Contracts that provide best value for taxpayer

14 U.S.C. § 1140

• Title: 14 — Coast Guard
• Chapter: SUBCHAPTER II—IMPROVED ACQUISITION PROCESS AND PROCEDURES

Text

(a) In General.—In carrying out a Level 1 or Level 2 acquisition project or program under this subchapter, the Commandant may publicly announce all construction, design, and engineering requirements and negotiate contracts for construction, design, and engineering services on the basis of demonstrated competence and qualification for the type of professional services required and at fair and reasonable prices.
(b) Selection Procedure.—The following procedures may apply to the procurement of Level 1 or Level 2 acquisition project or program under this subchapter:
(1) Statements of qualification and performance.—The Commandant shall require prospective contractors to submit a statement of qualifications and performance data.
(2) Evaluation.—For each proposed project, the Commandant shall—
(A) evaluate statements of qualifications and performance submitted by firms regarding the proposed project; and
(B) conduct discussions with firms to consider anticipated concepts and compare alternative methods for furnishing services.
(3) Selection.—From the firms with which discussions have been conducted under paragraph (2)(B), the Commandant shall select, in order of preference, that the Commandant considers most highly qualified to provide the services required, based on criteria established and published by the Commandant.
(c) Negotiation of Contract.—
(1) In general.—The Commandant shall negotiate 1 or more contracts for construction, design, and engineering services under this section at compensation which the Commandant determines is fair and reasonable to the Federal Government.
(2) Fair and reasonable compensation.—In determining fair and reasonable compensation, the Commandant shall consider the scope, complexity, professional nature, and estimated value of the services to be rendered.
(3) Negotiation.—The Commandant shall attempt to negotiate a contract or contracts with the most highly qualified firm or firms selected under subsection (b).
(4) Further negotiation.—If the Commandant is unable to negotiate a satisfactory contract or contracts with the firm or firms under paragraph (3), the Commandant shall formally terminate negotiations with such firm or firms and undertake negotiations with the next most qualified of the selected firms, continuing the process until an agreement is reached.
(5) Additional firms.—If the Commandant is unable to negotiate a satisfactory contract or contracts with any of the selected firms, the Commandant shall select additional firms in order of competence and qualification and continue negotiations in accordance with this section until 1 or more agreements are reached.

History

(Added Pub. L. 119–60, div. G, title LXXII, §7212(a), Dec. 18, 2025, 139 Stat. 1694.)

Editorial Notes

Editorial Notes

Amendments
2018—Pub. L. 115–282, title I, §108(c)(4), Dec. 4, 2018, 132 Stat. 4210, inserted subchapter III designation and heading.

Statutory Notes and Related Subsidiaries

Prohibition on Major Acquisition Contracts With Entities Associated With Chinese Communist Party
Pub. L. 117–263, div. K, title CXII, §11267, Dec. 23, 2022, 136 Stat. 4063, provided that:
"(a) In General.—The Commandant [of the Coast Guard] may not award any major acquisition contract until the Commandant receives a certification from the party that it has not, during the 10-year period preceding the planned date of award, directly or indirectly held an economic interest in an entity that is—
"(1) owned or controlled by the People's Republic of China; and
"(2) part of the defense industry of the Chinese Communist Party.
"(b) Inapplicability to Taiwan.—Subsection (a) shall not apply with respect to an economic interest in an entity owned or controlled by Taiwan."