This will be a FFP contract. The Units will be higher dollar value than the installation portion, Davis Bacon does apply. I want to award this as a construction project as an 8 (a) direct award. Is there any regulation that says the dollar value of the installation portion has to be higher than the supplies to award as a construction buy?
I know of no regulation that answers your question based on a dollar value or threshold. However, the Federal Acquisition Regulation does provide some guidance in this area. The FAR also provides the Contracting Officer some discretion in making the decision.
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A decision must first be made as to whether the requirement is a supply, service or construction. The definitions of those broad requirement types are found in FAR 2.101 and 37.101. A particular requirement may have elements of two requirement types or even all three.
After a decision on requirement type, the Contracting Officer must decide which labor provisions to include in the solicitation and contract. The following references should be reviewed prior to making a decision: FAR 22.402, FAR 22.1003-6, FAR 36.101 as well as any service level supplements.
At this point, you should be able determine whether you can award an 8(a) construction contract.