36.605 Government cost estimate for architect-engineer work
Source: FAR 36.605 on acquisition.gov
An independent, confidential Government cost estimate is mandatory before negotiating architect-engineer contracts or modifications above the simplified acquisition threshold, and its details must be tightly controlled.
Overview
FAR 36.605 requires that an independent Government cost estimate be prepared for architect-engineer (A-E) contracts or contract modifications expected to exceed the simplified acquisition threshold. This estimate must be completed before negotiations begin and should be based on a detailed analysis of the work as if the Government were a competing offeror. The regulation also strictly limits access to the estimate, allowing only those Government personnel whose duties require such knowledge to view it. During negotiations, the contracting officer may disclose specific cost breakdowns for specialized tasks if necessary to reach a fair and reasonable price, but the overall estimate amount should not be revealed except as allowed by agency regulations.
(a) An independent Government estimate of the cost of architect-engineer services shall be prepared and furnished to the contracting officer before commencing negotiations for each proposed contract or contract modification expected to exceed the simplified acquisition threshold. The estimate shall be prepared on the basis of a detailed analysis of the required work as though the Government were submitting a proposal.
(b) Access to information concerning the Government estimate shall be limited to Government personnel whose official duties require knowledge of the estimate. An exception to this rule may be made during contract negotiations to allow the contracting officer to identify a specialized task and disclose the associated cost breakdown figures in the Government estimate, but only to the extent deemed necessary to arrive at a fair and reasonable price. The overall amount of the Government’s estimate shall not be disclosed except as permitted by agency regulations.