PRIA, Government Policy, Made Personal

Summary

Agencies must use a two-phase selection process for design-and-build contracts unless they use the traditional design-bid-build way or another method allowed by law, and a contracting officer decides the two-phase approach fits the project. The officer should choose two-phase when they expect three or more offers, when design work is needed before a bidder can give a price, when preparing an offer will cost bidders a lot, and after thinking about things like how well the project is defined, the delivery schedule, potential contractors’ experience, whether the project fits two-phase selection, the agency’s ability to run the process, and any other agency rules. In phase one the agency creates a scope of work and asks for short proposals that show an offeror’s technical approach and qualifications. Phase-one proposals cannot include detailed design or price. The agency rates those proposals using factors in the solicitation such as special experience, technical skill, ability to perform, past performance, and other non‑cost factors. The contracting officer then picks the number of best-qualified firms named in the solicitation to go to phase two. Phase-two proposals must include technical solutions and cost or price information; the agency evaluates technical and cost parts separately and awards the contract under the usual rules. A solicitation must say the maximum number chosen for phase two. If the contract is over $4,000,000, that maximum cannot be more than 5 unless it’s an IDIQ contract or a higher-level official approves and the officer documents why more than 5 is needed. The Federal Acquisition Regulation must give government-wide guidance on when and how to use two-phase selection and what factors to consider. For military construction, Secretaries may use certain funds to speed up design before formal authorization or construction money is available, must limit U.S. liability if work is stopped before construction funds, and must report annually from March 1, 2028 through March 1, 2033 about projects that used these authorities. Secretaries may also use a progressive design-build method for military construction that awards by qualifications, lets the agency and contractor refine scope and negotiate a guaranteed maximum price later, requires rules for oversight, and is subject to the same reporting and funding rules.

Title 10, §3241

Armed Forces, Source: USLM XML via OLRC

(a)Authorization.—

Unless the traditional acquisition approach of design-bid-build established under chapter 11 of title 40 is used or another acquisition procedure authorized by law is used, the head of an agency shall use the two-phase selection procedures authorized in this section for entering into a contract for the design and construction of a public building, facility, or work when a determination is made under subsection (b) that the procedures are appropriate for use.

(b)Criteria for Use.—

A contracting officer shall make a determination whether two-phase selection procedures are appropriate for use for entering into a contract for the design and construction of a public building, facility, or work when—

(1)the contracting officer anticipates that three or more offers will be received for such contract;

(2)design work must be performed before an offeror can develop a price or cost proposal for such contract;

(3)the offeror will incur a substantial amount of expense in preparing the offer; and

(4)the contracting officer has considered information such as the following:

(A)The extent to which the project requirements have been adequately defined.

(B)The time constraints for delivery of the project.

(C)The capability and experience of potential contractors.

(D)The suitability of the project for use of the two-phase selection procedures.

(E)The capability of the agency to manage the two-phase selection process.

(F)Other criteria established by the agency.

(c)Procedures Described.—

Two-phase selection procedures consist of the following:

(1)Development of scope of work statement.—

The agency develops, either in-house or by contract, a scope of work statement for inclusion in the solicitation that defines the project and provides prospective offerors with sufficient information regarding the Government’s requirements (which may include criteria and preliminary design, budget parameters, and schedule or delivery requirements) to enable the offerors to submit proposals which meet the Government’s needs. If the agency contracts for development of the scope of work statement, the agency shall contract for architectural and engineering services as defined by and in accordance with chapter 11 of title 40.

(2)Solicitation of phase-one proposals.—

The contracting officer solicits phase-one proposals that—

(A)include information on the offeror’s—

(i)technical approach; and

(ii)technical qualifications; and

(B)do not include—

(i)detailed design information; or

(ii)cost or price information.

(3)Evaluation factors.—

(A)Evaluation factors to be used.—

The evaluation factors to be used in evaluating phase-one proposals are stated in the solicitation and include—

(i)specialized experience and technical competence;

(ii)capability to perform;

(iii)past performance of the offeror’s team (including the architect-engineer and construction members of the team); and

(iv)other appropriate factors, except that cost-related or price-related evaluation factors are not permitted.

(B)Relative importance of evaluation factors and subfactors.—

Each solicitation establishes the relative importance assigned to the evaluation factors and subfactors that must be considered in the evaluation of phase-one proposals.

(C)Evaluation of proposals.—

The agency evaluates phase-one proposals on the basis of the phase-one evaluation factors set forth in the solicitation.

(4)Selection by contracting officer.—

(A)Number of offerors selected and what is to be evaluated.—

The contracting officer selects as the most highly qualified the number of offerors specified in the solicitation to provide the property or services under the contract and requests the selected offerors to submit phase-two competitive proposals that include technical proposals and cost or price information. Each solicitation establishes with respect to phase two—

(i)the technical submission for the proposal, including design concepts or proposed solutions to requirements addressed within the scope of work (or both), and

(ii)the evaluation factors and subfactors, including cost or price, that must be considered in the evaluations of proposals in accordance with subsections (b), (c), and (d) of section 3206 of this title.

(B)The contracting officer separately evaluates the submissions described in clauses (i) and (ii) of subparagraph (A).

(5)Awarding of contract.—

The agency awards the contract in accordance with section 3303 of this title.

(d)Solicitation to State Number of Offerors To Be Selected for Phase Two Requests for Competitive Proposals.—

A solicitation issued pursuant to the procedures described in subsection (c) shall state the maximum number of offerors that are to be selected to submit competitive proposals pursuant to subsection (c)(4). If the contract value exceeds $4,000,000, the maximum number specified in the solicitation shall not exceed 5 unless—

(1)the solicitation is issued pursuant to an indefinite delivery-indefinite quantity contract for design-build construction; or

(2)(A)the head of the contracting activity, delegable to a level no lower than the senior contracting official within the contracting activity, approves the contracting officer’s justification with respect to an individual solicitation that a maximum number greater than 5 is in the interest of the Federal Government; and

(B)the contracting officer provides written documentation of how a maximum number greater than 5 is consistent with the purposes and objectives of the two-phase selection procedures.

(e)Requirement for Guidance and Regulations.—

The Federal Acquisition Regulation shall include guidance—

(1)regarding the factors that may be considered in determining whether the two-phase contracting procedures authorized by subsection (a) are appropriate for use in individual contracting situations;

(2)regarding the factors that may be used in selecting contractors; and

(3)providing for a uniform approach to be used Government-wide.

(f)Special Authority for Military Construction Projects.—

(1)Subject to paragraph (4), each Secretary concerned may use funds available to the Secretary under section 2807(a) or 18233(e) of this title to accelerate the design effort in connection with a military construction project for which the two-phase selection procedures described in subsection (c) are used to select the contractor for both the design and construction portion of the project before the project is specifically authorized by law and before funds are appropriated for the construction portion of the project. Notwithstanding the limitations contained in such sections, use of such funds for the design portion of a military construction project may continue despite the subsequent authorization of the project. The advance notice requirement of section 2807(b) of this title shall continue to apply whenever the estimated cost of the design portion of the project exceeds the amount specified in such section.

(2)Any construction contract for a military construction project that provides for an accelerated design effort, as authorized by paragraph (1), shall include as a condition of the contract that the liability of the United States in a termination for convenience before funds are first made available for construction may not exceed an amount attributable to the final design of the project.

(3)Not later than March 1, 2028, and annually thereafter until March 1, 2033, the Secretary of Defense shall submit to the congressional defense committees a report on the use of the authority under this subsection that includes the following:

(A)A description of the military construction project for which such authority was used, including project title, location, scope, and rationale for selecting such project.

(B)The date of award of a contract for such military construction project, the initial estimated contract value, and the current projected total cost of such project.

(C)A comparison of projected schedule for completion of such project with the actual schedule, including dates for completing the design of such project and commencing construction.

(D)Any realized or anticipated cost savings or efficiencies, including those related to time, resources, or design innovation, attributable to the use of the authority under this subsection for a military construction project.

(E)An assessment of risk management benefits, including any improvements in design flexibility or coordination between contractors and the Secretary concerned.

(F)Any challenges encountered, and mitigation efforts made, in the use of such authority for a military construction project.

(4)Each Secretary concerned may exercise the authority under this subsection using amounts appropriated for such purpose on or after the date of the enactment of this paragraph.

(g)Authorization of Progressive Design-build Contracts.—

(1)Notwithstanding subsections (b) through (e), the Secretary concerned may enter into a progressive design-build contract for a military construction project under the authority of subsection (a) in accordance with the following requirements:

(A)The contract is awarded in a single phase based on qualifications and demonstrated capabilities of the offeror without submission of a detailed construction cost or price proposal at the time of award.

(B)The contract provides for collaboration between the Secretary concerned and the contractor to develop and refine the project scope and design, including cost estimates.

(C)Following development of the project scope and preliminary design, the contract provide for the Secretary concerned and contractor to negotiate a guaranteed maximum price or other fixed-price agreement for the construction phase of the military construction project.

(D)If negotiations described in subparagraph (C) fail, the contract includes terms for termination or renegotiation.

(2)The Secretary concerned shall issue rules to ensure appropriate oversight, risk management, and contract administration consistent with the requirements of this subsection.

(A)A description of the military construction project for which such authority was used, including project title, location, scope, and rationale for selecting such project.

(B)The date of award of a contract for such military construction project, the initial estimated contract value, and the current projected total cost of such project.

(C)A comparison of projected schedule for completion of such project with the actual schedule, including dates for completing the design of such project and commencing construction.

(E)An assessment of risk management benefits, including any improvements in design flexibility or coordination between contractors and the Secretary concerned.

(F)Any challenges encountered, and mitigation efforts made, in the use of such authority for the military construction project.

(4)Each Secretary concerned may exercise the authority under this subsection using amounts appropriated for such purpose on or after the date of the enactment of this paragraph.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of the enactment of this paragraph, referred to in subsecs. (f)(4) and (g)(4), is the date of enactment of Pub. L. 119–60, which was approved Dec. 18, 2025.

Amendments

2025—Subsec. (f)(1). Pub. L. 119–60, § 2809(1)(A), substituted “Subject to paragraph (4), each Secretary concerned” for “The Secretary of a military department”. Subsec. (f)(2). Pub. L. 119–60, § 2809(1)(B), substituted “Any

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contract for a military

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project” for “Any military

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contract”. Subsec. (f)(3), (4). Pub. L. 119–60, § 2809(1)(C), amended pars. (3) and (4) generally. Prior to amendment, pars. (3) and (4) read as follows: “(3) For each fiscal year during which the authority provided by this subsection is in effect, the Secretary of a military department may select not more than two military

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projects to include the accelerated design effort authorized by paragraph (1) for each armed force under the jurisdiction of the Secretary. To be eligible for selection under this subsection, a request for the authorization of the project, and for the authorization of appropriations for the project, must have been included in the annual budget of the President for a fiscal year submitted to Congress under section 1105(a) of title 31. “(4) Not later than March 1, 2008, the Secretary of Defense shall submit to the congressional defense committees a report evaluating the usefulness of the authority provided by this subsection in expediting the design and

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of military

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projects. The authority provided by this subsection expires

September 30, 2008, except that, if the report required by this paragraph is not submitted by

March 1, 2008, the authority shall expire on that date.” Subsec. (g). Pub. L. 119–60, § 2809(2), added subsec. (g). 2021—Pub. L. 116–283, § 1813(b), renumbered section 2305a of this title as this section. Subsec. (b). Pub. L. 116–283, § 1813(b)(1), inserted dash after “or work when”, reorganized remainder of former introductory provisions of subsec. (b) into designated pars. (1) to (4), and redesignated former pars. (1) to (6) as subpars. (A) to (F), respectively, of par. (4) and realigned margins. Subsec. (c)(1), (2). Pub. L. 116–283, § 1813(b)(2)(A), (B), inserted headings. Subsec. (c)(3). Pub. L. 116–283, § 1813(b)(2)(C)(i), (ii), inserted par. heading, designated first, second, and third sentences of existing provisions as subpars. (A), (B), and (C), respectively, and inserted subpar. headings. Subsec. (c)(3)(A). Pub. L. 116–283, § 1813(b)(2)(C)(iii), inserted dash after “and include—” and reorganized remainder of subpar. (A) into designated cls. (i) to (iv). Subsec. (c)(4). Pub. L. 116–283, § 1813(b)(2)(D)(i), (ii), (iv), inserted par. heading, designated first sentence as subpar. (A), inserted subpar. heading, and redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, and designated concluding provisions as subpar. (B) and realigned margin. Subsec. (c)(4)(A)(ii). Pub. L. 116–283, § 1813(b)(2)(D)(iii), substituted “subsections (b), (c), and (d) of section 3206” for “paragraphs (2), (3), and (4) of section 2305(a)”. Subsec. (c)(4)(B). Pub. L. 116–283, § 1813(b)(2)(D)(v), substituted “clauses (i) and (ii) of subparagraph (A)” for “subparagraphs (A) and (B)”. Subsec. (c)(5). Pub. L. 116–283, § 1813(b)(2)(E), inserted heading and substituted “section 3303” for “section 2305(b)(4)”. 2019—Subsec. (d)(1). Pub. L. 116–92 substituted “an indefinite” for “a indefinite”. 2017—Subsec. (d). Pub. L. 115–91 substituted “If the contract value exceeds $4,000,000, the maximum number specified in the solicitation shall not exceed 5 unless—” and pars. (1) and (2) for “If the contract value exceeds $4,000,000, the maximum number specified in the solicitation shall not exceed 5 unless the head of the contracting activity, delegable to a level no lower than the senior contracting official within the contracting activity, approves the contracting officer’s justification with respect to an individual solicitation that a number greater than 5 is in the Federal Government’s interest. The contracting officer shall provide written documentation of how a maximum number exceeding 5 is consistent with the purposes and objectives of the two-phase selection procedures.” 2014—Subsec. (d). Pub. L. 113–291 substituted “If the contract value exceeds $4,000,000, the maximum number specified in the solicitation shall not exceed 5 unless the head of the contracting activity, delegable to a level no lower than the senior contracting official within the contracting activity, approves the contracting officer’s justification with respect to an individual solicitation that a number greater than 5 is in the Federal Government’s interest. The contracting officer shall provide written documentation of how a maximum number exceeding 5 is consistent with the purposes and objectives of the two-phase selection procedures.” for “The maximum number specified in the solicitation shall not exceed 5 unless the agency determines with respect to an individual solicitation that a specified number greater than 5 is in the Government’s interest and is consistent with the purposes and objectives of the two-phase selection process.” 2006—Subsec. (f)(2). Pub. L. 109–163, § 2807(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Any military

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contract that provides for an accelerated design effort, as authorized by paragraph (1), shall include as a condition of the contract that the liability of the United States in a termination for convenience may not exceed the actual costs incurred as of the termination date.” Subsec. (f)(4). Pub. L. 109–163, § 2807(b), substituted “2008” for “2007” wherever appearing. 2004—Subsec. (f). Pub. L. 108–375 added subsec. (f). 2003—Subsec. (c)(1). Pub. L. 108–178 substituted “chapter 11 of title 40” for “the Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.)”. 2002—Subsec. (a). Pub. L. 107–217 substituted “chapter 11 of title 40” for “the Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.)”. 1997—Subsec. (a). Pub. L. 105–85 substituted “(40 U.S.C.” for “(41 U.S.C.”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

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of 2003 AmendmentAmendment by Pub. L. 108–178 effective Aug. 21, 2002, see section 5 of Pub. L. 108–178, set out as a note under section 5334 of Title 5, Government Organization and Employees.

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For

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and applicability of section, see section 4401 of Pub. L. 104–106, set out as an

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of 1996 Amendment note under section 2220 of this title.

§3241 Design-build Selection Procedures

Summary

Title 10, §3241

Notes & Related Subsidiaries

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References in Text

Amendments

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