Fun with the FAR Parts 36, 37, 41, & 48

1. Contracting officers are required to procure architect-engineer services under FAR Part 15 negotiation procedures. FAR 36.103.

2. Contracts for the construction of a project shall not be awarded to the firm that designed the project, or to that firm’s subsidiaries or affiliates, without the approval of the agency head or their authorized representative. FAR 36.209.

3. Solicitations for construction contracts are required to contain the Government’s estimated price range for the project. FAR 36.205.

4. Performance based services contracts shall include (i) a performance work statement (PWS) or statement of objectives (SOO), (ii) measurable performance standards and the method of assessing a contractors performance against the performance standards, and (iii) performance incentive payments when appropriate. FAR 37.601.

5. The GSA has the authority to execute area-wide utility contracts that can be used by other Federal agencies. FAR 41.204.

6. Value engineering incentive payments do not constitute profit or fee within the limitations set forth in FAR 15.404-4(c)(4)(i). FAR 48.102(e).

7. The decision to accept or reject a Value Engineering Change Proposal (VECP) is made solely at the discretion of the Government. FAR 48.103(c).

8. The VECP sharing rate between the contractor and Government for acquisition savings of a “non-incentive” type firm fixed price contract is 50/50. FAR 48.104-2.

9. The VECP sharing rate between the contractor and Government for acquisition savings of a “non-incentive” type cost reimbursement contract is 75/25. FAR 48.104-2.

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