Just as with my Quick Hitters on the FAR and GSAR, my Quick Hitter series on the DFARS is meant to simplify contracting business with the government. This time with DoD.
DFARS 236.2 Special Aspects Of Contracting For Construction
DFARS 236.203 Government Estimate Of Construction Costs
See the accompanying PGI. The estimate is not to be shown to industry. If it is classified then take the necessary precautions. For sealed bid acquisitions, file the IGE with the bid(s) (Step 2 in two-step bidding) and remove the tag of “for government use only” then read and record the estimate as if it were a bid just as the bids were read.
DFARS 236.204 Disclosing The Magnitude Of Construction Projects
Projects ranging from $10M and greater must be granted proper notice in accordance with DoD protocol and distributed within properly solicited solicitations displaying physical characteristics and estimated price range.
DFARS 236.206 Liquidated Damages
Read FAR 252.211-12 as the clause shall be used for construction projects of at least $900K, but can be utilized on projects less than the specified amount.
DFARS 236.211 Distribution Of Advanced Notices & Solicitations
COs must include PALT and protest instructions for requests for equitable adjustment within DoD’s tracking module as well as place such information within the solicitation.
DFARS 236.213 Special Instructions For Sealed Bidding In Construction Contracting
In accordance with the accompanying PGI, use a bid schedule for additive or deductive items. If funding changes then prioritize new or diminished work. Remember not to combine new or diminished work in the same solicitation. COs must record available funds in the contract file. Lastly, the CO must determine the low bidder.
DFARS 236.215 Special Procedures For Cost Reimbursement Contracts For Construction
For contracts involving military construction or housing, the CO must not use cost contracts as a standard rule per DFARS 216.301-3.
DFARS 236.270 Expediting Construction Contracts
Only the head of contracting authority can move the date of completion forward. The HCA must justify that funding is available and moving the completion date necessary is in the best interest of our nation. The CO can approve moving the date of completion forward if cost(s) do not change.
DFARS 236.271 Cost-Plus-Fixed-Fee Contracts
DoD typically does not allow such contract vehicles.
DFARS 236.272 Pre-Qualification Of Sources
Such is only used in critical construction projects. It is a list of qualified and competent performers. The HCA must approve the practice and procedures only after they justify a project is urgent and compelling. Small businesses must be recommended by the SBA, can only submit a bid if the SBA validates their pre-qualified status and the CO must obtain a CoC if not deemed responsible (FAR 19.6).
DFARS 236.273 Construction In Foreign Countries
DoD construction contracts on designated foreign soil must be awarded to American firms unless a foreign firm is more than 20% lower on their bid or a Marshallese firm is deemed responsible and submits a responsible bid inside its designated home territory.
If a foreign government is involved, the CO can invite the Army Office of the Engineers and/or the Naval Facilities Engineering Command to negotiations. The agreement must encompass all pertinent laws, regulations and customs of all involved governments.
DFARS 236.274 Restriction On Acquisition Of Steel For Military Construction Projects
American steel companies which manufacture, fabricate or produce must be ensured the right to compete. Therefore, foreign steel companies must be a competitor or, justified to bypass fair and open competition or be the only reliable source to be named the awardee.
DFARS 236.275 Construction Of Industrial Resources (DFARS 237.75)
See DoD directive 42.75.75 and use DD-1391 to notify the appropriate legislative committees.
I have not done construction contracts in an office setting. However, I possess the wherewithal to learn on the fly. I have several family members within the industry and it would be fun to both talk shop with them as well as tell them that I work on bigger projects than they do, and one of them is overseeing the building of his third data center for Facebook.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation.
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