Nellis MACH1 AOI Attachment F Commercial Pricing V1

ATTACHMENT F - PROPOSED CONSTRUCTION MARKUPS AND COMMERCIAL PRICING PARAMETERS

MACH1 Area of Interest | Nellis F-47 Future Campus | Optional Phase 1 Industry Comments

1.0 PURPOSE AND COMMERCIAL PRICING PHILOSOPHY

The Air Force Civil Engineer Center (AFCEC) intends to establish negotiated construction markups, fees, cost categories, and related commercial pricing parameters to support development of commercially competitive firm-fixed-price (FFP) construction commitments during Milestone 2 of the Nellis F-47 MILCON Program. The Government seeks a transparent and commercially practical pricing framework supporting competitive construction procurement, efficient project execution, and appropriate compensation for organizations responsible for delivering the program. The Government recognizes that construction management costs, overhead, risk allowances, and reasonable profit are legitimate and necessary components of successful project delivery. AFCEC seeks a commercial pricing framework that appropriately compensates each participating organization for the services, responsibilities, and risks it undertakes while achieving transparent, commercially competitive construction pricing. AFCEC considers these objectives complementary and mutually reinforcing. Appropriate compensation, transparent pricing practices, and effective commercial competition contribute to a sustainable partnership in which both the selected Vendor and the Government can achieve their respective objectives. The Government intends to work collaboratively with its selected Vendor to establish pricing arrangements that support the commercial success of participating construction organizations while maximizing the value of facilities and infrastructure delivered to the Air Force’s warfighters. The Government welcomes sophisticated construction organizations involving multiple firms, Principal Construction Execution Firms, and specialized trade partners when they contribute meaningful capabilities. The framework will recognize distinct responsibilities while ensuring transparency in the overall construction price.

2.0 PROPOSED COMMERCIAL PRICING PARAMETERS

The Government anticipates establishing the following parameters. Specific rates and percentages are not requested during Phase 1.

A. Construction Fees and Markups

No.
Commercial pricing parameter
Proposed basis
Prime PDB Construction Management Fee
Percentage of eligible construction costs managed through trade partners and Principal Construction Execution Firms.