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 1.5.2.8 Economic Analyses. Prior to beginning the design, the A-E may be requested to
determine the various design alternatives and prepare a life cycle cost analysis to evaluate the
cost effectiveness of each alternative. The economic analysis shall be a Type I Life Cycle Cost
Analysis prepared in accordance with NAVFAC P-442, Economic Analysis Handbook (June
1986).
1.5.2.9 Low Bid Analyses. After bid opening, when the low bid is more than plus-or-minus
10 per cent of the Government Estimate, the A-E will be requested to prepare a low bid
analysis. The A-E shall evaluate the low bid and identify the areas where there is a significant
difference between the Government Estimate and the low bid. The A-E shall submit the results
of the analysis to the PDE (by telecopy, if necessary) by the date requested by the A-E.
1.5.3 Post Construction Award Services are services provided by the A-E following award
of the construction contract. The cost of PCAS is normally negotiated in advance and are
awarded as options to the basic A-E Design and Engineering Services contract. For OICC FE
awarded contracts, Field Consultation During Construction, Review of Contractor Submittals and
Preparation of As-Built Condition (or Record) Drawings and Aperture Cards are the usual
services requested.
Refer to SECTION 4. POST CONSTRUCTION AWARD SERVICES and Appendix B for
more detailed discussions of PCAS.
1.6 TYPES OF A-E CONTRACTS
1.6.1 Firm Fixed Price (Lump Sum) Contracts. The negotiated and awarded contract price
includes all items of work identified in the "Scope" and is not subject to adjustment. If, in the
execution of the required work, the A-E expends more than the awarded fee, the A-E incurs the
loss. If the A-E expends less than the awarded fee, the A-E incurs the gain (in addition to the
level of profit already negotiated and awarded with the contract). This type of contract places
the burden of risk performance on the A-E.
1.6.2 Indefinite Quantity (IDQ) Contracts allow the Government to order project designs
under an existing contract by means of delivery orders issued on DD Form 1155. (Refer to
Appendix C for a sample DD Form 1155.) Each delivery order is a firm fixed priced unit of
work. An IDQ contract contains rates negotiated in advance (of the first delivery order) for
labor, overhead, profit and other costs associated with services to be performed under the
contract. The IDQ contract length is one (1) year with, if included in the contract, an option
to extend the contract an additional year. The Government may or may not exercise the option
to extend. The maximum (cumulative) annual fee to be awarded is stipulated in the public
announcement of the solicitation. The maximum cumulative fee is subject to a $500,000 ceiling,
with the added condition that the fee for any single delivery order not exceed $200,000.
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