FAR 36.204—Disclosure of the magnitude of construction projects.
Plain-English Summary
FAR 36.204 tells agencies how to describe the size of a construction requirement in advance notices and solicitations. It covers two related subjects: the physical characteristics of the project and the estimated price range, and it requires both to be stated in a way that gives offerors useful planning information without revealing the Government’s actual estimate. The rule exists to support fair competition, protect procurement-sensitive pricing information, and give contractors enough information to decide whether to pursue the work, assemble a team, and plan resources. In practice, this means the solicitation must describe the project’s magnitude using one of the prescribed dollar ranges rather than a specific estimated cost, and it should also identify the general physical scope of the work. For contractors, this helps with bid/no-bid decisions and capacity planning; for contracting officers, it creates a mandatory disclosure format that must be followed consistently in pre-solicitation notices and solicitations for construction.
Key Rules
State physical characteristics
Advance notices and solicitations must describe the project’s magnitude in terms of its physical characteristics. This means the Government should identify the general scope or size of the construction work so offerors understand what type of project is being procured.
Use price ranges only
The estimated price must be expressed using one of the eight prescribed dollar ranges, from less than $25,000 to more than $10,000,000. The contracting activity may not invent its own range structure or provide a specific dollar estimate.
Do not disclose the estimate
The statement of magnitude may not reveal the Government’s actual estimate. The purpose is to give market participants a general sense of project size without exposing the Government’s internal cost estimate or target price.
Apply in notices and solicitations
This disclosure requirement applies to both advance notices and solicitations. Agencies must ensure the magnitude statement is included at the appropriate pre-award stage so potential offerors receive the information before deciding whether to compete.
Use the prescribed range exactly
The regulation provides fixed brackets that must be used as written. The contracting officer should select the single range that best fits the project’s estimated price, rather than combining ranges or adding explanatory language that could narrow the estimate too much.
Responsibilities
Contracting Officer
Prepare advance notices and solicitations that describe the construction requirement’s physical characteristics and state the magnitude using one of the authorized price ranges. Ensure the wording does not disclose the Government’s actual estimate or otherwise undermine the required confidentiality of the estimate.
Agency
Provide the project scope and cost information needed to classify the requirement into the correct magnitude range and ensure internal acquisition documents support the public-facing statement. Maintain consistency between planning documents and the published notice or solicitation.
Contractor/Offeror
Use the magnitude statement to assess project size, capability fit, bonding and staffing needs, and whether to submit an offer. Recognize that the range is only a general indicator and not the Government’s exact estimate.
Practical Implications
The magnitude statement is a screening tool: it helps contractors quickly judge whether a project is within their capacity and whether to invest in proposal preparation.
A common mistake is giving too much detail about cost, such as a specific estimated price or a range that effectively reveals the estimate; FAR 36.204 prohibits that.
Another pitfall is omitting the physical description or making it so vague that offerors cannot tell what kind of construction is being procured.
Contracting officers should verify that the selected range matches the internal estimate and that the solicitation language is consistent across all public documents.
Contractors should treat the range as approximate planning information, not a commitment about final contract value or scope changes during performance.
Official Regulatory Text
Advance notices and solicitations shall state the magnitude of the requirement in terms of physical characteristics and estimated price range. In no event shall the statement of magnitude disclose the Government’s estimate. Therefore, the estimated price should be described in terms of one of the following price ranges: (a) Less than $25,000. (b) Between $25,000 and $100,000. (c) Between $100,000 and $250,000. (d) Between $250,000 and $500,000. (e) Between $500,000 and $1,000,000. (f) Between $1,000,000 and $5,000,000. (g) Between $5,000,000 and $10,000,000. (h) More than $10,000,000.