Title 14 — Coast GuardRelease 119-73

§1140 Contracts that provide best value for taxpayer

Title 14 › Subtitle SUBTITLE I— - ESTABLISHMENT, POWERS, DUTIES, AND ADMINISTRATION › Chapter CHAPTER 11— - ACQUISITIONS › Subchapter SUBCHAPTER II— - IMPROVED ACQUISITION PROCESS AND PROCEDURES › § 1140

Last updated Apr 6, 2026|Official source

Summary

For Level 1 or Level 2 projects, the Commandant can publicly announce construction, design, and engineering needs and hire firms based on proven skill and fair prices. Companies that want the work must send statements about their qualifications and past performance. The Commandant will review those statements, talk with firms about ideas and methods, and rank them by how qualified they are using criteria the Commandant publishes. The Commandant will try to negotiate one or more contracts at pay that is fair and reasonable, considering the scope, complexity, professional nature, and estimated value of the work. If talks fail with a top firm, the Commandant will stop talks and move to the next firm, and keep going or add more firms until an agreement is reached.

Full Legal Text

Title 14, §1140

Coast Guard — Source: USLM XML via OLRC

(a)In carrying out a Level 1 or Level 2 acquisition project or program under this subchapter, the Commandant may publicly announce all construction, design, and engineering requirements and negotiate contracts for construction, design, and engineering services on the basis of demonstrated competence and qualification for the type of professional services required and at fair and reasonable prices.

(b)The following procedures may apply to the procurement of Level 1 or Level 2 acquisition project or program under this subchapter:

(1)The Commandant shall require prospective contractors to submit a statement of qualifications and performance data.

(2)For each proposed project, the Commandant shall—

(A)evaluate statements of qualifications and performance submitted by firms regarding the proposed project; and

(B)conduct discussions with firms to consider anticipated concepts and compare alternative methods for furnishing services.

(3)From the firms with which discussions have been conducted under paragraph (2)(B), the Commandant shall select, in order of preference, that the Commandant considers most highly qualified to provide the services required, based on criteria established and published by the Commandant.

(c)(1)The Commandant shall negotiate 1 or more contracts for construction, design, and engineering services under this section at compensation which the Commandant determines is fair and reasonable to the Federal Government.

(2)In determining fair and reasonable compensation, the Commandant shall consider the scope, complexity, professional nature, and estimated value of the services to be rendered.

(3)The Commandant shall attempt to negotiate a contract or contracts with the most highly qualified firm or firms selected under subsection (b).

(4)If the Commandant is unable to negotiate a satisfactory contract or contracts with the firm or firms under paragraph (3), the Commandant shall formally terminate negotiations with such firm or firms and undertake negotiations with the next most qualified of the selected firms, continuing the process until an agreement is reached.

(5)If the Commandant is unable to negotiate a satisfactory contract or contracts with any of the selected firms, the Commandant shall select additional firms in order of competence and qualification and continue negotiations in accordance with this section until 1 or more agreements are reached.

Reference

Citations & Metadata

Citation

14 U.S.C. § 1140

Title 14 — Coast Guard

Last Updated

Apr 6, 2026

Release point: 119-73