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	  <concept id="GSAM_516_603_70"
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		    <title class="- topic/title ">
         <ph class="- topic/ph " props="autonumber">516.603-70</ph> Additional limitations on the use of letter contracts for architect-engineer (A-E) services under the PBS Design Excellence Program.</title>
		    <conbody id="i1886619" class="- topic/body  concept/conbody ">
			      <ol id="d324e13" class="- topic/ol ">
				        <li class="- topic/li ">
					          <p id="d321e17" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>
                  <i class="+ topic/ph hi-d/i ">Requirement for a price proposal</i>. The proposed A-E must provide a price proposal for the non-design effort before the award of a letter contract. In accordance with FAR 52.216-25, a complete price proposal is required before definitization.</p>
				        </li>
				        <li class="- topic/li ">
					          <p id="d321e29" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>
                  <i class="+ topic/ph hi-d/i ">Contents of each letter contract</i>. The contracting officer must include the following information in the letter contract:</p>
					          <ol id="d324e38" class="- topic/ol ">
						            <li class="- topic/li ">
							              <p id="d321e42" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  The scope. The scope of the letter contract must authorize only the A-E to perform those services that are independent of the design effort (for example, feasibility studies, existing facility surveys or site investigation, etc.). The A-E shall not begin any design effort before the letter contract is definitized for the entire scope of the project.</p>
						            </li>
						            <li class="- topic/li ">
							              <p id="d321e51" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  A definitization schedule. Include dates for each of the following:</p>
							              <ol id="d324e57" class="- topic/ol ">
								                <li class="- topic/li ">
									                  <p id="d321e61" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>  Submission of the design fee proposal.</p>
								                </li>
								                <li class="- topic/li ">
									                  <p id="d321e70" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>  Start of negotiations.</p>
								                </li>
								                <li class="- topic/li ">
									                  <p id="d321e79" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph>  Definitization. This date must be no later than 120 days after the date of the letter contract.</p>
								                </li>
							              </ol>
						            </li>
						            <li class="- topic/li ">
							              <p id="d321e90" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph> The letter contract must comply with FAR 16.6.</p>
						            </li>
					          </ol>
				        </li>
				        <li class="- topic/li ">
					          <p id="d321e101" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(c)</ph>
                  <i class="+ topic/ph hi-d/i ">Unilateral price decision</i>. If the contracting officer issues a unilateral price decision, the maximum contract amount must not exceed a reasonable price for the excludable items plus the six percent statutory fee limitation for the project.</p>
				        </li>
			      </ol>
		    </conbody>
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