(a) Selection of architect-engineers is made by the head of the procuring activity or his delegate, upon recommendation of a formally constituted selection panel. After considering a preselection memorandum (see AIDPR 7-4.203-2) submitted to it by the project engineer, the selection panel will recommend, in order of preference, a minimum, if possible, of three firms for approval for contract negotiations. The recommendation of the panel will be stated in a report to the head of the procuring activity or his delegate.

(b) The Office of Material Resources, the Office of Engineering, and other central staff offices which have an interest such as the Industrial Development, Transportation and Housing Service in the Office of Technical Cooperation and Research, will be invited to observe and participate through a representative, if they desire, in the deliberations of the panel on a non-voting basis.

(c) The selection panel report on each case will state its recommendations, the basis for such recommendations, and the agreement or disagreement of the panel members and others who participated in the discussion or submitted written comments. Copies will be forwarded to interested offices. The head of the procuring activity or his delegate may approve it and transmit it to the Contracting Officer, or he may disapprove it and return it to the panel with an explanation and a request for further action.

§ 7-4.203-2 Preselection memorandum.

(a) The preselection memorandum prepared by the procuring activity will list the maximum number of qualified architect-engineers practicable from data contained in the Contractors' Index (see AIDPR 7-4.202), and from other information which may be available, including responses to notices in the Department of Commerce Synopsis and other actions taken to publicize proposed procurements. The preselection memorandum will, to the extent practicable, recommend at least three of the listed architect-engineers for consideration based on these and such other factors as may be pertinent:

(1) Specialized experience in the type of work required.

(2) Past record in performing work for AID, for other Government agencies,

and for other clients, including performance from the standpoint of costs, quality of work, and ability to meet schedules.

(3) The value of contracts previously executed with the architect-engineer under AID funding. When two or more architect-engineers are determined to be equally qualified, preference will be given to the one which has previously received the last AID funded business.

(4) Ability to assign an adequate number of qualified key personnel from the organization, including a competent supervising representative having considerable experience in responsible positions on work of a similar nature.

(5) The portions of the work the architect-engineer is able to perform with its own forces when required.

(6) Ability of the architect-engineer to furnish or to obtain required materials and equipment.

(7) Familiarity with the locality where the project is situated.

(8) Financial capacity.

(9) Responsibility of the architectengineer under standards provided in FPR 1-1.310.5. (No contract may be awarded to a Contractor which does not meet these standards.)

(b) Preselection memorandums will be signed by the project engineer and forwarded to the panel members and to the Associate Assistant Administrator for Material Resources (Procurement), the Office of Engineering, the Office of Technical Cooperation and Research, the Controller, the General Counsel, and such other interested offices inside and outside the procuring activity as may be appropriate, all of whom will have a reasonable time to comment before the panel acts.

(c) The preselection memorandum will state if the firm's facility has been visited for the purpose of evaluation. It will identify when and by whom the evaluation report was made, and if the report is not attached, it will state where the report can be obtained. If such a survey has not been made, it will state that one will be necessary, or with supporting reasons, that one will not be necessary before an award is made.

§ 7-4.203-3 Simplified procedures for procurement estimated to cost $50,000 or less.

Selection panel action will not be required for procurements estimated to cost $50,000 or less. Unless the procuring activity prescribes further review

procedures, the preselection memorandum will state an order of preference for the Contracting Officer to follow. The memorandum will be given the same distribution as for cases which require panel consideration (see AIDPR 7-4.203-2(b)), and a reasonable time will be allowed for comments from addressees.

§ 7-4.203-4 Continuation of contracts. In the case of an existing architectengineer contract which the procuring activity wishes to extend and where no substantial expansion of the scope of work is involved, a detailed preselection memorandum and formal selection panel consideration will not be required. If the estimated cost of the extension exceeds $25,000, the project engineer, or other designated officer, will transmit a memorandum to the selection panel, with further distribution as described in AIDPR 7-4.203-2(b), which justifies the proposed continuation and includes:

(a) Findings on performance of the Contractor to date.

(b) A statement of the consequences (favorable and unfavorable) on accomplishment of program objectives, of selecting a new firm for continuation of the project in place of the current Contractor.

(c) A statement of the extent to which objectives of the project have been attained by the termination date of the existing contract and an estimate of the date after which the services will no longer be required.

The recipients will be given a reasonable time to state objections, comments, or recommendations. If there are objections or recommendations inconsistent with the proposed extension, the matter will be referred to the head of the procuring activity or his delegate. § 7-4.204 Negotiation procedures. § 7-4.204-1 Conduct of negotiations.

(a) FPR 1-3.8 states the generally applicable negotiation policies and techniques, with the exception of FPR 13.805-1, which does not apply to architect-engineer services.

(b) Negotiations are conducted initially with the architect-engineer given first preference under the procedures set

forth in AIDPR 7-4.203. If reasonable efforts to reach agreement fail, the negotiations with that architect-engineer are terminated. Negotiations are then started with the next architect-engineer on the list, and so on until an agreement is reached. If the list is exhausted, the Contracting Officer will request further instructions from the officer who transmitted the memorandum to him. In panel cases, that officer will go back to the panel for further recommendations unless he decides to drop the procurement.

§ 7-4.204-2 Statement of work.

Before a request for a formal proposal is issued, or negotiations are started, whichever is earlier, the chief engineer of the procuring activity, or other designated officer, will provide the Contracting Officer with a detailed statement of work.

§ 7-4.204-3 Proposal.

(a) The Contracting Officer will furnish the selected architect-engineer with a request for a formal proposal for doing the work, unless one has been received before selection.

(b) Wherever possible, the proposal will cover technical matters and price or cost. If a price or cost proposal cannot reasonably be obtained with the technical proposal, it will be obtained as soon as possible thereafter. The architectengineer will be required to submit a cost breakdown in all cases, and also, if FPR 1-3.807-3 is applicable, the required cost or pricing data and certificate of current cost or pricing data.

(b) If the proposal is not reasonable when compared with the independent Government estimate, an attempt will be made to identify and reconcile differences. If the architect-engineer does not provide information deemed necessary by the Contracting Officer for the reconciliation of any identifiable differences which would lead to agreement, the negotiations will be terminated.

(c) When negotiations disclose errors of fact or judgment in a Government estimate, the estimate will be revised. In every case when initial or interim Government estimates are revised up or down, the basis for revision will be explained in the contract file. Award will not be made unless: (1) The Government estimate equals or exceeds the negotiated price, or (2) in the case of deletions, which must be considered separately, the negotiated credit is equal to or exceeds the Government estimate, or (3) a complete statement is placed in the file justifying award at a cost in excess of the estimate.

(d) Whenever the architect-engineer's proposal is considerably less than the Government estimate, the Contracting Officer will assure that there is complete understanding as to the scope of work. § 7-4.205 Contracting with architectengineer firms for construction work.

§ 7-4.205-1 Policy.

Except as provided in AIDPR 7-4.2053, the award of a contract for architectengineer services for a particular facility and the award of a contract for the related construction work to the same Contractor, its subsidiaries, or affiiliates is prohibited. Accordingly, bids or proposals for the construction of a facility I will not be solicited from the firm furnishing architect-engineer services for that facility, its subsidiaries, or affiliates; and unsolicited bids or proposals from that firm, its subsidiaries, or affiliates will not be considered. § 7-4.205-2

Procedure.

Any architect-engineer which the Contracting Officer knows to possess construction capabilities, either within its own organization or through subsidiaries or affiliates, and which is selected for negotiation of an architect-engineer con

tract under the procedures set forth in AIDPR 7-4.203, will be advised, before negotiations begin, of the policy set forth in AIDPR 7-4.205-1. The architect-engineer will have the option of:

(a) Declining to enter into contract negotiations in order to be eligible to compete for the related construction contract; or

(b) Entering into contract negotiations with the clear understanding that, if such negotiations are successful, the firm. its subsidiaries, or affiliates will be ineligible to compete for the related construction contract.

The policy set forth in AID PR 7-4.2051 does not apply:

(a) Whenever the head of the procuring activity, before negotiations start, specifically authorizes the use of a costplus-a-fixed-fee contract for both the design and the construction of a specialized facility; or

(b) Whenever a contract is awarded on the basis of performance specifications for the construction of a facility, and the contract requires the Contractor to furnish construction drawings, specificauions, or site adaptation drawings of the facility.

Requests for authorization, pursuant to paragraph (a) of this section, will be in sufficient detail to establish the need for procuring both design and construction under one contract. In neither of the excepted cases in paragraphs (a) and (b) of this section will the architect-engineer that prepared the drawings and specifications be engaged to supervise and inspect, on behalf of the Government, the construction of the facility involved. § 7-4.206 Eligibility for design and supervision work of architect-engineers who perform preliminary studies. (a) An architect-engineer selected to make a feasibility study or to perform preliminary engineering for a capital project will not be barred solely because of this fact, from selection for subsequest design, supervision, and inspection services on the project, if otherwise qualified.

(b) An architect-engineer employed for advisory or planning services on a

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of developing countries, to create and explore improved technical materials and methods useful for economic and social development, and to evolve and adapt scientific methods of analysis, using a quantitative approach wherever possible, for predicting and assessing the results of AID programs and for the comparison of alternatives. The research and analysis program is directed and administered by the Science Director, Office of Technical Cooperation and Research, Agency for International Development, Washington, D.C., 20523, from whom further information, including a publication entitled "Contract Program in Research and Analysis", can be obtained. procuring activity to which this program is assigned is the Contract Services Division, AID/Washington.

§ 7-4.5301 Unsolicited proposals.

The

In the selection of Contractors, competition must be sought to the maximum extent practicable. Unsolicited proposals are welcomed, however, and care will be exercised by the Government not to disclose to third parties any proprietary information contained in them. While an offeror who submits such a proposal is not necessarily entitled to preferential treatment because of his submission of an unsolicited proposal, a contract may be awarded to the offeror without consideration of other sources where he is qualified and the purpose of the contract is to explore an unsolicited proposal which offers significant scientific or technical promise, represents the product of original thinking, and was submitted in confidence.

Subpart 7-4.54-Procurement by Barter-Commodity Credit Corpora