FAR 36.104—Policy.

Use two-phase selection when appropriate

For design and construction of a public building, facility, or work, the contracting officer must use the two-phase selection procedures authorized by statute unless design-bid-build under 40 U.S.C. chapter 11 or another acquisition procedure authorized by law is used. The contracting officer must also determine that two-phase procedures are appropriate for the procurement.

Design-bid-build remains available

The policy preserves traditional design-bid-build as an available approach under the architect-engineer selection framework, and it also recognizes other legally authorized acquisition procedures. This means the section does not mandate two-phase selection in every case, but it does require the contracting officer to justify the chosen method within the bounds of law and the FAR.

Apply sustainable building principles

Agencies must implement high-performance sustainable building practices across the full life cycle of Federal facilities, including design, construction, renovation, repair, commissioning, operation and maintenance, management, and deconstruction. The goal is to embed sustainability into both new and existing assets, not just into initial construction.

New construction must meet Guiding Principles

All new construction and modernization projects over 25,000 gross square feet must be designed, constructed, and maintained to meet, and where practicable exceed, the Federal sustainable design and operations principles in the Guiding Principles. This creates a mandatory sustainability baseline for larger projects.

Renovations must use sustainable principles

Renovation projects for existing Federal buildings must use Federal sustainable design and operations principles to the greatest extent technically feasible and practicable. Agencies must therefore evaluate renovation scope and incorporate sustainable measures unless a technical or practical limitation prevents it.

Consider alternatives to renovation

Agencies must identify alternatives to renovation that reduce deferred maintenance costs for existing assets. This requires looking beyond a standard repair-or-renovate approach and considering whether other asset strategies better address long-term cost and condition issues.

Protect historic buildings with best practices

When rehabilitating Federally owned historic buildings, agencies must use best practices and technologies in retrofitting to promote long-term viability. The policy recognizes preservation constraints while still requiring modern methods that support durability and continued use.

Divert construction waste

Agencies must ensure pollution prevention and eliminate waste by diverting at least 50 percent of non-hazardous construction and demolition materials and debris. This establishes a minimum waste diversion expectation for covered projects.

Require project labor agreements on large projects

Agencies shall require a project labor agreement for Federal construction projects with a total estimated construction cost at or above $35 million unless an exception applies. This is a mandatory labor policy for large projects, subject to the exceptions in subpart 22.5.

Market research must assess labor conditions

For covered construction contracts, contracting officers must ensure market research includes a current and proactive examination of project-area market conditions to determine interest from national, regional, and local entities and to understand the availability of union and non-union contractors. The contracting officer may coordinate with agency labor advisors to support this analysis.

Contracting Officer

Select the appropriate acquisition method for design and construction work, determine whether two-phase selection is appropriate, and use it when required unless design-bid-build or another authorized procedure applies. For covered construction projects, the contracting officer must also ensure market research examines local labor market conditions and contractor availability, and must coordinate with labor advisors as appropriate.

Agency

Implement high-performance sustainable building practices across the full facility life cycle, ensure new construction and modernization projects over 25,000 gross square feet meet the Guiding Principles, require sustainable practices in renovations, identify alternatives to renovation that reduce deferred maintenance, protect historic buildings through best-practice retrofits, and ensure at least 50 percent diversion of non-hazardous construction and demolition debris. The agency must also require project labor agreements for covered projects unless an exception applies.

Project Team / Acquisition Planners

Build sustainability, labor, and acquisition-method requirements into planning early enough to shape the procurement strategy, scope, and evaluation approach. They should support the contracting officer in determining whether two-phase selection is appropriate and in identifying project labor agreement implications and sustainability requirements.

Agency Labor Advisors

Provide advice, as appropriate, to contracting officers conducting market research for large Federal construction contracts, especially on union presence, labor availability, and project labor agreement considerations.

Contractors / Offerors

Be prepared to compete under the applicable acquisition method, comply with sustainability and waste-diversion requirements in the solicitation and contract, and, for covered projects, work under a project labor agreement if required and no exception applies.