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Title 40, Public Buildings, Property, and WorksRelease 119-110

§1104 Negotiation of Contract

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

Last updated Sep 22, 2026|Official source

Summary

The agency head must negotiate a fair and reasonable contract for architectural and engineering services, considering the work’s size, complexity, professional nature, and estimated value. They must start negotiations with the most qualified firm chosen earlier; if talks fail they must end them and try the next firm, repeating and adding more qualified firms as needed until a contract is agreed.

Full Legal Text

Title 40, §1104

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

(a)In General.—
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)Order of Negotiation.—
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 40, Public Buildings, Property, and Works

Last Updated

Sep 22, 2026

Release point: 119-110