cial, in order of preference, based upon the criteria in 936.602-70 and any special criteria included in the public announcement, no less than three firms deemed to be the most highly qualified to provide the services required. The Standard Form 255 submitted by firms with which written or oral discussions were held should be retained in selection file; all other Standard Forms 254 may be discarded 90 days after award. The selecting official shall then select the firm determined to be most highly qualified. Should the firm selected be other than that ranked highest in qualifications by the evaluation board, the selecting official shall provide complete documentation of his decision which shall become part of the contract file.

936.602-70 DOE selection criteria.

Contracting officers or architect-engineer evaluation boards shall apply the evaluation criteria contained in this subsection, as appropriate, and any special criteria developed for individual selections. Wher: special and additional criteria are to be used, they shall be set forth in the public announcement required by 936.601, and a written justification for their use shall be placed in the DOE file maintained for the project.

(a) General qualifications, including:

(1) Reputation and standing of the firm and its principal members;

(2) Experience and technical competence of the firm in comparable work;

(3) Past record in performing work for DOE, other Government agencies, and private industry, including projects or contracts implemented with no overruns; performance from the standpoint of cost including cost overruns (last 5 years); the nature, extent, and effectiveness of contractor's cost reduction program; quality of work; and ability to meet schedules including schedule overruns (last 5 years) (where applicable);

(4) The volume of past and present workloads;

(5) Interest of company management in the project and expected participation and contribution of top officials;

(6) Adequacy of central or branch office facilities for the proposed work, including facilities for any special services that may be required;

(7) Geographic location of the home office and familiarity with the locality in which the project is located:

(b) Personnel and organizations. (1) Specific experience and qualifications of personnel proposed for assignment to the project, including, as required for various phases of the work:

(i) Technical skills and abilities in planning, organizing, executing, and controlling;

(ii) Abilities in overall project coordination and management; and

(iii) Experience in working together as a team;

(2) Proposed project organization, delegations of responsibility, and assignments of authority;

(3) Availability of additional competent, regular employees for support of the project, and the depth and size of the organization so that any necessary expansion or acceleration could be handled adequately;

(4) Experience and qualifications of proposed consultants and subcontractors; and

(5) Ability to assign adequate qualified personnel from the proposed organization (firms own organization, joint-venture organizations, consulting firms etc.) including key personnel and a competent supervising representative.

(c) Additional (or special) criteria developed for the specific project shall be considered and evaluated as may be appropriate.

936.693 Collecting of data on and appraising firms' qualifications.

(a) Establishing offices. DOE offices that regularly acquire architect-engineer services shall collect and maintain current qualifications and performance data files on architect-engineer firms, including information on their past experience on various types of construction projects. Normally, Standard Form 254, Architect-Engineer and Related Services Questionnaire, shall be used for this purpose. Information from other sources, such as appraisals of performance of previ

ous projects awarded to the firm, may also be included in the files.

936.605 Government cost estimate for architect-engineer work.

(a) Prior to the initiation of negotiations, an independent Government estimate of the cost of the required architect-engineer services will be prepared based on a detailed analysis of the costs expected to be generated by the work. Consideration shall be given to the estimated value of the services to be rendered, and to the scope, complexity, and nature of the project. The independent Government estimate shall be revised as required during negotiations to reflect changes in or clarification of the scope of the work to be performed by the architect-engineer. On construction projects, a fee estimate based on the application of percentage factors to project cost estimates of the various segments of the work involved may be developed for comparison purposes, but such a cost estimate shall not be used as a substitute for the independent Government estimate.

(b) The Government estimate shall include the following information:

(1) A sufficiently detailed description and cost estimate of the work to permit an evaluation of services to be performed by the various participants and the degree of complexity of its principal components. When A-E contracts are fixed price, the information as to the work should be in more detail and on a firmer basis, particularly as to estimated costs, than for a CPFF contract. The estimated cost of the component items (including the cost of material and equipment furnished by DOE) and their descriptions, insofar as available, should be included as follows:

(i) Major buildings and other structures for which complete designs and specifications are to be prepared by the architect-engineer, including number and cost of each type, with as much information as is available (within security requirements) as to the functional requirements for such structures;

(ii) Major utilities, including classifications and costs, in as much detail as practicable;

(iii) Special equipment to be procured by a DOE operating contractor, construction contractor, or architectengineer, or furnished by DOE;

(iv) Special equipment to be designated by the architect-engineer; and (v) Special equipment to be installed by the construction contractor.

(2) A statement should be provided indicating total estimated cost of the work exclusive of the construction contractor's fee, and to the extent available, identifying labor, material, and indirect costs, and any amount included for contingencies; estimated cost of architect-engineer services; and the estimated time of completion of design or construction work with an explanation of the basis for establishing the completion schedules.

(c) A written statement should be prepared which gives the extent to which the services of the architect-engineer include any of the services set forth below.

(1) Conceptual Design-Provide preliminary studies to develop a project scope that satisfies a program need, statutory requirements; validate feasibility and attainable performance levels; identify and quantify risks: Develop a reliable budget estimate and a realistic performance schedule; develop project criteria and design parameters for all engineering disciplines, identify applicable codes and standards, quality assurance requirements, environmental studies, materials of construction, space allowances, energy conservation features, health, safety, safeguards, and security requirements and any other features or requirements necessary to describe the project.

(2) Title I-Provide the necessary topographical and other field surveys, test boring, and other subsurface investigation; prepare preliminary studies, sketches, layout plans, and outline specifications; and prepare reports including estimates of cost of the proposed project and of all structures, utilities, and appurtenances thereto.

(3) Title II-Provide complete design of the work including preparation of all required preliminary and final working drawings, specifications, estimates, and contract documents; and assist in securing, analyzing, and eval

uating bids or proposals for construction; and consult with DOE on all questions arising in connection with the services performed by the architect-engineer.

(4) Title III-Provide complete architect-engineer supervision and inspection of construction under the direction of a responsible representative, check shop drawings, and furnish drawings to show construction has actually been accomplished.

(5) Process design-Process design normally requires the preparation of flow diagrams showing each operating step to perform the process; material and heat balances where required; determination of the nature, capacity and design characteristics of production equipment; the general design of connecting flow lines to handle the calculated rates of product and byproduct flow; and schematic layouts.

(6) Procurement of materials and equipment (describe fully) if specified for accomplishment in conjunction with Title I, II, and III services and approved by the Procurement Executive.

(7) Other special services (describe fully) if specified for accomplishment in conjunction with Title I, II, and III services and approved by the Procurement Executive.

[49 FR 12016, Mar. 28, 1984; 49 FR 38951, Oct. 2, 1984]

936.606 Negotiations.

(a) A fixed-price contract for architect-engineer services should be used wherever it is practicable to compile, in advance of the preparation of plans and specifications, adequate information specifically describing the character and extent of services required. When there is insufficient scope information available to permit contracting for complete services (Title I, II, and III) on a fixed-price basis, and when it may be to the advantage of the Government to do so, appropriate consideration should be given to contracting only for a study contract or for the preliminary engineering (Title I), on either a reimbursable or fixed-price basis, in order to permit entering into a fixed-price contract for the remaining portion of architect-engineer serv

ice (Title II and III), based upon information developed in the first phase.

(b) The contracting officer shall request the selected architect-engineer firm to submit its price proposal with supporting cost or pricing data in accordance with FAR 15.804. Revisions of the price and supporting cost or pricing data may be made as required during negotiations to reflect changes in or clarification of the scope of work to be performed by the architect-engineer or findings derived from preaward audits conducted pursuant to FAR 15.805-5.

(f) The contracting officer shall negotiate a price considered fair and reasonable based on a comparative study of the independent Government estimate and the architect-engineer's proposal. Significant differences between elements of the two figures and between the overall figures shall be discussed and the contracting officer shall ascertain the reasons therefor. Under the authority of section 602(d) (13) and (20) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 474) as amended, contracts for architect-engineer services for former AEC functions and those of BPA now being performed by DOE shall not be limited to the six percentum fee restriction in section 304 of the Act, 41 U.S.C. 245(b).

(g) Promptly at the conclusion of each negotiation, a memorandum setting forth the principal elements of the negotiation shall be prepared in accordance with the requirements of FAR 15.808, for use by the reviewing authorities and for inclusion in the contract file. The memorandum shall contain sufficient detail to reflect the significant considerations controlling the establishment of the price and other terms of the contract.

936.609-3 Work oversight in architect-engineer contracts.

In addition to the clause at FAR 52.236-24, the contracting officer shall insert the clause at 952.236-71 in architect-engineer contracts.

936.7001 General policy.

(a) It is the policy of the DOE to use presently owned DOE construction equipment to the fullest extent. Careful investigation shall be made of the equipment available, not only at the field office concerned, but at other field offices, to determine whether such equipment can be economically utilized on the job. The Procurement Executive or designee, can assist in the investigation of excess equipment available in other offices.

(b) It is the policy of the DOE to rent construction equipment, where available, rather than purchase it, unless in the case of third-partyowned equipment, the contracting activity determines that accrued rentals on a particular item of equipment will approximate the cost of ownership of it except, however, that individual items of construction equipment having an original cost of less than $1,000 ordinarily should be purchased and not rented. Where it is clearly to the advantage of the Government, items having a cost of less than $1,000 may be rented with the approval of the Head of the Contracting Activity. Whenever it is practical, cost and other factors considered, Contractorowned equipment shall be rented in

preference preference to renting third-partyowned equipment.

(c) It is the policy of the DOE to pay rental for construction equipment at rates not higher than those prevailing in the locality, except under unusual circumstances, and at as low a rate as is consistent with securing modern equipment in good operating condition. Costs of repair, job interruption due to poor equipment, transportation and in-transit rental may well offset any apparent savings in rental rates. Rental paid shall be subject to any Government price ceiling regulations that may be in effect.

936.7002 Rental of contractor-owned equipment.

936.7002-1 Rental agreements.

The terms and conditions governing rental by DOE of construction equipment from a cost-type construction contractor are set forth in 936.7301. Outline of agreement for rental of contractor-owned construction equipment. This form of agreement is designed for use as an appendix to a DOE cost-type construction contract. It may be modified for rental of equipment under other contractual arrangements and it may be modified for use as a separate contract or as an attachment to a subcontract. Some of the aspects of this agreement to which particular attention should be given are set forth in 936.7002-2 through 936.7002-9.

936.7002-2 Rental period.

The base rental period shall extend from the time the equipment is accepted at the job site until the contractor is notified in writing by DOE's representative that the equipment is no longer required. Subject to applicable limitations covered in the rental agreement form, the contractor shall be paid rental during the in-transit time and during the time required for equipment repair or replacement prior to return to the contractor.

936.7002-3 Rental rates.

(a) Rates for rental of contractorowned equipment shall be fair and equitable. The rental rates contemplate

that the DOE will pay incoming and outgoing transportations costs and rental during in-transit time for both inbound and outbound transportation of equipment; however, terms more favorable to DOE may be negotiated where appropriate. The rental rates to be paid for the use of contractorowned equipment under normal conditions should not exceed 65 percent of the rates quoted in the latest edition of the Associated Equipment Distributor's (A.E.D.) "Compilation of Average Rental Rates for Construction Equipment." However, Heads of Contracting Activities may approve rates in excess of 65 percent of the current A.E.D. schedule when local conditions require higher rates. When it becomes necessary as a general practice to exceed 65 percent of the current A.E.D. schedule, Heads of the Contracting Activities shall be advised.

(b) For items of equipment that are not covered by the A.E.D. schedule, use the latest edition of "Contractors' Equipment Ownership Expense" document published by the Associated General Contractors of America, Inc., and information on prevailing local rates for developing rates that would be consistent with the 35 percent reduction of the A.E.D. rates (i.e., taking into consideration the expenses paid by the Government under the rental agreement).

[49 FR 12016, Mar. 28, 1984; 49 FR 38951, Oct. 2, 1984]

936.7002-4 Application of rates.

(a) Rental rates shall be based upon one shift of 8 hours per day, 40 hours per week, or 176 hours per month of a 30-consecutive-day period.

(b) The monthly rental rate and its pro-rata share shall apply to all rental periods of 1 month or more. The weekly rate and its pro-rata shall apply to all rental periods of 1 week or more up to 1 month. The daily rate and its pro-rata shall apply to all rental periods up to 1 week.

(c) Inasmuch as there are certain elements of cost to an equipment owner which do not change even though the equipment is used on more than one shift per day, it is believed equitable to pay a lower rental rate during a second and third shift than

936.7002-6 Rental limitation.

The rental agreement form provides that when the total amount of rental paid to the contractor for any one unit of equipment equals 75 percent of the mutually agreed value of that unit, as set forth in the initial inspection report, the equipment is to remain available for the work under the construction contract as long as it will be required without any further rental payments to the contractor. The rental ceiling of 75 percent of the agreed-upon value of the equipment applies to all rental paid, including rental paid during in-transit time to and from the site of the work and down time from any operating repairs or restoring of the equipment after it is no longer needed at the site. The purpose of the provision is to prevent the Government from paying rental in excess of the contractor's investment, and is included in lieu of an "option to purchase" clause. Once a particular piece of equipment has been released, the contractor will be required to return it to the job under the original rental period.

936.7002-7 Record of negotiation.

A record of negotiation shall set forth the information used to determine the reasonableness of the rental rates, including a breakdown of the contractor's equipment ownership expense, similar to that itemized in the