Methods of contracting
FAR 36.103 mandates sealed bidding for most construction contracts and negotiation for architect-engineer services, with specific exceptions based on location and service type.
Overview
FAR 36.103 outlines the required methods of contracting for construction and architect-engineer (A-E) services. It mandates that contracting officers use sealed bidding for construction contracts when the conditions in FAR 6.401(a) are met, except for contracts performed outside the United States and its outlying areas. For architect-engineer services, the regulation requires acquisition by negotiation, following the procedures in FAR Subpart 36.6 and relevant agency regulations. This section ensures that the appropriate contracting method is selected based on the type of service and location of performance, promoting compliance with federal acquisition policies.
Key Rules
- Sealed Bidding for Construction Contracts
- Use sealed bid procedures for construction contracts if FAR 6.401(a) conditions apply, unless the work is outside the U.S. and its outlying areas.
- Negotiation for Architect-Engineer Services
- Acquire architect-engineer services through negotiation, following FAR Subpart 36.6 and applicable laws and agency rules.
Responsibilities
- Contracting Officers: Must determine the correct contracting method based on contract type and location, and follow all applicable procedures and regulations.
- Contractors: Should be aware of the solicitation method (sealed bidding or negotiation) and prepare proposals or bids accordingly.
- Agencies: Must ensure oversight and compliance with the prescribed contracting methods and maintain adherence to legal and regulatory requirements.
Practical Implications
- This section clarifies when to use sealed bidding versus negotiation, reducing ambiguity in procurement planning.
- It impacts how contractors prepare their submissions and what to expect in the solicitation process.
- Common pitfalls include misapplying the contracting method or overlooking exceptions for overseas contracts.