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  • Question

    When doing construction under FAR Part 12, does FAR 22.4 apply? More specifically, do we need to incorporate the DBA Wage Determination?


    Answer

    The Federal Acquisition Regulation (FAR) prohibits the use of FAR Part 12 procedures to solic8it and award contracts for construction requirements. The definitions of commercial item and construction together are relevant. First, a commercial item is any item "other than real property. Second, the definition of construction provides several examples and ends the sentence with the terms "or other real property." This leads to the conclusion that construction projects are "real property" and excluded from the definition of commercial requirements. See definitions below. 
     
     
    FAR 2.101: “Construction” means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property... 
     
    FAR 2.101: “Commercial item” means --
     
    (1) Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes...
     

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