FAR 31.105, Construction and architect-engineer contracts, provides somewhat unique cost accounting expectations (i.e., cost principles and procedures) the Federal Government has when awarding contracts for construction management or construction, alteration or repair of buildings, bridges, roads, or other kinds of real property. It also addresses architect-engineer (A&E) contracts related to construction projects. This applies to all cost-reimbursable contracts and the pricing of contracts based on cost analysis as required by FAR 15.404-1(a)(3).
FAR 36.203, Government estimate of construction costs, and FAR 36.605, Government cost estimate for architect-engineer work, require the development of an independent Government estimate of the cost of construction costs and architect-engineer services when the value is expected to exceed the simplified acquisition threshold ($250,000). The estimate shall be prepared in as much detail as though the Government were competing for award or on the basis of a detailed analysis of the required work as though the Government were submitting a proposal. Access to the Government estimate is limited to Government personnel unless during negotiations the contracting officer identifies a specialized task and discloser is deemed necessary to arrive at a fair and reasonable price.