Government Contracts FAR Rule Proposes Notice Requirement for Construction Solicitations
Friday, May 8, 2020

FAR Rule Proposes Notice Requirement for Construction Solicitations

By Government Contracts Editorial Staff

A proposed rule would amend the Federal Acquisition Regulation to implement section 855 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (PL 115-232, 15 USC 644(w)), which requires agencies to provide a notice to prospective small business offerors for construction contracts regarding requests for equitable adjustments. Section 855 requires agencies to provide, with solicitations for construction contracts anticipated to be awarded to small businesses, information about the agency’s policies or practices in complying with FAR requirements related to the timely definitization of REAs resulting from change orders under construction contracts. The notice must include data regarding the time it took the agency to definitize REAs for the three-year period preceding issuance of the notice.

New Solicitation Provision. Proposed FAR 36.524, Notice to offerors regarding administration of change orders for construction, contains a prescription for the use of a proposed new solicitation provision, FAR 52.236-XX, Notice Regarding Administration of Change Orders for Construction. Proposed FAR 36.524 also includes guidance for contracting officers regarding the information to be inserted in the provision. The proposed solicitation provision adds a standardized way for COs to provide the required notice. Further, a proposed change to FAR 43.204 instructs COs and contract administration offices to use a specific system to collect data on the time required to definitize unpriced change orders for construction contracts. The data will be used in the new solicitation provision. The notice requirement would apply to contracts at or below the simplified acquisition threshold, but not to contracts for the acquisition of commercial items. Submit comments referencing FAR Case 2018-020 by June 1, 2020. For the text of the proposed rule, see ¶70,006.351.

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