Construction

Construction Program Guide

Construction Contracting Method

Title 23 U.S.C. 112 requires the use of competitive bidding for Federal-aid highway construction contracts unless ". . . the State transportation department demonstrates, to the satisfaction of the Secretary, that some other method is more cost effective or that an emergency exists."

For Federal-aid highway construction contracts, contracting agencies have the following options:

• Competitive bidding with award to the lowest responsive and responsible bidder (23 CFR 635 Subpart A)
• Design-build project delivery (23 CFR 636)
• Where shown to be more cost effective, agency force account procedures may be used (23 CFR 635 Subpart B and FHWA Order 5060.1)
• Where an emergency exists,
• Emergency repair work may be accomplished by the contract, negotiated contract or agency force account methods
• Permanent repair and reconstruction work may be done by the contract method unless the contracting agency demonstrates that some other method is more cost effective (23 CFR 668.105)
• Deviations from the competitive bidding requirements in 23 CFR 635 Subpart A or the design-build requirements in 23 CFR 636 may be considered under FHWA's Special Experimental Project No. 14 - Innovative Contracting.

Authority/Legal Basis

Laws

• 23 U.S.C. 112 Letting of Contracts (2015)

Regulations

• 23 CFR 645 Subpart C Broadband Infrastructure Deployment (12/03/2021) addresses registration, notification, and coordination requirements to facilitate broadband infrastructure deployment.
• Indefinite Delivery and Indefinite Quantity Contracts for Federal-Aid Construction, Interim Final Rule (11/16/2020)
• 23 CFR 668 Emergency Relief Program (2011)
• 23 CFR 636 Design-Build Contracting; Final Rule (08/14/2007)
• 23 CFR 635 Construction and Maintenance (11/15/2006)
• 23 CFR 636 Design-Build Contracting (12/10/2002)
• 23 CFR 635 Contract Procedures Final Rule (08/02/1991)
• 23 CFR 635 Construction and Maintenance; Contract Procedures Final Rule (11/25/1987)
• 23 CFR 635 Construction and Maintenance; Contract Procedures Final Rule (03/23/1983)

Policy

• The FHWA Contract Administration Core Curriculum Manual summarizes FHWA policy for contracting methods for Federal-aid highway construction contracts.
• FHWA Policy on Agency Force Account Use (Order 5060.1) (03/12/2012)
• Procurement of Federal-aid Construction Projects (04/12/2024)

Guidance

Training

• FHWA Contract Administration Core Curriculum (Course Description (.pdf))

Archive

• Performance Contracting for Construction - A Guide to Using Performance Goals and Measures to Improve Project Delivery (.pdf, 1 mb)
• Force Account Letter to ALDOT (10/22/2010)
• Procurement of Federal-aid Construction Projects (06/26/2008)