Overview
FAR 36.104 establishes the fundamental policy framework for federal construction contracting, outlining the preferred acquisition methods for design and construction projects. It further mandates strict adherence to environmental sustainability standards and requires the implementation of Project Labor Agreements (PLAs) for large-scale construction efforts.
Key Rules
- Acquisition Methods: Contracting officers must use two-phase selection procedures (design-build) for public buildings or works unless the traditional design-bid-build approach or another specific legal procedure is authorized and determined appropriate.
- Sustainability Thresholds: All new construction and modernization projects exceeding 25,000 gross square feet must meet or exceed the Council on Environmental Quality’s "Guiding Principles for Sustainable Federal Buildings."
- Waste Diversion: Agencies are required to eliminate waste by diverting at least 50 percent of non-hazardous construction and demolition materials from landfills.
- Mandatory Project Labor Agreements (PLAs): For federal construction projects with a total estimated cost of $35 million or more, agencies must require a project labor agreement unless a specific exception applies.
- Enhanced Market Research: For projects valued at $35 million or more, contracting officers must conduct proactive market research to analyze local market conditions, including the availability of both unionized and non-unionized contractors.
- Historic Preservation: Rehabilitation of federally owned historic buildings must balance long-term viability with modern retrofitting best practices and technologies.
Practical Implications
- Contractors must possess the technical capability to meet rigorous sustainability and waste diversion targets, as these are now integrated into the core policy for federal building management.
- For projects exceeding the $35 million threshold, the requirement for PLAs necessitates early coordination between agencies and labor advisors, significantly impacting how contractors manage their workforce and labor relations on-site.