|
Interim Internal Purchasing Guidelines > 4 Purchasing > 4.3 Design and Construction Purchasing
4.3 Design and Construction Purchasing
4.3.1.a Applicability. Design and construction purchasing is the purchase of
architect/engineer, construction, and related services. This section covers the
purchase of:
1. Services related to facilities design;
2. Construction; and
3. Construction management.
4.3.1.b Real estate and Related Services. See 1.1.2 for information regarding the
purchase of real estate and related services.
4.3.2.a General. Postal Service policy is to purchase architect-engineer services
from prequalified suppliers based on demonstrated competence and
qualification for the type of services required. Fees are negotiated after
selection.
4.3.2.b Applicability. Generally, architect-engineer (A/E) services contracts are
awarded following the policies and procedures contained in 4.2. However,
when the provisions of this section conflict with any other provision of the
guidelines, the provision of this section govern.
1. A/E services are professional services requiring the performance or
approval by a registered or licensed architect or engineer associated
with the design or construction of real property, as well as incidental
services that members of those professions may logically or justifiably
perform in relation to construction, alteration, or repair of buildings, site
improvements, roads, or other kinds of real property. Such incidental
services include master planning, architectural and engineering studies,
investigations, surveys , reports, design development, drawings
preparation, specification preparation, interior design, space planning,
environmental services, and observation and reporting of the work
performed during construction, alteration, or repair.
2. Environmental A/E services are those environmental services which
require performance or approval by a registered or licensed architect or
engineer. Environmental A/E services should be purchased using the
procedures in this section. Other environmental services such as
continuous monitoring and/or testing for environmental compliance at
postal facilities do not require performance by a registered or licensed
architect or engineer. These services should be purchased under the
procedures contained in 4.5.
1. Publicizing
(a) For each contract for which the fee is expected to exceed
$50,000, a notice of intent to contract for A/E services must be
publicized in FedBizOpps (see 3.5.3.b.1). The notice must be
prepared and transmitted in accordance with 3.5.3, and must
solicit submission of Standards Forms (SF) 254, Architect/
Engineer and Related Services Questionnaire and 255,
Architect/Engineer and Related Services Questionnaire for
Specific Project.
(b) For each contract for which the fee is not expected to exceed
$50,000, publicizing should be limited to the area in which the
project will be performed.
2. A/E Selection Team
(a) Contracting officers establish teams to evaluate and select A/E
suppliers. Each selection team must be composed of at least two
members with one member designated as the chairperson. Team
members must be appointed from among professionally qualified
Postal Service personnel who collectively have experience in
architecture, engineering, construction, and purchasing, although
staff limitations or project-specific considerations may require that
individuals working under contract for the Postal Service be
appointed to the selection team. These individuals may be
appointed only on a case-by-case basis subject to approval of the
contracting officer. Each project file must contain written
certification by each evaluation team member that he or she has
no conflict of interest that may impair their objectivity in the
selection process (see 1.6.8).
(b) Less complex, low dollar A/E projects may be awarded directly
without the formation of an A/E selection team. For these
projects, the contracting officer may appoint an individual from the
A/E selection team to recommend three or more qualified
suppliers from existing SF 254 and SF 255 information. If the
number of known qualified suppliers is insufficient to provide a
competitive review, then the project may be publicized within the
area in which the project is to be performed.
3. Postal Service Cost Estimate. Before discussions of any proposed
contract or contract modification is initiated, an independent Postal
Service estimate of the cost for the required A/E services must be
developed, based on a detailed analysis of the costs expected to be
generated by the work. Consideration must be given to the estimated
value of the services and to the scope, complexity, and nature of the
project. The independent estimate must be revised as required during
discussions to reflect changes in or clarification of the scope of the work
to be performed. A fee estimate based on the application of percentage
factors to cost estimates for the various segments of the project may be
developed for comparison purposes, but such an estimate must not be
used as a substitute for the independent Postal Service estimate. To
the extent necessary, the cost breakdown figures in the Postal Service
estimate may be revealed during discussions provided that the overall
amount of the Postal Service estimate is not disclosed. Any change in
the Postal Service estimate during or after price discussions must be
specifically but succinctly explained in the record of price discussions.
4. Cost or Pricing Data. The provisions of Chapter 5 relating to cost
analysis, provision of cost or pricing data, and preparation of
discussions memoranda apply to purchases of A/E services. Because
of the procedures used to purchase A/E services and the lack of price
competition, price analysis is normally insufficient.
5. Fees for A/E Services. The contracting officer is responsible for
negotiating a fair and reasonable fee for the services to be performed.
In determining a fair and reasonable fee, the contracting officer should
compare the independent Postal Service estimate with the A/E
supplier's proposal. Also, the contracting officer should consider
previous prices paid for similar services. Additional guidelines are
contained in Handbook P-2.
1. Discussions will be conducted initially with the A/E supplier given the
highest technical ranking. If a mutually satisfactory contract cannot be
achieved with that supplier, discussions must be terminated.
Discussions will then be initiated with the supplier next in order of
preference. This procedure must be repeated until a mutually
satisfactory contract has been negotiated.
2. In lieu of the discussion procedures described above, the contracting
officer may, at his or her discretion, compete A/E requirements under
the general procedures set out in 4.2. In these instances, award will be
made to the A/E supplier offering the best value to the Postal Service.
4.3.2.f A/E Supplier Performance Evaluation. The project manager responsible for
monitoring the performance of an A/E supplier must complete an objective
written evaluation of the supplier's performance, including any environmental
elements, using Forms 7477-A, A/E's Performance Design Phase Evaluation,
and 7477-B, A/E's Performance Construction Phase Evaluation. For further
guidance see Handbook P-2.
1. Use. The Postal Service requires that a large number of small repair
and alteration, environmental and other projects be performed each
year. Indefinite-quantity (IQC) A/E contracts permit a large number of
projects to be accomplished at one or more facilities through the
issuance of delivery (work) orders against a single contract rather than
through individual solicitations. Each indefinite-quantity contract is
limited to the geographic area that has been described in the
solicitation. Multiple awards may be made if provided for in the
solicitation.
2. Limitations. Limitations regarding contract term, dollar limitations, and
delivery (work) order limits are issued by the VP, SM, or authorized
designee.
3. Solicitation Preparation. Guidance for indefinite-quantity A/E services
contract preparation is contained in Handbook P-2.
4. IQC A/E Supplier Performance Evaluation. See 4.3.2.f.
1. Applicability. This section applies to the purchase of construction. When
the provisions of this section conflict with any other provision of these
guidelines, the provisions of this section govern.
2. Definition. Construction means construction, alteration, repair (including
painting and improvements of all types), environmental work (asbestos
abatement, UST removal/replacement, etc.), and demolition of
buildings, structures, and improvements of all types. The term does not
include other investigative work such as engineering, environmental or
other studies that is not part of the beginning of the construction
process. Normally, construction does not include any construction work
pursuant to a lease and performed by the lessor (see Handbook RE-1,
Realty Acquisitions and Management).
3. Purchase Method
(a) Generally, construction is purchased in accordance with 4.2.
Suppliers should be prequalified (see 3.5.2).
(b) Purchase or prequalification opportunities must be publicized in
accordance with 3.5.3.
(c) When the contracting officer determines that the price proposed
by a lessor offers the best value to the Postal Service, alterations,
repairs, and improvements to be accomplished by the lessor may
be performed without competition.
(d) The bonding requirements of chapter 7 must be met for all
construction contracts.
4. Contract Types
(a) Generally, contracts for construction should be firm fixed price
contracts. Such contracts may be:
(1) Lump-sum contracts for the total work or for defined parts of
it;
(2) Unit-price contracts in which a unit price is paid for a
specified quantity of work, such as cubic yards of earth or
concrete, or square yards of pavement; or
(3) A combination of both.
(b) However, any contract type discussed in 2.4 may be used if
approved by the contracting officer.
5. Specifications. See 2.3.1.a and Handbook P-2 for further guidance.
6. Presolicitation Notices
(a) At the contracting officer's discretion, a presolicitation notice may
be issued for construction projects (see 3.5.3.b). Notices may be
distributed to plan hold rooms, companies on solicitation mailing
lists maintained by the purchasing office, and any other known
interested parties within the Postal Service or members of the
public.
(b) Any presolicitation notice issued must include a statement of the
project's magnitude in terms of physical characteristics and an
estimated price range (for example, 30,000 sq. ft. building with an
estimate cost range of $500,000 to $1,000,000 for the project).
However, in no event may the statement disclose the Postal
Service estimate.
7. Preproposal Conferences and Attendees. See 4.2.2.f and Handbook
P-2 for guidance. The design A/E must be available to help interpret
plans and specifications.
8. Inspection of Construction Site and Data. Provision must be made for
offerors to inspect the construction site. Also, offerors must be given the
opportunity to examine data available to the Postal Service that may
provide information affecting performance of the work, such as boring
samples, and original boring logs. This information should be
assembled in one place and be made available to all offerors in the
same manner. When feasible, a record should be kept of the identity
and affiliation of all offerors' representatives inspecting the site or
examining the data.
9. Performance Time
(a) In establishing the time for contract completion, the contracting
officer must consider, among other things, the nature and
complexity of the project, the construction seasons involved, the
availability of equipment, labor and other factors and the
increased cost for an aggressive project schedule.
(b) In any given contract, separate completion periods may be
established for separable items of work. When such periods are
shown, requests for time extensions must be evaluated for each
item, and all affected completion periods must be modified when
appropriate.
10. Liquidated Damages
(a) See 2.2.6. For additional information on calculating the liquidated
damages rate for construction projects see the guidelines in
Handbook P-2.
(b) When different completion periods for separate parts or stages of
the work are specified in the contract, the clause may be revised
to provide for liquidated damages for each separate part or stage
in which delay will damage the Postal Service.
11. Base and Alternate Prices
(a) Solicitations permitting alternate proposals must require the base
proposal to include all features considered essential to a sound
and adequate building design. Any alternates to be included in
the specifications should represent significant amounts of work in
relation to the base proposal, and they should generally be
structured as "add" or "deduct" alternates.
(b) When accurate cost estimates are not available, a base proposal
may be required for the minimum acceptable project, with "add"
alternates for desired materials or equipment.
(c) When budget constraints exist, a base proposal may be required
for the plans and specifications as stated, with "deduct" alternates
for desired materials or equipment to be used to bring proposals
back within budget.
(d) Solicitation documents calling for alternates must clearly state
that the Postal Service reserves the right to accept or reject any
and all alternate prices, as may be determined by the contracting
officer to be in the Postal Service's interests.
12. Performance of Work by Supplier. Unless the supplier is required to
perform a significant part of the contract work with its own forces, it may
be difficult to obtain adequate supplier supervision of the work. To
address this problem, each Postal Service construction contract must
contain Clause B-42, Performance of Work by Supplier, establishing the
minimum percentage of the work that the supplier must perform,
consistent with customary or necessary specialty subcontracting and
the complexity and magnitude of the work. The percentage may be
increased for contracts with unusual requirements (i.e., environmental,
mechanical).
13. Solicitations
(a) General. See 4.2.2 and Handbook P-2.
(b) Distribution. Solicitations may be furnished (with plans and
specifications) without charge to organizations that maintain plan
hold rooms, or other types of organizations, for the benefit of
suppliers, subcontractors, and material suppliers. The extent of
this distribution (geographical or otherwise) may be determined
on a case-by-case basis by the contracting officer.
14. Release of Plan Holders List. See 1.6.5 and ASM 3
15. Award
(a) A notice of intent to make award must be furnished to the
successful offeror no later than the time set for acceptance in the
solicitation or any extension to which the offeror has agreed. The
notice must advise the supplier of any required bonds and the
date by which the supplier must execute and return such bonds.
(b) When all required bonds have been received, the contracting
officer will make award and issue a notice to proceed. The
contracting officer may issue the notice to proceed at the time of
award or may issue it at the preconstruction conference. The
contracting officer then will send a written notice of the award to
all offerors who submitted a proposal and any other known
interested parties within the Postal Service or the public.
16. Construction Supplier Performance Evaluations. The project manager
responsible for monitoring the performance of a construction supplier
must complete Form 5002, Construction Supplier Performance
Evaluation, of the supplier's performance, including any environmental
elements, for each project. For further guidance see Handbook P-2.
1. Use. The Postal Service requires a large number of small repair and
alteration, environmental, and other projects to be performed each
year. Indefinite-quantity construction contracts permit a large number of
projects to be accomplished at one or more facilities through the
issuance of delivery (work) orders against a single contract rather than
through individual solicitations.
2. Procedures
(a) A solicitation must be used to request proposals based on a unit
price schedule prepared by the Postal Service. Offerors must be
required to submit a multiplier that will apply equally to all prices
listed in the unit price schedule. The multiplier submitted by the
offeror must not be more than two decimal places
(e.g., 1.22 or 0.97).
(b) Each indefinite-quantity contract is limited to a specific
geographic area.
3. Limitations
(a) Limitations regarding contract term, dollar limitations, and delivery
(work) order limits are issued by the VP, SM, or authorized
designee.
(b) Delivery (work) orders are limited to the geographic area
described in the contract.
(c) No new construction or building expansion work may be ordered
under an indefinite-quantity construction contract, except for site
preparation or foundation work for a pre-engineered building
purchased directly from the manufacturer.
(d) The contracting officer may request quotations from an
indefinite-quantity construction supplier for work items not
covered by the unit price schedule and order such items, in
addition to ordering covered work. However, not more than 25
percent of the cost of any delivery (work) order may be for such
uncovered work.
4. Solicitation Preparation. Guidance for indefinite-quantity construction
contract preparation is contained in Handbook P-2, Design and
Construction Purchasing Practices.
5. Liquidated Damages. See 4.3.3.a2-10. If Clause is not included in the
basic IQC contract, a contracting officer may not include liquidated
damages in subsequent delivery (work) orders.
6. IQC Construction Supplier Evaluation. See 4.3.3.a.1.
4.3.4.a Applicability. Generally, design-build contracts are awarded following the
same policies contained in 4.2. However, because these purchases call for a
combination of services, the purchasing process is somewhat unique. When
the provisions of this section conflict with any other provision of these
guidelines, the provisions of this section govern.
4.3.4.b Definition. Under design-build contracting, one entity or supplier performs
both architecture-engineering and construction under one single contract
providing single-source responsibility for delivering the project design and
construction. The design-build entity or supplier can assume several
organizational Structures. Most common are suppliers possessing both
design and construction resources in-house. Others are combinations of a
joint venture between designer and supplier, a constructor-led team with the
designer in a subcontract role, or a designer-led team with the constructor in
a subcontractor role.
4.3.4.c Purchase Method. The policies contained in 4.2 and the procedures listed in
Handbook P-2 regarding publicizing, solicitations, and contracts apply to the
purchase of design-build services. The prequalificiation procedures in 3.5.2
should ordinarily be used in connection with design-build services, regardless
of contract type.
1. Fixed-Price Design-Build Contract. Fixed-price design-build contracts
are suitable for use on small, simple projects with well-defined scopes,
for which design has been developed to at least the 30 percent level
through Standard Plans or otherwise. The fixed-price is comprised of
fixed fees for A/E services (which cover all costs of remaining design
work and A/E construction services, plus associated overhead and
profit) and a fixed-price to complete all construction work (which covers
all construction overhead and profit). The contract is awarded based
upon the procedures covering evaluation of technical and management
and price proposals (see 4.2).
2. Cost-Reimbursable Design-Build Contracts
(a) Cost-reimbursable design-build contracts are suitable for use on
all major projects for which the scope or complexity dictate the
use of design-build construction delivery services.
Cost-reimbursable design-build contracts must be based on a
Guaranteed Maximum Price (GMP) which must be determined
through competition or through discussions. The GMP is
comprised of fixed fees for A/E services (which cover all costs of
remaining design work and A/E services during construction, plus
associated overhead and profit), reimbursable direct construction
costs, and a construction services fee (which covers all
construction overhead and profit). If the supplier's total fees and
actual construction costs together exceed the GMP as adjusted
for changes (if any), the adjusted GMP is the amount paid for
complete performance; if they do not exceed the adjusted GMP,
the Postal Service and the supplier share the savings in
accordance with a contractually established ratio.
(b) Cost-reimbursable design-build contracts with a competitive
Guaranteed Maximum Price (GMP) are suitable for use on
projects for which design has been developed to at least the 30
percent level and a reliable estimate of the maximum cost to
construct the facility can be made. The contract is awarded based
upon the procedures covering evaluation of technical and
management proposals and price proposals (see 4.2).
(c) Cost-reimbursable design-build contracts with a negotiated
Guaranteed Maximum Price (GMP) are suitable for use on all
major projects when factors such as significant ambiguities
concerning the scope of the project, requirements for integration
with fixed mechanization, or new types of projects prevent the
development of a reliable estimate of the maximum cost to
construct the facility. The Postal Service provides the offerors with
design which is less than 30 percent developed (typically only 10
percent developed) along with a Construction Cost Limit (CCL).
The CCL is the Postal Service budget estimate of the total cost to
construct the facility including the offeror's overhead and profit.
These contracts are awarded through the following purchase
process:
(1) Phase I covers the completion of design to the point where
a GMP can be reasonably negotiated and is awarded
based upon the procedures covering evaluation of technical
and management proposals and price proposals.
(2) Phase II covers all remaining design and all construction
work and is awarded based upon negotiation of a CCL
within the GMP.
(3) If a CCL cannot be negotiated within the GMP, the Postal
Service may require the supplier to redesign within the CCL
at no cost to the Postal Service or may withdraw from the
project. If the supplier withdraws, the Postal Service keeps
the design and uses it to contract with a different supplier
using a fixed-price design-build contract or a
cost-reimbursable design-build contract with a competitive
GMP.
3. Fixed-price contracts with economic price adjustment may be used.
See 2.4 and Handbook P-2 for further guidance.
4. Contracts with performance incentives may be used. See 2.4 and
Handbook P-2 for further guidance.
4.3.4.e Solicitations for Design-Build Contracts. Solicitations/contracts for
design-build are unique. Guidelines regarding applicable contract clauses
and solicitation provisions are provided in Handbook P-2.
4.3.4.f Requirements for Design-Build Proposals. In addition to the technical
proposal, offerors must also furnish Standard Form 254, Architect-Engineer
and Related Services Questionnaire, and Standard Form 255,
Architect-Engineer and Related Services Questionnaire for Specific Project.
See Handbook P-2 for further guidance.
4.3.4.g Design-Build Supplier Performance Evaluations. The project manager
responsible for monitoring the performance of a design-build contract must
complete an objective written evaluation of the supplier's performance
including any environmental elements. See 4.3.4.f.
4.3.5.a Applicability. Generally, construction management support services (CMMSS)
contracts are professional services contracts and are subject to the
guidelines contained in 4.5.3.
4.3.5.b Definition. A CMSS supplier monitors the management, coordination, and
general direction of the work and progress of a construction supplier. the
CMSS supplier maintains a full-time staff at the project site during
construction. A CMSS supplier may be retained at any time during the project
planning, design, or constricting phase, During the construction phase the
CMSS supplier must maintain a full-time staff at the project site.
4.3.5.c Purchase Method. The general policies set forth in 4.5.3 and other chapters
of the PM and the procedures listed in Handbook P-2 regarding publicizing,
solicitations and contracts apply to the procurements of construction
management support services.
4.3.5.d Contract Types. Contracts for construction management support services
may be indefinite-quantity contracts or a single fixed-price contract for a
single project.
1. Indefinite-Quantity Contracts. In order to facilitate the expeditious
assignment of CMSS suppliers to projects where their services are
needed, construction management support services contracts are
generally awarded as indefinite-quantity contracts requiring the CMSS
supplier to provide a range of construction services for multiple
construction contracts over a specified period of time and within a
specified geographic area.
2. Indefinite-Quantity Contract Duration and Cost Limits. Limitations
regarding contract term, dollar limitations, and (delivery) work order
limits are issued by the VP, SM, or an authorized designee.
4.3.5.e CMSS Contract as an Alternative to A/E Contract Options. The Postal
Service may contract with a CMSS supplier rather than exercising an A/E
construction-management option to perform field duties during construction.
The CMSS supplier may not prepare working drawings, design, or
specification that will be used for construction services.
4.3.5.f Solicitations for Construction Management Support Services Contracts.
Guidelines regarding applicable contract clauses and solicitation provisions
are provided in Handbook P-2.
4.3.5.g Selection Processes for Construction Management Support Services
Contracts. See Handbook P-2 for guidance on the evaluation and selection
process.
4.3.5.h Evaluation of Price Proposals. The offeror's price proposal is a multiplier
factor that is applied to each work-day category. The multiplier submitted by
the offeror must not be more than two decimal places (e.g., 1.22 or 0.97).
4.3.5.i Contracts Award. See Handbook P-2 for guidance on the contract award
process.
4.3.5.j Contract Management Support Services Supplier Performance Evaluations.
the project manager responsible for monitoring the performance of a CMSS
supplier must complete an objective written evaluation using Form 7477-A,
A/E's Performance Design Phase Evaluation and 7477-B, A/E's Performance
Construction Phase Evaluation, of the supplier's performance, including any
environmental elements, for each project. For further guidance see
Handbook P-2.
4.3.5.k Environmental Engineering services. When the Postal Service requires
environmental engineering services such as the design and/or monitoring of
environmental mitigation, abatement, or clean-up measures, an engineering
supplier should be retained using the procedures applicable to procurement
of A/E services (see 4.3.2). In those cases where a supplier is hired to both
design and perform environmental mitigation, abatement, or clean-up
measures, the supplier should be retained using the procedures applicable to
purchase of design-build services (see 4.3.4).
|
