(b) In any given contract, separate completion periods may be established for separable items of work. Where such periods are shown, requests for extension of time must be evaluated with respect to each item, and the affected completion periods modified where appropriate. § 1-18.106 Minimum standards for responsible prospective contractors. In evaluating the financial resources and ability to perform of a prospective contractor, the contracting officer, in addition to other pertinent factors (see Subpart 1-1.12), shall consider whether a bid guarantee has been and performance and payment bonds are to be furnished. However, the mere ability to furnish bonds shall not, in itself, be considered acceptable evidence of adequate financial resources and ability to perform. Where the prospective contractor is a joint venture, the contracting officer shall consider the financial resources and individual capacities of all its members in determining the responsibility of the joint venture. [36 F.R. 17422, Aug. 31, 1971] (a) The technical provisions of construction specifications shall be in sufficient detail so that, when used with the applicable drawings, bids can be prepared by contractors, material suppliers, and manufacturers on a fair and competitive basis, and construction can be completed without additional construction specifications, except those necessary to deal with unforeseen conditions or to accomplish changes during construction. Materials and equipment shall be described, where possible, by reference to documents generally known to the industry. The use of specifications and standards shall be governed by §§ 1-1.305 and 1-1.306. (b) When it is necessary to use "brand name or equal" descriptions in the specifications for descriptive purposes, the particular physical, functional, or other characteristics of the brand name item which are deemed essential to the needs of the procuring agency shall be clearly identified and described. § 1-18.108 Government estimates. An independent Government estimate of construction cost in as much detail as in the case of a prospective contractor's bid shall be prepared for each proposed contract and, at the earliest practicable time, for each modification of an existing contract affecting price, anticipated to cost (in either instance) $10,000 or more. Where the anticipated cost is less than $10,000, the contracting officer, at his discretion, may require the preparation of an estimate. Except as may be permitted by agency regulations, access to, or disclosure of, information concerning the Government estimate shall be limited to Government personnel whose official duties require knowledge of the estimate. § 1-18.109 Disclosure of size of construction projects. Where the estimated value of the work is $25,000 or more, advance notices or invitations for bids and requests for proposals shall include a statement of the magnitude in terms of physical characteristics of the proposed construction and by reference to the estimated price range (e.g. $500,000-$1,000,000). In no event shall such statement disclose the Government estimate. § 1-18.110 Liquidated damages. (a) A liquidated damages clause may, in the discretion of the contracting officer, be included in construction contracts. See § 1-1.315. Where such a provision is used, the invitation for bids or request for proposals shall include a clause reading substantially as follows: LIQUIDATED DAMAGES In case of failure on the part of the Contractor to complete the work within the time fixed in the contract or any extensions thereof, the Contractor shall pay to the Government as fixed, agreed and liquidated damages, pursuant to the clause of this contract entitled "Termination for DefaultDamages for Delay-Time Extensions", the sum of $------ for each calendar day of delay. (b) Where different completion periods for separate parts or stages of the work are specified in the contract, this clause should be revised appropriately to provide for liquidated damages for delay in completion of each separate part or stage of the work as to which delay in completion will result in damage to the Government. (c) The minimum amount of liquidated damages should be based on the estimated cost of inspection and superintendence for each day of delay in completion. Whenever the Government will suffer other specific losses due to the failure of the contractor to complete the work on time, such as the cost of substi tute facilities, the rental of buildings, or the continued payment of quarters allowances, an amount for such items should also be included. (d) Contracting officers shall take all reasonable steps to mitigate liquidated damages. With respect to remissions of such damages, see § 1-1.315–2(e). § 1-18.111 Concurrent firm fixed-price and cost-type construction contracts. In view of potential labor and administrative problems, cost-plus-a-fixed-fee, price-incentive, or other types of contracts with cost variation or cost adjustment features will not be permitted concurrently, with the same contractor and at the same work site, with firm fixedprice, lump sum, or unit price contracts except with the prior approval of the head of the procuring agency, or his authorized designee. § 1-18.112 Construction contracts with design architect-engineers. No contract for construction of a project shall be awarded to a firm or person that designed the project, except with the approval of the head of the procuring agency, or his authorized designee. Subpart 1-18.2-Formal Advertising § 1-18.200 Scope of subpart. This subpart sets forth policies and procedures regarding the procurement of construction by formal advertising which is the method of procurement that shall be used whenever feasible and practicable under the circumstances. Small business restricted advertising (see Subpart 1-1.7), while generally subject to the requirements of this subpart, must also meet certain requirements applicable to negotiated contracts (e.g., the Examination of Records clause must be included). § 1-18.201 Types of contracts. Generally, contracts for construction will be of a firm fixed-price type. Such fixed-price contracts may be (a) lump sum contracts for the total work or for defined parts of the work, (b) unit price contracts in which a unit price is paid for a specified quantity of units of work completed such as cubic yards of earth or concrete or square yards of pavement, or (c) a combination of both. Fixed-price contracts with escalation may be used where escalation clause are customary in contracts for particular items if the omission of such clauses would preclude a significant number of firms from bid ding, or would likely result in the inclusion of unwarranted contingencies, which would unreasonably increase the cost to the Government (see § 1-3.404-3). § 1-18.202 Preinvitation notices. Where preinvitation notices are used, they should be sent to all prospective bidders sufficiently in advance of the issuance of the invitation for bids to stimulate interest on the part of the greatest number of contractors and should be furnished to organizations which maintain plan display rooms as outlined for invitations for bids in § 118.203-2. These notices should contain items such as: (a) Description of the proposed work in sufficient detail to disclose its nature and magnitude in terms of physical characteristics and estimated price (a) Invitations for bids shall be prepared on forms prescribed in Subpart 1-16.4 and in accordance with this section. (b) In addition to complying with the requirements of § 1-2.201(a), invitations for bids shall contain the following to the extent applicable: (1) The applicable wage determination of the Secretary of Labor. If it is necessary to advertise before receipt of a wage determination, a notice that the schedule of minimum wage rates to be paid under the contract will be issued as an amendment to the specifications in advance of the bid opening date; (2) The clause concerning the amount of work the contractor must perform on the site with his own forces (see § 1-18.104); (3) The magnitude of the proposed construction as required by § 1-18.109; (4) Time for performance; (ii) Storage areas; (iii) Access to construction site; (iv) Construction of temporary buildings; (v) Protection of materials and work; (vi) Damage to existing structures, work or utilities; (vii) Preservation of existing vegetation; (viii) Possession of or use by the Government of any completed or partially completed part of the work; (ix) Cleanup of the site during and after completion of construction; (x) The handling of shop drawings; and (xi) Safety requirements and special precautions for hazardous, toxic, and radioactive materials and processes. (c) All invitations for bids shall allow sufficient bidding time (i.e., the period of time between the date of distribution of an invitation for bids and the date set for opening of bids) to allow bidders an adequate opportunity to prepare and submit their bids, giving due regard for the construction season, the time necessary for bidders to inspect the site, obtain subcontract bids, examine data concerning the work, and prepare estimates from plans and specifications (see § 1-2.202-1). § 1-18.203-2 In for bids. Distribution of invitations addition to compliance with § 1-2.203, invitations for bids (with plans and specifications) for construction work may be furnished without charge to organizations which maintain plan display rooms for the benefit of contractors, subcontractors, and material suppliers, without charge to the public. Requests from organizations in the United States may be honored on an annual or semiannual basis for all or for a stated class of construction projects. The geographical extent of this distribution shall be determined on a caseby-case basis by the contracting officer. § 1-18.203-3 Amendment of invitations for bids. See §§ 1-2.207 and 1-12.404-2. § 1-18.204 Inspection of site and of data affecting the work. Pursuant to Instruction 2 of Standard Form 22, Instructions to Bidders, provision should be made for bidders to inspect the construction site. Also, the opportunity should be provided for bidders to examine data available to the Government which may provide information affecting performance of the work, such as boring samples, original boring logs, and records and plans of previous construction. Such data should be assembled in one place and made available to all bidders in the same manner. Where feasible, a record should be kept of the identity and affiliation of all bidders' representatives who inspect the site or examine the data. § 1-18.205 Prebid conferences. Where the contracting officer considers that a prebid conference should be held, the invitation for bids shall specify the date, time, and place at which such conference will take place. Ordinarily, this should be about midway during the bidding period. At the conference, the contracting officer or his representative shall explain the nature of the work and problems that can be expected. The design architect-engineer should be available during the conference to assist in interpreting the plans and specifications. It should be made clear to all who attend that pursuant to Instruction 1 of Standard Form 22, Instructions to Bidders, only those modifications to the invitation for bids that are covered by amendment will be considered official. A complete record shall be made of the conference. § 1-18.206 Opening of bids. See § 1-2.402. At the bid opening, the relative merits of any bids shall not be discussed by Government representatives with the bidders, their representatives, or with casual observers. No statements shall be issued by Government representatives at a bid opening bearing on the prospective award, the possibility of readvertisement, mistakes in bids, etc. No oral instructions shall be given to bidders at any time during the opening. Protests of bidders and inquiries regarding the award of contract made at the bid opening shall be referred to the contracting officer after completion of the bid opening procedure for such consideration as may be appropriate under existing procedures. § 1-18.207 Cancellation of invitations for bids. (a) Before opening-see § 1-2.208. (b) After opening-see § 1-2.404–1. § 1-18.208 Award. See § 1-2.407. A notice of award shall be furnished to the successful bidder as soon as possible and not later than the time set for acceptance in the invitation for bids or any extension to which the bidder has agreed. The notice of award shall: (a) Identify the invitation; (b) Identify the contractor's bid; (c) Set forth the award price; (d) Advise contractor of date by which formal contract and/or performance and payment bonds must be executed and returned; and (e) Include directions regarding commencement of work (i.e., upon receipt of award, or upon receipt of notice to proceed which will be issued upon receipt of acceptable performance and payment bonds, as appropriate). Subpart 1-18.3-Negotiations § 1-18.301 Limitation on authority to negotiate contracts. Construction contracts shall be made by formal advertising whenever such method is feasible and practicable under existing conditions and circumstances, even though such conditions and circumstances would otherwise satisfy the requirements for negotiation in this subpart and Part 1-3. However, this provision shall not be construed to limit the use of small business restricted advertising. § 1-18.301-1 Work in the continental United States. Contracts for construction work to be performed in the continental United States (49 States on the North American Continent and the District of Columbia) may be negotiated only if authorized pursuant to sections 302(c) (1), (2), (3), (10), (11), (12), or (14) of the Federal Property and Administrative Services Act of 1949, as amended (see section 302(e), 41 U.S.C. 252(e)), which Act is hereinafter referred to in this subpart as the "Act." The appropriate statutory provision(s) shall be cited in the contract as authority for negotiation. For implementing instructions, see Subpart 1-3.2. § 1-18.301-2 Work outside the continental United States. Contracts for construction work to be performed outside the continental United States may be negotiated pursuant to the applicable paragraphs of section 302(c) of the Act, except that contracts to be performed in Hawaii, Puerto Rico, or any possession of the United States may not be negotiated under section 302(c) (6). Negotiated contracts shall include a citation to the statutory authority for negotiation. § 1-18.302 Contracts estimated not to exceed $2,500. Section 302(c)(3) of the Act authorizes the use of negotiation for contracts which do not exceed $2,500. Policies and procedures for the implementation of that authority are prescribed in Subpart 1-3.6, Small Purchases. Notwithstanding the provisions of Subpart 1-3.6, the policies and procedures contained therein shall not be applied to construction contracts estimated to exceed $2,000. However, this prohibition does not apply to the negotiation of a contract where the estimated contract price is $2,000 or less but the contract price which ultimately is negotiated exceeds that amount. In such cases, if the price does not exceed $2,500, award may be made pursuant to the policies and procedures in Subpart 1-3.6 and the authority in section 302(c) (3) of the Act. If the price exceeds $2,500, other authority for negotiation must be found. § 1-18.303 Price negotiation policies and procedures. The policies and procedures in Subpart 1-3.8 shall be followed regardless of § 1-18.305 Subcontracting policies and procedures. (a) Review and approval of contractor's purchasing system and subcontracts. See § 1-3.903. (b) Subcontracting by cost-reimbursement type construction contractors. (1) Construction work under a cost-reimbursement type prime construction contract that is to be subcontracted shall be performed to the fullest extent practicable under unit-price or lump-sum subcontracts obtained by competitive bids. Each project or phase thereof under a general contractor shall be analyzed by the contractor, in conjunction with the contracting agency, to determine those elements which can be performed under a fixed-price subcontract. (2) The apportionment of work between the prime and subcontractors shall be based on the best interests of the Government, taking into consideration all factors including the following: (i) The general practice of the construction industry of utilizing subcontractors for certain specialty phases of the work; (ii) The additional management, technical, and craft skills which a specialty subcontractor may contribute to the efficient prosecution of the work, particularly on complex industrial-type facilities which require maximum concentration of such skills; (ii) The qualifications of the prime contractor to perform such specialty work, based on the extent to which he has customarily performed the work with his own organization and the competency of his available organization to perform the work; and (iv) The amount of work that should be performed by the prime contractor in order to ensure adequate supervision of the project (see § 1-18.104). § 1-18.306 Preparation for negotiation. § 1-18.306-1 Fixed-price type contracts. (a) Proposals and, where required, cost or pricing data submitted by poten tial contractors shall be evaluated and compared with the Government estimate required by § 1-18.108. Proposals shall be required in all cases, and cost or pricing data shall be required as provided in § 1-3.807-3. Subject to the provisions of § 1-3.807-3, such data shall be required, to the extent necessary, in any case where there are significant differences between the Government estimate and the proposals submitted on any item. All data shall be evaluated and analyzed, as shall cost or pricing data on subcontracts (§ 1-3.807-10) when such data is requested by the contracting officer. (b) Where appropriate, additional pricing tools may be used, such as comparision of current prices for similar features of work, adjusted for differences in site and specifications. In addition, rough yardsticks such as cost per cubic foot for structures, cost per linear foot for utilities, cost per cubic yard for excavation, concrete, etc., may be developed and compared with proposed prices which are questioned. § 1-18.306-2 Cost-reimbursement type contracts. (a) Use of cost-reimbursement type contract. This type of contract may be used only when it is consistent with § 1-3.405. (b) Information to be prepared for negotiating.-(1) Description of the facility. A sufficiently detailed description of the facility to be constructed shall be provided to permit an evaluation of the magnitude, physical characteristics, and complexity of its major components. For example: (i) Major buildings and other structures, including the number of each type and an explanation of the functional requirements for each; (ii) Major utilities; and (iii) Major equipment to be installed by the contractor. (2) Services required of the contractor. A statement should be prepared which gives the extent to which the contractor shall: (i) Perform work with his own forces; (3) Estimated cost and time for completion. (1) Prepare an estimate of the total cost of construction, exclusive of the contractor's fee broken down by the |