Title 40Public Buildings, Property, and WorksRelease 119-73

§1104 Negotiation of contract

Title 40 › Subtitle SUBTITLE I— - FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES › Chapter CHAPTER 11— - SELECTION OF ARCHITECTS AND ENGINEERS › § 1104

Last updated Apr 6, 2026|Official source

Summary

The agency head must negotiate a fair and reasonable contract for architectural and engineering services. To decide what is fair, they must look at the work’s scope, complexity, professional nature, and estimated value. They must start with the most qualified firm chosen under section 1103. If negotiations fail, they must end talks and try the next qualified firm, repeating and adding more firms by rank until they reach an agreement.

Full Legal Text

Title 40, §1104

Public Buildings, Property, and Works — Source: USLM XML via OLRC

(a)The agency head shall negotiate a contract for architectural and engineering services at compensation which the agency head determines is fair and reasonable to the Federal Government. In determining fair and reasonable compensation, the agency head shall consider the scope, complexity, professional nature, and estimated value of the services to be rendered.
(b)The agency head shall attempt to negotiate a contract, as provided in subsection (a), with the most highly qualified firm selected under section 1103 of this title. If the agency head is unable to negotiate a satisfactory contract with the firm, the agency head shall formally terminate negotiations and then undertake negotiations with the next most qualified of the selected firms, continuing the process until an agreement is reached. If the agency head is unable to negotiate a satisfactory contract with any of the selected firms, the agency head shall select additional firms in order of their competence and qualification and continue negotiations in accordance with this section until an agreement is reached.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 110440:544.June 30, 1949, ch. 288, title IX, § 904, as added Pub. L. 92–582, Oct. 27, 1972, 86 Stat. 1279.

Reference

Citations & Metadata

Citation

40 U.S.C. § 1104

Title 40Public Buildings, Property, and Works

Last Updated

Apr 6, 2026

Release point: 119-73