**FACILITIES DIVISION**

**Facilities Contracts Branch**

**Standard Operating Procedures**

+-----------------------------------------------------------------------+
| **DATE: September 15, 2003**                                          |
+-----------------------------------------------------------------------+
| **SUBJECT: Use of Indefinite Quantity Contracts (IQC) for**           |
|                                                                       |
| **Architect-Engineer (A-E) Services for Design**                      |
|                                                                       |
| **of Major Construction Projects**                                    |
+-----------------------------------------------------------------------+
| **NUMBER: CSOP-03-001**                                               |
+-----------------------------------------------------------------------+
| **EFFECTIVE DATE: Immediately Until Replaced or Superseded**          |
+-----------------------------------------------------------------------+

**1. [References]{.underline}**

41 U.S.C. 254

> The Brooks Act, Public Law 92-582
>
> FAR 36.6, Architect-Engineer Services
>
> FAR Part 16.5, Indefinite Delivery Contracts
>
> ARS Manual 242.4, Major Facilities Construction

**2. [Purpose]{.underline}**

> This CSOP provides a streamlined method to acquire A-E services in an
> effort to become more cost efficient and responsive to FD's customers.
>
> It allows the use of task orders under A-E Indefinite Quantity
> Contracts for design of major construction projects of \$10 million or
> less per phase.
>
> The memorandum dated May 4, 1994, entitled, "Procedures for Selection
> of A-E Firms," by John C. Espenschade is cancelled.

**3. [Policy]{.underline}**

> At the discretion of the Contracting Officer (CO), task orders under
> A-E IQC's may be issued **OR** individual competitions for A-E
> services may be conducted for pre-design/design work for major
> construction projects whose Estimated Cost of Construction (ECC) per
> phase is \$10 million or less.
>
> The use of task orders under IQC's meets the requirement for
> competition as stated in the Federal Acquisition Regulation (FAR)
> since these contracts were fully competed and awarded in accordance
> with FAR 36.6.
>
> For projects whose ECC's are greater than \$10 million per phase, CO's
> must conduct individual competitions for A-E services. However, an IQC
> may be used for projects over \$10 million, provided such action is
> approved at a level above the CO.

**4. [Procedures]{.underline}**

a.  The CO should discuss, with the Engineering Project

> Manager (EPM), the cognizant Research Program Manager, Research
> Program Representative, and other Area or Location personnel, the use
> of IQC's and competitive A-E procedures to determine how best to
> acquire the services of an A-E firm to design the facilities project.
> Acquisition lead times for issuing an A-E task order and conducting an
> A-E competition should be a part of the discussions.
>
> Because lead times differ so much between task orders and individual
> competitions, it is important for CO's to give special consideration
> during the discussion process to the authorizing language in the
> Congressional appropriation or bill (which may be obtained from the
> Chief, Facilities Contracts Branch). In some cases, the "history" of
> the bill may imply a timeframe for completion of a particular project,
> such as "design and construct a facility\..." which could be
> interpreted as intending a short turnaround time.
>
> b\. Contracting Officer's may use either an Area-wide or Nationwide
> IQC. Special attention must be paid to the maximum order limitation
> contained in each contract. The location of the firm and its proximity
> to the facility or area, as well as the A-E's workload, should also be
> given consideration during the decision-making process.
>
> c\. If it is decided to use an IQC, the CO must coordinate with the
> EPM to document the decision in a memo to the file **prior** to
> discussions/negotiations with the prospective A-E firm. The purpose of
> this documentation is to avoid the appearance of favoritism and to
> provide a basis for responses to any protests or Congressional
> inquiries.
>
> The memo must include all the information listed below:
>
> 1\. The name of the selected A-E firm.
>
> 2\. The rationale for the selection that includes
>
> information regarding technical expertise and
>
> qualifications, past performance, geographic
>
> proximity (if applicable), etc.
>
> 3\. Using the EPM's independent cost estimate and
>
> breakdown, provide a cost comparison of the
>
> selected firm with one other A-E IQC. The cost
>
> comparison should contain a breakdown of labor
>
> hours and rates, travel costs, indirect expenses,
>
> profit, etc.
>
> 4\. A comparison of procurement lead times for a task
>
> order and individual competition. The timeframes
>
> can be found in ARS Manual 242.4, Major Facilities
>
> Construction.
>
> 5\. Cost savings to the Agency. This should include
>
> the time and expenses of Government personnel. A
>
> comparison of lead times and estimated costs to
>
> the Government is included in Exhibit 3 for
>
> assistance.
>
> d\. For design review work, feasibility studies, master plans, etc.,
> it is recommended that a task order be issued to an Area-wide A-E firm
> whose contract is for the particular Area within which the facility or
> project is located.

**5. [Exhibits]{.underline}**

> **Exhibit 1** - A sample outline of a Memorandum to the File
> documenting the A-E selection. This should be tailored for each
> project.
>
> **Exhibit 2** - A sample outline form of a cost comparison of the
> EPM's independent Government cost estimate and A-E costs. This should
> be tailored for each project to include pertinent labor categories,
> indirect costs, profit, etc.
>
> **Exhibit 3** - A comparison of Government costs for an individually
> competed A-E contract and a task order under an IQC. This may be used
> as an attachment to support the cost savings to the Government.

**6. [Point of Contact]{.underline}**

> For further information, please contact the Facilities Contracts
> Branch on 301-504-1171.

/s/ Brenda A. Wood

\_\_ \_

BRENDA A. WOOD

Chief

Facilities Contracts Branch

# 

# Attachments

1\. Memorandum to the File

2\. Cost Comparison Form -- EPM's Cost versus A-E Cost

3\. Cost Comparison - Individually Competed A-E Contract

versus Task Order Under an IQC

> **EXHIBIT 1**

SUBJECT: Selection Of A-E Firm for

[(Project Name)\_\_\_]{.underline}

TO: The File

FROM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contracting Officer

The USDA, Agricultural Research Service (ARS) requires A-E related
services for the *[\_\_\_(project description)]{.underline}*\_\_\_\_\_\_
at the *[(location name)]{.underline}* in *[(city and
state]{.underline})*. The firm of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ has been selected to
provide these services.

The selection of this firm is based on [*(include information regarding
technical expertise and qualifications, past performance, geographic
location, etc.)*]{.underline}

The Government's cost estimate of \$\_\_\_\_\_\_\_\_\_\_\_ was used to
compare the costs between *[selected firm]{.underline}* and *[another
IQC firm]{.underline}.*

*[Discuss the elements of this comparison \[i.e., labor hours and mix of
disciplines, indirect costs, etc.\])]{.underline}*

This comparison was then used in conjunction with an evaluation of the
overall cost to the Government of conducting a competitive A-E selection
versus issuing a task order under an established IQC. *[(Discuss the
pertinent issues for issuing a task order rather than a competitive A-E,
\[i.e., cost savings to the Government, timeframes, complexity,
etc.\])]{.underline}*

Based on the above information, it is determined to be in the best
interests of the Government to enter into negotiations with and issue a
task order to *[selected firm]{.underline}* for this project.

**EXHIBIT 2**

[Cost Comparison for A-E Selection]{.underline}

<table>
<colgroup>
<col style="width: 19%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td rowspan="2">Labor Category</td>
<td colspan="3">Government Estimate</td>
<td colspan="3">(A-E Firm)</td>
<td colspan="3"><p>(Selected</p>
<p>A-E Firm)</p></td>
</tr>
<tr class="even">
<td>Hours</td>
<td>Rate</td>
<td>Total</td>
<td>Hours</td>
<td>Rate</td>
<td>Total</td>
<td>Hours</td>
<td>Rate</td>
<td>Total</td>
</tr>
<tr class="odd">
<td>Project Mgr.</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><p>Sr. Electrical</p>
<p>Engineer</p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><p>Electrical</p>
<p>Engineer</p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Sr. Mechanical Engineer</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><p>Mechanical</p>
<p>Engineer</p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Sr. Civil Engineer</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Civil Engineer</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Sr. Structural Engineer</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Sr. Architect</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Architect</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Draftsman</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Estimator</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Spec. Writer</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Clerical</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Other Labor Categories:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Profit</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Indirect Costs</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Duplication</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Mailing</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Travel</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Per Diem</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Car Rental</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>TOTAL:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</tbody>
</table>

**EXHIBIT 3**

**[Comparison of Government Costs For Use Of]{.underline}**

**[Individually Competed A-E versus Task Order under an
IQC]{.underline}**

+----------------------+----+-----+----+------+---+-----+----+-----+
| **TASKS**            | *  |     |    |      | * |     |    |     |
|                      | *N |     |    |      | * |     |    |     |
|                      | ew |     |    |      | T |     |    |     |
|                      | A  |     |    |      | a |     |    |     |
|                      | -E |     |    |      | s |     |    |     |
|                      | Co |     |    |      | k |     |    |     |
|                      | nt |     |    |      | O |     |    |     |
|                      | ra |     |    |      | r |     |    |     |
|                      | ct |     |    |      | d |     |    |     |
|                      | ** |     |    |      | e |     |    |     |
|                      |    |     |    |      | r |     |    |     |
|                      |    |     |    |      | u |     |    |     |
|                      |    |     |    |      | n |     |    |     |
|                      |    |     |    |      | d |     |    |     |
|                      |    |     |    |      | e |     |    |     |
|                      |    |     |    |      | r |     |    |     |
|                      |    |     |    |      | I |     |    |     |
|                      |    |     |    |      | Q |     |    |     |
|                      |    |     |    |      | C |     |    |     |
|                      |    |     |    |      | * |     |    |     |
|                      |    |     |    |      | * |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
|                      | ** | **S |    |      | * |     | *  |     |
|                      | CO | SEB |    |      | * |     | *E |     |
|                      | ** | (   |    |      | C |     | PM |     |
|                      |    | 3EP |    |      | O |     | ** |     |
|                      |    | M's |    |      | * |     |    |     |
|                      |    | )** |    |      | * |     | *  |     |
|                      |    |     |    |      |   |     | *E |     |
|                      |    |     |    |      |   |     | PM |     |
|                      |    |     |    |      |   |     | ** |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
|                      | *  | **  | *  | **D  | * | **  | *  | **  |
|                      | *H | Dol | *H | olla | * | Dol | *H | Dol |
|                      | ou | lar | ou | rs** | H | lar | ou | lar |
|                      | rs | s** | rs |      | o | s** | rs | s** |
|                      | ** |     | ** |      | u |     | ** |     |
|                      |    |     |    |      | r |     |    |     |
|                      |    |     |    |      | s |     |    |     |
|                      |    |     |    |      | * |     |    |     |
|                      |    |     |    |      | * |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Develop SOW          | 2  | 98  | 72 | 3    | 2 | 98  | 24 | 1,  |
|                      |    |     |    | ,536 |   |     |    | 179 |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Develop IGCE         | 1  | 49  | 48 | 2    | 1 | 49  | 16 | 786 |
|                      |    |     |    | ,357 |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Procurement Planning | 80 | 3,  | 12 | 589  | 8 | 3,  | 4  | 196 |
|                      |    | 929 |    |      | 0 | 929 |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Publicize Project    | 16 | 786 | 12 | 589  | 0 | 0   | 0  | 0   |
+----------------------+----+-----+----+------+---+-----+----+-----+
| A-E                  | 80 | 3,  | 4  | 23   | 0 | 0   | 0  | 0   |
| Evaluations-Initial  |    | 929 | 80 | ,573 |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| A-E                  | 1  | 7,  | 4  | 23   | 0 | 0   | 0  | 0   |
| Evaluations-Final    | 60 | 858 | 80 | ,573 |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| A-E Selection        | 80 | 3,  | 2  | 11   | 0 | 0   | 0  | 0   |
|                      |    | 929 | 40 | ,786 |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Issue RFP            | 80 | 3,  | 0  | 0    | 4 | 1,  | 0  | 0   |
|                      |    | 929 |    |      | 0 | 964 |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| A-E Submits Proposal |    |     |    |      |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Evaluate Proposal &  | 1  | 7,  | 4  | 23   | 4 | 1,  | 40 | 1,  |
| Prepare              | 60 | 858 | 80 | ,573 | 0 | 964 |    | 964 |
| Pre-Negotiation Plan |    |     |    |      |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Conduct Negotiations | 80 | 3,  | 2  | 11   | 4 | 1,  | 40 | 1,  |
|                      |    | 929 | 40 | ,786 | 0 | 964 |    | 964 |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Summarize            | 80 | 3,  | 6  | 295  | 4 | 1,  | 2  | 98  |
| Negotiations &       |    | 929 |    |      | 0 | 964 |    |     |
| Prepare Award        |    |     |    |      |   |     |    |     |
| Documents            |    |     |    |      |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| Notify Congress &    | 80 | 3,  | 0  | 0    | 4 | 1,  | 0  | 0   |
| Award Contract       |    | 929 |    |      | 0 | 964 |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| **TOTAL**            | *  | **\ | *  | *    | * | **\ | *  | **  |
|                      | *8 | $44 | *2 | *\$1 | * | $13 | *1 | \$6 |
|                      | 99 | ,15 | ,0 | 01,6 | 2 | ,89 | 26 | ,18 |
|                      | ** | 0** | 70 | 58** | 8 | 8** | ** | 8** |
|                      |    |     | ** |      | 3 |     |    |     |
|                      |    |     |    |      | * |     |    |     |
|                      |    |     |    |      | * |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
|                      |    |     |    |      |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| **Total Hours for    |    |     |    |      |   |     |    |     |
| New A-E Contract:    |    |     |    |      |   |     |    |     |
| 2,969**              |    |     |    |      |   |     |    |     |
|                      |    |     |    |      |   |     |    |     |
| **Total Dollars for  |    |     |    |      |   |     |    |     |
| New A-E Contract:    |    |     |    |      |   |     |    |     |
| \$145,808**          |    |     |    |      |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+
| **Total Hours for    |    |     |    |      |   |     |    |     |
| Task Order Under     |    |     |    |      |   |     |    |     |
| IQC: 409**           |    |     |    |      |   |     |    |     |
|                      |    |     |    |      |   |     |    |     |
| **Total Dollars for  |    |     |    |      |   |     |    |     |
| Task Order Contract: |    |     |    |      |   |     |    |     |
| \$20,006**           |    |     |    |      |   |     |    |     |
+----------------------+----+-----+----+------+---+-----+----+-----+

Note 1: The data for a new A-E contract is based on the time frames
outlined in ARS Manual 424.4.

Note 2: The Salary rate used for the CO, EPM and SSEB is \$49.11 per
hour. It is calculated based on a GS-13, step 5 (effective January
2003-\$37.08/hour), plus Government-paid fringe benefits of 32.45% as
stated in OMB Circular A-76 Supplement.