Two-Phase Design-Build Proposals Explained

Design-build has become one of the most common ways federal agencies buy construction, especially on military installations. On larger contracts, it's usually competed in two phases. The format rewards preparation: many offerors are eliminated in Phase One before price ever comes into play.

We've prepared two-phase design-build submissions for Navy, Army and Air Force construction contracts. This guide explains how the process works and where offerors lose ground.

How two-phase selection works

Two-phase design-build is used when the agency expects three or more offers and offerors will need to do design work before they can price the project.

Phase One: qualifications

In Phase One, offerors submit qualifications without price. Evaluation factors typically include:

• Technical approach
• Technical qualifications, including the team and its specialized experience
• Past performance
• Other relevant factors, but not cost or price

The solicitation must state the maximum number of offerors who will advance.

The shortlist

Generally, no more than five offerors advance to Phase Two unless the contracting officer determines in writing that more is in the government's interest. For Defense Department contracts over $5.5 million, going above five requires approval from a senior official. That threshold rose from $4.5 million in October 2025.

Phase Two: technical and price

Shortlisted offerors submit full proposals with separate technical and price volumes, evaluated under the normal source selection rules. For multiple-award design-build contracts, Phase Two often includes a seed project.

The design team matters in both phases

Design-build means your proposal is only as strong as your designer. Solicitations commonly:

• Require you to name the design firm and designer of record, often with a signed commitment letter
• Evaluate the design firm's own projects, sometimes with a minimum number per design firm
• Require past performance on design, from the client that hired the designer
• Expect the named design team to stay for the life of the contract, with changes needing approval

A point that trips up many builders: if your company designed and built a project but didn't hold the design license, the design credit usually belongs to the firm that stamped the drawings. That firm needs to be on your team for the project to count as design experience.

Where Phase One submissions fall short

Phase One is often where the competition is decided. The most common problems we see:

• Project mix requirements missed. Some solicitations require a mix of project types, such as at least one design-build, one design-bid-build, one new construction and one renovation. It's easy to have plenty of projects and still miss one required type.
• Design projects that don't qualify. Minimum construction value, number of engineering disciplines and completion dates apply to design projects too.
• Missing past performance. Where a project has no CPARS evaluation, a past performance questionnaire is often required, and a missing one can be treated as a deficiency.
• Tight page limits. Phase One project data sheets are often limited to a page or two each. Every line has to earn its place.
• Team inconsistencies. Every firm whose experience you cite generally needs to appear in your team narrative with a signed agreement.

Where to go from here

Two-phase design-build rewards contractors who start early: assembling the design team, collecting past performance and selecting the right projects before the solicitation drops. If you're preparing a Phase One, we can help you build a submission that makes the shortlist.