FAR 36.303-1 Phase One: Design-Build vs. Traditional Federal Bidding
For trade contractors and small general builders pursuing federal public work, design-build solicitations present an entirely different pre-award pathway than standard invitations for bids. Under federal procurement regulations, agencies frequently break design-build selections into two separate stages. Understanding the regulatory framework governing Phase One helps estimating teams decide how much effort to allocate before a project reaches detailed pricing.
Phase One Submittals vs. Traditional Full-Price Estimates
In standard construction contracting, estimators assemble complete material takeoffs, calculate labor rates, review general conditions, and deliver an all-inclusive number right away. By contrast, Phase One under federal design-build rules changes the focus from price to qualifications.
According to Acquisition.GOV FAR 36.303-1, Phase One of the solicitation provides the project scope of work, Phase One evaluation factors, Phase Two evaluation factors, and a statement of the maximum number of competitors selected to advance. A critical difference from typical commercial procurement is that cost or price-related factors are not permitted in Phase One. Trade contractors reviewing Phase One solicitations do not need to finalize line-item labor quotes or issue emergency pricing updates before this stage closes.
Technical Approach vs. Detailed Design Requirements
Estimators often wonder how much engineering effort belongs in an initial proposal. Traditional design-bid-build packages provide finished architectural plans and specifications from which crews measure assemblies. In two-phase design-build, the solicitation seeks an understanding of how the team will tackle the project, but it limits preliminary engineering expenses.
Under FAR 36.303-1 Phase One rules, evaluation factors must include the offeror's technical approach, but solicitations must not require detailed design or technical information at this preliminary step. This distinction protects bidding teams from burning engineering resources on structural calculations or intricate CAD shop drawings before they have made the competitive cut. Small general contractors and interior subcontractors should focus their technical narrative on methodology, execution strategy, and constructability rather than finished layouts.
Team Qualifications: Evaluating A-E and Construction Capabilities
Because the government selects Phase One candidates based on capability rather than low numbers, technical qualifications carry the primary evaluation weight. Solicitations measure several specific components across the entire proposed entity:
- Specialized experience and technical competence: Evidence that the design and construction entities have successfully handled comparable building types and technical systems.
- Capability to perform: Operational resources, organizational capacity, and workforce availability to execute the defined scope of work.
- Past performance of the offeror's team: Historical performance evaluations that specifically cover both the architect-engineer partners and the construction trade members.
- Other appropriate non-cost factors: Secondary evaluation criteria established by the agency, keeping cost and pricing factors strictly excluded.
When aligning with prime contractors for these proposals, trade contractors should furnish verifiable project histories and performance ratings. Maintaining structured past-performance packages reduces the administrative strain when responding to sudden requests from general contractor partners, much like keeping a standardized bid day checklist streamlines bid morning preparations.
Shortlist Limits: Standard Maximum vs. Over-$5.5 Million Thresholds
Phase One acts as a regulatory gatekeeper to reduce proposal preparation waste. In a standard open procurement, dozens of contractors might submit full estimates. Under Phase One procedures, the solicitation must state the maximum number of offerors that will receive an invitation to submit Phase Two proposals.
The regulation dictates that the maximum number specified in the solicitation shall not exceed five, unless the contracting officer makes a formal determination that selecting more than five serves the government's interest and matches the objectives of two-phase design-build selection. That determination must be placed in the contract file. Furthermore, for acquisitions greater than $5.5 million, approving a shortlist larger than five requires sign-off by the head of the contracting activity, delegable no lower than the senior contracting official within that activity. For civilian agencies, this official is the advocate for competition unless agency procedures assign a different position. For trade estimators, a firm cap of five or fewer means that once shortlisted, the odds of securing award in Phase Two rise significantly.
Phase One Evaluation vs. Phase Two Preparation
Once Phase One submittals are reviewed, the contracting officer evaluates the packages against the published criteria and selects the most highly qualified offerors. Only those selected firmsānever exceeding the maximum number specified in the solicitationāare requested to submit Phase Two proposals.
For subcontractors, Phase One is about getting your team onto that shortlist without giving away unpaid engineering work or getting trapped by preliminary pricing. Once your prime team advances to Phase Two, standard estimating principles take over. At that point, estimators prepare detailed technical drawings, evaluate manufacturer lead times, draft clear bid exclusions and clarifications, and assemble the comprehensive pricing that FAR 36.303-1 intentionally kept out of the initial submission.
Sources
Acquisition.GOV FAR 36.303-1 Phase One
Published October 29, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.