Overview
This section outlines the regulatory framework for the two-phase design-build selection process, detailing how agencies transition from a qualification-based "down-select" (Phase One) to a formal technical and price competition (Phase Two). The procedure is designed to narrow the field of competitors to a small group of the most highly qualified offerors before requiring the submission of expensive, detailed design and cost proposals.
Key Rules
- Solicitation Structure: The process may use a single solicitation covering both phases or two separate solicitations issued in sequence, ultimately resulting in a single contract award via competitive negotiation.
- Phase One Requirements:
- Evaluation Factors: Must include technical approach, technical qualifications (experience, competence, capability), and past performance.
- Price Prohibition: Cost or price-related factors are strictly prohibited during Phase One.
- Down-Select Limit: The solicitation must state the maximum number of offerors to be selected for Phase Two. This number cannot exceed five without a formal written determination by the Contracting Officer.
- Approval Thresholds: For acquisitions exceeding $5.5 million, any determination to select more than five offerors must be approved by the Head of the Contracting Activity (HCA) or a designated senior official.
- Phase Two Requirements:
- Standard Procedures: Must be conducted in accordance with FAR Part 15 (Contracting by Negotiation).
- Technical/Price Separation: Requires the submission of both technical proposals (e.g., design concepts, management approach) and price proposals, which must be evaluated separately.
Practical Implications
- Reduced Bid and Proposal (B&P) Costs: By limiting the number of firms that provide detailed designs and pricing, the government reduces the financial burden on industry, encouraging more qualified firms to compete for the initial phase.
- Administrative Rigor: Contracting Officers must ensure early and accurate documentation regarding the number of firms to be short-listed, as exceeding the five-firm limit triggers high-level administrative approvals and potential protests if not properly justified.