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• 2/7/85 AC 150/5100-14A (3) FAA personnel will not be present and will not participate in the negotiation process until after the sponsor and consultant have agreed on the scope of work, conditions of the contract, and compensation to be paid. The FAA's role is to make a judgment on the reasonableness of the compensation for the services to be furnished and to ensure that all services required for a particular project have been included in the proposal. (4) If a mutually satisfactory contract cannot be negotiated with the consultant first selected, the negotiations should be terminated and the consultant should be notified. Negotiations should then be initiated with the consultant given second preference by the selection board. This procedure should be continued with recommended consultants in the sequence of ranking established by the selection board until a mutually satisfactory contract has been negotiated. Once negotiations have been terminated with a firm and begun with another, they cannot be reopened with the former firm. (5) Fee negotiations should be based upon the cost data submitted by the consultant and an evaluation of the specific work required for each task. The sponsor should subject the consultant's data to a technical/engineering cost analysis. Significant differences between the estimates submitted by the consultant and the estimates developed by the sponsor should be resolved, and revisions should be made to fee as required. (6) A record of negotiations should be prepared and included in a contract file. This record should contain sufficient detail to reflect the significant considerations controlling the establishment of the fee and other terms of the contract as well as explanations of any significant differences between the sponsor's original estimate and the fee finally agreed upon. (7) Upon completion of successful negotiations, all consultants interviewed by the selection board should be informed of the consultant selected for the project. b. Price Is a Selection Factor. (1) The consultants' sealed cost proposal should be opened and subjected to a cost analysis by the sponsor. (2) The sponsor should then review the selection board's report. If the first ranked firm's cost is comparable to the sponsor's cost estimate, a contract should be awarded to that firm. If a contract is not awarded to the first ranked firm, it should be awarded to the next ranked firm whose, cost is closest to the sponsor's. If a sponsor wishes to retain a firm because of its technical ability, even though that firm's cost is higher than the sponsor's cost estimate, the selection must be justified in writing. (3) FAA personnel will not be present and will not participate in the selection procedure, until after the sponsor and consultant have agreed on the scope of work, conditions of the contract, and compensation to be paid. The FAA's role is to make a judgment on the reasonableness of the compensation for the services to be furnished and to ensure that all services required for a particular project have been included in the proposal. Chap 2 Par 12 13