Overview
FAR 36.606 establishes the procedures for negotiating Architect-Engineer (A-E) contracts, mandating a sequential process that begins with the highest-ranked firm and moves to subsequent firms only if a fair and reasonable agreement cannot be reached.
Key Rules
- Sequential Negotiation: The Contracting Officer (CO) must negotiate with firms one at a time, starting with the most preferred firm on the final selection list.
- Fee Limitations: Negotiations must adhere to statutory fee limitations for A-E services (generally 6% for production and delivery of designs, plans, and specifications).
- Conflict of Interest: The CO must notify the firm that they are generally prohibited from being awarded the construction contract for any project they design.
- Subcontracting Controls: Because selection is based on qualifications, the CO must specifically agree upon any subcontractors; once negotiated, the firm is limited to using those approved associates and consultants.
- Termination of Negotiations: If a satisfactory agreement cannot be reached, the CO must request a final proposal revision, formally terminate negotiations in writing, and then proceed to the next firm on the list.
- Modern Methods: The solicitation and negotiations must not preclude the use of modern design methods (e.g., CAD), and the CO should seek advance agreements on costs associated with these technologies.
Practical Implications
- No Competitive Range: Unlike standard Part 15 acquisitions, there is no "competitive range" or side-by-side price competition; the government only engages the second-ranked firm after it has officially walked away from the first.
- Vetting the Team: Government agencies exercise high levels of control over the A-E’s team composition, meaning firms cannot easily swap out key personnel or sub-consultants after the contract is awarded without government approval.