AC_150_5100-14E_with_chg_1_-_AE_Consultant_Selection.pdf

U.S. Department of Transportation

Federal Aviation

Administration

Advisory Circular

Subject: Architectural, Engineering, and Planning

Consultant Services for Airport Grant Projects

Date: 9/25/2015

Initiated By: AAS-100

AC No: 150/5100-14E

Change: 1

1 Purpose.

This advisory circular (AC) provides guidance for airport Sponsors in the selection and engagement of architectural, engineering, and planning consultants. It also discusses services that normally would be included in an airport grant project, types of contracts for these services, contract format and provisions, and guidelines for determining the reasonableness of consultant fees.

2 Cancellation.

This AC cancels AC 150/5100-14D, Architectural, Engineering, and Planning

Consultant Services for Airport Grant Projects, dated August 30, 2005.

3 Applicability.

A Sponsor is required to award each contract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, land acquisition services, mapping or related services with respect to the project in the same manner as a contract for architectural and engineering services is negotiated under Title IX of the Federal

Property and Administrative Services Act of 1949 (40 U.S.C. Chapter 11, Selection of

Architects and Engineers), or an equivalent qualifications-based requirement prescribed for or by the Sponsor of the airport. See 49 U.S.C. § 47107(a) (17) and the grant assurances.

Title 2 of the Code of Federal Regulations (C.F.R.), part 200, establishes uniform administrative rules for Federal grants. The FAA prepared this guidance to assist

Sponsor compliance with the procurement requirements of §§200.317-200.326.

This AC does not apply to airport projects that are fully funded with passenger facility charge (PFC) funds.

Consolidated AC Includes Change 1

9/25/2015 AC 150/5100-14E Change 1 ii

4 Principal Changes.

The AC incorporates the following principal changes. The revisions made by Change 1 are marked by horizontal bars in the outside margins.

1. Clarified Independent Fee Estimates processes.

2. Clarified multiple consultant selection process.

3. Added “Specific Rates of Compensation” method of contracting.

4. Revised and expanded discussion of Alternative Project Delivery Methods, moved to Appendix G.

5. Updated the advisory circular format to the decimal numbering system.

6. The Office of Management and Budget published the Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final

Rule, in 78 Federal Register Notice 78590, December 26, 2013. This final guidance contains the administrative requirements formerly contained in (A-110 and A-102), cost principles (A-21, A-87, and A-22), and audit requirements (A-50, A-89, and A-133) for federal awards. As of December 26, 2014, a Sponsor must implement applicable the requirements of 2 CFR §200 to remain allowable for federal assistance.

7. Further clarified multiple consultant selection processes.

8. Clarified allowable costs, applicability of profit and pass-through costs.

Michael J. O’Donnell

Director of Airport Safety and Standards

CONTENTS

Paragraph Page iii

CHAPTER 1. INTRODUCTION ................................................................................... 1-1

1.1 Overview. ........................................................................................................................... 1-1

1.2 Definitions. ......................................................................................................................... 1-1

1.3 Referenced Documents. .................................................................................................... 1-1

1.4 Types of Consultant Services. .......................................................................................... 1-1

1.5 Special Services. ................................................................................................................ 1-4

CHAPTER 2. PROCEDURES FOR SELECTION OF CONSULTANTS ...................... 2-1

2.1 General. .............................................................................................................................. 2-1

2.2 Procurement Standards. .................................................................................................. 2-1

2.3 Competition ....................................................................................................................... 2-2

2.4 Qualifications Based Selection Procedures. ................................................................... 2-3

2.5 Other Services. .................................................................................................................. 2-4

2.6 Selecting Organization. .................................................................................................... 2-5

2.7 Policy for Selection. ........................................................................................................... 2-6

2.8 Selection Criteria. ............................................................................................................. 2-7

2.9 Selection Procedures. ........................................................................................................ 2-8

2.10 Alternate Selection Procedures. .................................................................................... 2-12

2.11 Selection Procedures for Environmental Impact Statement (EIS) Preparation. .... 2-13

2.12 Scope of Services. ............................................................................................................ 2-14

2.13 Independent Fee Estimate. ............................................................................................. 2-15

2.14 Negotiations. .................................................................................................................... 2-16

CHAPTER 3. CONTRACT FORMAT AND PROVISIONS ........................................... 3-1

3.1 General. .............................................................................................................................. 3-1

3.2 Contract Format. .............................................................................................................. 3-1

3.3 Division of Responsibility and Authority. ...................................................................... 3-1

3.4 Mandatory Contract Provisions. ..................................................................................... 3-2

3.5 Time Overruns Beyond Control of the Consultant. ...................................................... 3-2

3.6 Ownership of Drawings and Contract Documents. ...................................................... 3-2

3.7 Contract Checklist. ........................................................................................................... 3-3

3.8 FAA Contract Review. ..................................................................................................... 3-3

CONTENTS

Paragraph Page iv

3.9 FAA Contract Approval. ................................................................................................. 3-4

CHAPTER 4. METHODS OF CONTRACTING AND ALLOWABLE COSTS .............. 4-1

4.1 General. .............................................................................................................................. 4-1

4.2 Direct Personal Services. .................................................................................................. 4-1

4.3 Retainer. ............................................................................................................................. 4-3

4.4 Cost-Plus-a-Fixed-Fee (Not to Exceed (NTE)). .............................................................. 4-4

4.5 Fixed Lump-Sum Payment. ............................................................................................. 4-6

4.6 Cost-Plus-a-Percentage-of-Cost. ..................................................................................... 4-7

4.7 Specific Rates of Compensation (Not to Exceed (NTE))............................................... 4-7

4.8 Sponsor Force Account Projects. .................................................................................... 4-8

4.9 Phasing of Work. ............................................................................................................... 4-8

4.10 Allowable Costs. ................................................................................................................ 4-9

4.11 Non-Allowable Costs....................................................................................................... 4-10

4.12 Pass-Through Costs ........................................................................................................ 4-10

APPENDIX A. DEFINITIONS ...................................................................................... A-1

APPENDIX B. BIBLIOGRAPHY ................................................................................. B-1

APPENDIX C. SCOPE OF SERVICES SAMPLES..................................................... C-1

APPENDIX D. CONSULTANT SERVICES FEE/COSTS SAMPLE............................ D-1

APPENDIX E. DETAILED FEE/COST ANALYSIS SAMPLE ...................................... E-1

APPENDIX F. RECORD OF NEGOTIATIONS SAMPLE ............................................ F-1

APPENDIX G. ALTERNATIVE PROJECT DELIVERY SYSTEMS ............................ G-1

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CHAPTER 1. INTRODUCTION

1.1 Overview.

This advisory circular (AC) provides guidance for airport Sponsors in the selection and engagement of architectural, engineering, and planning consultants. This AC discusses services normally included in an airport grant project, types of contracts for these services, contract format, and guidelines for determining the reasonableness of consultant fees.

1.2 Definitions.

Definitions of the terms used in this AC are listed in Appendix A.

1.3 Referenced Documents.

Documents and regulations referenced throughout this circular are listed in Appendix B.

1.4 Types of Consultant Services.

There are two separate and distinct categories of consultant services that are typically utilized for projects conducted under airport grant programs. The first category involves planning services. The second category involves professional services for the design and construction administration/inspection of airport development projects and for land acquisition projects.

1.4.1 Aviation Planning Services.

This category includes studies under the broad headings of airport system and master planning, airport noise compatibility planning and environmental assessments and related studies. These studies include, but are not limited to, the following activities:

1. Design study to establish the framework and detailed work program.

2. Airport data collection and facility inventories.

3. Aeronautical activity forecasts and demand/capacity analyses.

4. Facility requirements determination.

5. Airfield modeling for capacity and delay.

6. Airport layout and terminal area plan development.

7. Airport noise studies under 14 CFR Parts 150 and 161.

8. Compatible land-use planning in the vicinity of airports.

9. Airport site selection studies.

10. Airport development schedules and cost estimates.

11. Airport financial planning and benefit cost analysis.

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12. Participation in public information and community involvement programs and/or public hearings relating to airport development and planning projects.

13. Environmental Assessments (EA), Environmental Impact Statements (EIS), and other studies in accordance with FAA Orders 5050.4 and 1050.1.

14. Preparation of or updating of the airport layout plan.

15. Airspace analysis.

16. GIS data collection, entry, and analysis and other electronic graphical/mapping efforts.

1.4.2 Architectural/Engineering Services for Airport Development Projects.

This category includes the basic A/E services normally required for airport development projects. It involves services generally of an architectural, civil, geotechnical, structural, mechanical, and electrical engineering nature. In addition, there may be some services outside those normally considered basic that are discussed in paragraph 1.5. The basic services are usually conducted in, but are not limited to, the five distinct and sequential phases summarized below:

1.4.2.1 Preliminary Phase.

This phase involves those activities required for defining the scope of a project and establishing preliminary requirements. Some examples of activities within this phase of a project include, but are not limited to:

1. Coordinating with the Sponsor on project scope requirements, finances, schedules, operational safety and phasing considerations, site access and other pertinent matters.

2. As applicable, coordinating project with local FAA personnel and other interested stakeholders to identify potential impacts to their operations.

3. Planning, procuring, and/or preparing necessary surveys, geotechnical engineering investigations, field investigations, and architectural and engineering studies required for design considerations.

4. Developing design schematics, sketches, environmental and aesthetic considerations, project recommendations, and preliminary layouts and cost estimates.

5. Preparing project design criteria and other bridging documents commonly used for alternative project delivery methods such as design-build contracting.

1.4.2.2 Design Phase.

This phase includes all activities required to undertake and accomplish a full and complete project design. Examples include, but are not limited to, those below:

1. Conducting and attending meetings and design conferences to obtain information and to coordinate or resolve design matters.

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2. Collecting engineering data and undertaking field investigations;

performing geotechnical engineering studies; and performing architectural, engineering, and special environmental studies.

3. Preparing necessary engineering reports and recommendations.

4. Preparing detailed plans, specifications, cost estimates, and design/construction schedules.

5. Preparing Construction Safety and Phasing Plan (CSPP).

6. Printing and providing necessary copies of engineering drawings and contract specifications.

1.4.2.3 Bidding and Negotiation Phase.

These activities are sometimes considered part of the construction phase.

They involve assisting the Sponsor in advertising and securing bids, negotiating for services, analyzing bid results, furnishing recommendations on the award of contracts, and preparing contract documents.

1.4.2.4 Construction Phase.

This phase may include all basic services rendered after the award of a construction contract, including, but not limited to, the following activities:

1. Providing consultation and advice to the Sponsor during all phases of construction.

2. Representing the Sponsor at preconstruction conferences.

3. Inspecting work in progress periodically and providing appropriate reports to the Sponsor.

4. Reviewing and approving shop and erection drawings submitted by contractors for compliance with design concept/drawings.

5. Reviewing, analyzing, and accepting laboratory and mill test reports of materials and equipment.

6. Assisting in the negotiation of change orders and supplemental agreements.

7. Observing or reviewing performance tests required by specifications.

8. Determining amounts owed to contractors and assisting Sponsors in the preparation of payment requests for amounts reimbursable from grant projects.

9. Making final inspections and submitting punch-lists and a report of the completed project to the Sponsor.

10. Reviewing operations and maintenance manuals.

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1.4.2.5 Project Closeout Phase.

This phase includes all basic services rendered after the completion of a construction contract, including, but not limited to, the following activities:

1. Making final inspections and submitting punch-lists and a report of the completed project to the Sponsor.

2. Providing record drawings.

3. Preparing summary of material testing report

4. Preparing summary of project change orders

5. Preparing grant amendment request and associated justification, if applicable.

6. Preparing final project reports including financial summary.

7. Obtaining release of liens from all contractors.

1.5 Special Services.

1.5.1 The development of some projects may involve activities or studies outside the scope of the basic design services routinely performed by the consultant. These special services may vary greatly in scope, complexity, and timing and may involve a number of different disciplines and fields of expertise.

1.5.2 Consultants performing special services may be employed directly by the Sponsor to implement one or more phases of a project or may be employed by the principal consultant via a subcontract agreement. In certain instances, these services may be performed by the principal consultant. Some examples of special services that might be employed for airport projects include, but are not limited to, the following:

1. Soil investigations, including core sampling, laboratory tests, related analyses, and reports.

2. Detailed mill, shop, and/or laboratory inspections of materials and equipment.

3. Land surveys and topographic maps.

4. Field and/or construction surveys.

5. Photogrammetry surveys.

6. Onsite construction inspection and/or management involving the services of a full-time resident engineer(s), inspector(s), or manager(s) during the construction or installation phase of a project. This differs from the periodic inspection responsibilities included as part of the basic services.

7. Special environmental studies and analyses.

8. Expert witness testimony in litigation involving specific projects.

9. Project feasibility studies.

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10. Public information and community involvement surveys, studies, and activities.

11. Preparation of record drawings.

12. Assisting the Sponsor in the preparation of necessary applications for local, State, and Federal grants.

13. Preparation of an as-built airport layout plan.

14. Preparation of property maps.

15. Preparation of quality control plan.

16. Preparation of final report.

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Page Intentionally Blank

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CHAPTER 2. PROCEDURES FOR SELECTION OF CONSULTANTS

2.1 General.

The procedures included in this chapter provide guidance for Sponsors in the selection and engagement of architectural, engineering, environmental, and planning consultants on projects funded wholly or in part under Federal airport grant programs. Adherence to these procedures will assure a Sponsor of compliance with the requirements of

49 USC § 47107(a) (17) and 2 CFR §200.320, as amended.

2.1.1 49 USC § 47107(a) (17) states: “Each contract and subcontract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design engineering, surveying, mapping, and related services will be awarded in the same way that a contract for architectural and engineering services is negotiated under Chapter 11 of Title 40 or an equivalent qualifications based requirement prescribed for or by the Sponsor.” In addition to the services described in this statute, the professional and incidental services listed under

A/E Services in Appendix A, must also be procured using qualifications based procedures.

2.1.2 2 CFR § 200.320 establishes that procurement by competitive proposal, where price is not a factor, may only be used for procurement of architectural/engineering (A/E) services. It may not be used for other services even though an A/E firm may be a potential source to perform the service. If a conflict exists between 49 USC § 47107(a)

(17) and 2 CFR 200, the statute will prevail.

2.1.3 Title IX of the Federal Property and Administrative Services Act of 1949 requires that qualifications based selection procedures be used for the selection of firms to perform architectural and engineering services. Qualifications based procedures require that a contract for A/E services be awarded pursuant to a fair and open selection process based on the qualifications of the firms. The fees for such services are established following selection of a firm through a negotiation process to determine a fair and reasonable price.

2.2 Procurement Standards.

2.2.1 The selection of qualified consultants must be made on the basis of fair negotiations and equitable fees and through selection procedures that are professionally acceptable, ensure maximum open and free competition, and avoid any suggestion of unfair or unethical conduct.

2.2.2 Consultants employed for work on projects involving airport grants must be responsible and possess the ability to perform successfully under the terms and conditions of the proposed procurement. Consideration should be given to such matters as integrity, record of past performance, extent of experience with the type of services required by the Sponsor, technical resources, and accessibility to other necessary resources.

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2.2.3 The Sponsor’s procurement action must be void of individual and organizational conflicts of interests both real and/or perceived.

2.2.3.1 Individual conflicts of interest may exist whenever a Sponsor’s employee, officer, agent or family member thereof has a financial or other interest in the firms competing for the work.

2.2.3.2 Organizational conflicts of interest may exist when there is a lack of impartiality, impaired objectivity or an unfair advantage with one or more of the firms competing for the work.

2.2.4 Sponsors must maintain sufficient records, made available at the FAA’s request, to detail the significant history of their procurement action. This includes the rationale for the procurement method; the selection considerations; contract type and basis for contract price.

2.3 Competition

2.3.1 Per § 200.319, all procurement transactions must be conducted in a manner providing full and open competition. It is the responsibility of the Sponsor to assess whether their procurements conform to the requirements of §200.318 for addressing conflict of interest and the standards of §200.319 for full and open competition.

2.3.2 An unfair competitive advantage may exist when one firm has access to source selection information that competing firms do not have similar access to.

2.3.2.1 To ensure objective contractor performance and eliminate unfair competitive advantage, 2 CFR part §200.319 requires entities that develop or draft specifications, requirements, statements of work, invitations for bids, or requests for proposals must be excluded from competing for such procurements. However, once selected, the successful consultant may participate in further definition of the scope of work. For purposes of full disclosure, Sponsors that seek external assistance with preparation of

Statements of Work (SOW) for a request for qualifications (RFQ) are encouraged to make the restrictions of §200.319 known to the firm providing the assistance. For additional discussion on this please refer to the latest version of Order 5100.38.

2.3.2.2 There are situations where an unfair competitive advantage can be mitigated or neutralized. For example, the consultant who performs master plan services for a Sponsor or assists a Sponsor with preparation of their Capital

Improvement Program would have an apparent unfair competitive advantage when competing for follow-on engineering design services. A

Sponsor can mitigate this unfair advantage through full and open disclosure of the source selection information to all competing firms. The restrictions of 2.3.2.1 however, cannot be mitigated or neutralize.

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2.3.3 Objective consultant performance can be compromised whenever a firm is in a position where they could apply undue influence on Sponsor decisions that ultimately benefit the consultant. Sponsors that combine the selection of a planning consultant and engineering consultant create the potential for a problematic situation that may jeopardize AIP participation in the Sponsor’s professional services expenses. This is primarily due to conflicts with the AIP procurement requirements, found in Order

5100.38, such as the following:

1. Objectivity of the planning consultant’s performance may be compromised because the firm is in a position to establish development objectives for which the same firm will be tasked with engineering design services. This is an apparent lack of impartiality that may influence the planning initiative and the identification of preferred development objectives.

2. There is diminished transparency of the procurement action for engineering design services given that the development objectives are not established at the time the Sponsor conducts that selection process.

3. Firms that specialize in one type of service may be unfairly excluded from competing for a project when the Sponsor combines distinct types of services.

4. Per FAA Order 5050.4B,, consultants that prepare an Environment Impact

Statement may not compete for future work the EIS addresses until such time the FAA has issued a Record of Decision.

2.3.4 Sponsors can mitigate these apparent concerns regarding procurement transparency and objective contractor performance by separating the procurement of a planning consultant from that of an engineering design consultant. With the exception of the restrictions established under 2 CFR §200.319 (See 2.3.2.1), a consultant that performs planning services may compete for follow-on engineering provided the Sponsor properly mitigates any situations of unfair competitive advantage (See 2.3.2.2).

2.3.5 It may be permissible under certain circumstances for a Sponsor to combine the selection for certain planning type services and design type services provided there is no loss of objectivity of the planning action or loss of transparency in the procurement process. For example, the update of an airport layout plan for which no new development objectives are established could be combined with design services.

2.4 Qualifications Based Selection Procedures.

Consultants must be selected on the basis of their qualifications and experience, with fees determined through negotiations following selection. The qualifications of consultants are evaluated and the best qualified consultant is selected, subject to a mutual understanding of the scope of services and negotiation of a fair and reasonable fee. Figure 2-1 is an overview of the recommended Qualifications Based Consultant

Selection process.

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Figure 2-1. Qualifications Based Selection Process

Determine the Scope of Services

Par. 2.6.2 Sponsor establishes a Selection Board

Par. 2.7 Determine the Selection Policy

Par. 2.8 Develop Selection Criteria and Numerical Rating

Par. 2.9.3 Develop a Request for Qualifications

Par. 2.9 Selection Procedures

Par. 2.14.5 Award Consultant Contract

Go to Figure 2-2

Does the selection satisfy the needs, objectives and goals?

Yes

No

2.5 Other Services.

2.5.1 Where services are to be performed in conjunction with the architectural, planning, environmental, or engineering services, they must be contracted for in the course of procuring the A/E services.

2.5.2 Where services such as feasibility studies, construction management, program management and other services as defined in 49 USC § 47107(a) (17) and A/E services as defined in Appendix A are to be performed, they must be procured using qualifications based procedures.

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2.5.3 Where services are to be performed that are not in conjunction with A/E and planning services and do not require performance by a licensed architect or engineer, the services should be acquired using local procurement procedures. An example of this type of special service would be soil borings, whereby the boring layout plan and interpretations of tests are not performed by the boring contractor. Soil borings conducted as part of a geotechnical engineering investigation or for which an independent engineer is responsible must be procured either in the course of procuring

A/E services or by using qualifications based procedures.

2.5.4 Where services are to be performed in assisting the FAA in preparing an Environmental

Impact Statement (EIS), they must be procured using qualifications based selection procedures (see paragraph 2.11).

2.5.5 Where a Sponsor decides to utilize an Alternative Project Delivery System (APDS) such as design-build (DB) or construction manager-at-risk (CMAR), the Sponsor may use the competitive proposal approach (as defined in 2 CFR §200.320) for selection provided price and other factors such as qualifications, skill, experience, and design approach are considered when selecting a firm to perform this service. The selection of an A/E services firm is the only instance where prices must be excluded as a consideration under a competitive proposal selection. Please reference Appendix G, Alternative Project Delivery Systems, of this Advisory Circular for guidance in procuring these types of services.

2.6 Selecting Organization.

2.6.1 Within the Sponsor's organization, an administrative policy should be established for designating persons authorized to select or recommend consultants for various assignments. The persons designated may include the administrator or the department head to be supplemented by others making up a selection board. The persons empowered to make the selection of one consultant over another must be kept free of pressures, both internal and external. 2 CFR § 200.318(c) requires that Sponsors maintain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts. They must not participate in selection or in the award or administration of a contract supported by

Federal funds if a conflict of interest, real or apparent, would be involved.

2.6.2 The typical procedure for selecting a consultant is to use a selection board composed of at least three persons, with at least one being an engineer, airport planner, or other professional knowledgeable of the service required. For projects that have special design requirements or are particularly complex, the selection board should have additional technical members with the appropriate expertise in those required disciplines. The board should be prepared to evaluate potential consultants, i.e., conduct interviews and inquiries as desired and make recommendations to the governing body in accordance with paragraph 2.9.14.

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2.7 Policy for Selection.

2.7.1 The selection of a consultant must be based on a comparative analysis of the professional qualifications necessary for satisfactory performance of the service required. Moreover, the selection process must satisfy requirements for open and free competition.

2.7.2 Sponsors may procure a consultant for several projects through one procurement action provided the following conditions are met:

1. The consultant is selected using the qualifications based selection procedures described in paragraph 2.9.

2. The parties competing for the work must be advised that the work may be accomplished during the course of multiple grants. The expected schedule of projects must be defined, together with a statement of work and the required services. The statement of work must be described in sufficient detail so that all parties may adequately establish the type of services required to accomplish the work. Avoid generic statements of work.

3. All parties are advised that some of the services may not be required and that the

Sponsor reserves the right to initiate additional procurement action for any of the services included in the initial procurement.

4. The services are limited to those specific projects that the Sponsor reasonably expects to initiate within five (5) years (See Para. 3-59, FAA Order 5100.38) of the effective date of the initial contract. With mutual and written agreement between the

Sponsor and the FAA, additional projects or work elements may be added after the original selection if all of the following conditions exist:

1. The Sponsor can provide acceptable justification for not initiating a new procurement action (Note: Convenience of the Sponsor is not an acceptable justification to forgo a separate procurement action).

2. Added project(s) or work element(s) is (are) similar in character to the statement of work the Sponsor used in the original selection.

3. Added projects or work elements do not require services or qualifications not previously included in the original selection.

4. The cumulative cost of services for the added projects or work elements is not expected to exceed the simplified acquisition threshold as defined in Para. U-12 of FAA Order 5100.38.

If the above-listed conditions do not exist, Sponsors that want to add work elements not specifically included in the original procurement action must conduct a separate and new procurement action. Projects initiated within the first five (5) years may continue beyond the duration of the initial contract; however once 5-year duration has ended no new projects should be initiated without a new procurement action.

5. If more than one party is selected, the expected projects to be performed by each party must be defined, together with the statement of work and the required services, at the time of the initial procurement action. The Sponsor must provide

2-7 notification to each firm of the projects they were awarded. Sponsors must avoid the practice of selecting multiple firms and assigning project responsibility at a later date.

6. The negotiation of the fee is limited to the services expected to be performed under the first grant or project after the initial procurement action. The contract must be limited to the services covered by the negotiated fee. The negotiation of the fee for subsequent services, i.e., services included in the procurement action but not in the initial contract, must occur at the time those services are needed. A fee estimate must be performed for each of these negotiations (See paragraph 2.13 for information on fee estimate.). If a fee cannot be agreed upon between the Sponsor and the selected firm, then negotiations are terminated with that firm. If the Sponsor identified and ranked multiple firms for the project at the time of the initial procurement action, then the Sponsor may enter into negotiations with the firm ranked next. If no additional firms were identified and ranked or agreement is not reached with any selected firms, then the Sponsor must initiate a new procurement action.

7. In the case of an unforeseen project as in Paragraph 4, the Sponsor and the FAA may mutually agree on the ranking of the selected consultants by evaluating their capabilities and the scope of the unforeseen project. However, if the scope of the unforeseen project does not match the capabilities of the selected consultants, a new procurement action must be conducted.

2.7.3 Unless there is a compelling reason that there is a benefit to the FAA to combine eligible and ineligible projects in a single solicitation, Sponsors are discouraged from doing so. See Order 5100.38 for additional information.

2.8 Selection Criteria.

2.8.1 Based on the proposed scope of service(s) and prior to evaluating consultants, a

Sponsor(s) must develop a list of selection criteria to be used in evaluating potential consultants. Numerical rating factors (ranges) should be assigned to each criterion on the basis of the Sponsor's priorities and conception of the importance of each factor in the attainment of a successful project. The Sponsor(s) should include the criteria with a

Request for Qualifications (RFQ) in advance of the selection process.

2.8.2 Based on a Sponsor’s goals/objectives for each project, the list of selection criteria will vary for each RFQ and must be appropriate for the proposed scope of services.

Suggested selection criteria include, but are not limited to, the following:

1. Capability to perform all or most aspects of the project and recent experience in airport projects comparable to the proposed task.

2. Key personnel’s professional qualifications and experience and availability for the proposed project; their reputation and professional integrity and competence; and their knowledge of FAA regulations, policies, and procedures.

3. Capability to meet schedules or deadlines.

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4. Quality of projects previously undertaken and capability to complete projects without having major cost escalations or overruns.

5. Qualifications and experience of sub-consultants regularly engaged by the consultant under consideration.

6. Capability of a branch office that will do the work to perform independently of the home office, or conversely, its capability to obtain necessary support from the home office. The use of geographic location may be a selection criteria provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

7. Ability to furnish qualified inspectors for construction inspection if applicable.

8. Understanding of the project’s potential challenges and the Sponsor’s special concerns.

9. Degree of interest shown in undertaking the project and their familiarity with and proximity to the geographic location of the project.

10. Capability to incorporate and blend aesthetic and architectural concepts with the project design while accomplishing the basic requirements that transportation facilities be functional, safe, and efficient.

11. In meeting the Disadvantaged Business Enterprise (DBE) contract goal, evidence documenting that the consultant met the DBE goal, or by documenting that it made adequate good faith efforts to meet the DBE goal. (See 49 CFR, § 26.53)

12. Capability to conduct a Value Engineering (VE) study for projects that are particularly complex or have unique features. Order 5100.38, Chapter 3, Subsection 3-57; AC 150/5300-15, Use of Value Engineering for Engineering and

Design of Airport Grant Projects; and AC 150/5370-10, Standards for Specifying

Construction of Airports, contain additional guidance on VE studies.

2.9 Selection Procedures.

The Sponsor must use the following selection procedures or equivalent State/Sponsor qualifications based selection for individual project selections involving Federal airport grants (see Figure 2-1 and Figure 2-2). However, the requirement for both an RFQ and an RFP should be evaluated based on the complexity of the project as these steps may be combined into a single request.

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Figure 2-2. Consultant Selection Process for a Single Project

Yes

No

Consultant submits cost proposal and detailed project proposal

Par. 2.12 Perform independent fee estimate

Par. 2.14 Conduct Negotiations

Return to Figure 2-1

Does the selection satisfy the needs, objectives and goals?

Reject Proposal

Par. 2.14.5 Award consultant contract

General project proposal evaluation Par. 2.9.11 Interview

Par. 2.9.11 Review experience and qualifications data

Par. 2.8.12 Rank qualified consultants in order of preference

Par. 2.9.13 Initiate discussions with highest ranking consultant to clarify the Scope of Services

Par. 2.9.10 Issue request for proposal

Each firm submits a general project proposal (RFP)

Notify unsuccessful consultants

Non-selected

Par. 2.9 Sponsor solicits interest

Par. 2.9.3 Distribute the Request for Qualifications (RFQ)

Par. 2.9.7 Preselection List (Short List) of Best Qualified Consultants

Evaluate the pool of qualified consultants

Par. 2.8 Apply selection criteria and numerical ratings

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2.9.1 The selection board should review the nature of the proposed project and the general scope of services to be procured in order to ensure an understanding of the project requirements and the qualifications needed by the consultant.

2.9.2 As discussed in paragraph 2.8, the selection board must develop the selection criteria and the evaluation system used in preparing a pre-selection short-list of consultants who are best qualified for the project as well as in determining the final selection.

2.9.3 To obtain experience and qualification data from potentially qualified consultants, the

Sponsor should issue an RFQ inviting consultants to submit their experience and qualifications data relating to the proposed project usually in the form of a Statement of

Qualifications (SOQ). To ensure the broadest publicity concerning Sponsor interest in obtaining consultant services, public announcements for all projects should be advertised in local newspapers with a wide circulation, national trade journals and magazines, and through electronic media. Public announcements should include information such as a description of the proposed project and its location, a description of the services, and the estimated range of construction costs. The public announcement should allow sufficient time for submission of the statement of qualifications.

2.9.4 Sponsors may also send the public announcements directly to known, potentially qualified consultants to determine their interest in the project and to request their experience and qualification data.

2.9.5 Affirmative steps pursuant to 2 CFR §200.321 and good faith efforts should be taken to assure that small and minority firms are used whenever possible, consistent with 49

CFR part 26. These steps and efforts should include, but not be limited to, the following:

1. Include qualified small business and minority firms on solicitation lists.

2. Assure that small business and minority firms are solicited whenever they are potential sources. Consultation with regional Airports Divisions, Office of Civil

Rights, and/or State transportation offices is encouraged.

3. Divide the total requirements into small tasks, when economically feasible, to permit maximum small business and DBE firm participation.

4. Use the services and assistance of the Small Business Administration, the Minority

Business Development Agency of the Department of Commerce, and the Minority

Resource Center Regional Centers of the Department of Transportation

(http://osdbu.dot.gov).

5. Arrange solicitations, time for presentation of offers and delivery schedules to facilitate DBE and other small business participation.

6. Encourage consultants to subcontract portions of the work, even when they might otherwise perform the work with their own forces.

2.9.6 FAA Airports field offices may also furnish the names of consultants who have engaged in projects of similar nature in their areas of jurisdiction. However, with the exception

2-11 of an EIS, FAA personnel will not recommend consultants or participate in the selection process. The addresses of FAA Airports Regional/District Offices having jurisdiction over specific geographic areas are available at:

http://www.faa.gov/about/office_org/headquarters_offices/arp/regional_offices/

2.9.7 From the experience and qualification data obtained from consultants, the selection board should prepare a pre-selection short-list of the best qualified consultants for further consideration. With adequate response to the RFQ, the typical pre-selection short-list should consist of between three and five consultants.

2.9.8 At this point, consultants who expressed an interest in the project but were not included on the pre-selection short-list should be notified that they were unsuccessful.

2.9.9 Detailed information on the qualifications and performance data of each of the consultants on the pre-selection short-list should be obtained. This can be achieved by contacting former clients identified by the consultant in their statement of qualifications to ascertain the quality of work, ability to meet schedules, cost control, and consultant-client relationship.

2.9.10 At this point, the selection organization may elect to obtain a general project proposal from each of the firms on the pre-selection short-list, typically by issuing a Request for

Proposal (RFP) to each consultant on the pre-selection short-list. The RFP should include a detailed description of the project and the proposed scope of services required.

The selection criteria, including their relative importance that will be used to evaluate the proposals must also be made available to each of the firms on the pre-selection short-list. The RFP shall not contain a request for any cost information, such as total cost, cost per hour, work hours, or other pricing data. Requests for cost or pricing information, prior to discussions with the best qualified firm, to define the scope of services is contrary to 49 USC § 47107 (a) (17) and 2 CFR § 200.320(d). The general project proposal will help the selection board recommend a consultant who can achieve design excellence, while successfully controlling time and costs and who has the ability to understand and accomplish the specialized requirements of the project. The elements of a typical general project proposal should include, but are not limited to, the following:

1. Team members, other key personnel, previous experience, and the role they will fill on the project. The qualifications and time commitment of the project manager proposed for the project.

2. Current workload.

3. Proposed project schedule, including major tasks and target completion dates.

4. Technical approach – a brief discussion of the tasks or steps that the consultant will take to accomplish the work described in the scope of services.

5. Value engineering – when a value engineering study is included in the selection criteria, a brief discussion of the consultant’s capability, training, and experience to carry out such a study.

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2.9.11 Conduct interviews with each consultant on the pre-selection short-list. On small projects, a telephone interview may be sufficient. Careful consideration of time and cost should be given to the need for formal interviews. If Sponsor has received sufficient information included in the qualification submission to make a selection, then formal interviews may not be necessary.

2.9.12 Review the experience and qualifications data, the general project proposal, the interview results, and other relevant data. Using the selection criteria developed for the project; rank the qualified consultants in order of preference.

2.9.13 Initiate discussion with the first-ranked consultant to fully define the scope of work and services to be provided (see paragraph 2.12). After agreement on a detailed scope of services has been reached, the Sponsor initiates actions to prepare an Independent Fee

Estimate (IFE) in conformance with 3 CFR §200.323 and Table 3-67 of FAA Order

5100.38. Simultaneously, instruct the selected consultant to prepare and submit their cost proposal along with a detailed draft contract agreement. To ensure the integrity of the negotiation process, the Sponsor should not receive the fee proposal ahead of the

IFE. The consultant should submit their cost proposals together with a detailed project proposal. Negotiations should then be conducted to reach a fair and reasonable fee, subject to the procedures indicated in paragraphs 2.13 and 2.14.

2.9.14 Prepare a report that documents the Sponsor’s procurement actions and the selection of the consultant they deem most qualified. The report must contain sufficient detail to indicate the extent of the review and the considerations used for the recommendations.

The report should be forwarded to the Sponsor's administrator or governing body authorized to review the recommendations of the selection board. The recommendations of the selection board should normally be accepted unless the report does not adequately support the recommendations. This will help to ensure complete fairness and open competition. If the recommendations are not accepted, the selection board should reconvene until acceptable recommendations have been agreed upon.

2.10 Alternate Selection Procedures.

2.10.1 Proposals Requested with Qualification Data.

The selection procedure recommended in paragraph 2.9 should normally be followed in the procurement of consulting services. For small projects where the scope of work and services can be clearly defined or the Sponsor anticipates receipt of less than four proposals, the Sponsor may wish to solicit proposals at the time of advertising for experience and qualification data. In this case, the announcement must contain a detailed scope of services and indicate where the selection criteria can be obtained. The advertisement cannot request pricing information.

2.10.2 Informal Procedures.

2.10.2.1 Informal Qualifications Based Selection procedures may be used for A/E procurements estimated to be less than $100,000. However, this does not

2-13 relieve the Sponsor from the obligation to perform a cost analysis and prepare an independent fee estimate (see paragraph 2.13). Sponsors must consult with FAA Airport personnel before using informal procedures to assure that the circumstances justify their use.

2.10.2.2 Under this procedure, a Sponsor must contact at least three firms and discuss their qualifications to perform the work. Negotiations must then be conducted with the best-qualified firm to arrive at a fee. These negotiations may be conducted via telephone or e-mail. After selection, using this procedure, the Sponsor must document their procurement action and then submit a statement to the FAA explaining the basis for the selection and method used to determine reasonableness of the fee.

2.10.2.3 The informal selection process may not be used to select a firm for multiple projects.

2.10.3 Non-competitive Procedures.

The FAA may authorize non-competitive negotiation for services if the cost of the contract is not expected to exceed $10,000 and the services are incidental to the grant project.

When this procedure is used, the Sponsor must submit a statement to the FAA explaining the basis used to determine reasonableness of cost as discussed in 2.10.2 above.

2.11 Selection Procedures for Environmental Impact Statement (EIS) Preparation.

The procurement of consultant services to assist the FAA in preparing an EIS is somewhat unique because the regulations implementing the National Environmental

Policy Act (NEPA) (42 USC § 4321 et seq.), require Federal agencies to prepare the

EIS or select the contractor that prepares the EIS (Orders 5050.4 and 1050.1 provide additional guidance).