36.209
Construction contracts with architect-engineer firms
A firm that designs a federal construction project cannot be awarded the construction contract for that project unless the agency head or authorized representative approves an exception.
Overview
FAR 36.209 prohibits awarding a construction contract for a project to the same architect-engineer (A-E) firm that designed the project, or to its subsidiaries or affiliates, unless an exception is granted by the head of the agency or an authorized representative. This rule is intended to prevent conflicts of interest and ensure fair competition in government construction contracting. The regulation applies to all federal construction projects where the design and construction phases are procured separately. Any exception to this rule must be explicitly approved at a high level within the agency, reinforcing the seriousness of the restriction.
Key Rules
- Prohibition on Awarding Construction Contracts to Project Designers
- Firms that designed a project (or their subsidiaries/affiliates) cannot be awarded the construction contract for that project.
- Exception with Agency Head Approval
- The only exception is if the head of the agency or an authorized representative provides explicit approval.
Responsibilities
- Contracting Officers: Must ensure that construction contracts are not awarded to the A-E firm that designed the project, unless proper approval is obtained.
- Contractors: Must disclose any relationships to the design firm and avoid bidding on construction if they or their affiliates designed the project, unless an exception is granted.
- Agencies: Must review and approve any exceptions at the appropriate level and maintain oversight to prevent conflicts of interest.
Practical Implications
- This rule exists to prevent conflicts of interest and maintain integrity in the procurement process.
- Contractors must be vigilant about organizational relationships and potential affiliations.
- Failure to comply can result in bid protests, contract termination, or other legal consequences.