When must the government stop AE performance due to government delays and not the AE's fault?
The background and question are very general in nature. Therefore, I had to make a few assumptions in order to provide a response. If the assumptions are incorrect, let me know and I will amend the response as necessary.
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1) The design and construction effort is defined as a "design-bid-build" IAW FAR 36.102. This means that the traditional delivery method where design and construction are sequential and contracted for separately with two contracts and two contractors.
2) The architect & engineering (A&E) contract was awarded IAW FAR Subpart 36.6 and is fully funded
3) The proposed construction contract has NO funding available The fact that there is no construction funding available does not constitute a delay on the part of the government. If there is a need for the construction project, whether or not the construction project is funded, the design effort under the A&E contract can continue to completion. One of the benefits of a design-bid-build concept is that funding for the design and construction
effort do not have to be available up front. The A&E design effort can be awarded, design completed, and the design package held until construction funding becomes available. The design package is sometimes held for more than one year awaiting construction funding.
Should the contracting officer and the customer decide that the construction project is no longer required or funds will not be made available, the decision may be made to terminate the contract. If termination is the decision, then the authority under an A&E contract is FAR 52.249-7, Termination (Fixed-Price Architect-Engineer).