AIA Welcomes Proposed Federal Procurement Reform Addressing Longstanding Architect Fee Limitation

WASHINGTON –September 18, 2026 – The American Institute of Architects (AIA) today welcomed a proposed change to the Federal Acquisition Regulation (FAR) that would address a longstanding concern for architecture firms competing for federal work by limiting application of the six percent architect-engineer fee restriction based on contract type.

The proposed change is part of the federal government’s Revolutionary FAR Overhaul (RFO), a comprehensive effort to modernize federal procurement regulations, improve competition, and better align the FAR with underlying statutes.

Under the proposal, FAR 15.404-9 would specify that the six percent limitation for architect-engineer services for public works or utilities applies to cost-type contracts, rather than being applied arbitrarily across federal A/E contracts. The proposal expressly states that the change is being made in accordance with 41 U.S.C. § 3905(b)(3), which is the civilian federal procurement statute at the heart of AIA's 6% FAR argument.

“This proposed change represents meaningful progress for architecture firms that serve the federal government and for the agencies that depend on their expertise,” said 2026 AIA President, Illya Azaroff, FAIA. “For years, AIA has advocated for federal procurement rules that reflect the law as Congress wrote it and allow agencies to negotiate fair and reasonable compensation for professional design services. We appreciate the Administration and the FAR Council taking this issue seriously and proposing a practical solution.”

AIA has long maintained that the six percent limitation has been applied more broadly in federal procurement than the governing statutes allow. AIA raised the issue directly with the Office of Federal Procurement Policy (OFPP) as part of its engagement on the Revolutionary FAR Overhaul and subsequently submitted formal comments recommending that the FAR be brought into alignment with statutory requirements.

The proposed rule would now provide that for A/E services for public works or utilities “using cost-type contracts,” the estimated cost and fee for production and delivery of designs, plans, drawings, and specifications may not exceed six percent of the estimated construction cost.

For architecture firms—more than 90 percent of which are small businesses with fewer than 50 employees—the clarification could have meaningful consequences for participation in the federal marketplace. Modern architectural practice requires significant investment in highly skilled professionals, sophisticated design and modeling technology, cybersecurity, regulatory compliance, and other resources that were unimaginable when the underlying fee limitation was enacted decades ago.

“AIA approached this process as an implementation partner,” said 2015 AIA President, Elizabeth Chu Richter, FAIA, who represented AIA in discussions with OFPP. “Our goal has been straightforward: make sure the FAR reflects the statute, recognizes the realities of modern architectural practice, and gives federal agencies the flexibility they need to obtain the best professional expertise at a fair and reasonable price. We are encouraged to see that principle reflected in the proposed rule.”

AIA will submit comments supporting the proposed correction and continue working with OFPP, the FAR Council, federal agencies, Congress, and its members throughout the rulemaking and implementation process to ensure the final FAR provides clear and consistent procurement rules that promote competition and enable architecture firms of all sizes to compete for federal work.

Learn more about AIA’s advocacy around mandatory fee limits.