible for assistance under title 23, United 
States Code, a capital project (as defined in section 
5302 of title 49, United States Code), and any other 
project related to surface transportation that the 
Secretary determines appropriate. 
SEC. 4. COST-BENEFIT ANALYSIS. 
(a) IN GENERAL.—For fiscal year 2009 and each fis-
cal year thereafter, Federal funds made available to carry 
out a surface transportation project may be used by a gov-
ernment agency to enter into a private contract of 
$100,000 or more to procure architectural, engineering, 
and related services only if the government agency con-
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ducts a cost-benefit analysis for the private contract in 
accordance with the requirements of this section. 
(b) COMPONENTS.—A cost-benefit analysis conducted 
by a government agency for a private contract under sub-
section (a) shall contain, at a minimum, the following: 
(1) A description of the services to be per-
formed under the private contract. 
(2) An estimate of the cost of procuring the 
services under the private contract, including the 
price of the contract, the cost to the government 
agency of negotiating and awarding the contract, 
and the cost to the government agency of inspecting, 
supervising, monitoring, and overseeing the contract. 
(3) An estimate of the cost of having the serv-
ices performed by the government agency (or a gov-
ernment agency assisting such agency), including 
staff salaries and benefits, office facilities and space, 
equipment and materials, and other costs that can 
be reasonably attributed to the performance of the 
services and that would not otherwise be incurred by 
the government agency. 
(4) A determination as to whether the services 
would be procured more quickly by entering into the 
private contract or by having the services performed 
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by the government agency (or a government agency 
assisting such agency). 
(5) A determination as to whether the govern-
ment agency will provide equipment and materials 
under the private contract and an estimate of the 
cost of any such equipment and materials. 
(6) An estimate of the cost of unemployment 
compensation or other benefits likely to be paid to 
any employees of the government agency displaced 
as a result of the private contract. 
(7) An estimate of the cost to the government 
agency of resuming performance of the service to be 
performed under the private contract. 
SEC. 5. DISCLOSURE OF RESULTS OF COST-BENEFIT ANAL-
YSIS. 
If, after conducting a cost-benefit analysis for a pri-
vate contract under section 4, a government agency finds 
that it is in the public interest to enter into the contract, 
the agency shall, at least 30 days before entering into the 
contract— 
(1) submit the results and accompanying mate-
rials to the Secretary for review; 
(2) provide the results and accompanying mate-
rials to any individual or entity that registers with 
the agency to receive the results; and 
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(3) make the results and accompanying mate-
rials available for public inspection, including publi-
cation of the results on the Internet. 
SEC. 6. COMMENTS. 
In the 15-day period following the date of publication 
by a government agency of the results of a cost-benefit 
analysis for a private contract under section 4— 
(1) employees of the agency and other inter-
ested parties may submit to the agency written com-
ments refuting the accuracy of results; and 
(2) employees of the agency may submit to the 
agency a competitive bid to provide the services that 
would otherwise be performed under the contract. 
SEC. 7. USE OF QUALIFICATION-BASED SELECTION CRI-
TERIA. 
In procuring architectural, engineering, and related 
services from private sources using Federal funds as part 
of a surface transportation project, a government agency 
shall use the procedures for procuring architectural and 
engineering services under chapter 11 of title 40, United 
States Code, or equivalent State qualifications-based re-
quirements. 
SEC. 8. SPECIALTY, EMERGENCY, TEMPORARY WORK. 
Upon the request of a government agency, the Sec-
retary may waive the application of this Act with respect 
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to a private contract if the Secretary determines that the 
government agency cannot perform the work to be con-
ducted under the contract with existing or additional gov-
ernment employees because the work is of an emergency, 
specialty, or intermittent nature and would likely cause 
regular periods of underutilization of government employ-
ees. 
Æ 
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