Research Trends and Results

Comprehensive public works procurement methods
in the U.S. and the U.K.
MORITA Yasuo, HeadSADO Chikako, ResearcherConstruction Management Division, Research Center for Land and Construction Management(Key words) Indefinite quantity contract, ID/IQ, framework agreement
1. Introduction
Procurement of works by the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) is now
almost always done by open tendering and the overall
evaluation system, while the procurement method isthe uniform tendering and contracting system. In
America and Europe on the other hand, diverse
procurement methods are used.
The NILIM is surveying overseas procurement
methods of this kind in order to contribute toimprovement of public procurement in Japan, and thispaper reports on comprehensive procurement methods.

Figure. ID/IQ Flow in the U.S.
Basic contract
Notice and Issue
Solicitation

・Specify estimated number of awards, contractperiod, total quantity (max. min.), TO scale (max.
min.), minimum guarantee, award criteria etc.

Submission ofProposal

・Normally, technical proposal and price proposal(unit price etc.) are both submitted. Past
performance is also evaluated.

Evaluation

・Award criteria is usually the best value trade-off(overall evaluation of price and technical factor).

Award Contract

・ More than one are awarded. Generally
between 3 and 15.

TO (Task Order)

2. ID/IQ in the U.S.
Under Federal Acquisition Regulation (FAR),
Indefinite-Quality Contracts are stipulated as one typeof Indefinite-Delivery Contracts. Indefinite-Quantity
Contracts, which are generally called ID/IQ, aresigned as comprehensive contracts in which both theprocurement period and quantity are unspecified, andare used by the US Army Corps of Engineers (floodcontrol structures etc.) and by the Federal Highway
Administration.
An ID/IQ contract includes a basic contract andindividual orders based on the basic contract calledtask orders (below, “TO”).
The figure shows the basic contract and TO
procedure. The request for a basic contract indicatesthe maximum and minimum quantities of both thebasic contract and the TO (total quantity). The award
criteria is trade-off with the best value (totalevaluation of price and technical factors) for the basic
contract, while for a TO, it is often the lowest price.
The basic contract request, in many cases, presents theinitial TO and specifies the awardee of the first TO at
the same time as it specifies awardees of the basic
contract.
The contract period is often a maximum of five
years, and the initial basic contract is considered one
year + option year(s), and renewal agreements areoften signed.
3. Framework agreement in the U.K.
A framework agreement (below, “FA”) is stipulatedby the Directive 2004/18/EC. A FA is defined anagreement between one or more contracting・Every basic contract awardee are notified of theNotice (Inform) andIssue SolicitationTO・Public notice is optional (not legally required)・ Specify Details of the works and evaluation
method.

Submission ofProposal

・Normally only the price proposal is submitted. AEvaluation

Award Contracttechnical proposal is requested for a difficult
case.
・Award criteria is often the lowest price.

・One is awarded.

authorities and one or more economic operators, thepurpose of which is to establish the terms governing
contracts to be awarded during a given period, inparticular with regard to price and, where appropriate,
the quantity envisaged. The term of the FA may notexceed four years. Where a FA is concluded withseveral economic operators, the latter must be at least
three in number. The U.K. stipulates regulations
similar to those of the directive in The Public Contract
Regulations.
The award criteria of a FA in the U.K. is done in thesame way as procurement of normal independentcontracts, contracting authorities use ‘the mosteconomically advantageous’ (not the lowest price).
There is no legal obligation to issue a public notice ofan individual contract based on the FA (called a“Call-off”), that may be directly awarded byapplication of the terms laid down in the FA, or beawarded by mini-competition.
4. Conclusions
The comprehensive procurement method is used forconstruction and for maintenance in both the U.S. andResearch Trends and Resultsthe U.K. At this time, MLIT uses the comprehensive
method exceptionally under a cooperative agreement
on disaster response, but we think that it may bepossible to apply comprehensive methods much more
widely.