DFARS Part 236 - Construction and Architect - Engineer Contracts
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DFARS Part 236 - Construction and Architect - Engineer Contracts
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- 19. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – hello@Jenniferschaus.com THE DFARS – PART 236
- 20. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com DFARS PART 236 Construction And Architecture – Engineer Contracts SPEAKER: Andrés Vera FIRM: Thompson Hine EMAIL: Andres.Vera@thompsonhine.com TODAYS SPEAKER + TOPIC The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement
- 21. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement Agenda • What is DFARS Part 236? • Key Subparts of DFARS 236 • Procurement of Architect-Engineer (A-E) Services • Procurement of Construction Services • Potential Changes: FAR 2.0 • Questions
- 22. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement What is DFARS Part 236? • DFARS 236 is an agency-specific supplement to FAR Part 36 that governs Department of Defense (DoD) construction and A-E services contracts o FAR Part 36 outlines the policies and procedures pertinent to the government's purchase of construction and A-E services • Applies to all branches of DoD • Ensures compliance with military construction standards
- 23. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement Key Subparts DFARS 236 • 236.2: Special Aspects of Contracting for Construction • 236.3: Two-phase Design-Build Selection Procedures • 236.6: Architect-Engineer Services
- 24. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.2—Special Aspects of Contracting for Construction • How does the government’s purchase of construction service differ from the purchase of other services? • An Independent Government Estimate (IGE), when required, should be “read and record. . .as if it were a bid, in the same detail as the bids” – DFARS 236.203 • Disclosure of Magnitude – estimated price range provided without disclosure of IGE – DFARS 236.204 • Between $10,000,000 and $25,000,000 • Between $25,000,000 and $100,000,000 • Between $100,000,000 and $250,000,000 • Between $250,000,000 and $500,000,000 • Over $500,000,000 • Liquidated Damages - DFARS 236.206 Procurement of Construction Services
- 25. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.2—Special Aspects of Contracting for Construction DFARS 236.213 – Special Considerations for Sealed Bidding • If agency believes that there will be insufficient funds for all desired construction features, should consider using bid schedule with additive and deductive items (typically one or the other) per PGI (Procedures, Guidelines and Information) 236.213 and DFARS clause 252.236-7007 DFARS 236.215 – Special Considerations for Cost Reimbursement • Referring to DFARS Subpart 216.3 (216.301-3), which relates to military construction/family housing projects, KOs must generally avoid such contracts, even in time of war
- 26. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.2—Special Aspects of Contracting for Construction DFARS 236.270 – Expediting Construction Contracts • Agency head must approve decision to expedite completion of construction contract funded by the Military Construction Appropriations Act, if it will result in additional costs; nondelegable duty • Agency head must (1) certify that additional costs are necessary to protest National interest and (2) establish a reasonable completion date DFARS 236.271 – Cost-Plus-Fixed-Fee Contracts • Military construction appropriations acts generally prohibit, or restrict, use of cost- plus-fixed-fee contracts (reference to 216.301-3, as for use of Cost Reimbursement Contracts)
- 27. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.2—Special Aspects of Contracting for Construction DFARS 236.272 – Prequalification of Sources • Used “when necessary” to ensure timely and efficient performance of critical projects • Limits offerors to those with proven capabilities to perform work • To use the procedure, the head of contracting activity must: • Determine in writing that a project is of an urgency or complexity that requires prequalification • Approve of the procedures to be used • Consider the possibility that small businesses may participate (CoC procedure)
- 28. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.2—Special Aspects of Contracting for Construction DFARS 236.273 – Construction in Foreign Countries • Per the Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2015, military construction contracts of $1 million or more (funded using military construction appropriations) that are to be performed in the United States outlying areas in the Pacific, Kwajalein Atoll, or in countries bordering the Arabian Gulf, shall be awarded ONLY to US firms, unless: • The lowest responsive and responsible offer of a US firm exceeds the lowest responsive and responsible bidder of a foreign firm by more than 20 percent; or • The contract is for military construction on Kwajalein Atoll and the lowest responsive and responsible offer is submitted by a Marshellese firm. See also PGI 236.273(b) (regarding working agreements, foreign countries)
- 29. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.2—Special Aspects of Contracting for Construction DFARS 236.274 – Restrictions on Steel Acquisition for use in Military Construction • Per Military Construction and Veterans Affairs Appropriations Act of 2009, KO’s are not to acquire, or allow a contractor to acquire, steel for any construction project or activity for which American steel producers, fabricators, or manufacturers have been denied the opportunity to compete for such acquisition of steel.
- 30. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.3—Two-Phase Design-Build Selection Procedures DFARS 236.303-1 – Phase One • As an alternative to FAR 36.303-1(a)(4) regarding the maximum number of offerors that are permitted to proceed from Phase one to Phase two of the selection process, for DoD: • If contract value exceed $4.5 million, maximum number to move on shall not exceed 5, unless (1) the solicitation is an ID/IQ contract for design-build construction, or (2) head of contracting agency (delegable one level down) approves in writing that a higher number is in the best interest of the government • If the contract value is less than $4.5 million, the number of offerors selected to submit phase-two proposals is at the discretion of the contracting officer
- 31. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.5—Contract Clauses DFARS 236.570 – Additional Provisions and Clauses • For firm-fixed price contract opportunities: 252.236-7000 (Modification Proposals- Price Breakdown; 252.236-7001(Contract Drawings and Specifications); 252.236- 7002 (Obstruction of Navigable Waterways); 252.236-7003 or 7004 (relating to Payment for Mobilization and Preparatory Work); 252.236-7005 (Airfield Safety Precautions); 252.236-7007 (Use of Additive or Deductive Items) • Military construction contracts over $1 million: 252.236-7010 (Preference for US firms, overseas building operations) • 252.236-7013 (Requirement American Steel Competition)
- 32. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.6—Architect-Engineer Services DFARS 236.601 – Policy • Written notification to congressional defense committees required if total estimated contract price for A-E services or construction design in connection with military construction, military family housing, or restoration/replacement of damaged/destroyed facilities exceeds $1.5 million • Generally, where notice is required, it will be by electronic means and agency will need to provide sufficient notice to allow for allocation of funds needed • Notice must include scope and estimated price
- 33. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS 236.602 – Selection of Firms for Architect-Engineer Contracts • DFARS 236.602-1 – Evaluation criteria shall be created prior to making public announcement and include criteria and order of importance in the announcement • DFARS 236.602-70 – Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2015 A-E contracts in excess of $500,000 and to be performed in Japan, NATO countries, or in countries bordering Arabian Gulf (Iran, Oman, UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, Iraq) shall be awarded only to US firms, or JVs of US and host nation firms DFARS Subpart 236.6—Architect-Engineer Service Procurement of Architect-Engineer (A-E) Services
- 34. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement DFARS Subpart 236.6—Architect-Engineer Services DFARS 236.604 – Performance Evaluation • Directing contracting to prepare evaluations of A-E performance at the conclusion of construction; should be contracting personnel most familiar with A-E’s performance DFARS 236.606-70 – Statutory Fee Limitation • Contract price/fee limited to 10% of project’s estimated construction cost (10 U.S.C. 7540, 8612 and 9540) • Applies to modifications • Applies to redesign required through no fault of A-E • Does NOT apply to other services in addition to preparation of designs, plans, drawings, specifications
- 35. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement Potential Changes: FAR 2.0 • Executive Order 14275 (EO), “Restoring Common Sense to Federal Procurement,” was issued on April 15, 2025 • Signals a major shift in federal procurement policy • Overhaul of FAR, DFARS, and agency supplements. • Goal: Create the most agile, effective, and efficient procurement system by streamlining procurement processes and reduce complexity • The initiative is officially branded as the “Revolutionary FAR Overhaul” (RFO)
- 36. JSchaus & Associates – Washington DC – hello@Jenniferschaus.com The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement Potential Changes: FAR 2.0 • Current FAR: 2,000 pages of complex regulations • The EO mandates the elimination of all FAR provisions that are: • Not required by statute • Not essential to sound procurement • Not necessary to protect economic or national security interest • Regulatory Sunset: Non-statutory provisions must be renewed every 4 years • The Office of Federal Procurement Policy and FAR Council will issue class deviations and temporary guidance to address gaps until final reforms are in place • Agency-specific class deviations must be issued within 30 days after the FAR Council’s class deviation text is released on the RFO website
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