3/10/16: Use of a consultant for both design and construction management services is no longer prohibited by Local Assistance. I revisited the topic here
Sharing another good question from a local agency …
Can our consultant designing a project also perform the construction management/oversight for the same project?
Although there is no federal requirement that expressly prevents the use of the same consultant for both project phases, FHWA explains that this practice may be prohibited by State law or contacting agency policies and procedures. Section 10.2 of the Local Assistance Procedures Manual provides the policy and procedure to prohibit this practice:
No consultant performing design, investigation or environmental service, nor any firm affiliated with the consultants, shall bid on a construction contract or contract to provide construction inspection of a construction project resulting from the consultant’s contract.
For additional information on the topic, please review Chapter 10 of the LAPM and visit FHWA’s Q&A section on Procurement Management and Administration of Engineering and Design Related Services (Page 32, Question 5).