Nevada Revised Statutes
Chapter 232 - State Departments
NRS 232.3602 - Authority to enter; required provisions; procedure for award; reports.

1. The Director may enter into a success contract with a person or local government to accomplish any purpose within the jurisdiction of the Department or any of its divisions. Each success contract must include:
(a) A requirement that payment be conditioned on achieving specific outcomes based on defined performance targets;
(b) An objective process by which an independent evaluator will determine whether the performance targets have been met;
(c) A description of the services to be provided under the contract and the persons who will provide those services;
(d) A schedule that prescribes the dates by which each performance target must be achieved, the date by which each payment must be made and the amount of each payment;
(e) A description of the investments that the person or local government will solicit to raise the money necessary to finance the cost of services and a provision prohibiting investors from earning a return on investment that exceeds 10 percent per year;
(f) Procedures by which either party may terminate the contract early and a transition plan to prevent or mitigate any adverse impact resulting from early termination; and
(g) A prohibition on any investor having input concerning the manner in which services are provided pursuant to the contract after the contract becomes effective.
2. A success contract must be awarded through a competitive bidding process conducted in accordance with the provisions of chapter 333 of NRS. The Director may issue a request for proposals on his or her own volition or after receiving input from any person or entity. Each request for proposals must describe the services to be provided pursuant to the contract, the desired outcomes and the proposed duration of the contract.
3. Before entering into a success contract, the Director must:
(a) Determine that entering into the contract will improve the services provided pursuant to the contract and reduce the costs of the Department for providing the services;
(b) Determine that the success contract will not create a conflict of interest for any employee or independent contractor of the Department or any other person or entity; and
(c) Consult with any other state agency that may be affected by the contract.
4. For each success contract entered into pursuant to this section, the Department shall publish on its Internet website a report that sets forth the rationale for entering into the contract and the basis for that rationale.
5. On or before October 1 of each even numbered year, the Director shall submit to the director of the Legislative Counsel Bureau for transmission to the Legislature a report concerning each success contract in effect at any point during the 2 immediately preceding fiscal years. The report must include the outcomes of each such contract, including the estimated costs saved by the State because of the contract.
(Added to NRS by 2017, 3191)

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