The Federal Highway Administration (FHWA) has proposed a problematic change in the regulations governing the procurement and management of engineering and design services on federally funded projects found in 23 CFR part 172. Unfortunately, the proposal would limit applicability of federal QBS requirements and compliance with the FAR cost principles to only State DOTs and their subrecipients, and it would remove local governments that receive direct grants from coverage under the rules.
Access the Notice of Proposed Rulemaking
If the proposed rule goes into effect, discretionary grants to local agencies (e.g. RAISE, SS4A) would be governed by the Uniform Guidance for all federal grants and agreements found in 2 CFR part 200. Unlike the current FHWA regulations on highway funds, those provisions make QBS permissible but not mandatory for procurement of A/E services. Grantees would need to follow state and local law, which may or may not require a QBS process.
ACEC and ACEC-RI opposes the removal of these important requirements for local governments managing federal highway funds, and we will be filing comments in opposition.
We encourage member firms to submit comments in opposition to the proposed rule change by April 1st.
Here is a set of talking points for you to use, but we strongly encourage you to put these into your own words and add your own perspective.
My firm strongly opposes this proposal to remove local governments from coverage under existing regulations for the procurement and management of engineering services on federally funded highway projects.
It is critical that our local clients follow a qualifications-based selection and contract negotiation process.
The current rules allow my firm to compete for work based on our experience, expertise, specialized skills, and proven success in delivering projects.
Studies have shown that allowing local governments to bypass QBS and low bid engineering services will lead to increased project costs, schedule delays, change orders, and less optimal outcomes.
My local clients have proven that following QBS leads to better results. We can negotiate a scope of services, deliverables, timelines, and alternatives that make sense for their project needs.
The current rules are critical for protecting public health, safety, and welfare.
Local governments should continue to comply with the FAR cost principles. These proven, consistent, and reasonable standards make sure that taxpayer dollars are well spent and that my firm is fairly compensated for our costs.
Having a different set of rules for certain federal highway grants for certain recipients will be confusing and make it more difficult and less appealing for my firm to compete for work.
Losing these essential protections is going to be counterproductive to our goal of successfully delivering federal infrastructure investments to the public.
We encourage you to include information about your firm, your location and practice areas, and your experiences with local agency clients and the potential impact of the proposed rule change.
When you click on the blue “comment” button, you’ll see a page where you can type text into a box and/or upload a pdf copy of a letter. Comments will be received and reviewed by the agency either way.
Please let me know if you have questions or need any assistance.
Thanks,
Dorothy S. Davison, Executive Director
American Council of Engineering Companies of Rhode Island (ACEC-RI)
Thank You for Your Support!