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FAR Council Proposes Rule to Help Limit Short-list for Design-Build

AGC Legislative Success Begins Implementation Process

The FAR Council released a proposed rule that would help limit the number of short-listed design-build teams to no more than five during a two-step design-build procurement through federal agencies. The proposed rule takes a two-pronged approach to implementing this policy. First, for contracts at or below $4 million, contracting officers will have to document their reasons for including more than five teams on the short-list. Second, for contracts above $4 million, contracting officers will not only have to provide such documentation to include more than five teams, but also have approval from the head of the contracting agency—i.e., Chief of Engineers at U.S. Army Corps of Engineers—to include more than five teams on the short-list.

Previously, a loophole in law allowed federal contracting officers to short-list any number of teams, without documenting their reasons or being approved by higher level, senior agency officials. As a result, a number of design-build procurements saw 10 or more teams selected for the short-list and asked to submit expensive technical proposals.

The FAR Council issued this proposed rule as a result of AGC’s congressional advocacy efforts. The National Defense Authorization Act of FY 2015, passed last year, included a provision requiring this change to be made. AGC testified before the House Small Business and House Oversight and Government Reform Committees on this critical change.

For more information, please contact Jimmy Christianson at christiansonj@agc.org or (703) 837-5325.

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