A change in the rules

The Federal Highway Administration has revised the regulation on the administration of engineering and design related services contracts in order to establish procedures to be followed when using federal-aid highway funds for the procurement of engineering and design related services, materials, equipment or supplies. The new regulations will take effect July 12.

The regulation may have far-reaching impacts on state contracting procedures since it requires the use of "qualification-based procedures" for selection of services and also mandates the acceptance of indirect cost rates for architectural and engineering firms in accordance with the Federal Acquisition Regulation.

States are to use those procedures unless a state has previously established by statute a formal procurement procedure for engineering and design-related services prior to June 9, 1998. This regulation does not apply to design-build contracts, which will be covered in another regulation. For more information, contact Gary Moss at 202/366-4654.