Negotiations
FAR 36.606 mandates a structured negotiation process for architect-engineer contracts, emphasizing modern design methods, subcontracting limits, and clear procedures if negotiations fail.
Overview
FAR 36.606 outlines the procedures for negotiating architect-engineer (A-E) contracts after the final selection of firms. It establishes that negotiations begin with the most preferred firm and must follow FAR Part 15 procedures, including fee limitations. The section emphasizes the importance of allowing firms to propose modern design methods, such as computer-assisted design, and requires the contracting officer to discuss these methods if not included in the proposal. It also prohibits awarding construction contracts to the design firm (with limited exceptions) and highlights the need to negotiate and agree on subcontracting arrangements. If negotiations fail with the top firm, the process continues with the next firm on the list until a satisfactory contract is reached or all options are exhausted, at which point the selection authority may be consulted for further action.
Key Rules
- Initiation of Negotiations
- Negotiations start with the most preferred firm and must follow FAR Part 15 procedures, including fee limitations.
- Proposal Requests and Modern Design Methods
- Contracting officers should request proposals that allow for modern design methods and discuss these if not included.
- Construction Contract Restriction
- Firms that design a project generally cannot be awarded the construction contract for that project, except as allowed by FAR 36.209.
- Subcontracting Agreements
- Subcontracting must be negotiated and limited to firms agreed upon during negotiations, per the prescribed clause.
- Negotiation Failure Procedures
- If negotiations fail, the process moves to the next firm, and if all fail, the selection authority may direct further action.
Responsibilities
- Contracting Officers: Conduct negotiations per FAR Part 15, ensure proposals allow for modern methods, discuss computer-assisted design, enforce subcontracting limits, and follow procedures if negotiations fail.
- Contractors: Submit proposals that may include modern design methods, negotiate subcontracting arrangements, and comply with restrictions on construction contract awards.
- Agencies: Oversee the negotiation process and consult with the selection authority if no contract can be negotiated.
Practical Implications
- This section ensures a fair, transparent negotiation process for A-E contracts, prioritizing qualifications and modern design practices. It prevents conflicts of interest in construction awards and requires clear agreements on subcontracting. Common pitfalls include failing to allow for modern design methods, not properly documenting negotiation failures, or exceeding subcontracting limits.