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Title 40 — Public Buildings, Property, and WorksRelease 119-73not60

§1104 Negotiation of Contract

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

Last updated Apr 5, 2026|Official source

Summary

The agency head must negotiate a contract for architectural and engineering services at a price the agency thinks is fair and reasonable. In deciding what is fair, the agency must consider how large and complex the work is, the professional nature of the services, and the estimated value of the job. The agency must first try to reach an agreement with the most highly qualified firm chosen earlier. If talks fail, the agency must officially end negotiations with that firm and try the next most qualified, and keep doing this. If none of the selected firms will agree, the agency must pick more firms in order of their qualifications and continue negotiating until a contract is reached.

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 40 — Public Buildings, Property, and Works

Last Updated

Apr 5, 2026

Release point: 119-73not60