36.204
Disclosure of the magnitude of construction projects
Solicitations for construction projects must disclose only the standardized price range, never the Government’s actual cost estimate, to inform bidders while protecting sensitive information.
Overview
FAR 36.204 requires that all advance notices and solicitations for construction projects disclose the magnitude of the requirement using both physical characteristics and an estimated price range. However, the regulation strictly prohibits revealing the Government’s specific cost estimate. Instead, agencies must use one of eight standardized price ranges, from “Less than $25,000” to “More than $10,000,000.” This approach provides potential contractors with enough information to assess project scale and bonding requirements without compromising the Government’s negotiating position.
Key Rules
- Disclosure Requirement
- Solicitations must state the magnitude of construction projects in terms of physical characteristics and a standardized estimated price range.
- Prohibition on Revealing Government Estimate
- The Government’s actual cost estimate must never be disclosed in the solicitation.
- Standard Price Ranges
- Only the specified price ranges (a) through (h) may be used to describe the estimated price.
Responsibilities
- Contracting Officers: Must ensure solicitations include the appropriate price range and physical characteristics, and do not disclose the Government’s estimate.
- Contractors: Should use the disclosed price range to assess project size and prepare bids accordingly.
- Agencies: Must oversee compliance with disclosure requirements and protect sensitive cost information.
Practical Implications
- This regulation helps contractors gauge project size and bonding needs while protecting the Government’s cost position.
- Failure to use the prescribed ranges or accidental disclosure of the Government’s estimate can lead to procurement challenges or protests.
- Contractors should pay close attention to the stated range to determine eligibility and resource allocation.