The American Institute of Architects (AIA) has issued a statement of support for recent amendments proposed for the Federal Acquisition Regulation (FAR). This development is part of the Revolutionary FAR Overhaul (RFO) to modernize procurement and align with federal statutes, specifically § 3905(b)(3) at the heart of the 6% FAR argument. The September 18 proposal specifically clarifies the application of the six percent fee limitation currently affecting architecture and engineering services. According to the AIA, the proposed update to FAR 15.404-9 ensures that this six percent ceiling on fees for design, plans, and specifications applies strictly to cost-type contracts. The move seeks to end the inconsistent or broad application of the cap across other project delivery methods, aligning agency practices with 41 U.S.C. § 3905(b)(3).
For many years, the AIA has contended that the fee limitation was being interpreted more broadly than the law intended. Rule changes reflecting current industry realities were pursued by the organization by working through the RFO process with the (OFPP), the Office of Federal Procurement Policy. Current architectural operations often require substantial investments in complex modeling software, advanced cybersecurity measures, and regulatory compliance. These overhead costs have escalated significantly since the original fee limitations were established decades ago. Small businesses account for over 90 percent of architecture firms, with staff headcounts remaining below the 50-person threshold. These changes significantly impact their ability to engage in the federal marketplace.
Illya Azaroff, the 2026 AIA President, noted that the proposal signifies progress for design professionals and the agencies seeking their specialized services. The association intends to file formal comments in support of the rule change and will continue to coordinate with the FAR Council and lawmakers throughout the implementation phase. The 2015 AIA President, Elizabeth Chu Richter, joined earlier discussions with the OFPP. She noted the goal is granting agencies flexibility to secure high-quality expertise at reasonable costs. These reforms suggest a clearer path toward fair compensation and stable federal design contracts for brokers and insurers. This could reduce financial pressures impacting risk profiles for small and medium-sized practices.
Image is an illustration created with AI for general context
