FAR 36.303-2—Phase Two.
Plain-English Summary
FAR 36.303-2 explains how the second phase of a two-phase design-build procurement must be conducted. It covers the preparation of the phase-two solicitation under FAR part 15, the requirement to include phase-two evaluation factors developed in accordance with FAR 15.304, examples of possible technical factors such as design concepts, management approach, key personnel, and proposed technical solutions, and the requirement that offerors submit both technical and price proposals. It also requires that technical and price proposals be evaluated separately under part 15 procedures. In practice, this section ensures that once a project moves past the initial qualifications screen, the government uses a structured, competition-based source selection process to compare actual design-build proposals on both merit and price. The purpose is to promote fairness, transparency, and meaningful competition while giving the agency a basis to select the best value proposal for the project.
Key Rules
Use Part 15 Procedures
Phase two must be prepared in accordance with FAR part 15. That means the solicitation, proposal submission requirements, discussions if used, and evaluation approach must follow negotiated procurement rules rather than informal or ad hoc procedures.
Include Evaluation Factors
The phase-two solicitation must include evaluation factors developed under FAR 15.304. These factors must be stated clearly enough for offerors to understand how proposals will be judged and for the government to evaluate them consistently.
Use Appropriate Technical Factors
The regulation gives examples of technical evaluation factors that may be used, including design concepts, management approach, key personnel, and proposed technical solutions. Agencies should tailor these factors to the project and avoid vague or unsupported criteria.
Require Technical and Price Proposals
Phase two must require both technical and price proposals. Offerors cannot be evaluated on price alone or on technical merit alone; the solicitation must call for both components so the government can assess overall value.
Evaluate Separately
Technical and price proposals must be evaluated separately in accordance with part 15. This separation helps prevent price from improperly influencing the technical evaluation and supports a disciplined best-value source selection process.
Responsibilities
Contracting Officer
Prepare the phase-two solicitation under FAR part 15, ensure the evaluation factors comply with FAR 15.304, require both technical and price proposals, and conduct or oversee separate evaluations of technical and price submissions.
Agency/Source Selection Team
Develop project-specific phase-two evaluation factors, apply them consistently, and evaluate proposals in a manner that preserves the separation between technical merit and price.
Offerors/Contractors
Submit both technical and price proposals in the format and content required by the solicitation, and address the stated evaluation factors directly in the technical proposal.
Practical Implications
This section makes phase two a true negotiated procurement, so agencies must treat the solicitation and evaluation process with the same discipline used under FAR part 15.
A common pitfall is using evaluation factors that are too vague, too broad, or not tied closely enough to the project, which can create protest risk and inconsistent scoring.
Another frequent mistake is letting price influence the technical evaluation before technical scoring is complete; the rule requires separate evaluation of the two proposal types.
Contractors should read the phase-two factors carefully and align their technical proposal to each factor, because generic design-build narratives often score poorly.
Because both technical and price proposals are required, offerors should expect a best-value tradeoff process rather than a lowest-price-only award unless the solicitation clearly states otherwise.
Official Regulatory Text
(a) Phase Two of the solicitation(s) shall be prepared in accordance with part 15 , and include phase-two evaluation factors, developed in accordance with 15.304 . Examples of potential phase-two technical evaluation factors include design concepts, management approach, key personnel, and proposed technical solutions. (b) Phase Two of the solicitation(s) shall require submission of technical and price proposals, which shall be evaluated separately, in accordance with part 15 .