Indefinite Delivery and Indefinite Quantity Contracts for Federal-Aid Construction, 19393-19395 [2018-09276]

Download as PDF Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CboeBZX–2018–005 and should be submitted on or before May 23, 2018. daltland on DSKBBV9HB2PROD with NOTICES V. Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1 The Commission finds good cause to approve the proposed rule change, as modified by Amendment No. 1, prior to the thirtieth day after the date of publication of notice of the filing of Amendment No. 1 in the Federal Register. Amendment No. 1 supplements the proposal by, among other things: (1) Providing additional information regarding the Index; and (2) making additional representations regarding the Adviser and Index Provider implementing and maintaining a fire wall. The changes assisted the Commission in evaluating the Exchange’s proposal and in determining that the listing and trading of the Shares is consistent with the Act. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,39 to approve the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. VI. Conclusion DEPARTMENT OF TRANSPORTATION It is therefore ordered, pursuant to Section 19(b)(2) of the Act,40 that the proposed rule change (SR–CboeBZX– 2018–005), as modified by Amendment No. 1 thereto, be, and it hereby is, approved on an accelerated basis. Federal Highway Administration For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.41 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–09259 Filed 5–1–18; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF STATE [Public Notice: 10403] Determination Pursuant to the Foreign Missions Act Pursuant to the authority vested in the Secretary of State under the Foreign Missions Act, 22 U.S.C. 4301 et seq. (‘‘the Act’’), I hereby determine it is reasonably necessary to achieve one or more of the purposes set forth in section 204(b) of the Act (22 U.S.C. 4304(b)) to designate 3726 East Madison Street, Seattle, Washington, as a location and facilities for which entry or access is strictly prohibited by all individuals, including but not limited to representatives or employees of the Russian government and their dependents, without first obtaining written permission from the Department of State’s Office of Foreign Missions. Such prohibitions will take effect as of 11:59 p.m. Pacific Daylight Time on April 24, 2018. As a result, all persons on the said property are required to depart the premises no later than the date and time stated above. For purposes of this Determination, 3726 East Madison Street, Seattle, Washington, includes any buildings and/or improvements thereon and the land ancillary thereto. Access to the property will be subject to terms and conditions set forth by the Office of Foreign Missions. Dated: April 19, 2018. John J. Sullivan, Acting Secretary of State. [FR Doc. 2018–09286 Filed 5–1–18; 8:45 am] BILLING CODE 4710–43–P 40 Id. 39 15 U.S.C. 78s(b)(2). VerDate Sep<11>2014 22:14 May 01, 2018 41 17 Jkt 244001 19393 PO 00000 CFR 200.30–3(a)(12). Frm 00183 Fmt 4703 Sfmt 4703 [FHWA Docket No. FHWA–2018–0003] Indefinite Delivery and Indefinite Quantity Contracts for Federal-Aid Construction Federal Highway Administration (FHWA), U.S. Department of Transportation (DOT). ACTION: Notice—request for comments. AGENCY: The FHWA is announcing that the Indefinite Delivery and Indefinite Quantity (ID/IQ) method of contracting (including Job Order Contracts) for low-cost construction contracts in the Federal-aid highway program will be allowed, without prior FHWA approval, under certain circumstances. DATES: Comments must be received on or before June 1, 2018. Late comments will be considered to the extent practicable. ADDRESSES: You may submit comments, identified by the document number at the top of this document, by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Fax: 1–202–493–2251. • Mail: Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Ave. SE, West Building Ground Floor, Room W12–140, Washington, DC 20590. • Hand Delivery/Courier: West Building Ground Floor, Room W12–140, 1200 New Jersey Ave. SE, between 9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal holidays. The telephone number is (202) 366–9329. Instructions: All submissions received must include the agency name and docket number for this rulemaking. All comments received will be posted without change to www.regulations.gov, including any personal information provided. Docket: For access to the docket to read background documents or comments received, go to www.regulations.gov. SUMMARY: For questions about this notice, please contact Mr. John Huyer, FHWA Office of Program Administration, (202) 366– 1562, or via email at John.Huyer@ dot.gov. For legal questions, please contact Mr. Jomar Maldonado, FHWA Office of the Chief Counsel, 202–366– 1373, or via email at Jomar.Maldonado@ dot.gov. Office hours for the FHWA are from 8:00 a.m. to 4:30 p.m., E.T., FOR FURTHER INFORMATION CONTACT: E:\FR\FM\02MYN1.SGM 02MYN1 19394 Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices Monday through Friday, except Federal holidays. SUPPLEMENTARY INFORMATION: This notice announces that contracting agencies no longer need to submit individual requests and work plans pursuant to Special Experimental Project No. 14 (SEP–14) for low-cost contracts that are awarded to the lowest responsive bidder based on an invitation for bids. However, this contracting technique continues to be authorized on an experimental basis while FHWA explores rulemaking to revise FHWA’s regulations to accommodate this contracting technique. daltland on DSKBBV9HB2PROD with NOTICES Background The ID/IQ contracts are a method of contracting that allows an indefinite quantity of services for a fixed time. They are used in the Federal Government when agencies cannot determine, above a specified minimum, the precise quantities of supplies or services that the Government will require during the contract period. For construction ID/IQ contracts, contractors bid unit prices for estimated quantities of standard work items and task orders are used to define the location and quantities for specific work. The ID/IQ contracts may be awarded to the lowest responsive bidder based on an invitation for bids or the best-value proposer based on responses to Requests for Proposals. Contracting agencies use other names for these types of contracts including on-call contracts, area-wide contracts, continuing contracts, push-button contracts, and task order contracts. Job Order Contracts (JOCs) are a form of ID/IQ contracts that utilize a construction task catalogue with pre-priced work item descriptions and where contractors bid ‘‘mark-up rates.’’ The contract is awarded to the lowest responsive bidder determined by their rates. Although ID/IQ contracts have been specifically authorized in the Federal procurement process (48 CFR 16.5) and for the contracting of architecture and engineering (A/E) services in the Federal-aid highway program (FAHP) (23 CFR part 172), the FAHP authorization and procurement laws for construction do not address the possible use of ID/IQ contracts. The FAHP construction procurement statute, 23 U.S.C. 112(b)(1), requires contracts to be awarded by a competitive bidding process to the lowest responsive bidder (traditional design-bid-build project delivery method based upon the premise of a 100 percent-complete design and a well-defined scope of VerDate Sep<11>2014 22:14 May 01, 2018 Jkt 244001 work). The ID/IQ contracts are awarded based upon a general, but not completely defined, scope of work for a geographic area and limited time period (but not specific locations, designs, or quantities) and are often awarded based upon specific evaluation criteria. A. Experience Under Special Experimental Project Number 14 (SEP– 14) The FHWA has used its authority in 23 U.S.C. 502(b)(1) to test the use of ID/ IQ contracts for the construction of FAHP projects through the SEP–14 Program for innovative contracting techniques. Under the SEP–14 Program, contracting agencies interested in testing an innovative contracting technique submit project-specific (or programmatic) work plans for their implementation. The FHWA Division Office evaluates the work plan, coordinates with FHWA Headquarters, and, if it finds the work plan to be acceptable, FHWA approves the use of the technique on a temporary basis for a project or group of pilot projects. Over time, FHWA Headquarters staff assess the initiative to determine if it is a technique that should be operationalized for the FAHP on a permanent basis without the need for individual requests, work plans, and evaluation reports. Operationalizing SEP–14 experiments has taken different paths in the past based on the source of the policy warranting innovation and FHWA’s risk assessment, such as FHWA-initiated memoranda (for example, cost plus time bidding and lane rental), FHWA-initiated rulemaking (for example, warranty clauses at 23 CFR 635.413), and congressionally initiated statutory amendments (for example, design-build and contractor manager/general contractor under 23 U.S.C. 112(b)(3)–(4)). More information on SEP–14 can be found at https:// www.fhwa.dot.gov/construction/cqit/ sep14.cfm. Having evaluated the use of JOCs and ID/IQ contracts for construction in the FAHP for over a decade, FHWA has now determined that they are suitable for operationalization. For more than 10 years, FHWA and State departments of transportation (State DOTs) have experimented with the use of ID/IQ contracts and JOCs for construction. FHWA has approved the use of these contracts under SEP–14 for 16 different State DOTs and 6 local public agencies. Evaluation reports indicate that JOCs and ID/IQ contracts allow for costeffective contracting for small value contracts and preventive maintenance programs. These evaluation reports can be found at https://www.fhwa.dot.gov/ PO 00000 Frm 00184 Fmt 4703 Sfmt 4703 programadmin/contracts/sep14list.cfm. Specifically, the reports indicate that these contracts eliminate the need for contracting agencies to advertise and award numerous small contracts and provide contracting agencies with wide flexibility in programming and addressing preventive maintenance needs. The FHWA’s determination that this contracting technique is suitable for operationalization is consistent with requests in Senate reports for fiscal year 2017 and 2018 appropriations to operationalize JOCs. S. Rept. No. 114– 243, 43 (April 21, 2016); S. Rept. No. 115–138, 52 (July 27, 2017). B. Steps for Operationalizing ID/IQs and JOCs for Construction in the FAHP The FHWA is proceeding with two phases to operationalize ID/IQ contracts and JOCs for construction in the FAHP. The first phase is the issuance of this Notice, and the second phase is the initiation of a rulemaking. 1. Notice To Allow ID/IQ and JOCs for Low-Cost Construction Contracts The first phase is the issuance of this Notice describing when contracting agencies may use ID/IQ contracts and JOCs for construction without the need for project-specific work plans from contracting agencies. The FHWA considers ‘‘low-cost contracts’’ to be 1- or 2-year contracts awarded to the lowest responsive bidder for construction of projects that qualify for FHWA categorical exclusions (CE) under the National Environmental Policy Act (NEPA) of 1969 (23 CFR 771.117) and where the total value of task or work orders does not exceed $2,000,000 per year. Contracting agencies should continue to following existing procedures for contract extensions. The FHWA may allow contract extensions, but the maximum length of the contract period with extensions may not exceed 5 years. Contracting agencies interested in this contracting method should provide assurances to FHWA, including assurances that the total value of task or work orders will not exceed $2,000,000 per year, that the actions covered will be for projects that qualify for a CE, that the work will comply with applicable Title 23 requirements, and that the contracting agency will comply with applicable Disadvantaged Business Enterprise requirements. Individual tasks must undergo a complete environmental review prior to their approval (23 CFR 771.113(a)). The FHWA Division Office should determine how individual task orders will be approved. In addition, there are E:\FR\FM\02MYN1.SGM 02MYN1 Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices requirements in 23 CFR part 635 that may not apply to ID/IQs (for example, standard change conditions clauses in 23 CFR 635.109 and self-performance requirements in 23 CFR 635.113), but FHWA will encourage contracting agencies to use similar requirements consistent with State or local government policy. This contracting technique will continue to be experimental under FHWA’s SEP–14 authority because FHWA’s regulations and procedures do not accommodate this type of contracting technique; however, contracting agencies will not need to submit individual SEP–14 requests and work plans for low-cost contracts under these conditions. The FHWA would expect contracting agencies to continue to request specific SEP–14 approval for best value awards, multiple-award ID/IQ contracts and JOCs, and contracts that exceed the low-cost threshold or are not otherwise within the limitations of this notice. The FHWA will request its division offices to report annually on different metrics to assess the contracting technique’s impact on competition. The FHWA seeks public comments on this approach. 2. Step Two: Rulemaking Initiation Under the second phase, FHWA intends to initiate rulemaking to address the construction and approval regulations that need amendments in order to allow the contracting technique on a permanent basis. This rulemaking would be published in the Federal Register and provide an opportunity for the public to comment on the use of ID/ IQ contracts or JOC for construction in the FAHP. Authority: 23 U.S.C. 112 and 502; 23 CFR 635. Issued on: April 25, 2018. Brandye L. Hendrickson, Acting Administrator, Federal Highway Administration. [FR Doc. 2018–09276 Filed 5–1–18; 8:45 am] BILLING CODE 4910–22–P DEPARTMENT OF TRANSPORTATION Federal Railroad Administration daltland on DSKBBV9HB2PROD with NOTICES [Docket No. FRA–2018–0014] Application From the State of California To Participate in the Surface Transportation Project Delivery Program for Certain Railroad Projects Federal Railroad Administration (FRA), U.S. Department of Transportation (USDOT). AGENCY: VerDate Sep<11>2014 22:14 May 01, 2018 Jkt 244001 Notice of receipt of application and request for comments. ACTION: This notice announces that FRA has received and reviewed an application from the State of California (State) acting through its California State Transportation Agency (CalSTA) and California High-Speed Rail Authority (Authority) requesting participation in the Surface Transportation Project Delivery Program (Program). Under the Program, FRA may assign, and the State may assume, responsibilities under the National Environmental Policy Act of 1969 (NEPA), and all or part of FRA’s responsibilities for environmental review, consultation, or other actions required under Federal environmental laws with respect to one or more railroad projects within the State. FRA invites the public to comment on the State’s request, including its application and the draft Memorandum of Understanding (MOU), which outlines how the State would implement the Program, with FRA oversight. The State’s application and the draft MOU are available for public inspection in the docket. FRA will use the public comments to inform its decision on whether to approve or deny the State’s application. DATES: Please submit comments by June 1, 2018. ADDRESSES: You may submit comments, identified by Docket Number FRA– 2018–0014, by any of the following methods: • Federal eRulemaking Portal: Go to https://www.regulations.gov and follow the online instructions for submitting comments; • Mail: Docket Management Facility; U.S. DOT, 1200 New Jersey Ave. SE, W12–140, Washington, DC 20590; • Hand Delivery: The Docket Management Facility is located in Room W12–140, West Building Ground Floor, U.S. DOT, 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays; or • Fax: 202–493–2251. Instructions: You must include the agency name and docket number at the beginning of your comments. All comments received will be posted without change to https:// www.regulations.gov, including any personal information provided. FOR FURTHER INFORMATION CONTACT: Ms. Stephanie Perez, Environmental Protection Specialist, Office of Program Delivery, Federal Railroad Administration, 1200 New Jersey Avenue SE, Washington, DC 20590, telephone: (202) 493–0388, email: stephanie.perez@dot.gov. SUMMARY: PO 00000 Frm 00185 Fmt 4703 Sfmt 4703 19395 SUPPLEMENTARY INFORMATION: Electronic Access An electronic copy of this notice may be downloaded from the Federal Register’s home page at https:// www.archives.gov/federal-register. An electronic version of the application materials and proposed MOU may be downloaded by accessing the USDOT docket, as described above, at https:// www.regulations.gov/. Privacy Act Statement Anyone can search the electronic form of all comments received into any of DOT’s dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT’s complete Privacy Act Statement in the Federal Register published on April 11, 2000 (65 FR 19477), or you may visit https://www.regulations.gov/ privacyNotice. Background Section 327 of title 23, United States Code (23 U.S.C. 327), allows the Secretary of the U.S. Department of Transportation (Secretary) to assign, and a State to assume, responsibility for all or part of the Secretary’s responsibilities for environmental review, consultation, or other actions required under NEPA (42 U.S.C. 4321 et seq.) and any Federal environmental law with respect to one or more highway projects within the State, as well as one or more railroad, public transportation, and/or multimodal projects.1 The FRA is authorized to act on behalf of the Secretary with respect to these matters for railroad projects. Under the draft MOU, FRA would assign to the State, acting through CalSTA or the Authority, the responsibility for making decisions under NEPA for railroad projects proposed as part of the California HighSpeed Rail system, as further described in the State’s application and the draft MOU, with the exception of the following: (1) Projects that cross state boundaries or that cross or are adjacent to international boundaries are excluded from the railroad projects for which FRA environmental review responsibilities are being assumed by the State. For purposes of the State’s application and draft MOU, a project is considered ‘‘adjacent to international boundaries’’ if it requires the issuance of 1 The Secretary may not assign its responsibility for making any conformity determination required under section 176 of the Clean Air Act. E:\FR\FM\02MYN1.SGM 02MYN1

Agencies

[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Notices]
[Pages 19393-19395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09276]


=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

[FHWA Docket No. FHWA-2018-0003]


Indefinite Delivery and Indefinite Quantity Contracts for 
Federal-Aid Construction

AGENCY: Federal Highway Administration (FHWA), U.S. Department of 
Transportation (DOT).

ACTION: Notice--request for comments.

-----------------------------------------------------------------------

SUMMARY: The FHWA is announcing that the Indefinite Delivery and 
Indefinite Quantity (ID/IQ) method of contracting (including Job Order 
Contracts) for low-cost construction contracts in the Federal-aid 
highway program will be allowed, without prior FHWA approval, under 
certain circumstances.

DATES: Comments must be received on or before June 1, 2018. Late 
comments will be considered to the extent practicable.

ADDRESSES: You may submit comments, identified by the document number 
at the top of this document, by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail: Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Ave. SE, West Building Ground Floor, 
Room W12-140, Washington, DC 20590.
     Hand Delivery/Courier: West Building Ground Floor, Room 
W12-140, 1200 New Jersey Ave. SE, between 9:00 a.m. and 5:00 p.m., 
Monday through Friday, except Federal holidays. The telephone number is 
(202) 366-9329.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to www.regulations.gov, including any personal 
information provided.
    Docket: For access to the docket to read background documents or 
comments received, go to www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For questions about this notice, 
please contact Mr. John Huyer, FHWA Office of Program Administration, 
(202) 366-1562, or via email at [email protected]. For legal 
questions, please contact Mr. Jomar Maldonado, FHWA Office of the Chief 
Counsel, 202-366-1373, or via email at [email protected]. Office 
hours for the FHWA are from 8:00 a.m. to 4:30 p.m., E.T.,

[[Page 19394]]

Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: This notice announces that contracting 
agencies no longer need to submit individual requests and work plans 
pursuant to Special Experimental Project No. 14 (SEP-14) for low-cost 
contracts that are awarded to the lowest responsive bidder based on an 
invitation for bids. However, this contracting technique continues to 
be authorized on an experimental basis while FHWA explores rulemaking 
to revise FHWA's regulations to accommodate this contracting technique.

Background

    The ID/IQ contracts are a method of contracting that allows an 
indefinite quantity of services for a fixed time. They are used in the 
Federal Government when agencies cannot determine, above a specified 
minimum, the precise quantities of supplies or services that the 
Government will require during the contract period. For construction 
ID/IQ contracts, contractors bid unit prices for estimated quantities 
of standard work items and task orders are used to define the location 
and quantities for specific work. The ID/IQ contracts may be awarded to 
the lowest responsive bidder based on an invitation for bids or the 
best-value proposer based on responses to Requests for Proposals. 
Contracting agencies use other names for these types of contracts 
including on-call contracts, area-wide contracts, continuing contracts, 
push-button contracts, and task order contracts. Job Order Contracts 
(JOCs) are a form of ID/IQ contracts that utilize a construction task 
catalogue with pre-priced work item descriptions and where contractors 
bid ``mark-up rates.'' The contract is awarded to the lowest responsive 
bidder determined by their rates.
    Although ID/IQ contracts have been specifically authorized in the 
Federal procurement process (48 CFR 16.5) and for the contracting of 
architecture and engineering (A/E) services in the Federal-aid highway 
program (FAHP) (23 CFR part 172), the FAHP authorization and 
procurement laws for construction do not address the possible use of 
ID/IQ contracts. The FAHP construction procurement statute, 23 U.S.C. 
112(b)(1), requires contracts to be awarded by a competitive bidding 
process to the lowest responsive bidder (traditional design-bid-build 
project delivery method based upon the premise of a 100 percent-
complete design and a well-defined scope of work). The ID/IQ contracts 
are awarded based upon a general, but not completely defined, scope of 
work for a geographic area and limited time period (but not specific 
locations, designs, or quantities) and are often awarded based upon 
specific evaluation criteria.

A. Experience Under Special Experimental Project Number 14 (SEP-14)

    The FHWA has used its authority in 23 U.S.C. 502(b)(1) to test the 
use of ID/IQ contracts for the construction of FAHP projects through 
the SEP-14 Program for innovative contracting techniques. Under the 
SEP-14 Program, contracting agencies interested in testing an 
innovative contracting technique submit project-specific (or 
programmatic) work plans for their implementation. The FHWA Division 
Office evaluates the work plan, coordinates with FHWA Headquarters, 
and, if it finds the work plan to be acceptable, FHWA approves the use 
of the technique on a temporary basis for a project or group of pilot 
projects. Over time, FHWA Headquarters staff assess the initiative to 
determine if it is a technique that should be operationalized for the 
FAHP on a permanent basis without the need for individual requests, 
work plans, and evaluation reports. Operationalizing SEP-14 experiments 
has taken different paths in the past based on the source of the policy 
warranting innovation and FHWA's risk assessment, such as FHWA-
initiated memoranda (for example, cost plus time bidding and lane 
rental), FHWA-initiated rulemaking (for example, warranty clauses at 23 
CFR 635.413), and congressionally initiated statutory amendments (for 
example, design-build and contractor manager/general contractor under 
23 U.S.C. 112(b)(3)-(4)). More information on SEP-14 can be found at 
https://www.fhwa.dot.gov/construction/cqit/sep14.cfm.
    Having evaluated the use of JOCs and ID/IQ contracts for 
construction in the FAHP for over a decade, FHWA has now determined 
that they are suitable for operationalization. For more than 10 years, 
FHWA and State departments of transportation (State DOTs) have 
experimented with the use of ID/IQ contracts and JOCs for construction. 
FHWA has approved the use of these contracts under SEP-14 for 16 
different State DOTs and 6 local public agencies. Evaluation reports 
indicate that JOCs and ID/IQ contracts allow for cost-effective 
contracting for small value contracts and preventive maintenance 
programs. These evaluation reports can be found at https://www.fhwa.dot.gov/programadmin/contracts/sep14list.cfm. Specifically, 
the reports indicate that these contracts eliminate the need for 
contracting agencies to advertise and award numerous small contracts 
and provide contracting agencies with wide flexibility in programming 
and addressing preventive maintenance needs.
    The FHWA's determination that this contracting technique is 
suitable for operationalization is consistent with requests in Senate 
reports for fiscal year 2017 and 2018 appropriations to operationalize 
JOCs. S. Rept. No. 114-243, 43 (April 21, 2016); S. Rept. No. 115-138, 
52 (July 27, 2017).

B. Steps for Operationalizing ID/IQs and JOCs for Construction in the 
FAHP

    The FHWA is proceeding with two phases to operationalize ID/IQ 
contracts and JOCs for construction in the FAHP. The first phase is the 
issuance of this Notice, and the second phase is the initiation of a 
rulemaking.
1. Notice To Allow ID/IQ and JOCs for Low-Cost Construction Contracts
    The first phase is the issuance of this Notice describing when 
contracting agencies may use ID/IQ contracts and JOCs for construction 
without the need for project-specific work plans from contracting 
agencies.
    The FHWA considers ``low-cost contracts'' to be 1- or 2-year 
contracts awarded to the lowest responsive bidder for construction of 
projects that qualify for FHWA categorical exclusions (CE) under the 
National Environmental Policy Act (NEPA) of 1969 (23 CFR 771.117) and 
where the total value of task or work orders does not exceed $2,000,000 
per year. Contracting agencies should continue to following existing 
procedures for contract extensions. The FHWA may allow contract 
extensions, but the maximum length of the contract period with 
extensions may not exceed 5 years.
    Contracting agencies interested in this contracting method should 
provide assurances to FHWA, including assurances that the total value 
of task or work orders will not exceed $2,000,000 per year, that the 
actions covered will be for projects that qualify for a CE, that the 
work will comply with applicable Title 23 requirements, and that the 
contracting agency will comply with applicable Disadvantaged Business 
Enterprise requirements.
    Individual tasks must undergo a complete environmental review prior 
to their approval (23 CFR 771.113(a)). The FHWA Division Office should 
determine how individual task orders will be approved. In addition, 
there are

[[Page 19395]]

requirements in 23 CFR part 635 that may not apply to ID/IQs (for 
example, standard change conditions clauses in 23 CFR 635.109 and self-
performance requirements in 23 CFR 635.113), but FHWA will encourage 
contracting agencies to use similar requirements consistent with State 
or local government policy.
    This contracting technique will continue to be experimental under 
FHWA's SEP-14 authority because FHWA's regulations and procedures do 
not accommodate this type of contracting technique; however, 
contracting agencies will not need to submit individual SEP-14 requests 
and work plans for low-cost contracts under these conditions. The FHWA 
would expect contracting agencies to continue to request specific SEP-
14 approval for best value awards, multiple-award ID/IQ contracts and 
JOCs, and contracts that exceed the low-cost threshold or are not 
otherwise within the limitations of this notice. The FHWA will request 
its division offices to report annually on different metrics to assess 
the contracting technique's impact on competition. The FHWA seeks 
public comments on this approach.
2. Step Two: Rulemaking Initiation
    Under the second phase, FHWA intends to initiate rulemaking to 
address the construction and approval regulations that need amendments 
in order to allow the contracting technique on a permanent basis. This 
rulemaking would be published in the Federal Register and provide an 
opportunity for the public to comment on the use of ID/IQ contracts or 
JOC for construction in the FAHP.

    Authority:  23 U.S.C. 112 and 502; 23 CFR 635.

    Issued on: April 25, 2018.
Brandye L. Hendrickson,
Acting Administrator, Federal Highway Administration.
[FR Doc. 2018-09276 Filed 5-1-18; 8:45 am]
 BILLING CODE 4910-22-P

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