PGI 236.2 -SPECIAL ASPECTS OF

CONTRACTING FOR CONSTRUCTION

Parent topic: PGI Part 236 - CONSTRUCTIONAND ARCHITECT — ENGINEER CONTRACTS

PGI 236.203 Government estimate of construction costs.

(1) Designate the Government estimate as “For Official Use Only,” unless the information is

classified. If it is, handle the estimate in accordance with security regulations.

(2) For sealed bid acquisitions—

(i) File a sealed copy of the Government estimate with the bids. (In the case of two-step acquisitions,

this is done in the second step.)

(ii) After the bids are read and recorded, remove the “For Official Use Only” designation and read

and record the estimate as if it were a bid, in the same detail as the bids.

PGI 236.207 Pricing Fixed-Price Construction Contracts.

(a)(70) Definition: “lump sum” means a single payment of money, as opposed to a series of payments

made over time.

(i) An example of a line item with lump sum pricing in accordance with DFARS 204.71 is as follows:

ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNIT PRICE AMOUNT

0001

Repave runway 4 at

Joint Base Andrews

Firm Fixed Price

PSC: Z1BD

ACRN: AA

1 Job $1,501,866.08 $1,501,866.08

Note that payment would occur upon completion and acceptance of the entire effort. Progress

payments based on estimates of the percentage of completion (see FAR 52.232-5—Payments Under

Fixed-Price Construction Contracts) could occur prior to that point.

(ii) An example of a line item with unit pricing in accordance with DFARS 204.71 is as follows:

ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT
0001

Repave runway 4 at

Joint Base Andrews

Firm Fixed Price

PSC: Z1BD

ACRN: AA

525,128 Square

Foot $2.86 $1,501,866.08

Note that this allows the contractor to invoice for completed quantities of work, in accordance with

FAR 32.102 (d), as those are accepted. Progress payments based on estimates of the percentage of

completion (see FAR 52.232-5—Payments Under Fixed-Price Construction Contracts) could also

occur prior to that point.

PGI 236.211 Special situations.

(b)(2)(A) The contracting officer shall report data on the timelines for definitization of all requests

for equitable adjustment (REAs) for change orders received from contractors under construction

contracts. The contracting officer shall report this data using the PALT/Protest/REA Tracker module

in the Procurement Integrated Enterprise Environment at https://piee.eb.mil within 10 business days

of definitization. Data to be reported includes—

(1) The contract number against which the REA was submitted;

(2) The contractor that submitted the REA;

(3) Date of receipt of the REA; and

(4) Date of definitization of the REA and contract modification number.

(B) Individually reported records will be aggregated by the PALT/Protest/REA Tracker module. The

PALT/Protest/REA Tracker module will aggregate the timelines for the definitization of REAs for

change orders under construction contracts. Contracting officers shall attach the aggregate results

for the military department or defense agency to solicitations in accordance with FAR 36.211. See

PGI PGI 205.205 Special situations.(h) for further instructions regarding the solicitation notice.

PGI 236.213 Special procedures for sealed bidding in

construction contracting.

For additive or deductive items—

(1) Use a bid schedule with—

(i) A first or base bid item covering the work generally as specified; and

(ii) A list of priorities that contains one or more additive or deductive bid items that progressively

add or omit specified features of the work in a stated order of priority. (Normally, do not mix

additive and deductive bid items in the same solicitation.)

(2) Before opening the bids, record in the contract file the amount of funds available for the project.
(3) Determine the low bidder and the items to be awarded in accordance with the procedures in the

clause at 252.236-7007, Additive or Deductive Items.

PGI 236.273 Construction in foreign countries.

(b) When a technical working agreement with a foreign government is required for a construction

contract—

(i) Consider inviting the Army Office of the Chief of Engineers, or the Naval Facilities Engineering

Command, to participate in the negotiations.

(ii) The agreement should, as feasible and where not otherwise provided for in other agreements,

cover all elements necessary for the construction that are required by laws, regulations, and

customs of the United States and the foreign government, including—

(A) Acquisition of all necessary rights;

(B) Expeditious, duty-free importation of labor, material, and equipment;

(C) Payment of taxes applicable to contractors, personnel, materials, and equipment;

(D) Applicability of workers' compensation and other labor laws to citizens of the United States, the

host country, and other countries;

(E) Provision of utility services;

(F) Disposition of surplus materials and equipment;

(G) Handling of claims and litigation; and

(H) Resolution of any other foreseeable problems that can be appropriately included in the

agreement.