Construction Consensus Procurement Improvement Act of 2016

To amend title 41, United States Code, to improve the manner in which Federal contracts for construction and design services are awarded, and to prohibit the use of reverse auctions for design and construction services procurements. 1. Short title; table of contents (a) Short title This Act may be cited as the Construction Consensus Procurement Improvement Act of 2016 (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Congressional findings. Sec. 3. Design-build construction process improvement. Sec. 4. Prohibition on the use of a reverse auction for the award of a contract for design and construction services. 2. Congressional findings Congress makes the following findings: (1) The acquisition procedures that are often used effectively to procure products and other forms of services are not always appropriate for procurement of design and construction services. (2) Federal procurement officials often adopt contracting techniques from the private sector and have used those techniques effectively to procure products and services. (3) Design-build is a procurement technique Federal officials have adopted from the private sector that has worked well for procurement of design and construction services. (4) The current statutory framework for design-build could benefit from legislative refinement. (5) Reverse auctions are another procurement technique Federal officials have adopted from the private sector and used successfully to award contracts for the purchase of products that are commercially equivalent to commodities. (6) Despite their success in other contexts, reverse auctions are generally inappropriate for procurement of design and construction services, given the unique nature of each such project. 3. Design-build construction process improvement (a) Civilian contracts (1) In general Section 3309(b) of title 41, United States Code, is amended to read as follows: (b) Criteria for use (1) Contracts with a value of at least $750,000 $3,000,000 Two-phase selection procedures shall be used for entering into a contract for the design and construction of a public building, facility, or work when a contracting officer determines that the project has a value of $750,000 $3,000,000 (2) Contracts with a value less than $750,000 $3,000,000 For projects that a contracting officer determines have a value of less than $750,000 $3,000,000 (A) the contracting officer anticipates that 3 or more offers will be received for the contract; (B) design work must be performed before an offeror can develop a price or cost proposal for the contract; (C) the offeror will incur a substantial amount of expense in preparing the offer; and (D) the contracting officer has considered information such as— (i) the extent to which the project requirements have been adequately defined; (ii) the time constraints for delivery of the project; (iii) the capability and experience of potential contractors; (iv) the suitability of the project for use of the two-phase selection procedures; (v) the capability of the agency to manage the two-phase selection process; and (vi) other criteria established by the agency. . (2) Annual reports (A) In general Not later than November 30 of 2017, 2018, 2019, 2020, and 2021, the head of each agency shall compile an annual report of each instance in which the agency awarded a design-build contract pursuant to section 3309 of title 41, United States Code, during the fiscal year ending in such calendar year, in which— (i) more than 5 finalists were selected for phase-two requests for proposals; or (ii) the contract or order was awarded without using two-phase selection procedures. (B) Public availability The Director of the Office of Management and Budget shall facilitate public access to the reports, including by posting them on a publicly available Internet website. A notice of the availability of each report shall be published in the Federal Register. (b) GAO reports Not later than 270 days after the deadline for the final reports required under subsection (f) of section 3309 of title 41, United States Code, as added by subsection (a)(1), the Comptroller General of the United States shall issue a report analyzing the compliance of the various Federal agencies with the requirements of such section. 4. Prohibition on the use of a reverse auction for the award of a contract for design and construction services (a) Finding Congress finds that, in contrast to a traditional auction in which the buyers bid up the price, sellers bid down the price in a reverse auction. (b) Prohibition Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulatory Council, in consultation with the Administrator for Federal Procurement Policy, shall amend the Federal Acquisition Regulation to prohibit the use of reverse auctions as part of the two-phase selection procedure for awarding contracts for construction and design services. (c) Definitions For purposes of this section— (1) the term design and construction services (A) site planning and landscape design; (B) architectural and engineering services (including surveying and mapping defined in section 1101 of title 40, United States Code); (C) interior design; (D) performance of substantial construction work for facility, infrastructure, and environmental restoration projects; (E) delivery and supply of construction materials to construction sites; or (F) construction or substantial alteration of public buildings or public works; and (2) the term reverse auction (A) a real-time auction conducted through an electronic medium among 2 or more offerors who compete by submitting bids for a supply or service contract with the ability to submit revised lower bids at any time before the closing of the auction; and (B) the award of the contract, delivery order, task order, or purchase order to the offeror, in whole or in part, based on the price obtained through the auction process. July 14, 2016 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Construction Consensus Procurement Improvement Act of 2016 (Sec. 3) This bill modifies the design-build selection procedures used by federal agencies soliciting offers to enter into civilian contracts for the design and construction of a public building, facility, or work. Two-phase selection procedures (i.e., submission of qualifications and then the submission of price and technical proposals in response to a request for proposal) must be used when a contracting officer determines that a project has a value of $3 million or greater. But for contracts valued at less than $3 million, the contracting officer makes the same determination under current law as to whether the use of two-phase selection procedures is appropriate when the officer anticipates at least three offers for the contract. Federal agencies must report, each year through FY2021, on each instance where the agency awarded a design-build contract in which: (1) more than five finalists were selected for phase-two requests for proposals, or (2) the contract or order was awarded without using two-phase selection procedures. The Government Accountability Office must report on agency compliance with design-build contract procedures. (Sec. 4) The Federal Acquisition Regulatory Council must amend the Federal Acquisition Regulation to prohibit the use of reverse auctions as part of the two-phase selection procedure for awarding contracts for construction and design services. A "reverse auction," with respect to procurement by an agency, is: (1) a real-time auction conducted through an electronic medium among at least two offerors who compete by submitting bids for a supply or service contract with the ability to submit revised lower bids before the closing of the auction; and (2) the award of the contract, delivery order, task order, or purchase order to the offeror based on the price obtained through the auction process.