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  • Question

    Based on FAR 37.3. 1. Is it acceptable to use the word "Demolish" if we are really giving the KTR the opportunity to take the building intact? 2. if the KTR intends to dismantle and salvage some or all of the building, use it, sell it, do we have the KTR pay the Government (FAR 37.303 (a) (2)). 3. Can we accomplish this service contract the way the BCE wants to have it accomplished? Have the contract state we want the building demolished, then just let the KTR get rid of it any way they desire as long as it is removed from the installation?


    Answer

    The BCE concept for removal of the chapel appears perfectly feasible if there is no further construction planned on the removal site. Demolition can be considered a part of construction or a service as indicated in FAR 37.301 below. The removal of the chapel could be a good candidate for use of a Statement of Objectives or a Government written performance work statement (PWS) as described in FAR 2.101. The Government objective appears to be simple: removal of the chapel from the installation. In general terms, develop a PWS describing "what" the government wants accomplished and allow the contractor to propose the method (how) of accomplishment. The Government can develop a "critical few" factors for evaluation of the contractors proposal. Neither the PWS, evaluation factors, nor contractor proposal should be overly complex.
     
    In addition, as indicated in FAR 37.303, the Government "may" pay the contractor of the contractor "may" pay the government for the demolition effort. Who pays would depend upon the demolition value of the property and other requirements the government may place in the PWS. 
     
     
    FAR 2.101 “Performance-based acquisition (PBA)” means an acquisition structured around the results to be achieved as opposed to the manner by which the work is to be performed. 
     
    FAR 37.301 -- Labor Standards.
    Contracts for dismantling, demolition, or removal of improvements are subject to either 4l U.S.C. chapter 67, Service Contract Labor Standards or 351-358) or 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction). If the contract is solely for dismantling, demolition, or removal of improvements, the Service Contract Labor Standards statue applies unless further work which will result in the construction, alteration, or repair of a public building or public work at that location is contemplated. If such further construction work is intended, even though by separate contract, then the Construction Wage Rate Requirements statute applies to the contract for dismantling, demolition, or removal. 
     
     
    FAR 37.303 -- Payments.
    (a) The contract may provide that the
    (1) Government pay the contractor for the dismantling or demolition of structures; or
    (2) Contractor pay the Government for the right to salvage and remove the materials resulting from the dismantling or demolition operation.
     
    Let me know if you require additional information.


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