RFQ 26-013AV Owner's Rep for Dayton International Airport's Defense and Aerospace Campus Project

City of Dayton, Ohio
Department of Aviation
Division of Planning and Engineering
Owner's Rep for Dayton International Airport's Defense and Aerospace
Campus Project
REQUEST FOR QUALIFICATIONS (RFQ) No. 26-013AV
4% SBE
JUNE 2026

TABLE OF CONTENTS
SECTION 1 - REQUEST FOR QUALIFICATIONS INSTRUCTIONS ................................................................................ 3
1.01 COMMUNICATIONS REGARDING THIS PROJECT. .................................................................................................... 3
1.02 RFQ SCHEDULE. ............................................................................................................................................. 3
1.03 SUBMITTING QUALIFICATIONS. .......................................................................................................................... 3
1.04 REQUIRED QUALIFICATION CONTENTS. ............................................................................................................... 4
1.05 ITEMS THAT DISQUALIFY A VENDOR IMMEDIATELY. ............................................................................................... 5
1.06 CRITERIA. ...................................................................................................................................................... 5
1.07 RFQ/RFP PROCESS ........................................................................................................................................ 5
1.08 MISCELLANEOUS ITEMS.................................................................................................................................... 6
SECTION 2 - SCOPE OF PROJECT ............................................................................................................................ 7
SECTION 3 - REQUIREMENTS AND CONDITIONS FOR ALL PROPOSERS ...................................................................... 8
3.01 TAX EXEMPTION. ............................................................................................................................................ 8
3.02 PROPOSER AFFIDAVIT. ..................................................................................................................................... 8
3.03 PROCUREMENT STANDARDS 2 CFR PARTS 200.317 - 200.326 ............................................................................ 8
3.04 PROPOSER'S FINANCIAL OBLIGATION TO THE CITY. .............................................................................................. 13
3.05 PROPOSER'S INCURRED COSTS. ....................................................................................................................... 13
3.06 AFFIRMATIVE ACTION ASSURANCE (AAA). ........................................................................................................ 13
3.07 STANDARD AGREEMENT TERMS FOR PROFESSIONAL SERVICES ............................................................................... 13
ARTICLE 1. TERM ................................................................................................................................................ 13
ARTICLE 2. SERVICES TO BE PERFORMED BY FIRM ............................................................................................. 13
ARTICLE 3. COMPENSATION .............................................................................................................................. 13
ARTICLE 4. CITY'S RESPONSIBILITIES .................................................................................................................. 13
ARTICLE 5. STANDARD OF CARE ......................................................................................................................... 13
ARTICLE 6. INDEMNIFICATION ........................................................................................................................... 14
ARTICLE 7. INSURANCE ...................................................................................................................................... 14
ARTICLE 8. OWNERSHIP OF DOCUMENTS AND INTELLECTUAL PROPERTY ........................................................ 14
ARTICLE 9. TERMINATION .................................................................................................................................. 14
ARTICLE 10. STANDARD TERMS ....................................................................................................................... 14
A. DELAY IN PERFORMANCE ........................................................................................................................ 14
B. GOVERNING LAW AND VENUE ................................................................................................................ 15
C. COMMUNICATIONS ................................................................................................................................. 15
D. EQUAL EMPLOYMENT OPPORTUNITY ..................................................................................................... 15
E. WAIVER .................................................................................................................................................... 15
F. SEVERABILITY ........................................................................................................................................... 15
G. INDEPENDENT CONTRACTOR .................................................................................................................. 15
H. ASSIGNMENT ........................................................................................................................................... 15
I. THIRD PARTY RIGHTS ................................................................................................................................... 16
J. AMENDMENT ............................................................................................................................................... 16
K. POLITICAL CONTRIBUTIONS ..................................................................................................................... 16
L. INTEGRATION ............................................................................................................................................... 16
M. PCI COMPLIANCE ..................................................................................................................................... 16
N. LIVING WAGE ORDINANCE ............................................................................................................................ 16
EXHIBIT A - LETTER OF TRANSMITTAL .................................................................................................. 17
EXHIBIT B - REFERENCES FOR PROPOSING COMPANY ...................................................................... 19
EXHIBIT C - PRODUCT MANUFACTURE LABOR STANDARDS: VENDOR COMPLIANCE FORM .. 20

EXHIBIT D- BUSINESS INCOME TAX QUESTIONNAIRE ......................................................................... 21

SECTION 1 - REQUEST FOR QUALIFICATIONS INSTRUCTIONS
1.01 COMMUNICATIONS REGARDING THIS PROJECT. Please direct all communications regarding the RFQ process to:
City of Dayton - Department of Aviation Attn: Michael Cross
Planning & Engineering Manager, Dayton International Airport
3600 Terminal Drive, Suite 300
Vandalia, OH 45377
Telephone: (937) 454-8226
E-Mail: mcross@flydayton.com
All communications/questions concerning this RFQ must be submitted in writing referencing the specific paragraph and page number. The
deadline for questions is listed in Section 1.02 (RFQ Schedule). Written responses will be prepared by the City and posted on the City's
web site by the date listed in Section 1.02. Changes to this RFQ will be made only by formal written correspondence issued by the City.
A copy of this RFQ proposal and any additional documentation may be found at the City's website at:
https://daytonohio.gov/bids.aspx
1.02 RFQ SCHEDULE. The proposed RFQ schedule is to be reviewed with City Procurement and HRC, if required, and shall be mutually
agreed upon. RFQ schedule to be determined prior to finalization of RFQ. The following is the anticipated schedule for the RFQ Process:
Issue RFQ: June 8, 2026
Pre-Bid Meeting 10:30 AM local (Dayton OH) time on June 15,
2026
Last Day to Submit Questions: 3:00 PM local (Dayton OH) time on June 19, 2026
Written Responses to Questions: By 5:00 PM local (Dayton OH) time on June 24,
2026
Due Date for Statement of Qualifications: 11:00 AM local (Dayton OH) time on July 2, 2026
1.03 SUBMITTING QUALIFICATIONS. Each Consultant seeking consideration to perform the services related to this RFQ must submit a
Letter of Interest and Statement of Qualifications. Firms shall submit one electronic version with all documents in Adobe PDF format via
electronic submission to bids@daytonohio.gov. The City has a 20meg limit for incoming e-mail message sizes (20meg includes e-mail
itself and any attachments total). Should your Firm's qualifications document exceed this limit, your Firm will have to submit its document
in multiple parts (emails). Should documents require multiple emails, please designate in the "Subject" line of each email sent: RFQ No 26-
013AV Owner's Representative for Dayton International Airport's Defense and Aerospace Campus Project.
The pre-bid meeting will be facilitated using TEAMS with the following login information:
https://teams.microsoft.com/meet/25362206115096?p=2CzE9e11R6hFuDoiAm
The bid opening will be facilitated using ZOOM with the following login information:
https://us02web.zoom.us/j/6068939302?omn=82176710295
Meeting ID: 606 893 9302
One tap mobile
+13092053325,,6068939302# US +13017158592 US (Washington D.C)
+13126266799,,6068939302# US (Chicago) +1 669 900 6833 US (San Jose)
* +1 929 436 2866 US (New York) +1 346 248 7799 US (Houston)
Find your local number: https://us02web.zoom.us/u/kpVz2QThX
The Letter of Interest and Statement of Qualifications must be received in the Procurement bid email in-box
(BIDS@DAYTONOHIO.GOV) by time/date as indicated in Section 1.02 (RFQ Schedule). Submissions received after the scheduled
date/time will not be considered. All supporting materials and documentation must be included with the proposal. The responsibility of
timely delivery lies solely with the Firm.
The City reserves the right to reject any and all qualifications, to waive any irregularities in a qualification, or to accept the qualification(s)
which in the judgment of proper officials, is in the best interest of the City. The City reserves the right to accept a part or parts of a
qualification unless otherwise restricted in the RFQ or issue subsequent RFQs and/or RFPs. The City reserves the right to approve or reject
any sub-contractors proposed for work under this qualification or waive any minor irregularities.
Upon review of qualifications, if there are similarly qualified firms, the City may designate the most qualified Firms as finalists. The finalists
may be sent the Request for Proposal (RFP) in which they will be invited to submit a proposal. After reviewing and evaluating proposals,

these finalists will be invited to make oral presentations and participate in a question and answer session with the City. The City shall have
the right to visit selected user sites, should this be deemed necessary. Following these steps, the City may select the successful Firm.
All federal, state, and local laws regarding competitive bidding, anti-competitive practices, and conflict of interest shall be applicable to this
RFQ.
The City does not guarantee that any contract will be awarded because of this RFQ. If a contract award is made but the contract is not
executed, the City does not guarantee that the contract will be re-awarded.
1.04 REQUIRED QUALIFICATION CONTENTS. All brochures and supplemental documentation shall be included with the original and all
copies. If not, the Firm may be considered as non-responsive. Firms are required to submit the following information in their proposal:
* Letter of Transmittal. The Firm shall provide a transmittal letter with authorizing signature for the qualifications. The letter
must briefly summarize the vendor's ability and willingness to perform the services required by the RFQ. The letter must be
on the form provided in Exhibit A.
* SOQ Required Information. Provide the following information for consideration by the City as part of the evaluation
of Firm's qualifications. The Statement of Qualifications (SOQ) must be organized as follows:
o Competence and Services. When providing the following information, if the Firm is a national firm with a
branch office in Ohio, provide information limited to the Ohio office projects and experience.
Provide an Executive Summary of the Firm containing the history and philosophy. What is the Firm's
approach to upholding the owner's interest while performing the duties of the Owner's
Representative while coordinating the Construction Manager at Risk (CMR) contractor? What is it
that makes the Firm unique? How long has the Firm been in business, and how long have key
employees and principals been associated with the Firm?
Identify the Firm's employee(s) who would be assigned to perform services for the Project including
key consultants, if any.
Describe the proposed Owner's Representative's experience and qualifications in more detail,
building from the Executive Summary - i.e., credentials, technical training, experience with Building
Information Modeling (BIM), education, and experience working with a CMR Team, in-house, full-
time employees and in-house professional disciplines. Provide bios for Project Executive/Project
Manager, and Project Owner's Rep (Site Level). Include consultants to be used for the Project and the
Firm's experience with each on past projects. Limit bios to one page in length.
This Project has a goal of 4% SBE participation. Additionally, a DBE/SBE participation goal will
also be assigned to the CMR contract and therefore, the successful firm must have experience with
verifying participation. Describe the methods to be used for verification of DBE/SBE certified
contractors, firms, consultants, etc. for this Project. Describe the Firm's experience with managing
the web based B2G Supplier Diversity Management System.
* Ability to Provide the Required Services.
o What is the capacity of the Firm to provide the required services as the Owner's Representative for the Project
in terms of workload and availability? Include a list of current projects and the status of each and relevant
information (i.e., budget, type of work, stage of completion, committed staff, and consultants).
o Identify and give details regarding the Firm's representative project experience with performing the duties of
the Owner's Representative within the CMR delivery method on similar projects, in the State of Ohio. Include
Owner contact information for each project. Identify those CMR projects that had a GMP and state whether the
GMP was exceeded, and if so, identify the adjusted Guaranteed Maximum Price (GMP) and actual cost of the
work plus fee, plus general conditions costs.
o Identify the proximity of the Firm's primary office, or will have, to the Dayton International Airport, where
much of the Project work will be managed/performed - Identify distance in miles, straight-line method.
* Insurance Coverage & Claims History.
o Identify Professional Liability coverage of the Firm, including claims history for the past seven (7) years.
o Identify Commercial General Liability coverage of the Firm, including claims history for the past seven (7)
years.
o Identify specific information about any claims in excess of $250,000 asserted by and against the Firm within
the past seven (7) years., including the resolution of the claim(s).
* Value Added Experience. Demonstrate the Firm's past success in evaluating value added components as the Owner's
Representative. Describe the Firm's creative or innovative evaluation/recommendation of value engineering, construction
techniques or other similar methods. For each example, provide a brief summary including recommendations that enhanced
the cost effectiveness and functionality of similar facilities or projects.
Familiarity with Local Area. Identify knowledge of the local area and working relationships with local subcontractors and
suppliers. Emphasize relationships and past projects with local and state certified DBE firms and how they may be

incorporated with this Project.
* Firm Profile and Background. Provide the following information:
o Location - The street address of the Firm' headquarters.
o Local Office of Firm - Provide the location of the Firm's office nearest to Dayton, Ohio. Include the local
office, a contact name, address, telephone, and fax numbers.
o Firm's Primary Business - State the Firm's primary business, the number of years in the industry, and the
number of employees assigned to these related activities.
o State the legal make-up of your Firm - Sole proprietorship, partnership, corporation, etc.
o Please list any Lawsuits that you are currently engaged in. Please provide any and all suits either with the
City of Dayton or any other Municipalities (include, but not limited to Federal, State, Local or other
Municipalities and Governmental agencies).
* Key Personnel Information. Provide the name, title, mailing address, telephone number and e-mail address of the persons
who will function as the City's primary contact and back-up contact person. Provide brief resumes/qualifications of
personnel who will be primarily involved in this project. Include any certifications earned, special training taken, and
memberships in professional groups. Complete Form found in Exhibit A.
* Procurement Enhancement Program: Identify in detail the Firm's history of performance with respect to the City's
Procurement Enhancement Program and Affirmative Action Assurance processes set forth at 3.03 and 3.06, below, and the
Firm's plan for evaluating compliance with those programs in reference to a CMR Project. In addition, identify in detail the
Firm's history of verifying compliance with similar Goals of other public owners in Ohio. Describe the Firm's experience
with managing the web based B2G Supplier Diversity Management System.
* Statement of Exceptions to RFQ requirements. Provide a detailed description of any exceptions taken to the requirements
of this RFQ, including the City's Standard Terms and Conditions in Section 3. Exceptions shall be referenced to the
applicable RFQ section/sub-section numbers. Any other departures from the City's RFQ are to be identified and failure to
do so shall make the qualification non-responsive. City's standard Terms for Payment are Net 30 days from date of invoice
once the project is complete, unless otherwise negotiated. If you cannot comply with this, please state any changes in the
Statement of Exceptions to the RFQ Requirements.
* References. Provide a list of references on form provided as Exhibit B. The City is particularly interested in contacting
your governmental clients in the state of Ohio.
1.05 ITEMS THAT DISQUALIFY A VENDOR IMMEDIATELY.
* Incomplete or non-responsive submission.
* Inexperience with similar CMR projects.
1.06 CRITERIA. The selection committee will evaluate each submission based on the following criteria. After receipt and review of the
submission, the City may elect to have the Firm present in person, or clarifications submitted in writing.
Firms shall not assume that any information shared with the City prior to this RFQ will be considered in the evaluation process of this RFQ.
Evaluation team may or may not have prior knowledge of any discussions and processes. Evaluation will be completed on the
information submitted in response to the RFQ only.
Evaluation Criteria for Statement of Qualifications
Item Description Points Possible
1 Competence and Service 30
2 Ability to Provide the Required Services 35
3 Other qualifications consistent with the scope and needs for the Project 10
4 Insurance Coverage & Claims History 10
5 Value Added Experience 10
6 Dayton Local Business 5
Total Points 100
1.07 RFQ/RFP PROCESS
The City is conducting the following three (3) steps to this process of entering into an agreement for the Owners Representative for a
Construction Manager at Risk ("CMR") project, which are explained in the paragraphs that follow.

* Request for Qualifications
o This RFQ is the first step to entering into an agreement with the City of Dayton for the Owners Representative.
It is the City's intent to review all Statement of Qualifications (SOQ's) submitted and short-list qualified
Firms. The short-listed firms would then receive a Request for Proposal. It is anticipated that notification of
the shortlisted firms would occur shortly following RFQ submission.
* Request for Proposals
o Each short-listed Firm will be requested to provide a fee schedule for the scope of work outlined in section 2.
The request may be made informally (via e-mail) and will not be publicly bid, as the list of firms will already
be known. Additional information, such as the Schematic Design Drawings, Estimates, and current data, along
with a proposed draft contract agreement for review and comment by proposers will be included. Firms would
provide constraints, requirements, or exclusions to the draft contract agreement.
o The proposal would include the Firm's costs for the Firm to act as the Owners Representative for the
Construction Manager at Risk ("CMR") project. If agreeable to the City, the most beneficial proposal could
then be selected for the City to enter into the proposed agreement with the Firm; with the agreement terms
including the Firm's markups considered binding. It is anticipated that notification of the selected Firm would
occur approximately one to two months following RFP submission.
* Entering into agreement.
o As required by the agreement, and as properly authorized, provide the following categories of oversight
services: provide constructability review comments on documents produced by the Architect/Engineer (A/E)
during the Schematic Design, Design Development, and Construction Document phases; evaluate and maintain
estimates of probable construction cost at each phase, value engineering, project schedules, and construction
schedules; monitor the Subcontractor Prequalification and Bidding process, Construction and verify DBE/SBE
participation and that Closeout documents are complete.
o The preconstruction and construction services are generally described below. Subcontracts including but not
limited to General Trades, Plumbing, Fire Protection, HVAC, Electrical and AV/Technology will be awarded
by the CMR to pre-qualified vendors using a competitive process. The parties will engage in an "open book"
pricing method in which all subcontracted work shall be based upon competitive pricing that will be reviewed
by the Owner's Representative, the A/E and the CMR. The City and Owner's Representative shall have access
to all books, records, documents and other data in the CMR 's possession related to itself, its subcontractors
and material suppliers pertaining to bidding, pricing or performance of the Agreement.
This RFQ may be utilized to solicit services and future request for proposals on upcoming new construction or renovation projects
throughout the term listed in Section 3.07.
1.08 MISCELLANEOUS ITEMS.
* All Firms submitting a proposal will be notified, upon final determination by the City, of the firm or firms selected to
perform the requested work.

SECTION 2 - SCOPE OF PROJECT
The City of Dayton, Department of Aviation seeks to engage a qualified firm (to assign an individual or team) to serve as Owner's
Representative for the Dayton International Airport Defense and Aerospace Campus Project. This multi-phased development will be
delivered using the Construction Manager at Risk (CMR) method. The anticipated Owner's Representative contract term is five (5) years,
beginning late-2026 and ending Late-2031, coinciding with project completion. The agreement may include provisions for mutual
extensions should additional time be required. Key partners on the project are listed below and will interact with the Owner's
Representative on the scope of work.
The Owner's Representative will provide oversight and coordination for the phased development of the northwest portion of Dayton
International Airport, which will be developed as the Defense and Aerospace Campus. This role includes interfacing with stakeholders,
monitoring progress, and ensuring alignment with project objectives throughout all phases of development. To date, Sierra Nevada
Corporation (SNC) has constructed four (4) 100,000-square-foot Maintenance, Repair, and Overhaul (MRO) hangars at James M. Cox
Dayton International Airport (DAY), resulting in the creation of more than 250 jobs. The Defense and Aerospace Campus is being designed
to enable the development of multiple large hangars by multiple organizations. SNC has expressed strong interest in expanding its
operations with additional hangar development as business opportunities grow, further contributing to job creation and economic
development within the region. A key factor in SNC's initial investment at DAY was the availability of existing aircraft apron space. The
airport continues to offer substantial development potential, including available land and existing pavement that can be rehabilitated to
support additional hangar construction.
SNC's planned expansion is a primary driver for this project; however, other aviation and aerospace companies, like Joby Aviation, have
also expressed interest in establishing or expanding their presence at DAY. The City anticipates that the Defense and Aerospace Campus
will attract a diverse range of future tenants. The airport encompasses more than 3,000 acres of City-owned land, providing significant
capacity for continued development.
The ideal Owner's Representative will demonstrate extensive expertise in architectural design, construction management,
project execution, mechanical, electrical, and plumbing (MEP) systems, contract administration, building information modeling
(BIM), engineering, and construction technology.
Key Partners:
Owner - City of Dayton, Department of Aviation (Dayton International Airport)
Architects - LWC, Incorporated/Passero and Associates
Construction Manager at Risk Firm - TBD
Scope of Work:
* Project Monitoring - Collaborates with project partners to observe progress, provide reports, and offer guidance throughout
the project lifecycle.
* Schedule & Sequencing Monitoring - Develops and tracks project schedules, coordinates with partners on key milestones, and
reports variances between planned and actual completion dates.
* Project Budget & Cost Management - Reviews the proposed Guaranteed Maximum Price (GMP), monitors project budgets in
coordination with partners, and provides ongoing risk mitigation analysis, including identification of eligible costs and reporting
to the Owner.
* Monthly Invoice Review - Receives and reviews all invoices submitted by the Construction Manager at Risk (CMR) to verify
accuracy against contracts and purchase orders prior to payment approval.
* Change Orders - Advises the Owner on proposed scope changes and the appropriate use of contingency funds.
* Dispute Resolution - Acts as a mediator between project partners to resolve disputes and recommend alternative solutions.
* Meetings - Participates in weekly project update meetings with all stakeholders.
* Authority - Serves as a consultant and advisor to the Owner, providing guidance for decision-making during construction. Final,
binding decisions are executed through the Director of Aviation.
* Project Closeout - Compiles all project closeout documentation, including record drawings and financial records.
* Grant Administration - Prepares and submits all required documentation and reports in compliance with State of Ohio
appropriation and grant requirements
The City of Dayton, Department of Aviation reserves the right to accept or reject any or all submissions.

SECTION 3 - REQUIREMENTS AND CONDITIONS FOR ALL PROPOSERS
3.01 TAX EXEMPTION. All items purchased under this contract will be exempt from the State of Ohio Sales Tax as provided for in
Section 5739-02(b)(1) of the Revised Code of Ohio and will be exempt from the State of Ohio Use Tax, Section 5741.02(C)(2). Blanket
Certification of Exemption Forms will be furnished to the Proposer by the Division of Procurement.
3.02 PROPOSER AFFIDAVIT. If the successful proposer should be a corporation not incorporated under the laws of the State of Ohio, a
certificate from the Secretary of State showing the rights of the successful proposer to do business in the State of Ohio shall be furnished.
Each proposer is required to submit with their bid, an Affidavit stating that neither the proposer nor agents thereof, nor any other party of
the proposer has paid or agreed to pay directly or indirectly, any person, firm or corporation, any money or valuable consideration for
assistance in procuring or attempting to procure the contract herein referred to, and further agreeing that no such money or reward will
hereafter be paid.
3.03 PROCUREMENT STANDARDS 2 CFR PARTS 200.317 - 200.326
200.317 Procurement by states.
When procuring property and services under a Federal award, a state must follow the same policies and procedures it uses for procurements
from its non-Federal funds. The state will comply with 200.322 Procurement of recovered materials and ensure that every purchase order
or other contract includes any clauses required by section 200.326 Contract provisions. All other non-Federal entities, including
subrecipients of a state, will follow 200.318 General procurement standards through 200.326 Contract provisions.
200.318 General procurement standards.
(a) The non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and
regulations, provided that the procurements conform to applicable Federal law and the standards identified in this part.
(b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and
specifications of their contracts or purchase orders.
(c)(1) The non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its
employees engaged in the selection, award and administration of contracts. No employee, officer, or agent may participate in the selection,
award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict
of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization
which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit
from a firm considered for a contract. The officers, employees, and agents of the non-Federal entity may neither solicit nor accept gratuities,
favors, or anything of monetary value from contractors or parties to subcontracts. However, non-Federal entities may set standards for
situations in which the financial interest is not substantial, or the gift is an unsolicited item of nominal value. The standards of conduct must
provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non-Federal entity.
(2) If the non-Federal entity has a parent, affiliate, or subsidiary organization that is not a state, local government, or Indian tribe, the non-
Federal entity must also maintain written standards of conduct covering organizational conflicts of interest. Organizational conflicts of
interest means that because of relationships with a parent company, affiliate, or subsidiary organization, the non-Federal entity is unable or
appears to be unable to be impartial in conducting a procurement action involving a related organization.
(d) The non-Federal entity's procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to
consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease
versus purchase alternatives, and any other appropriate analysis to determine the most economical approach.
(e) To foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the
Federal Government, the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or inter-entity
agreements where appropriate for procurement or use of common or shared goods and services.
(f) The non-Federal entity is encouraged to use Federal excess and surplus property in lieu of purchasing new equipment and property
whenever such use is feasible and reduces project costs.
(g) The non-Federal entity is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer
reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure
that its essential function is provided at the overall lower cost.
(h) The non-Federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the
terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public
policy, record of past performance, and financial and technical resources. See also 200.212 Suspension and debarment.

(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include but are not
necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection,
and the basis for the contract price.
(j)(1) The non-Federal entity may use a time and materials type contract only after a determination that no other contract is suitable and if
the contract includes a ceiling price that the contractor exceeds at its own risk. Time and materials type contract means a contract whose
cost to a non-Federal entity is the sum of:
(i) The actual cost of materials; and
(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.
(2) Since this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the
contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk.
Further, the non-Federal entity awarding such a contract must assert a high degree of oversight in order to obtain reasonable assurance that
the contractor is using efficient methods and effective cost controls.
(k) The non-Federal entity alone must be responsible, in accordance with good administrative practice and sound business judgment, for
the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source
evaluation, protests, disputes, and claims. These standards do not relieve the non-Federal entity of any contractual responsibilities under its
contracts. The Federal awarding agency will not substitute its judgment for that of the non-Federal entity unless the matter is primarily a
Federal concern. Violations of law will be referred to the local, state, or Federal authority having proper jurisdiction.
200.319 Competition.
(a) All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this
section. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft
specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such
procurements. Some of the situations considered to be restrictive of competition include but are not limited to:
(1) Placing unreasonable requirements on firms in order for them to qualify to do business;
(2) Requiring unnecessary experience and excessive bonding;
(3) Noncompetitive pricing practices between firms or between affiliated companies;
(4) Noncompetitive contracts to consultants that are on retainer contracts;
(5) Organizational conflicts of interest;
(6) Specifying only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance or other
relevant requirements of the procurement; and
(7) Any arbitrary action in the procurement process.
(b) The non-Federal entity must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state,
local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes
expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for
architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate
number of qualified firms, given the nature and size of the project, to compete for the contract.
(c) The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations:
(1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such
description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a
statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum
essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be
avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a
"brand name or equivalent" description may be used as a means to define the performance or other salient requirements of procurement.
The specific features of the named brand which must be met by offers must be clearly stated; and
(2) Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.