ing Command, or Air Force Directorate of Civil Engineering.

236.103 Methods of contracting.

(a) Overseas construction may be acquired by means of sealed bidding provided that the Head of a Contracting Activity, or designee, determines that the use of sealed bidding, in strict accordance with FAR Part 14, is practicable and advantageous to the United States as to a specific country or other geographic area outside the United States, its possessions, and Puerto Rico.

236.170 Sources of construction services.

Generally, military construction in the United States shall be performed by contract. The following exceptions to this policy are authorized:

(a) Military construction units, other military personnel and Civil Service maintenance personnel may:

(1) Perform construction in periods of emergency arising from fire, flood, explosion, pestilence or other disaster to provide essential facilities for shelter, safety, and protection of personnel and property;

(2) Perform construction where the isolated location of the work makes it impracticable to obtain qualified contractors;

(3) Perform construction where the necessity for obtaining security clearances for contractor personnel introduces unacceptable delays in operational schedules.

(b) Military construction units may perform construction in addition to that set forth in (a) above, but only when the integrity of the unit will be maintained and the project will contribute to the training of the unit for its war-time mission.

(c) Military personnel, other than military construction units, may, in addition to (a), above:

(1) Perform construction in connection with welfare and recreational facilities intended for their own use;

(2) Perform repair incident to maintenance

(i) When required for reasons of security;

(iii) For training and maintaining competence in recognized trade skills;

(iv) In and around the barracks which they themselves occupy or are about to occupy.

(d) Civil service maintenance forces may, in addition to (a), above:

(1) Perform construction where the work is of a minor nature;

(2) Perform construction where conditions are such that it is impracticable to prepare plans and specifications; (3) Perform construction where the work must be performed intermittently to avoid disrupting other important operations;

(4) Perform repair incident to maintenance.

Subpart 236.2—Special Aspects of Contracting for Construction

236.201 Evaluation of contractor perform

ance.

(a) Preparation of performance evaluation reports.

(1)(S-70) The contracting officer shall also prepare a performance evaluation report for each construction contract of $10,000 or more when any element of performance was either unsatisfactory or outstanding.

(c) Distribution and use of performance reports.

(1) The original of the performance evaluation report for every contract will be retained by the activity preparing the report for a minimum of six years after date of the report. In addition, the reviewing official will forward a copy of the following reports:

(i) Reports with an overall unsatisfactory evaluation,

(ii) Reports which cite outstanding performance, and

(iii) Reports for all contracts in excess of $200,000 to the:

Office of the Chief of Engineers,
ATTN: DAEN-PR

Pulaski Building
Washington, DC 20314

This office is responsible for establishing procedures and practices which will assure appropriate distribution

tion data within the Departments.

ered, with the object of effecting an equitable distribution of Department of Defense architect-engineer contracts among qualified architect-engineer firms, including small and small disadvantaged business firms, and firms that have not had prior Department of Defense contracts.

(S-70) For contracts estimated to cost more than $2,500, criteria which will be used to evaluate the qualifications of the architect-engineer firms to be considered should be established in advance. In addition to the general considerations listed in FAR 36.601, the criteria should be specific as to desired qualifications, size and expertise of staff, required past experience, and, as appropriate, esthetic considerations, special conceptual or design elements, and related factors. The information contained in the DD Form 1391 for the construction project, if applicable, should be used in preparing the criteria. The criteria shall be set forth in the public announcement as required by FAR 5.205(c).

236.602-2 Evaluation boards.

(a) Preselection boards are authorized. A preselection list of the maximum practicable number of qualified firms shall be prepared by a preselection board from data described in FAR 36.603 and other pertinent information which may be available, and the list shall be approved by the head of the construction activity, or his designee. Preparation of preselection lists for contracts estimated to cost more than $25,000, shall be accomplished by formally constituted boards consisting of at least three members.

236.602-4 Selection authority.

(a) All selection actions, including preselection, shall be under the cognizance of the construction activity responsible for the work.

(c) Approval authorities shall not add firms to any selection report. If the firms on a submitted selection report are deemed to be unqualified or the list is considered inadequate for other reasons, the approval authority shall record the reasons and return the report through channels to the preselection board for the preparation of a revised report. However, the find

ing that certain firms on the selection report are unqualified shall not pre clude approval of the report provided that a minimum of three firms remain. In such cases the reasons for finding a firm or firms unqualified shall be recorded and reports may be approved with respect to the three or more qualified firms remaining.

(S-70) Special approval of selections Special approval shall be required for certain selections as indicated below.

(1) When the estimated cost of contract to be awarded by a field activity exceeds $500,000, the selection shall require the approval of the nex higher organizational level of the con struction activity;

(2) When a firm, to which a field contracting office has previously awarded contracts totaling over $500,000 during the current calendar year, has been selected for an addtional award to be made by the same contracting office, the selection shal require, prior to negotiation with the firm, the approval of the next higher organizational level of the construc tion activity;

(3) When a selection is made by the Army Corps of Engineers, the Naval Facilities Engineering Command, the Air Force Directorate of Civil E gineering for a contract whose est mated cost is $500,000 or more, the s lection shall require the approval d the Chief of Engineers, the Command er, Naval Facilities Engineering Com mand, or the Director of Civil Eng neering, respectively, or their respec tive designee;

(4) When supplemental work to be added to an existing contract W bring the total contract cost to any of the various levels of approval noted above, the selection for such work shall require approval as indicated for the appropriate level (such approval not required for supplemental work accomplished pursuant to the Changes clause of the contract); and

(5) When approval of a selection for a contract has been obtained at a par ticular approval level, further appro al shall not be required for the sele tion of the same firm to accomplish supplemental work under that com tract, unless the total cost of the basic contract plus all supplemental work is

an amount requiring approval of the selection at the next higher approval evel.

236.604 Performance evaluation.

(a) Preparation of performance reports.

(1) For each contract over $10,000 awarded, a performance evaluation report shall be prepared by the cogniant construction activity. Such reports may also be prepared for conEracts of lesser amounts. For contracts of over $10,000, the construction activty shall distribute the SF 1421 to all other offices within the region or geographical area as listed in the book, 'How to Obtain Consideration for Arhitect-Engineer Contracts with the Department of Defense," and to the Washington, DC Headquarters of -heir respective construction activities. The SF 1421 shall be filed and utilized n a manner similar to the qualificaions data (Standard Form 254). - (c) Distribution and use of performince reports. For the purposes of receiving and distributing architect-engiheer qualification and performance data, the United States is divided into regions, and the rest of the world into general geographic areas. These rerions and areas are described and deineated in a booklet entitled, "How to Obtain Consideration for ArchitectEngineer Contracts with the Departnent of Defense," which is available rom the Superintendent of Docunents, Government Printing Office, Washington, DC 20402, or from DoD construction activities.

result in a price in excess of the Government estimate, as revised, the contracting officer shall terminate the negotiations and request a proposal from the architect-engineer next in order of preference.

(S-71) In no event shall a contract for architect-engineer services for the preparation of designs, plans, drawings and specifications exceed the statutory limitation of six percent (6%) of the estimated construction costs of the project. If the contract also covers any other type services than the preparation of designs, plans, drawings and specifications, the part of the contract price for such other services shall not be subject to the six percent (6%) limitation.

(S-72) Modifications. Where the modification involves work not initially included in the contract, the limitation on the total contract price set forth in 236.606–71 is applicable, as applied to the revised total estimated construction costs. Where redesign is required and the contract is modified, the following method shall be used to insure that the six percent (6%) statutory limitation is not exceeded:

(1) The estimated construction cost of the redesigned features will be added to the original estimated construction cost;

(2) The contract cost for the original design will be added to the contract cost for redesign; and

(3) The total contract design cost obtained by (2) above will be divided by the total construction cost obtained by (1) above. The resulting percentage may not exceed the six percent (6%) statutory limitation.

Subpart 236.7-Standard Forms for Contracting for Construction, Architect-Engineer Services, and Dismantling, Demolition, or Removal of Improvements

236.701 Standard forms for use in contracting for construction or dismantling, demolition, or removal of improvements.

(c) Optional Forms 347 and 348 are not authorized for use in the Department of Defense (see 213.505-2(S-70)).

Subpart 236.70-Construction in Foreign Countries

236.7001 General.

Construction in foreign countries includes construction anywhere outside the United States, its possessions and Puerto Rico. In contracts which are entered into with foreign contractors or are for performance in foreign countries, the term "United States" will appear before the word "Government."

236.7002 Technical agreements.

When construction is contemplated in a foreign country, the Office of the Chief of Engineers, Department of the Army, or the Naval Engineering Facili ties Command, Department of the Navy, as appropriate, should be invited to participate in the negotiations of any technical working agreement with a foreign government concerning the construction. This agreement negotiated between appropriate officials of the United States and the foreign government should, to the extent feasible and where not otherwise provided for in other agreements, cover all elements necessary for the construction required by the laws, regulations and customs of the United States and the foreign government relating to:

(a) The acquisition of all necessary rights;

(b) The expeditious, duty free Importation of labor, material and equipment;

(c) The payment of taxes applicable to contractors, personnel, materials and equipment;

(d) The applicability of workers' compensation laws and other labor laws to citizens of the United States, citizens of the host country and citi zens of other countries;

(e) The provision of utility services; (f) The disposition of surplus materials and equipment;

(g) The handling of claims and liti gation; and

(h) Any other problems which can be foreseen and appropriately resolved by such agreement.

236.7003 Labor laws of host country.

Contractors shall comply with the applicable labor laws of the host country. Exemption from such laws shall be sought by means of treaty, executive agreement or express authorization from proper officials, where compliance with the laws is impractical or serves no useful purpose.

Subpart 236.71-Termination of Contracts

236.7100 Scope.

This subpart sets forth policies and instructions unique to construction and architect-engineer contracts relating to termination of such contracts through default or for the convenience of the Government. 236.7101 Contractor inventory.

This subpart and FAR 45.6 cover the

disposition of all contractor inventory generated under construction and architect-engineer contracts. It applies other inventory which is: to termination inventory and to any

modification; or (a) Excess because of a contract

(b) Excess under a price revision type contract; and the cost thereof is included in the contractor's claim for an equitable adjustment or revision in price. It also applies to all property which is excess to the requirements of a cost-reimbursement type contract and includes excess Government-furnished property under any type contract.

236.7101-1 Inventory schedules.

In addition to the requirements contained in FAR 45.606, construction equipment shall be submitted on separate schedules.

236.7101-2 Allocability of contractor-acquired property on inventory schedules.

It is the responsibility of the contracting officer to determine that all property listed on inventory schedules is qualitatively and quantitatively allocable to the terminated contract or the terminated portion thereof, taking into consideration any work in place.

Also, where applicable, the contracting -fficer must determine that the differnce between the cost of allocable roperty on the inventory schedules nd the total cost of property included n the settlement has been incorporatd in the work or consumed in the perormance thereof.

36.7101-3 Contractor's certificate-property incorporated in work.

Each contractor whose settlement roposal includes the cost of property materials, etc.) incorporated into the Work shall execute a certificate to the ffect that all property not accounted or on the inventory schedules has een incorporated into the work or onsumed in the performance thereof.

36.7101-4 Inventory at construction site.

Every effort will be made by the Fontracting officer to relieve the conractor, as promptly as possible, of the esponsibility for the preservation and rotection of termination inventory loated at the construction site. Propery, including construction equipment, which is not to be included on invento'y schedules shall be removed by the Contractor as promptly as possible.

36.7101-5 Screening of contractor inventory.

Inventories of construction materials and equipment shall be screened in accordance with FAR 45.608 in the Army, by the Corps of Engineers; in the Navy, by the Naval Facilities Engineering Command; and in the Air Force, by the Director, Civil Engineer

Subpart 237.74-Communication Services

237.7401 Definitions.

237.7402 Applicability.

237.7403 Policy.

237.7404 Regulatory bodies.

237.7405 Sources for communications serv

ices.

237.7405-1

Common carriers.

237.7405-2 Noncommon carriers.

237.7405-3 Foreign carriers.

237.7406 Who may acquire communication services.

237.7407 Cost or pricing data.

237.7408 Type of contract.

237.7408-1 General.

237.7408-2 General agreements.

237.7408-3 Communication Service Authorization (CSA).