Use of two-phase design-build selection procedures
Use two-phase design-build selection only when justified by project complexity, anticipated competition, and substantial proposal costs for offerors.
Overview
FAR 36.301 outlines when and how contracting officers should use two-phase design-build selection procedures in federal acquisitions. This section requires that, during acquisition planning, contracting officers evaluate whether the two-phase process is appropriate by considering specific criteria. The two-phase method is intended for projects where design work is required before price proposals and where offerors will incur significant costs in proposal preparation. The regulation ensures that this method is only used when justified by project complexity, anticipated competition, and agency capability.
Key Rules
- Evaluation Requirement
- Contracting officers must evaluate the appropriateness of two-phase design-build procedures during acquisition planning.
- Conditions for Use
- The method should be used only if three or more offers are expected, design work is required before pricing, and offerors will face substantial proposal costs.
- Criteria for Determination
- Officers must consider project definition, delivery time constraints, contractor capability, project suitability, agency management capability, and any additional criteria set by the contracting activity head.
Responsibilities
- Contracting Officers: Must conduct a thorough evaluation of the appropriateness of two-phase procedures and document consideration of all required criteria.
- Contractors: Should be aware that two-phase procedures will only be used when justified and should prepare for significant upfront design work if participating.
- Agencies: Must ensure oversight and that the process is only used when the criteria are met.
Practical Implications
- This section ensures two-phase design-build is used judiciously, minimizing unnecessary proposal costs and ensuring fair competition. Contractors should expect this process only for complex projects with well-defined needs and significant design requirements. Failure to properly evaluate and document the criteria can lead to protest or procurement delays.