This series of FAR summaries is meant to take a meaningful portion of the Federal Acquisition Regulations to ensure an easy-to-understand approach to maintain that readers comprehend the process of doing business with the government and that the government exercises a fair and reasonable approach to doing business with the general public.
FAR 36.2 Special Aspects Of Contracting For Construction
By now you should have a good idea of how federal contracting works, but construction is a different animal.
Construction contracts usually use the sealed bidding process (FAR 14) during the pre-award phase.
A past performance evaluation is required for projects at $750k or higher (FAR 36.201).
The solicitation abides by FAR Part 11. That’s standard and an independent govrment estimate is prepared for the Contracting Officer (FAR 36.203). That’s not.
The magnitude of the project does not include the IGE but does include a range (FAR 32.204) so the offeror knows their proposal is in the ballpark.
The government has price limitations set for the entire project (FAR 36.205)(a) and all portions of the project (FAR 36.205)(b). The CO seeks balance within the proposal (FAR 36.205)(c), (FAR 36.205)(d).
Liquidated damages can be included (FAR 36.206).
Awards are usually designated as firm fixed-price contracts (FAR 36.207)(a). Economic price adjustment can kick in (FAR 36.207)(c).
Per FAR 36.209, if you design the project then you cannot build the project. Them’s the rules.
Construction firms must keep the government posted on progress and the government can take a look for themselves (FAR 36.210).
Kick-off conferences are routine with the successful offeror (FAR 36.212).
When negotiating a construction project, construction companies may have to provide a price breakdown if the proposed differs from the IGE (FAR 36.214)(b). The CO may use rough yardsticks (FAR 36.214)(c).
I have never done a construction deal in the government, but I used sealed bidding as mayor and rough yardsticks when dabbling in pharmaceuticals when in the FSS. My second cousin runs a company and his trouble was that he knew construction but not contracting. He finally pinned the tail on the donkey and now has a grasp.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory message and free consultation.
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