Procurement Operating Procedures – Magnitude of Construction and Engineer’s Estimates

The following Procurement Department Procedure related to the procurement of construction and construction services shall be implemented immediately.  Please distribute this information to the appropriate members of your assigned end user departments.

As a standard operating procedure, estimates of probable construction costs (engineer’s estimates) will not be released in solicitations for construction or construction services as defined by ARS § 34201.  Access to information regarding the engineer’s estimate is limited to Mohave County personnel whose duties require knowledge of the estimate.  Any exception must be approved by the Procurement Director prior to issuance of the solicitation.

Instead of releasing an engineer’s estimate, the solicitation will state the magnitude of the County’s requirements stated in terms of the estimated price range.  Price ranges, provided below, are substantially based on Federal Acquisition Regulations (FAR), specifically FAR 36.204.

Price Ranges Substantially Based on FAR 36.204

a)    Less than $50,000.^[1]

b)    Between $50,000 and $100,000.^[2] 

c)    Between $100,000 and $250,000.

d)    Between $250,000 and $500,000.            

e)    Between $500,000 and $1,000,000.

f)     Between $1,000,000 and $5,000,000.

g)    Between $5,000,000 and $10,000,000.

h)    More than $10,000,000.

ARS § 34-201 Definitions:

Construction:

a)    Means the process of building, altering, repairing, improving or demolishing any public structure or building or other public improvements of any kind to any public real property.

b)    Does not include the routine operation, routine repair or routine maintenance of existing facilities, structures, buildings or real property. 

Construction Services: Means either of the following for construction manager at risk, design build and job order contracting project delivery methods:

a)    Construction, excluding services, through the construction manager at risk or job order contracting project delivery methods.

b)    A combination of construction and, as elected by the agent, one or more related services, such as finance services, maintenance services, operations services, design services and preconstruction services, as those services are authorized in the definitions of construction manager at risk, design build or job order contracting in this section.