(a) Notwithstanding any law to the contrary, all contracts to perform maintenance or improvements on railroads which are funded, in whole or in part, with funds administered by the Tennessee department of transportation shall be awarded pursuant to competitive bidding requirements as approved by the department of transportation. This section shall not apply to rail crossings to be signalized following a fatality pursuant to § 65-11-113.
(b) In the alternative to subsection (a), all contracts to perform maintenance or improvements on railroads with collective bargaining labor agreements shall allow negotiated labor costs for the labor portion of the contracts. It is the intent of the general assembly that only labor and associated costs shall be reimbursable pursuant to this provision. All other costs associated with the contract, including, but not limited to, materials and equipment, shall be subject to competitive bidding requirements as approved by the department of transportation. All costs associated with such contracts shall be subject to audit by the comptroller of the treasury to ensure that the contracts are performed on a break-even basis and that the state does not reimburse profits to the railroad company involved.
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