PART 834-MAJOR SYSTEMS

ACQUISITION

AUTHORITY: 38 U.S.C. 210 and 40 U.S.C.

486(c).

834.002 Policy.

VA policy regarding major system acquisition is contained in Central Office Operating Instructions OI-1, Part VI, Chapter 11, "Major System Acquisitions." Normally, VA major system acquisitions involve a minimum of $50 million one time costs or $150 million life cycle costs. Persons wishing to review these procedures may obtain copies by writing the Associate Deputy Secretary for Information Resources Management (004), Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420. [49 FR 12618, Mar. 29, 1984]

Sec.

836.606-70 General.

836.606-71 Architect-engineer's proposal. 836.606-72 Contract price.

836.606-73 Application of 6-percent architect-engineer fee limitation.

AUTHORITY: 38 U.S.C. 210 and 40 U.S.C.

486(c).

SOURCE: 49 FR 12618, Mar. 29, 1984, unless otherwise noted.

EDITORIAL NOTE: For nomenclature change, see 52 FR 49017, Dec. 29, 1987.

Subpart 836.2-Special Aspects of Contracting for Construction

836.202 Specifications.

The procedures described in Part 810 shall be applicable to construction specifications.

specifications

(a) Construction which use "brand name or equal" purchase descriptions shall conform to the requirements of 810.004.

or

(b) The use of "brand name equal" or other restrictive specifications by contract architect-engineers is specifically prohibited without the prior written approval of the contracting officer during the design stage. The contracting officer shall inform the prospective architect-engineers of this requirement during the negotiation phase, prior to award of contract for design.

(c) If it is determined that only one product will meet the Government's minimum needs and VA will not allow the submission of "equal" products, the bidders must be placed on notice that the "brand name or equal" provisions of the "Material and Workmanship" clause found at FAR 52.236.5 and any other provision which may authorize the submission of an “equal" product, will not apply. In order to properly alert bidders to this requirement, the clause found at 852.236-90, "Restriction on Submission and Use of Equal Products," shall be included in the solicitation.

[52 FR 282, Jan. 5, 1987, as amended at 53 FR 7756, Mar. 10, 1988; 53 FR 9631, Mar. 24, 1988; 54 FR 40065, Sept. 29, 1989]

836.204 Disclosure of the magnitude of construction projects.

In lieu of the estimated price ranges described in FAR 36.204, the magnitude of VA projects should be identified in advance notices and solicitations in terms of one of the following price ranges:

(a) Less than $25,000;

(b) Between $25,000 and $100,000; (c) Between $100,000 and $250,000; (d) Between $250,000 and $500,000; (e) Between $500,000 and $1,000,000; (f) Between $1,000,000

and

836.208 Concurrent performance of firm fixed-price and other types of construction contracts.

When concurrent contracts of the type specified in FAR 36.208 are considered necessary or advantageous, prior approval will be requested of the Chief Medical Director for contracts involving Maintenance and Repair (M&R) funds or of the Deputy Assistant Secretary for Facilities for contracts involving construction (major and minor) funds. Complete justification will be furnished in the request. [49 FR 12618, Mar. 29, 1984, as amended at 54 FR 40065, Sept. 29, 1989]

836.209 Construction contracts with archi

tect-engineer firms.

When it is considered necessary or advantageous to award a contract for construction of a project to a firm or person that designed the project, prior approval will be requested of the Chief Medical Director for contracts involving M&R funds or of the Deputy Assistant Secretary for Facilities for contracts involving construction funds. Complete justification will be furnished in the request.

836.211

Distribution of advance notices and solicitations.

(a) On the issue date shown on SF 1442, Solicitation, Offer and Award, specifications, drawings, and all other material necessary to prepare a bid will be issued to each eligible prospective bidder and other agencies who request them in writing and who meet the qualifications stated in the solicitation.

(b) On the issue date, two copies of the drawings and specifications for station level projects funded from construction appropriations will be furnished to the Deputy Assistant Secretary for Facilities.

(c) Distribution of specifications and drawings on Central Office projects will be in accordance with that established by the Project Director.

(d) Advance (presolicitation) notices should also be sent to Chambers of Commerce, Builders Exchanges, various trade journals, and other organizations which make a practice of publishing such information for the benefit of the construction industry. Drawings and specifications should be sent to Chambers of Commerce and Builders Exchanges when requested. These organizations frequently make drawings and specifications available for review and inspection to suppliers and subcontractors who cannot receive drawings and specifications from the Government.

Subpart 836.3—Special Aspects of Sealed Bidding in Construction Contracting

836.302 Pre-solicitation notices

A SF 1417, Pre-Solicitation Notice (Construction Contract), shall be used as a pre-solicitation notice on proposed contracts expected to equal or exceed $100,000. When so used, it will be submitted to prospective bidders at least 15 days prior to the date on which the drawings and specifications will be issued. When pre-solicitation notices are not used, see 836.211.

[49 FR 12618, Mar. 29, 1984, as amended at 50 FR 794, Jan. 7, 1985]

836.371 Notice of proceed.

(a) Construction contractors will be given a written "Notice to Proceed" with the work. SF 1442 serves that purpose for contracts not in excess of $25,000 when completed by the contracting officer and returned to the contractor. For contracts exceeding $25,000, a letter will be used. A letter notice to proceed will normally be sent only after performance and payment bonds and the completed contract forms, where applicable, have been returned by the contractor and are accepted by the contracting officer. If the urgency of the work or other proper reason requires the contractor to begin work immediately, the award letter may include the "Notice to Proceed" with the reservation that payments are contingent upon receipt and approval of the required bonds.

(b) If the contract provides for liquidated damages, the notice to proceed will be sent by certified mail, return receipt requested. It will advise the contractor that the work will be completed within (insert contract time for completion) calendar days from the date of receipt shown on the certified mail receipt card returned by the post office.

(c) If the contract does not provide for liquidated damages, certified mail is not required. Notices to proceed for these contracts will establish a date for completion taking into consideration the time required for the notice to arrive by regular mail.

(d) At the time the notice to proceed is sent to the contractor, a copy will be furnished to the resident engineer or the Chief, Engineering Service. A copy of the notice to proceed will be filed with copy A of the contract. When certified mail is used, the certified mail receipt card returned by the post office will be attached to the copy of the notice to proceed. Copies of the notice to proceed will be filed with copies C and D of the contract after the date of receipt has been established and indicated thereon.

[49 FR 12618, Mar. 29, 1984, as amended at 50 FR 794, Jan. 7, 1985]

Subpart 836.6—Architect-Engineer Services

836.601 Policy.

The provisions of this subpart pertain to the general policies and procedures for the procurement of professional architect-engineer services as set forth in FAR subpart 36.6 and are not applicable to contracts entered into pursuant to the authority of 38 U.S.C. 1820. The provisions of the Small Business Act are applicable to the procurement of architect-engineering services. Consequently, consideration of procurement set-asides for small business concerns will be made in accordance with FAR subpart 19.5. 836.602 Selection of firms for architectengineer contracts.

836.602-1 Selection criteria.

In addition to the evaluation criteria set forth in FAR 36.602-1, the board will consider the factors set forth in this section as they apply to the project or purpose of the selection. Values will be assigned to each factor in determining the relative qualifications of the firms identified as qualified through the preselection process. The values may be confirmed or adjustments may be made as a result of the discussions.

(a) Reputation and standing of the firm and its principal officials with respect to professional performance, general management, and cooperative

ness.

(b) Record of significant claims against the client because of improper or incomplete architectural and engineering services.

(c) Geographic location and facilities of the working office which would provide the professional services.

(d) Specific experience and qualifications of personnel proposed for assignment to the project, and record of working together as a team.

836.602-2 Evaluation boards.

Central Office architect-engineer contractors will be selected by the board appointed by the Deputy Assistant Secretary for Facilities. Field facility architect-engineer contractors will be selected by the board appointed by the facility director.

(a) The evaluation board will be chaired by the Director of the Architect-Engineer Evaluation Staff, or the Area Project Manager (or Deputy Area Project Manager) will be designated to act when necessary. The board's members as appointed by the Deputy Assistant Secretary for Facilities will include the appropriate Area Project Manager and as many qualified professional architects or engineers from the Office of Facilities technical services as may be considered appropriate for the particular project. Additional members from the Office of Facilities or from other VA administrations and staff offices will be designated for projects when appropriate.

(b) The evaluation board for a VA field facility will consist of no less than two members, one of whom will be the Chief, Supply Service, and the other the Chief, Engineering Service, or their alternates. Where a facility has two or more engineers on its staff, an additional engineer will be appointed to the board. The chairperson of the board will be the senior engineer. [49 FR 12618, Mar. 29, 1984, as amended at 53 FR 1631, Jan. 21, 1988; 54 FR 40065, Sept. 29, 1989]

836.602-3 Evaluation board functions.

(a) The evaluation board will review the data submitted by the firms and from that file will preselect the firms which possess the basic qualifications for performing the services needed.

The factors stated in the announcement publicizing the proposed procurement (see FAR 5.207) will be used in determining whether a firm is qualified for inclusion in the preselection list.

(b) In the evaluation of the qualifications of the firms on the preselection list, the board will perform the functions as outlined in FAR 36.602-3, applying the evaluation criteria set forth in FAR 36.602-1 and that established in 836.602-1. The board will recommend at least three firms for interviews to the Deputy Assistant Secretary for Facilities in the case of Central Office contracts, and to the field facility director in the case of facility contracts.

(c) After approval of the list of selected firms recommended for interviews by the Deputy Assistant Secretary for Facilities or by the facility director, the board will arrange discussions with each firm to obtain information, supplementing that which is already available. The board will select in order of preference, at least three firms considered the most highly qualified. This recommended listing will be submitted to the Deputy Assistant Secretary for Facilities or to the facility director, as appropriate, for consideration and approval before the contracting officer enters into negotiations with the top-rated firm.

[49 FR 12618, Mar. 29, 1984, as amended at 53 FR 1631, Jan. 21, 1988]

836.602-4 Selection authority.

The Deputy Assistant Secretary for Facilities (for Central Office contracts) and the facility director (for field facility contracts), or persons acting in those capacities, are designated as the approving officials for the recommendations of the evaluation boards.

[49 FR 12618, Mar. 29, 1984, as amended at 53 FR 1631, Jan. 21, 1988]

836.602-5 Procedure for procurements estimated not to exceed $10,000.

Either of the procedures provided in FAR 36.602-5 may be used when authorized by the Deputy Assistant Secretary for Facilities or the facility director.

[49 FR 12618, Mar. 29, 1984, as amended at 53 FR 1631, Jan. 21, 1988]

836.606-70 General.

Negotiations shall be conducted in accordance with FAR Part 15 and VAAR Part 815, beginning with the most preferred firm in the final selection. Application of the 6-percent fee limitation cited in FAR 15.903(d)(1)(ii) is set forth in 836.606-73. The policy set forth in that section and the provisions of FAR Part 15 provide all the available latitude in the negotiation of the contract price. The VAAR policy does not, however, relieve the contracting officer of the responsibility to determine that the fee negotiated is consistent with the services to be performed and the nature of the project. The contract ordinarily will cover all services to be rendered by the firm. To assure that the fee limitation is not violated, the contracting officer will maintain suitable records to be able to isolate the amount in the total fee to which the 6-percent limitation applies. 836.606-71 Architect-engineer's proposal.

The use of VA Form 08-6298, Architect-Engineer Fee Proposal, is mandatory for obtaining the proposal and supporting cost or pricing data from the contractor and subcontractor in the negotiation of all architect-engineer contracts for design services when the contract price is estimated to be $50,000 or over. The use of VA Form 08-6298 for design contracts less than $50,000 is at the discretion of the contracting officer. In obtaining architect-engineer services for research study, seismic study, master planning study, construction management and other related services contracts, VA Form 08-6298 shall also be used but supplemented or modified as needed for the particular project type. The contracting officer shall require the contractor or prospective contractor to submit (and to have any subcontractor or prospective subcontractor submit to the prime contractor or appropriate subcontractor tier) certified cost or pricing data when required by FAR Subpart 15.804.

836.606-72 Contract price.

Where negotiations with the toprated firm are unsuccessful, the contracting officer will terminate the negotiations and undertake negotiations with the firm next in order of preference after authorization by the Deputy Assistant Secretary for Facilities or the facility director. Recommendation for award of the contract at the negotiated fee, will be submitted with a copy of the negotiation memorandum prepared in accordance with FAR 15.808 and, whenever a field pricing report has been received, to the Deputy Assistant Secretary for Facilities, or the facility director, as appropriate.

[52 FR 282, Jan. 5, 1987 as amended at 54 FR 40065, Sept. 29, 1989]

836.606-73 Application of 6-percent architect-engineer fee limitation.

(a) The 6-percent fee limitation on architect or engineer services set forth in section 304(b) of the Federal Property and Administrative Services Act of 1949, as amended, and referred to in FAR 15.903(d)(1)(ii), applies to those services generally required in preparing working drawings and specifications which form the basis for bidding and for the award of construction contract. The fixed fee limitation does not apply to the following architect or engineer services:

(1) Investigative services including but not limited to:

or

(i) Determination of program requirements including schematic preliminary plans and estimates. (ii) Determination of feasibility of proposed project.

(iii) Preparation of measured drawings of existing facility.

(iv) Subsurface investigation.

(v) Structural, electrical, and mechanical investigation of existing facility.

(vi) Surveys: Topographic, boundary, utilities, etc.

(2) Special consultant services not normally available in organizations of architects or engineers not specifically applied to the actual preparation of working drawings or specifications of the project for which the services are required.

(3) Other: