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(Revised October 1, 2000)



 236.601 Policy.
 236.602 Selection of firms for architect-engineer contracts.
 236.602-1 Selection criteria.
 236.602-2 Evaluation boards.
 236.602-4 Selection authority.
 236.602-70 Restriction on award of overseas architect-engineer contracts to foreign firms.
 236.604 Performance evaluation.
 236.606 Negotiations.
 236.606-70 Statutory fee limitation.
 236.609 Contract clauses.
 236.609-70 Additional provision and clause.

236.601  Policy.


      (1)  10 U.S.C. 2807(b) requires notice to Congress 21 days before the initial obligation of funds if a contract is for—


              (i)  A-E services or construction design for military construction, military family housing, or restoration or replacement of damaged or destroyed facilities; and


              (ii)  An estimated total contract price of $500,000 or more.


      (2)  During the 21 day period, synopsis of the proposed contract action and administrative actions leading to the award may be started.


236.602  Selection of firms for architect-engineer contracts.


236.602-1  Selection criteria.


      (a)(i)  Establish the evaluation criteria before making the public announcement required by FAR 5.205(c) and include the criteria and their relative order of importance in the announcement.  The evaluation criteria should be project specific.  Use the information in the DD Form 1391, FY__ Military Construction Project Data, when available, and other pertinent project data in preparing the evaluation criteria.


                    (4)  Use performance evaluation data from the central data base identified in 236.201.


                    (6)  The primary factor in A-E selection is the determination of the most highly qualified firm.  Also consider secondary factors such as geographic proximity and equitable distribution of work, but do not attribute greater significance to the secondary factors than to qualifications and past performance.  Do not reject the overall most highly qualified firm solely in the interest of equitable distribution of contracts.


                          (A)  Consider the volume of work awarded by DoD during the previous 12 months.  In considering equitable distribution of work among A-E firms, include small business concerns; historically black colleges and universities and minority institutions; firms that have not had prior DoD contracts; and small disadvantaged business concerns and joint ventures with small disadvantaged business participants if the North American Industry Classification System (NAICS) Industry Subsector of the acquisition is one in which use of a price evaluation adjustment is currently authorized (see FAR 19.201(b)).


                              (1)  Use data extracted from the Defense Contract Action Data System (DCADS)       compiled from DD Form 350, Individual Contracting Action Report.  DCADS data may be obtained from the central data base identified in 236.201(c)(1).


                              (2)  Do not consider awards to overseas offices for projects outside the United States, its territories and possessions.  Do not consider awards to a subsidiary if the subsidiary is not normally subject to management decisions, bookkeeping, and policies of a holding or parent company or an incorporated subsidiary that operates under a firm name different from the parent company.  This allows greater competition.


                          (B)  Consider as appropriate superior performance evaluations on recently completed DoD contracts.


                          (C)  Consider the extent to which potential contractors identify and commit to small business, to small disadvantaged business (SDB) if the NAICS Industry Subsector of the subcontracted effort is one in which use of an evaluation factor or subfactor for participation of SDB concerns is currently authorized (see FAR 19.201(b)), and to historically black college or university and minority institution performance as subcontractors.


236.602-2  Evaluation boards.


      (a)  Preselection boards may be used to identify to the selection board the qualified firms that have a reasonable chance of being considered as most highly qualified by the selection board.


236.602-4  Selection authority.


      (a)  The selection authority shall be at a level appropriate for the dollar value and nature of the proposed contract.


      (c)  A finding that some of the firms on the selection report are unqualified does not preclude approval of the report, provided that a minimum of three most highly qualified firms remains.  The reasons for finding a firm or firms unqualified must be recorded.


236.602-70  Restriction on award of overseas architect-engineer contracts to foreign firms.

In accordance with Section 111 of Pub. L. 104-32 and similar sections in subsequent military construction appropriations acts, A-E contracts funded by military construction appropriations that are estimated to exceed $500,000 and are to be performed in Japan, in any North Atlantic Treaty Organization member country, or in countries bordering the Arabian Gulf, shall be awarded only to United States firms or to joint ventures of United States and host nation firms.


236.604  Performance evaluation.


      (a)  Preparation of performance reports.  Use DD Form 2631, Performance Evaluation (Architect-Engineer), instead of SF 1421.


              (2)  Prepare a separate performance evaluation after actual construction of the project.  Ordinarily, the evaluating official should be the person most familiar with the A-E's performance.


      (c)  Distribution and use of performance reports.


              (i)  Forward each performance report to the central data base identified in 236.201(c) after completing the review.  The procedures in 236.201 also apply to A-E contracts.


              (ii)  File and use the DD Form 2631, Performance Evaluation (Architect-Engineer), in a manner similar to the SF 254, Architect-Engineer and Related Services Questionnaire.


236.606  Negotiations.


236.606-70  Statutory fee limitation.


      (a)  10 U.S.C. 4540, 7212, and 9540 limit the contract price (or fee) for A-E services for the preparation of designs, plans, drawings, and specifications to six percent of the project's estimated construction cost.


      (b)  The six percent limit also applies to contract modifications, including modifications involving—


              (1)  Work not initially included in the contract.  Apply the six percent limit to the revised total estimated construction cost.


              (2)  Redesign.        Apply the six percent limit as follows—


                    (i)  Add the estimated construction cost of the redesign features to the original estimated construction cost;


                    (ii)  Add the contract cost for the original design to the contract cost for redesign; and


                    (iii)  Divide the total contract design cost by the total estimated construction cost.  The resulting percentage may not exceed the six percent statutory limitation.


      (c)  The six percent limit applies only to that portion of the contract (or modification) price attributable to the preparation of designs, plans, drawings, and specifications.  If a contract or modification also includes other services, the part of the price attributable to the other services is not subject to the six percent limit.


236.609  Contract clauses.


236.609-70  Additional provision and clause.


      (a)(1)  Use the clause at 252.236-7009, Option for Supervision and Inspection Services, in solicitations and contracts for A-E services when—


                    (i)  The contract will be fixed price; and


                    (ii)  Supervision and inspection services by the A-E may be required during construction.


              (2)  Include the scope of such services in Appendix A of the contract.


      (b)  Use the provision at 252.236-7011, Overseas Architect-Engineer Services--Restriction to United States Firms, in solicitations for A-E contracts that are—


              (1)  Funded with military construction appropriations;

              (2)  Estimated to exceed $500,000; and


              (3)  To be performed in Japan, in any North Atlantic Treaty Organization member country, or in countries bordering the Arabian Gulf.




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