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		    <title class="- topic/title ">
			      <ph props="autonumber" class="- topic/ph ">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>
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                  <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>
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                  <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>
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                        <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>
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                        <ph props="autonumber" class="- topic/ph ">(2)</ph>
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
								                 A definitization schedule. Include dates for each of the following:</p>
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                              <ph props="autonumber" class="- topic/ph ">(i)</ph>
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
										                     Submission of the design fee proposal.</p>
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                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
										                     Start of negotiations.</p>
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                              <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>
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                        <ph props="autonumber" class="- topic/ph ">(3)</ph>
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
								                The letter contract must comply with FAR 16.6.</p>
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                  <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>
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