As the stimulus rules are issued by the various agencies dispensing funds and grants, it is very clear that all federal contracting rules apply to all stimulus funds, no matter who actually does the contracting.
For A/E contracts this includes:
Project selection must be by Brooks Act (QBS) procedures
Contracts must be an acceptable federal contract type, and lump sum contracts are the preferred form of agreement
Costs must be estimated and costs accumulated in accordance with Federal Acquisition Regulations (FAR) cost principals
Proposals and contracts are subject to audit
For some local government or agencies, these requirements may not be in synch with their normal A/E contracting policies. Not acceptable contracting includes bidding for A/E contracts and percentage of construction cost contracts.
Agencies the do not adhere to the applicable federal rules risk the revocation of grant funds, which could place agencies at risk for reimbursing stimulus funds.
One message is becoming exceedingly clear as the rules are issued. Not only are all rules applicable to stimulus funds, even past exemptions are prohibited for these funds. Added rules have been enacted on reporting spending progress as well so the contracts must clearly adhere to the stimulus rules.
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