In a traditional federal construction project, the government hires a designer, completes the design and then solicits bids from builders. Design-build combines the two: a single contract covers both design and construction, usually awarded to a team that pairs a contractor with a design firm. For many design-build projects, the FAR provides a two-phase selection process that spares both sides from preparing detailed proposals with little chance of success. Late spring is a common time for construction teams to plan their pursuits, and understanding the process helps teams form early.
Where the method comes from
Congress authorized two-phase design-build selection procedures in the Federal Acquisition Reform Act of 1996, part of the reforms later known as the Clinger-Cohen Act. The FAR implements the procedures in Subpart 36.3. The method is used when the contracting officer determines that it fits the project, considering factors such as whether three or more offers are anticipated, whether offerors will need to perform design work before they can develop prices, and the experience of the agency and potential contractors with the approach.
Phase One: qualifications and approach
In the first phase, offerors submit information about their technical approach and qualifications, but not detailed design or price. The solicitation describes the scope of work and the Phase One evaluation factors, which commonly include:
- Technical approach, at a conceptual level rather than a detailed design
- Technical qualifications, such as specialized experience and technical competence
- Capability to perform
- Past performance of the team’s members, including the designer and the builder
The agency evaluates these submissions and selects the most highly qualified offerors to advance. The solicitation states the maximum number to be selected, which generally may not exceed five unless the contracting officer determines that a larger number is in the government’s interest for that particular solicitation.
Phase Two: full technical and price proposals
The finalists then submit full technical proposals and price proposals. Phase Two is evaluated separately under the factors stated in the solicitation, using the source selection procedures of FAR Part 15, and award goes to the offeror whose proposal represents the best value under those factors. Because only a few finalists reach this stage, each has a meaningful chance of award, which justifies the substantial investment in design development and pricing that Phase Two requires.
How teams can prepare
Design-build success starts with the team. The relationship between builder and designer is central to both phases, and evaluators look for evidence that the team has worked together before or has a clear plan for working together now. Practical steps include:
- Form teams early and sign teaming agreements that define each party’s role in both phases.
- Maintain records of completed design-build projects, including the role each team member played.
- Keep Phase One submissions concise and directly responsive; a conceptual approach should show understanding of the project’s challenges, not attempt a full design.
- Budget for Phase Two in advance, since design development and pricing for a finalist can require significant effort on a short schedule.
- Confirm bonding capacity for the project size before you commit to the pursuit.
Two-phase selection rewards firms that are honest about fit. If your team would not be among the most qualified for a given project, Phase One is the right place to learn that at modest cost. Current procedures are in FAR Part 36 at acquisition.gov, and opportunities are posted on sam.gov.