Overview
This section prescribes the procedures for distributing construction-related advance notices and solicitations to maximize competition and mandates specific transparency requirements for small business set-asides regarding the processing of change orders.
Key Rules
- Maximizing Reach: Contracting officers (COs) must distribute notices and solicitations to as many prospective offerors as practicable, with the discretion to determine the geographical extent of the distribution.
- Support for Industry Resources: COs may provide solicitations to organizations that maintain free display rooms for the benefit of prospective offerors, subcontractors, and material suppliers.
- Small Business Transparency (15 U.S.C. 644(w)): For construction contracts anticipated for small businesses, the CO must include specific information in the GPE notice regarding "definitization of equitable adjustments" (the formalizing of change order costs and schedules).
- Policy Disclosure: Agencies must disclose their specific policies for processing change order equitable adjustments or provide a link to a website containing this information.
- Past Performance Data: Agencies are required to provide a data table showing their track record over the past three fiscal years regarding how long it took to definitize change orders after receiving an adequate proposal.
Practical Implications
- Informed Bidding: Small business contractors can use the mandated performance data to assess the financial risk of an agency’s administrative lead times for change orders before submitting a bid.
- Administrative Accountability: By requiring agencies to publicize their speed (or lack thereof) in finalizing change orders, the regulation incentivizes more efficient processing of equitable adjustments to remain an "employer of choice" for quality contractors.
- Subcontractor Visibility: The allowance for "display rooms" ensures that lower-tier subcontractors and material suppliers have access to project requirements, fostering better competition and pricing at the subcontract level.