Can we use the two-phase selection approach with a Design-Bid-Build project?
The intent of the Two-Phase Design/Build method is to award a single contract for both the design and construction of the project whereas the Design/Bid/Build is intended to be 2 separate contracts to 2 contractors/entities (per Definitions in FAR 36.102).
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It seems evident from your scenario that the final design is being done either in-house (by the Government) or an A&E contractor. Since the Two-Phase method is for Design/Build only and the final design will be in place for the Build portion, this method would not be appropriate as the offerors would know exactly what they are bidding on.
As always, we encourage you to work with your contracting and legal office as well as referencing your agency specific regulations for any acquisition as we don't have all the facts or access to the contract files.