[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR36.214]

[Page 718]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 36_CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS--Table of Contents
 
      Subpart 36.2_Special Aspects of Contracting for Construction
 
Sec.  36.214  Special procedures for price negotiation in construction contracting.

    (a) Agencies shall follow the policies and procedures in part 15 
when negotiating prices for construction.
    (b) The contracting officer shall evaluate proposals and associated 
cost or pricing data or information other than cost or pricing data and 
shall compare them to the Government estimate.
    (1) When submission of cost or pricing data is not required (see 
15.403-1 and 15.403-2), and any element of proposed cost differs 
significantly from the Government estimate, the contracting officer 
should request the offeror to submit cost information concerning that 
element (e.g., wage rates or fringe benefits, significant materials, 
equipment allowances, and subcontractor costs).
    (2) When a proposed price is significantly lower than the Government 
estimate, the contracting officer shall make sure both the offeror and 
the Government estimator completely understand the scope of the work. If 
negotiations reveal errors in the Government estimate, the estimate 
shall be corrected and the changes shall be documented in the contract 
file.
    (c) When appropriate, additional pricing tools may be used. For 
example, proposed prices may be compared to current prices for similar 
types of work, adjusted for differences in the work site and the 
specifications. Also, rough yardsticks may be developed and used, such 
as cost per cubic foot for structures, cost per linear foot for 
utilities, and cost per cubic yard for excavation or concrete.

[48 FR 42356, Sept. 19, 1983, as amended at 53 FR 34228, Sept. 2, 1988; 
60 FR 48218, Sept. 18, 1995. Redesignated at 62 FR 272, Jan. 2, 1997, as 
amended at 62 FR 51271, Sept. 30, 1997]