Agendas are available on the City Website
https://www.ridgecrest-ca.gov/council-agendas
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
AGENDA
December 6, 2023
Closed Session 5:00 p.m.
Regular Session 6:00 p.m.
City Hall, Council Chambers
100 100 West California Avenue
Ridgecrest CA 93555
Ricca Charlon, CMC
City Clerk
[email protected]
(760) 499-5002
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in the meeting, please contact Ricca Charlon at (760) 499-5002. Requests must be made as early as possible and at least one full business day before the start of the meeting.
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CITY COUNCIL
Eric A. Bruen, Mayor
Solomon P. Rajaratnam, Mayor Pro-Tem
Kyle Blades, Vice Mayor
L. Scott Hayman, Council Member
John ‘Skip’ Gorman, Council Member
Ron Strand, City Manager
Keith Lemieux, City Attorney
Martin Koczanowicz, City Attorney
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100 W. CALIFORNIA AVE. | RIDGECREST, CA 93555
Phone 760.499.5000 | Fax 760.499.1520
www.ridgecrest-ca.gov
NOTICE AND CALL OF A SPECIAL CLOSED SESSION MEETING OF THE
RIDGECREST CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY /
HOUSING AUTHORITY / FINANCING AUTHORITY
TO THE MEMBERS OF THE RIDGECREST CITY COUNCIL / SUCCESSOR
REDEVELOPMENT AGENCY / HOUSING AUTHORITY / FINANCING AUTHORITY, PUBLIC AND CITY CLERK:
PUBLIC NOTICE that a SPECIAL CLOSED SESSION MEETING of the Ridgecrest City Council/Successor Redevelopment Agency/Housing Authority/Financing Authority is hereby called on:
Wednesday, December 6, 2023 @ 5:00 p.m.
City Council Chambers
100 W. California Avenue
Ridgecrest, California
Said SPECIAL CLOSED SESSION MEETING shall be for the purpose of:
CONFERENCE WITH LEGAL COUNCIL:
1. PENDING LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(1) Finley v. City of Ridgecrest et al. - Case No. BCV-22-100048
2. PENDING LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(1) Todd v. Dilda - Court Case No. BCV-23-101356 TCS
3. PENDING LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(1) Holland v. City of Ridgecrest et al. - Case No. 1:22-CV-01578-JLT-CDB
4. PENDING LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(2) (one case) Dated: November 30, 2023
Eric A. Bruen, Mayor / Chair
ATTEST:
Ricca Charlon, City Clerk
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RIDGECREST CITY COUNCIL
SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY
HOUSING AUTHORITY
AGENDA
Wednesday, December 6, 2023 Closed Session – 5:00 p.m.
Regular Session – 6:00 p.m.
CALL TO ORDER
• Roll call
APPROVAL OF AGENDA
PUBLIC COMMENT ON CLOSED SESSION
CLOSED SESSION - CONFERENCE WITH LEGAL COUNCIL
PENDING LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(1) Finley v. City of Ridgecrest et al. - Case No. BCV-22-100048 PENDING LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(1) Todd v. Dilda - Court Case No. BCV-23-101356 TCS
PENDING LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(1) Holland v. City of Ridgecrest et al. - Case No. 1:22-CV-01578-JLT-CDB PENDING LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(2) (one case)
REGULAR SESSION
• Pledge Of Allegiance
• Invocation
ATTORNEY REPORT OUT OF CLOSED SESSION
PRESENTATIONS
1. Employee Service Award Presentations Council
PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA - Persons wishing to address the Council on matters that are within the Council’s jurisdiction and DO NOT ALREADY APPEAR ON THE AGENDA, may do so at this time.
COUNCIL ANNOUNCEMENTS/DIRECTION
CONSENT CALENDAR – All Matters Listed Under The Consent Calendar Are To Be Considered Routine And Enacted By One Motion Unless Pulled By A Council Member Or A Member Of The Public.
2. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated November 15, 2023 Charlon
AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – December 6, 2023
3. A Resolution Of The City Council Of The City Of Ridgecrest Adopting Caltrans Local Assistance Procedures Manual Chapter 10: Consultant Selection Reed
DISCUSSION AND ACTION ITEMS
4. Grant Acceptance For A Grant Awarded From The University Of California – Davis School Of Veterinary Medicine Chief Scott
5. Proposed Action To Adopt A Resolution Of The Ridgecrest City Council Authorizing Submittal Of Application For CalRecycle SB1383 Local Assistance Grant Program FY 22-23 McKenzie
6. Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) Hayman
7. Resolution Of The City Council Of The City Of Ridgecrest Authoring The City Manager To Execute Agreements With The California Department Of Transportation For The Inyokern Transfer Hub Xeriscaping Project Reed
8. A Resolution To Accept The Base Bid As Submitted By All American Fence Erectors, Allocate Budgeted Capital Funds, And Up To $12,961.00 For A Contingency For A Maximum Total Of Up To $107,111.00. Award A Construction Contract To All American Fence Erectors To Construct The CDBG Leroy Jackson Fencing Project; Project No. 17.21.1, For Ninety-Four Thousand One Hundred Fifty Dollars ($94,150.00); And, Authorize The City Manager, Ronald Strand, To Execute The Contract & Agreement Reed
PUBLIC HEARINGS
9. A CONTINUED Public Hearing And Resolution Approving The Fiscal Year 24-25 Annual Application Regarding The Kern County Community Development Block Grant (CDBG) Program Wegener
COMMITTEE REPORTS
Economic Development Committee
Members: Kyle Blades and Solomon Rajaratnam
Meeting: 1st Monday of the month @ 5:15 p.m.
Location: City Hall Council Chambers
➢ Report from 12/04/23
Parks, Recreation, and Quality of Life Committee
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1st Tuesday each month at 5:30 p.m.
Location: Kerr McGee Center Meeting Rooms
➢ Report from 12/05/23
AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – December 6, 2023
Ridgecrest Area Convention and Visitor Bureau (RACVB)
Members: Solomon Rajaratnam and Megan McKenzie (staff)
Meeting: 4th Wednesday each month at 9:00 a.m.
Location: California Welcome Center
➢ Report from 12/06/23
City Organization and Services Committee (‘City Org’)
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1st Thursday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Report from 11/2/23 – Canceled
➢ Next meeting 12/07/23
Finance Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 2nd Tuesday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Report from 11/14/23 – Canceled
➢ Next meeting 12/12/23
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4th Thursday each month at 5:00 p.m.
Location: City Hall Council Chambers
➢ Report from 11/23/23 – Canceled
➢ Next meeting 12/28/23
OTHER COMMITTEES, BOARDS, OR COMMISSIONS
CITY MANAGER REPORT
FUTURE AGENDA ITEMS
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Employee Service Award Presentations
PRESENTED BY: Mayor and City Council
SUMMARY:
Service recognition awards presented by the Ridgecrest City Council to employees who have reached milestones in increments of five (5) or more years of employment with the City of Ridgecrest.
4 th Quarter October - December 2023
15 Years
Lori Blowers – Police Administration
Ricca Charlon – City Clerk
10 Years
Matt Rowland - Police
5 Years
Lovette Alligood – Public Works
Alan Jones – Parks & Rec
FISCAL IMPACT: None
ACTION REQUESTED:
Presentation Of Certificates To Employees By City Council Members CITY MANAGER’S RECOMMENDATION:
Action as requested
Submitted by: Ricca Charlon Action Date: Dec 6, 2023
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated November 15, 2023
PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:
Draft Minutes of the City Council / Successor Redevelopment Agency / Housing Authority / Financing Authority Regular Meeting Dated November 15, 2023 FISCAL IMPACT: None
ACTION REQUESTED: Approve minutes
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: Dec 6, 2023
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RIDGECREST CITY COUNCIL
SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY
HOUSING AUTHORITY
DRAFT MINUTES
Wednesday, November 15, 2023 Regular Session – 6:00 p.m.
This meeting was recorded and will be on file in the Office of the City Clerk for a certain period of time from date of approval by the Ridgecrest City Successor Agency/Financing Authority/Housing Authority. Meetings are recorded solely for the purpose of preparation of minutes.
ROLL CALL – 6:00 p.m.
Council Present: Mayor Pro-Tem Solomon P. Rajaratnam; Vice Mayor Kyle Blades; Council Member Skip Gorman
Absent: Mayor Eric A. Bruen; Council Member L. Scott Hayman Staff Present: City Attorney M. Koczanowicz; City Manager Strand; City Clerk Charlon; Captain Tucker; Parks & Rec Director Wegener
APPROVAL OF AGENDA - Blades suggested the switch of items 1 & 2 and to continue the IWVGA item to next meeting since Hayman is absent.
Motion To Approve Agenda with changes – Blades - Gorman 3 Ayes; 2 Absent NOTE: The vote is displayed in bold below each item. For example, Blades-Rajaratnam denotes Council Member Blades made the motion and Council Member Rajaratnam seconded the motion. Ayes, Noes, Absents, Abstentions follow.
REGULAR SESSION
PRESENTATIONS
1. Life Saving Awards Council
Sergeant N. Lloyd / Officers Bebee, Cushman, Henderson, Quiroz, Smith
2. Award Presentation for Evan Etoch Foundation Chief Scott PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA – R. Blackwell
COUNCIL ANNOUNCEMENTS/DIRECTION
CONSENT CALENDAR
3. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated October 18, 2023 Charlon
4. Grant Application For A United States Department Of Justice, Byrne Justice Assistance Grant Captain Tucker
5. A Resolution Of The Ridgecrest City Council Authorizing Acceptance Of The State Of California, Office Of Traffic Safety Step Grant Captain Tucker Motion To Approve Consent Calendar – Gorman - Blades 3 Ayes; 2 Absent
DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – November 15, 2023
DISCUSSION AND ACTION ITEMS
6. Approval Of A City Of Ridgecrest Records Retention Schedule Charlon • City Clerk reviewed the staff report
• No public comment
Motion To Approve – Blades - Gorman 3 Ayes; 2 Absent
7. Proposed Approval Of Increased Appropriations To The Fiscal Year 2023-2024 Budget To Cover Increased Costs Related to the Animal Shelter Laundry Project Chief Scott • Capt. Tucker reviewed the staff report
• Blades recommended a contingency so as to prevent the need to come back and stall the project. Council suggests raising the total amount to a $40,000 increase. • Public comment R. Blackwell; B. Bayne
Motion To Approve with the increase to $40,000 – Blades - Gorman 3 Ayes; 2 Absent
8. Proposed Action To Adopt A Resolution Of The Ridgecrest City Council Amending The Administrative Purchasing Policy To Include Paper Purchasing Requirements Per CA SB1383 Regulations McKenzie
• M. McKenzie reviewed the staff report
• No public comment
Motion To Approve – Blades - Gorman 3 Ayes; 2 Absent
9. Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) Hayman
*To be heard at next meeting due to Hayman’s absence
PUBLIC HEARING
10. A Public Hearing And Resolution Approving The Fiscal Year 2024-2025 Annual Application Regarding The Kern County Community Development Block Grant (CDBG) Program Wegener • Public hearing opened at 7 pm
• Item not ready for presentation and staff suggested continuing to Dec. 6, 2023 meeting • Motion To continue to Dec. 6, 2023 meeting – Gorman - Blades 3 Ayes; 2 Absent
COMMITTEE REPORTS
Ridgecrest Area Convention and Visitor Bureau (RACVB)
Members: Solomon Rajaratnam and Megan McKenzie (staff)
Meeting: 4th Wednesday each month at 9:00 a.m.
Location: California Welcome Center
➢ Report from 10/25/23
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4th Thursday each month at 5:00 p.m.
Location: City Hall Council Chambers
➢ Report from 10/26/23
DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – November 15, 2023
City Organization and Services Committee (‘City Org’)
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1
st Thursday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Report from 11/2/23 - Canceled
Economic Development Committee
Members: Kyle Blades and Solomon Rajaratnam
Meeting: 1st Monday of the month @ 5:15 p.m.
Location: City Hall Council Chambers
➢ Report from 11/06/23
Parks, Recreation, and Quality of Life Committee
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1st Tuesday each month at 5:30 p.m.
Location: Kerr McGee Center Meeting Rooms
➢ Report from 11/07/23
Finance Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 2nd Tuesday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Report from 11/14/23
OTHER COMMITTEES, BOARDS, OR COMMISSIONS
CITY MANAGER REPORT
FUTURE AGENDA ITEMS
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT – 7:23 p.m.
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: A Resolution Of The City Council Of The City Of Ridgecrest Adopting Caltrans Local Assistance Procedures Manual Chapter 10: Consultant Selection PRESENTED BY: Travis Reed, Deputy City Manager/Public Work Director SUMMARY:
Staff has been utilizing the Local Area Procedures Manual (LAPM) as issued by Caltrans for some years. This policy governs our selection for Architectural and Engineering Contracts.
In this document, it outlines the RFP process, which we follow and have used for the selection of Consultants.
This is a house-keeping item as we are required to formally adopt Chapter 10.
FISCAL IMPACT: None
ACTION REQUESTED: Adopt Resolution formalizing Chapter 10 CITY MANAGER’S RECOMMENDATION: Action as Requested
Submitted by: Travis Reed Action Date: December 6
th
, 2023
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RESOLUTION NO. 23-Xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIDGECREST ADOPTING CALTRANS LOCAL ASSISTANCE
PROCEDURES MANUAL CHAPTER 10: CONSULTANT SELECTION
WHEREAS, the City of Ridgecrest is responsible for constructing transportation projects that are state and federally funded; and,
WHEREAS, in order to comply with the Federal regulations and due to limited staffing and expertise, certain services including Architectural and Engineering (A&E) are contracted out to qualified firms; and,
WHEREAS, the Federal regulations set forth standards for procuring and administering A&E contracts; and,
WHEREAS, the provisions of the Brooks Act (40 United States Code, Section 1104) requires local agencies to award federally funded engineering and design-related contracts, otherwise known as A&E contracts, on the basis of fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 CFR 31.201-3); and, WHEREAS, pursuant to 23 CFR 172.5 (b), local agencies shall develop and sustain organizational capacity and provide the resources necessary for the procurement, management, and administration of engineering and design related consultant services, reimbursed in whole or in part with Federal-Aid Highway Program funding as specified in 23 U.S.C. 106(g)(4)(A); and,
WHEREAS, the provision 23 CFR 172.5 (b)(1) requires local agencies to adopt written policies and procedures for the procurement, management, and administration of engineering and design related consultant services in accordance with applicable Federal and State laws and regulations; and,
WHEREAS, the State of California Department of Transportation (Caltrans) has developed the Local Assistance Procedures Manual (LAPM), Chapter 10, Consultant Selection which sets forth policies and procedures to be utilized by local agencies in the procurement and management of A&E contracts on state and federal funded transportation projects to ensure compliance with applicable Federal and State laws and regulations and to maintain eligibility for Federal-Aid reimbursement; and,
WHEREAS, the City of Ridgecrest has developed additional policies, specifically an affidavit, and statement for conflict of interest required to be signed by each RFP Scorer, to ensure avoidance of conflict of interests in the performance of A&E services for state and federal funded transportation projects; and,
WHEREAS, the City of Ridgecrest desires to adopt Caltrans's LAPM Chapter 10 and the City's conflict of interest policies for compliance with Federal regulations on the procurement and administration of A&E contracts.
Resolution No 23-Xx Page 2 of 2
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby:
Section 1. The above recitals are true and correct findings of the Ridgecrest City Council.
Section 2. The Local Assistance Procedures Manual, Chapter 10, Consultant Selection dated, January 2023, or as amended in future updates, is approved and adopted.
Section 3. The A&E Services Administration and Procurement Policies developed by the City of Ridgecrest for State and Federal Funded Projects dated January 2023, are approved and adopted.
Section 4. Authorizes the City Manager to approve amendments to the City's adopted A&E Services Administration and Procurement Policies in consultation with the Federal Highways Administration.
APPROVED AND ADOPTED this 6
th day of December, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Eric A. Bruen, Mayor
ATTEST:
_______________________
Ricca Charlon
City Clerk
Local Assistance Procedures Manual Chapter 10
Consultant Selection
Page i of ix
January 2023
Chapter 10 Consultant Selection
Contents
10.1 FEDERALLY-FUNDED A&E CONTRACTS .............................................................. vi
10.1.1 General ...................................................................................................................... 1 Introduction ............................................................................................................... 1 Definition of an Architectural and Engineering Consultant ........................................ 1 Architectural and Engineering Consultants ............................................................... 1 Non-A&E Consultants ............................................................................................... 2 Selecting the Project ................................................................................................. 2 Subcontracted Services ............................................................................................ 2 Organizational and Consultant Conflicts of Interest .................................................. 2 Consultants Performing Work on Multiple Phases of Federal-aid Projects ............... 3
10.1.2 Identifying & Defining a Need for Consultants............................................................ 4 Appointing the Contract Administrator....................................................................... 4 Segmenting Consultant Work.................................................................................... 5 Specify Products to be Delivered .............................................................................. 6 Scope of Consultant Work......................................................................................... 6 Title VI Assurances ................................................................................................... 6 Non-Discrimination Clause........................................................................................ 7 Disadvantaged Business Enterprise (DBE) Participation .......................................... 7 Determine Type of Contract ...................................................................................... 8 Determining the Project Schedule...........................................................................10 Determine Method of Payment................................................................................11 Cost-Plus-Fixed Fee................................................................................................11 Cost Per Unit of Work..............................................................................................11 Specified Rates of Compensation ...........................................................................12 Lump Sum...............................................................................................................12
10.1.3 A&E Consultant Audit and Review Process .............................................................13 Applicable Standards ..............................................................................................13 Audit Guidance Available ........................................................................................13 Allowable Costs.......................................................................................................14 Safe Harbor Rate ....................................................................................................15 Approval or Acceptance of Indirect Cost Rates.......................................................16 Cognizant Letters of Approval.................................................................................16 Caltrans Acceptance of Indirect Cost Rate..............................................................16 Financial Review Performed Prior to Contract Execution........................................17 Local Assistance Procedures Manual Chapter 10
Consultant Selection
Page ii of ix
January 2023
Local Public Agencies’ Responsibilities...................................................................17 Consultants’ Responsibilities (Both prime consultants and subconsultants) ...........18 Independent Office of Audits and Investigations’ Responsibilities...........................19 Audits and Reviews to be Performed ......................................................................19 Indirect Cost Rate Audits.........................................................................................19 CPA Workpaper Reviews........................................................................................19 Contract Audits........................................................................................................20 Incurred Cost Audits................................................................................................20 Audit Findings and Review Deficiencies..................................................................20
10.1.4 Consultant Selection Methods..................................................................................22 One-Step RFP.........................................................................................................22 One-Step RFQ ........................................................................................................23 Two-Step (RFQ Followed by RFP)..........................................................................23
10.1.5 Consultant Selection Using the One-Step RFP Method...........................................25 Appoint Consultant Selection Committee................................................................25 Develop Technical Criteria for Evaluation of Proposals...........................................25 Develop Schedule for Consultant Selection ............................................................25 Prepare RFP ...........................................................................................................26 Financial Management and Accounting System Requirements ..............................27 Advertise for Consultants ........................................................................................27 Conduct Proposer’s Conference or Answer Written Questions...............................27 Receive and Evaluate Technical Proposals ............................................................28 Develop Final Ranking and Notify Consultants of Results ......................................28 Negotiate Contract with Top-Ranked Consultant ....................................................28
10.1.6 Consultant Selection Using the One-Step RFQ Method ........................................30 Appoint Consultant Selection Committee................................................................30 Develop Technical Criteria for Evaluation of Qualifications.....................................30 Develop Schedule for Consultant Selection ............................................................31 Prepare RFQ...........................................................................................................31 Financial Management and Accounting System Requirements ..............................32 Advertise for Consultants ........................................................................................32 Issue/Publish RFQ ..................................................................................................32 Receive/Evaluate Statements of Qualifications and Develop Shortlist....................32 Notify Consultants of Shortlist .................................................................................33 Interview Top-Ranked Consultants .........................................................................33 Develop Final Ranking and Notify Consultants of Results ......................................34 Conduct Scoping Meeting .......................................................................................34 Request Cost Proposal ...........................................................................................34 Local Assistance Procedures Manual Chapter 10
Consultant Selection
Page iii of ix
January 2023
Negotiate Contract with Top-Ranked Consultant ....................................................34
10.1.7 Consultant Selection Using the Two-Step RFQ/RFP Method ................................. 36 Combined RFQ and RFP ........................................................................................36 Categorize work ......................................................................................................37 Establish Minimum Qualifications............................................................................37 Issue RFQ...............................................................................................................38 Set-Up Evaluation Process .....................................................................................39 Evaluate Qualifications and Add Firm to List...........................................................39 Maintain List ............................................................................................................39 Issue RFP to Pre-Qualified Consultants on List ......................................................40 Conduct Proposer’s Conference or Answer Written Questions...............................40 Receive and Evaluate Technical Proposals ............................................................40 Develop Final Ranking and Notify Consultants of Results ......................................41 Request Cost Proposal and Negotiate Contract with Top-Ranked Consultant........41
10.1.8 Completing the Project ............................................................................................42 Develop the Final Contract......................................................................................42 Review and Approval of Contracts ..........................................................................43 Execute Contract and Issue Notice to Proceed to Consultant................................. 44 Administer the Contract...........................................................................................44 Substitution of Consultant Personnel and Subconsultants......................................45 Invoicing (or Progress Payments) ...........................................................................45 Contract Amendments.............................................................................................45 Performance Evaluation..........................................................................................46 Project Records.......................................................................................................47 Retention Clauses...................................................................................................48 Review of Local Public Agency Actions...................................................................48
10.1.9 Miscellaneous Considerations..................................................................................48 Agreements with Other Governmental Agencies ....................................................48 Small Purchase Contracts.......................................................................................48 Noncompetitive Negotiated Contracts (Sole-Source)..............................................49 Retaining a Consultant in a Management Support Role (CMSR)............................49 Construction Engineering Services .........................................................................52
10.1.10 Program Management............................................................................................53
10.1.11 References.............................................................................................................54
10.2 STATE-ONLY FUNDED A&E CONTRACTS.............................................................56
10.2.1 General ....................................................................................................................56
10.2.2 Definition of A&E ......................................................................................................56
10.2.3 Minimum Audit Requirements ..................................................................................57 Local Assistance Procedures Manual Chapter 10
Consultant Selection
Page iv of ix
January 2023
A. Written Procedures .............................................................................................57 B. Conflict of Interest...............................................................................................57 C. Records ..............................................................................................................57 D. Full & Open Competition.....................................................................................57 E. Selection Basis ...................................................................................................57 F. Publication ..........................................................................................................58 G. Solicitation ..........................................................................................................58 H. Cost Analysis......................................................................................................58 I. Negotiations .........................................................................................................58 J. Audit and Review Process...................................................................................58 K. A&E Consultant Contract Form...........................................................................58
10.3 NON-A&E CONTRACTS ...........................................................................................62 Scope......................................................................................................................62 Determining Non-A&E.............................................................................................62 Example of Determining Non-A&E..........................................................................62 Intelligent Transportation System (ITS) Projects .....................................................63 Non-Infrastructure Projects .....................................................................................63 Governing Regulations and Codes for Non-A&E ....................................................64 Procurement of Non-A&E Consultant Contracts .....................................................64 RFP Basic Requirements ........................................................................................64 Additional Requirements and Evaluation Criteria ....................................................65 Consultant’s Proposal .............................................................................................65 Cost Proposal Worksheet........................................................................................66 DBE Consideration..................................................................................................66 Administrative Requirements ..................................................................................66 Oral Presentations Optional ....................................................................................67 Cost-Effective / Public Interest Finding....................................................................67 Protest / Appeals / Reinstatement Procedures........................................................67
10.4 A&E OVERSIGHT PROGRAM AND PROCESS REVIEW........................................68 General ...................................................................................................................68 Type of Reviews......................................................................................................68 A&E Consultant Contract Form Review ..................................................................68 Review Findings and Deficiencies...........................................................................69
10.5 SANCTIONS..............................................................................................................70 Local Assistance Procedures Manual Chapter 10
Consultant Selection
Page v of ix
January 2023
Exhibits
Exhibit 10-B: Suggested Consultant Evaluation Sheet
Exhibit 10-G: Individual A&E Task Order DBE Tracking Sheet Exhibit 10-I: Notice to Proposers DBE Information
Exhibit 10-O1: Consultant Proposal DBE Commitment
Exhibit 10-O2: Consultant Contracts DBE Commitment
Exhibit 10-Q: Disclosure of Lobbying Activities
Exhibit 10-R: A&E Boiler Plate Agreement Language
Exhibit 10-S: Consultant Performance Evaluation
Exhibit 10-T: Conflict of Interest & Confidentiality Statement Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement
All LAPM Exhibits are located at:
https://dot.ca.gov/programs/local-assistance/forms/local-assistance-procedures-manual-forms Local Assistance Procedures Manual Chapter 10
Consultant Selection
Page vi of ix
January 2023
10.1 FEDERALLY-FUNDED A&E CONTRACTS
Procurement Planning
1 2 3
*Select Project
*Set Project Objectives
*Determine Project Schedule
*Obtain CTC Allocation/Federal
Authorization to Proceed prior to
beginning reimbursable work
*Exhibit 10-U: Consultant in
Management Support Role
Conflict of Interest and
Confidentiality Statement (if
applicable): submit Conflict of
Interest (COI) and Scope of Work
(SOW) to DLA-HQ prior to
contract advertisement.
*Identify Need for Consultant
*Appoint Contract Administrator
*Segment Project Work
*Define SOW of A&E Consultant
*Specify Products to be
delivered
*Estimate Cost of Consultant Work
(independent cost estimate)
*Determine Type of Contract
(Project Specific or On-Call)
*Determine Method of Payment:
Lump Sum; Cost-Plus- FixedFee; Cost Per Unit of Work; or Specific Rate of Compensation
*Submit Exhibit 9-D to DLAE
A&E = Architectural and Engineering
IOAI = Caltrans Independent Office of Audits and
Investigations
CT = Caltrans
DBE = Disadvantaged Business Enterprise
DLA = Division of Local Assistance
DLAE = District Local Assistance Engineer
DLA-HQ = Division of Local Assistance-Headquarters
LAPG = Local Assistance Program Guidelines
LAPM = Local Assistance Procedures Manual
MOP = Method of Payment
RFP = Request for Proposal
RFQ = Request for Qualifications
SOQ = Statement of Qualifications
SOW = Statement/Scope of Work
Local Public Agency Local Public Agency
Figure 10-1: A&E Contract Procurement Process Workflow Diagram Local Public Agency
Local Assistance Procedures Manual Chapter 10
Consultant Selection
Page vii of ix
January 2023
Solicitation Documents and Advertisement
4 5 6
*Determine Solicitation Document;
RFP or RFQ
*Appoint Consultant Selection
Committee
*Collect signed Conflict of Interest
forms and Confidentiality
Statements (see Exhibit 10-T:
Conflict of Interest &
Confidentiality Statement) from all
members involved in process
*Determine Procurement Schedule
*Develop Technical Criteria
with level of importance
(weights) for Evaluation of
Proposals or the SOQ
*Prepare RFP or RFQ documents
*Include SOW, evaluation
process/criteria, DBE goals, MOP
and cost proposal, minimum
requirement of Proposal or SOQ,
Notice to Proposers DBE
Information (see Exhibit 10-I:
Notice to Proposers DBE
Information), submittal deadline
*Advertise RFP or RFQ on public
forum (newspaper, technical
publications, web hosting site,
other local websites)
*Issue RFP or RFQ (direct mailing,
web posting)
*Prepare to respond to
RFP/RFQ questions
*Conduct Proposers Conference,
if applicable
*Receive Proposals or
SOQs
A&E = Architectural and Engineering
IOAI = Caltrans Independent Office of Audits and
Investigations
CT = Caltrans
DBE = Disadvantaged Business Enterprise
DLA = Division of Local Assistance
DLAE = District Local Assistance Engineer
DLA-HQ = Division of Local Assistance-Headquarters
LAPG = Local Assistance Program Guidelines
LAPM = Local Assistance Procedures Manual
MOP = Method of Payment
RFP = Request for Proposal
RFQ = Request for Qualifications
SOQ = Statement of Qualifications
SOW = Statement/Scope of Work
Local Public Agency Local Public Agency Local Public Agency Figure 10-1: A&E Contract Procurement Process Workflow Diagram- continued Local Assistance Procedures Manual Chapter 10
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January 2023
Evaluation and Selection of Consultant
Contract Negotiation
7 8 9
*Distribute Proposals or SOQs to
Selection Committee members
*Ensure Committee members receive
the appropriate score sheet to use
(see Exhibit 10-B: Suggested
Consultant Evaluation Sheet)
*Convene Selection Committee and
evaluate submittals; perform
reference checks
*Develop Final Ranking or Short List
*Notify proposers of ranking/Short
List
*Retain all original score sheets and
summaries
*Send out RFPs to Short List
(two-step process)
*Conduct Interview of Short List
(if needed)
*Develop Final Ranking of
Consultants, and notify all
interviewees
*Retain all original score sheets
and summaries
*Provide a copy of Standard
Contract language to top ranked
consultant and invite for
negotiations (see Exhibit 10-R:
Boiler Plate Agreement
Language for standard contract
language and provisions)
*Open and analyze cost
proposal from the Highest
Ranked firm
*Review and evaluate Financial
Document Review Request and
supporting documents, if
applicable
*Issue Financial Review Letter, if
applicable
*Perform contract audits and
reviews, if applicable, or review
of CPA audited ICR workpapers
to issue Cognizant Letter of
Approval
A&E = Architectural and Engineering
IOAI = Caltrans Independent Office of Audits and
Investigations
CT = Caltrans
DBE = Disadvantaged Business Enterprise
DLA = Division of Local Assistance
DLAE = District Local Assistance Engineer
DLA-HQ = Division of Local Assistance-Headquarters
LAPG = Local Assistance Program Guidelines
LAPM = Local Assistance Procedures Manual
MOP = Method of Payment
RFP = Request for Proposal
RFQ = Request for Qualifications
SOQ = Statement of Qualifications
SOW = Statement/Scope of Work
Local Public Agency Local Public Agency
Caltrans IOAI
Figure 10-1: A&E Contract Procurement Process Workflow Diagram- continued Local Public Agency
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Contract Negotiation
Contract Execution
10 11 12
*Negotiate contract costs with the
most qualified Consultant
*Prepare and retain record of cost
negotiations
*Initiate CT IOAI Financial Review
Section (LAPM Section 10.1.3)
and send documents (Financial
Document Review Request), if
applicable, to Caltrans IOAI
*Receive and analyze findings of
the Financial Review Letter from
CT IOAI, if any
*Address and resolve all findings
by IOAI and incorporate into final
contract and cost proposal
*If negotiations with First ranked
firm is unsuccessful, formally
terminate cost negotiations with
Consultant and begin Step 9 with
next ranked consultant
*Complete the A&E Consultant
Contract form and submit to the
database prior to award or after
award, but no later than the first
invoice
*Retain A&E Consultant Contract
form
*Finalize contract, cost proposal
*Retain copy of contract Financial
Review Letter with acceptance,
denial, or adjustment of the ICR
*Sign and Execute contract
*Offer and conduct debriefing
meetings with consultant who
asked for one
*Send copies of executed
contract and DBE Commitment
(Exhibits 10-O1: Consultant
Proposal DBE Commitment and
Exhibit 10-O2: Consultant
Contract DBE Commitment) to
DLAE
*Close out contract procurement
process
*Prior to concurring with invoice
payment related to consultant
services, ensure submittal of
the A&E Consultant Contract
form and has a copy of the
executed consultant contract
on file and 10-O1 and 10-O2.
Also, check IOAI database to
ensure that Certification of
Indirect Costs and Financial
Management System, if
applicable, has been received
by IOAI
*Perform Incurred Cost Audit, if
selected
A&E = Architectural and Engineering
IOAI = Caltrans Independent Office of Audits and
Investigations
CT = Caltrans
DBE = Disadvantaged Business Enterprise
DLA = Division of Local Assistance
DLAE = District Local Assistance Engineer
DLA-HQ = Division of Local Assistance-Headquarters
LAPG = Local Assistance Program Guidelines
LAPM = Local Assistance Procedures Manual
MOP = Method of Payment
RFP = Request for Proposal
RFQ = Request for Qualifications
SOQ = Statement of Qualifications
SOW = Statement/Scope of Work
Local Public Agency Local Public Agency DLAE
Figure 10-1: A&E Contract Procurement Process Workflow Diagram- continued Caltrans IOAI
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10.1.1 General
Introduction
A Local Public Agency (LPA) may engage consultants to perform architectural, engineering, and related services to develop a federal-aid funded project. LPAs requesting federal funds to reimburse Architectural and Engineering (A&E) Consultants must follow the selection and contracting procedures detailed in Section 10.1 of this chapter. LPAs using local funds to procure an A&E Consultant on a federal-aid funded project and will not seek federal reimbursement for the consultant cost may choose not to follow the selection and contracting procedures detailed in Section 10.1 of this chapter. LPAs using local funds to procure a Consultant in a Management Support Role (CMSR) are required to obtain FHWA approval (see Section 10.1.9: Retaining a CMSR of this chapter).
Definition of an Architectural and Engineering Consultant 23 CFR 172 and California Government Code 4525 defines A&E services as those private consulting firms providing architectural, landscape architectural, engineering, environmental, land surveying, construction engineering, or program management.
Architectural and Engineering Consultants
The Brooks Act (40 U.S.C.1104) requires LPAs to award federally-funded engineering and design related contracts based on fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 CFR 172), at a fair and reasonable price (48 CFR 31.201-3).
Cost proposals submitted to the LPA must be sealed and must not be included as a criterion for rating such consultants. After ranking, cost negotiations will begin with the most qualified consultant and only their cost proposal will be opened. Should negotiations fail or result in a price that the LPA does not consider fair and reasonable, negotiations must be formally terminated, and the LPA must then undertake negotiations with the second most qualified consultant.
If the negotiations with the second most qualified firm are not successful, negotiations must be formally terminated and the LPA must then undertake negotiations with the third most qualified consultant, and so on, until the price is determined to be fair and reasonable by the LPA.
In selecting an A&E consultant, a detailed technical proposal or qualifications proposal, and a proposed contract will be required.
Depending upon the scope of work, the required contract provisions may need to include the California State Prevailing Wages (Federal Payment of Predetermined Minimum Wage applies only to federal-aid construction contracts). Prevailing wages will apply if the services to be performed will involve land surveying (such as flag persons, survey party chief, rodman or chainman), materials sampling and testing (such as drilling rig operators, pile driving, crane operators), inspection work, soils or foundation investigations, environmental hazardous materials and so forth. California State Prevailing Wage information is available through the California Department of Industrial Relations (DIR) websites below:
Consultants will need to provide their Prevailing Wage Policy if their participation on the project includes prevailing wage work. The policy will include information on the accounting treatment of delta base and delta fringe, and verify the accounting treatment is consistent every year.
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• DIR FAQ website
• DIR Wage Determination website
• Caltrans Prevailing Wage Interpretive Guidance
Non-A&E Consultants
Consultants other than A&E consultants may be selected using cost, cost and qualifications (best value), or other critical selection criteria. The procedures outlined in this chapter can be modified for selecting non-A&E consultants by adding a cost item to the contract proposal.
For more details on non-A&E consultants, see Section 10.3: Non-A&E Contracts of this chapter.
Selecting the Project
The LPA is responsible for selecting and initiating a federal-aid financed transportation project.
The decision to begin project development is influenced by the project needs, its acceptability, the timing of studies, financing, and construction. The LPA must identify the project’s objectives including the general level of improvement or service, operating standards, maximum cost, and the target date for project completion before commencing any consultant selection process.
Subcontracted Services
The consultant is responsible for performing the work required under the contract in a manner acceptable to the LPA. The consultant’s organization and all associated consultants and subconsultants must be identified in the proposal. If the consultant wishes to use a subconsultant not specified in the proposal, prior written approval must be obtained from the LPA. The subcontract must contain all required provisions of the prime contract. All subawards must include adequate oversight, management, and administration of engineering and design related consultant services and be administered in accordance with State laws and procedures specified in 23 U.S.C.106(g)(4) and 2 CFR 200.331.
Organizational and Consultant Conflicts of Interest
In the procurement of contracts for engineering services by private consulting firms using federal-aid highway funds, LPAs must take all the steps necessary to prevent fraud, waste, and abuse. The LPA must develop and maintain a written code of conduct governing the performance of its employees (including the contract administrator) engaged in the award and administration of federal-aid highway funded contracts, including the prevention of conflicts of interest in accordance with 23 CFR 172.7(b)(4).
A conflict of interest occurs when a public official’s private interests and his or her public duties and responsibilities diverge or are not consistent. Conflicts of interest may be direct or indirect (e.g., as result of a personal or business relationship). The appearance of a conflict of interest should be avoided as an apparent conflict may undermine public trust if not sufficiently mitigated.
Federal Regulation Governing Conflict of Interest (23 CFR 172.7(b)(4)) requires that:
• LPA must maintain a written code of standards of conduct for employees engaged in the award and administration of engineering and design service contracts; • No contracting agency employee who participates in the procurement, management, or administration of federal-funded contracts or subcontracts must have, directly or Local Assistance Procedures Manual Chapter 10
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indirectly, any financial or other personal interest in connection with such contract or subcontract;
• No person or entity performing services for a contracting agency in connection with a federal-funded project must have, directly or indirectly, any financial or other personal interest, other than employment or retention by the contracting agency, in any contract or subcontract in connection with such project;
• No person or entity performing services for a contracting agency in connection with a federal-aid highway funded project must have, directly or indirectly, any financial or other personal interest in any real property acquired for the project; • No contracting agency employees or agents must neither solicit nor accept gratuities, favors, or anything of monetary value from consultants, potential consultants, or parties to sub-agreements;
• LPA must disclose in writing any potential conflict of interest to FHWA.
Consultants Performing Work on Multiple Phases of Federal-aid Projects LPAs sometimes wish to hire the same consultant firm to perform construction engineering and/or inspection services on the same project on which the firm also performed design services. This can cause project delivery efficiencies, as the design firm is well-suited to verify that the project is being constructed in accordance with the design and can resolve issues related to the design on behalf of the contracting agency. However, this may also pose a potential conflict of interest if the firm has a vested financial interest in failing to disclose deficiencies in its design work product and seeks to insulate itself from pecuniary liability in subsequent phases of the project, such as minimizing or ignoring design errors and omissions, rather than serving the best interests of the contracting agency and the public. Procuring a different firm from the design firm to provide the construction engineering and/or inspection services provides another level of review and reduces the risk of, or potential for, a conflict of interest.
Although federal regulations do not expressly prohibit the same firm from providing services on subsequent phases, the LPAs are responsible for ensuring the public interest is maintained throughout the life of a project and that a conflict of interest, real or apparent, does not occur or is sufficiently mitigated by appropriate public agency controls. Prior to allowing a consulting firm to provide services on subsequent phases of the same project, the contracting agency must establish appropriate compensating controls in policies, procedures, practices, and other safeguards to ensure a conflict of interest does not occur in the procurement, management, and administration of consultant services.
When design and construction phase services are procured under a single solicitation, the selection of the consulting firm must be based on the overall qualifications to provide both design and construction phase services, which require different skill sets, experience, and resources. Procuring these services under different solicitations may result in selection of a more qualified firm to perform services in each phase, as the most qualified firm to perform design phase services may not be the most qualified firm to provide construction phase services. Similarly, the qualifications and capacity of a firm may change over time. As such, it may not be appropriate to contract with a consulting firm to provide construction phase services at the outset of a design phase, knowing that these services may not be needed for an extended period until the preconstruction phase of the project is complete and construction funding authorized. The contract with a consulting firm providing design phase services on a project may not be amended to include construction phase services unless the desired Local Assistance Procedures Manual Chapter 10
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construction phase services were included within the original advertised scope of services and evaluation criteria of the solicitation from which a qualifications-based selection was conducted.
All consultants acting in a management support role must complete Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement (see Section
10.1.9: Miscellaneous Considerations in this chapter) and retain it in the LPA files.
Miscellaneous Considerations Authorization to Proceed
The Federal Highway Administration (FHWA) must give the LPA an Authorization to Proceed (E-76) with the work prior to performing of any work for which federal reimbursement is to be requested, (see LAPM Chapter 3: Project Authorization). Eligible consultant contracts may be procured using local funds prior to receiving the E-76, but reimbursement is for work performed after the E-76 authorization date. If contract is procured using state or local funds, federal procedures must have been followed if seeking federal reimbursement. For state-funded projects see Section 10.2: State-Only Funded A&E Contracts and LAPG Chapter 25: State Programs for Local Agency Projects, for guidance on when work may proceed.
Copies of the Authorization to Proceed and the consultant contract must be retained in the LPA project files for future audit.
10.1.2 Identifying & Defining a Need for Consultants
The need for a consultant is identified by comparing the project’s schedule and objectives with the LPA’s capabilities, its staff availability of the required expertise, and its funding resources. If the LPA does not have sufficient staff capabilities, it may solicit assistance from another agency, or use a qualified private consultant to perform the required work.
If the LPA determines that there is a need to solicit assistance from another LPA, or to use a consultant, the District Local Assistance Engineer (DLAE) should be notified if federal-aid funds are to be requested for the project segment to be contracted out.
Appointing the Contract Administrator
The Contract Administrator is responsible for ensuring the quality of consultant contract products or services. The Contract Administrator is appointed as soon as the need for consultant services is identified. The Contract Administrator is involved throughout the development of the selection process and the contract provisions, and in the administration of the consultant’s work. The Contract Administrator must be a qualified LPA employee or have staff that is qualified to ensure the consultant’s work is complete, accurate, and consistent with the terms and conditions of the consultant contract. On federal-aid contracts, the Contract Administrator or staff members must be a full-time employee and familiar with the work to be contracted out and the standards to be used. The Contract Administrator must also abide by the laws, regulations and policies required as part of accepting federal or state funding for their project. Non-compliance with the laws, regulations, and policies may result in loss of project funding.
The Contract Administrator’s duties are listed in 23 CFR 172.9(d)(1) and include:
• Contract negotiation, contract payment, and evaluation of compliance performance, and quality of services provided by the consultant;
• Being familiar with the contract requirements, scope of services to be performed, and products to be produced by the consultant;
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• Being familiar with the qualifications and responsibilities of the consultant’s staff and evaluating any requested changes in key personnel;
• Scheduling and attending progress and project review meetings, commensurate with the magnitude, complexity, and type of work, to ensure the work is progressing in accordance with established scope of work and schedule milestones; • Documenting contract monitoring activities and maintaining supporting contract records as specified in 2 CFR 200.333;
• Provides direction to ensure the proposed work is advertised properly; • Prepares and distributes the Request for Qualifications (RFQ), description of work, and Request for Proposals (RFP), if used;
• Prepares the draft contract;
• Arranges for preparation before an independent estimate of the value of the work to be contracted out;
• Ensures that the selection procedures are followed;
• Analyzes the selected/best-qualified consultant’s cost proposal; • Ensures contract audit and review procedure is followed; • Ensures that fee/profit negotiation is conducted and keeps records; • Serves as the LPA’s primary contact person for the successful consultant; • Monitors the consultant’s progress and provides direction; • Ensuring consultant costs billed are allowable in accordance with the Federal cost principles and consistent with the contract terms as well as the acceptability and progress of the consultant’s work;
• Identifies other LPA staff for the consultant to contact, if needed; • Closes out the contract at completion, by processing the final invoice; completing a mandatory consultant evaluation, and final DBE utilization reports (Exhibit 17-F: Final Report Utilization of Disadvantaged Business Enterprises (DBE) and First-Tier Subcontractors) or Exhibit 17-F1: Final Report-Utilization of Disadvantaged Business Enterprises (DBE) and First-Tier Subcontractors for On-Call Contracts.
Segmenting Consultant Work
Consultant services are most effective when consultant work is segmented appropriately. The extent of segmenting depends upon the type and complexity of the work. Combining preliminary engineering tasks with the preparation of the required environmental analysis is normally desirable. Preparing an Environmental Assessment (EA) or Environmental Impact Statement (EIS) is more than simply writing a report. Assessment and impact reports include preliminary engineering needed to analyze project alternatives and produce an engineering and planning assessment. Initial project studies include only as much traffic and engineering analysis of alternatives, as is needed to produce a sound EA or EIS (see LAPM Chapter 6 Environmental Procedures and Standard Environmental Reference (SER) Chapters 31:Environmental Assessment (EA)/Finding of No Significant Impact (FONSI) and Chapter 32:Environmental Local Assistance Procedures Manual Chapter 10
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Impact Statement (EIS). Final design must not begin until NEPA environmental approval has been received if federal reimbursement is desired.
Refer to Figure 10-2: Segmenting Consultant Work below, which illustrates several satisfactory ways to segment consultant activities.
Figure 10-2: Segmenting Consultant Work
Specify Products to be Delivered
The Contract Administrator identifies the products and services to be delivered as a result of consultant contract work, and minimum qualification of consultant professionals and staff. These vary depending upon the type of projects and the phase of project development being addressed.
Scope of Consultant Work
The scope of work, which the contract must include, is a detailed description of the products or services the consultant is to provide. From a detailed scope of work, consultants respond to a project advertisement, determine personnel and time requirements, and develop a technical proposal. Therefore, the scope of work must be clear, concise, complete, and describe the deliverables, standards for design and other work, quality control measures, acceptance criteria and deadlines.
Title VI Assurances
Title VI Assurances Appendices A and E must be included in each consultant contract. Include Title VI Assurances Appendices B, C, and D if applicable. The consultant must include the Title VI Assurances Appendices A and E, and if applicable Appendices B, C, and D in all subcontracts to perform work under the contract. Include Title VI Assurances Appendices B, C, and D if applicable. Refer to Exhibit 10-R: A&E Boilerplate Agreement Language, Article XXXII Title VI Assurances.
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Non-Discrimination Clause
The Non-Discrimination Clause (Exhibit 10-R: A&E Boilerplate Agreement Language, Article XVI Non-Discrimination Clause and Statement of Compliance) must be included in each consultant contract. The consultant must include the non-discrimination and compliance provisions of the Non-Discrimination Clause in all subcontracts to perform work under the contract.
Disadvantaged Business Enterprise (DBE) Participation
When administering federal-aid projects, federal regulations (49 CFR 26) require the LPA to comply with the DBE program and take necessary steps to ensure that DBE firms have the opportunity to participate in the projects. Refer to Chapter 9: Civil Rights and Disadvantaged Business Enterprises for DBE requirements for A&E Consultant Contracts.
Estimated Cost of Consultant Work
An independent estimate for cost or price analysis is needed for all consultant contracts (23 CFR 172.7(a)(1)(v)(B)) to ensure that consultant services are obtained at a fair and reasonable price. The estimate must be prepared prior to opening the cost proposal from the top-ranked consultant, so the LPA has a cost comparison to evaluate the reasonableness of the consultant’s cost proposal. The estimate, which is specifically for the use of the LPA’s negotiating team, is to be kept confidential and maintained for records.
A good cost estimate can be prepared only if the scope of work is defined clearly. The scope of work must include a list of the products or services which the consultant is required to deliver, and a time schedule of when they must be delivered.
It should be stressed that all work to be derived from the consultant services, such as preliminary design, environmental, or final design, must be clearly identified in the solicitation of consultant services (RFQ or RFP) and included in the cost estimate. The addition of work to the original scope by amendment should be avoided whenever possible. Contract modifications are required for any amendments to the terms of the existing contract that change the cost of the contract; significantly change the character, scope, complexity, or duration of the work; or significantly change the conditions under which the work is required to be performed.
Some of the costs estimating techniques are:
Analogous Estimating:
Analogous cost estimating is using the actual cost of a previous, similar contract as the basis for estimating the cost of the current contract. Analogous cost estimating is frequently used to estimate costs when there is a limited amount of detailed information about the project.
Analogous cost estimating is generally less accurate, and it is most reliable when previous projects are similar in fact, and not just in appearance, and it uses expert judgment.
Parametric Estimating:
Parametric estimating is a technique that uses statistical relationship between historical data and other variables to calculate a cost estimate for an activity resource. This technique can produce a higher level of accuracy depending upon the sophistication, as well as underlying resource quantity and the cost data. A cost example would involve multiplying the planned quantity of work by the historical cost per unit to obtain the estimated cost of the contract.
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Bottom-up Estimating:
This technique involves estimating the cost for individual work in the contract with the lowest level of detail. This detailed cost is then summarized or rolled up to determine a total cost of contract. Cost detail should include estimated hours per task, labor hourly cost for professional and non-professional classifications, subconsultant costs, other project direct costs, and profit.
Labor costs should be broken down to direct labor and indirect cost rates, if possible.
If more than one project or phase of work is to be developed within the consultant contract, separate cost estimates are required for each project or phase of work. Separate cost estimates are required for each milestone and portion of the work expected to be subcontracted.
For on-call (as-needed) contracts, the cost estimate/analysis should include at minimum, a historical analysis of annual needs for consultant work, professional labor cost and market analysis, and reasonable profit analysis.
Determine Type of Contract
Types of contracts to be used are described as follows:
• Project-specific contract is between the LPA and consultant for the performance of services and a defined scope of work related to a specific project or projects. • Multi-phase contract is a project-specific contract where the defined scope of work is divided into phases which may be negotiated and executed individually as the project progresses.
• On-call contract is a contract that may be utilized for a number of projects, under which task or work orders are issued on an as-needed basis, for an established contract period and maximum total contract dollar amount. On-call contracts are typically used when a specialized service of indefinite delivery or indefinite quantity is needed for a number of different projects, such as construction engineering, design, environmental analysis, traffic studies, geotechnical studies, and field surveying, etc. Many agencies use these contracts to address peaks in workload of in-house engineering staff and/or to perform a specialized service which the agency does not have. On-call contracts must specify a reasonable maximum length of contract, not to exceed five (5) years, and a maximum total contract dollar amount (23 CFR 172). The maximum dollar amount for all contracts awarded under the solicitation must be stated in the solicitation. The maximum dollar amount is the aggregate of the on-call contracts anticipated to be awarded. For example, if the solicitation lists that up to five (5) contracts may be awarded, the aggregate amount of these 5 contracts is the maximum contract dollar amount. Setting maximum amount on each on-call contract under a multiple on-call solicitation does not meet the intent of 23 CFR 172. How many contracts are anticipated to be awarded must be stated in the solicitation. How task orders will be issued must be stated in the solicitation.
There are two options on how task orders must be awarded under multiple on-call contracts for the same type of service under the same solicitation:
1. Through an additional qualifications-based selection procedure also known as mini-RFP.
• Solicit task order to the multiple on-call consultants on the master on-call contracts
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o Master on-call contracts are contracts awarded to on-call consultants at the initial RFQ/RFP procurement process. o Solicitation may be informal, e.g. email, letter, etc.; documentation is required.
o Evaluation criteria must be included in the solicitation. The miniRFP contains evaluation criteria that matches the strengths of the qualified firms to the specifics of the known tasks, thereby selecting the most qualified firm for each task.
o The evaluation criteria can include:
i. availability of personnel,
ii. staff capabilities,
iii. DBE (10% or less of overall score); the overall DBE goal was established at the master on-call contract,
iv. completion of time,
v. experience of consultant
vi. specialized expertise, and past performance.
• Evaluate and rank proposals and select from the multiple on-call contracted consultants
o Recommend at least three panel members to evaluate and rank o Evaluate based on criteria in mini-RFP solicitation
• Negotiate and award to the on-call contracted consultant o The mini-RFP or the task order will be negotiated with first ranked firm from each competition. Task order (mini-RFP) cost will be based on wage rates established in the master on-call contract, and the time and deliverable requirements in the task order. • If only one proposal is received or there is an emergency, a NonCompetitive process must be justified, and Exhibit 12-F must be documented and signed by the DLAE
• Awarding task order to the multiple on-call consultants on a rotational basis does not meet the intent of the qualifications-based selection • Exhibit 10-G must be used to track percentage of DBE after a task order is completed
• Each task order must have an Exhibit 10-O1 and Exhibit 10-O2 as applicable
2. Regional basis where each on-call consultant is contracted to a designated area.
To maintain the intent of the Brooks Act (40 U.S.C.1101-1104) in promoting open competition and selection based on demonstrated competence and qualifications, oncall consultant contracts established through the RFQ process must meet the following requirements:
• Must define a general scope of work, complexity, and professional nature of services.
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• Specify a task order procedure the LPA uses to procure project-specific work under the contract.
• Task order work performed after the master on-call contract has expired will result in those costs being ineligible for federal or state reimbursement. • If multiple consultants are to be selected and multiple on-call contracts awarded through a single solicitation for specific services, the number of consultants that may be selected or contracts that may be awarded must be identified. • Specify procurement procedures in the contracts the LPA will use to award/ execute task orders among the consultants:
o Either through an additional qualification-based selection process (see the Two-Step RFQ/RFQ process later in this chapter), OR o On regional basis whereby the region is divided into areas identified in the solicitation, and consultants are selected to provide on-call services for assigned areas only. The RFP may list multiple regions that allow consultants to crossover or be a “backup” to other consultants that for specifically documented reasons are not able to perform the work in their assigned region. Per 23 CFR 172.9 (a)(3)(B)(2), the “backup” option needs to be listed in the respective contracts.
An example of acceptable contract wording in multiple on-call contracts for the same type of service:
• “Agency has or will enter into three (3) task order contracts for performance of the Scope of Services identified in Exhibit “A”, including this Agreement (“CM Services Task Order Contracts”). The other CM Services Task Order Contracts are [identify other two contracts by agreement numbers and consultant firms].
The total amount payable by Agency for the CM Services Task Order Contracts must not exceed a cumulative maximum total value of Seven Million, Five Hundred Thousand Dollars ($7,500,000) (“NTE Sum”). It is understood and agreed that there is no guarantee, either expressed or implied that this dollar amount will be authorized under the CM Services Task Order Contracts through Task Orders. Each time a Task Order is awarded under any of the CM Services Task Order Contracts, the Agency must send written notification to Consultant and each of the other consultants entering into the CM Services Task Order Contracts. The notice must identify the total funds allocated under issued Task Orders, and the remaining unencumbered amount of the NTE Sum. Consultant acknowledges and agrees that Agency must not pay any amount under this Agreement that would exceed the NTE Sum, and Consultant must not enter into a Task Order that exceeds the NTE Sum.”
Determining the Project Schedule
The LPA develops a schedule for performance of work and completion of the project. The schedule must include sufficient time to allow for:
• Selecting the consultant;
• Developing the consultant contract;
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• Completing the A&E consultant contract audit process; • Conducting meetings and project reviews.
Determine Method of Payment
The method of payment of contract must be specified. The following four methods are permitted under 23 CFR 172.9(b) depending on the scope of services to be performed (sample cost proposals are provided on the A&E website):
• Cost-Plus-Fixed Fee
• Cost Per Unit of Work
• Specific Rates of Compensation
• Lump Sum
The method of payment to the consultant must be set forth in the original solicitation, contract, and in any contract modification thereto. A single contract may contain different payment methods as appropriate for compensation of different elements of work. Markups are not allowed on any of the four methods of payment.
The cost plus a percentage of cost and percentage of construction cost methods of payment must not be used. Both of these methods are explicitly prohibited by 23 CFR 172.9(b).
Cost-Plus-Fixed Fee
The consultant is reimbursed for costs incurred and receives an additional predetermined amount as a fixed fee (profit). Federal regulations require that profit be separately negotiated from contract costs. The determination of the amount of the fixed fee must take into account the size, complexity, duration, and degree of risk involved in the work. The fixed fee is not adjustable during the life of the contract. The fixed fee dollar amount must be clearly stated in the contract. See the A&E website for a useful tool on Profit/Fee Determination.
This method of payment is appropriate when the extent, scope, complexity, character, or duration of work cannot be precisely predicted. The fixed fee limit applies to the total direct and indirect costs. Fixed fees in excess of 15 percent of the total direct labor and indirect costs of the contract may be justified only when exceptional circumstances exist. The contract must specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit 10-R: A&E Sample Contract Language, Article V, Option 1). The contract cost proposal must identify all key employees and/or classifications to be billed. New key employees and/or classifications must be approved by the LPA before they incur work on the contract, or the costs can be questioned or disallowed. LPAs are not required to update the A&E Consultant Contract form when new key employees and/or classification are added to a contract. For more details, reference Section 10.1.8. Completing the Project.
Cost Per Unit of Work
The consultant is paid based on specific item of work performed. The item of work must be similar, repetitious, and measurable, such as a specific geotechnical investigation and material testing. This method of payment is appropriate when the cost per unit of work can be determined with reasonable accuracy in advance, but the extent or quantity of the work is indefinite. Contract payment provisions must specify what is included in the price to be paid for each item. Any item of work not identified in the contract cost proposal is not eligible for Local Assistance Procedures Manual Chapter 10
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reimbursement. New items of work (those within the original scope of work only) must be amended into the contract before work is performed. The contract must also specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit 10-R, Article V Option 2).
Specified Rates of Compensation
The consultant is paid at an agreed and supported specific fixed hourly, daily, weekly, or monthly rate, for each class of employee engaged directly in the work. Such rates of pay include the consultant’s estimated costs and net fee (profit). Federal regulations require that profit be separately negotiated from contract costs. The specific rates of compensation, except for an individual acting as a sole proprietor, are to include an hourly breakdown, direct salary costs, fringe benefits, indirect costs, and net fee. Other direct costs may be included, such as travel and equipment rentals, if not already captured in the indirect cost rate. Other direct costs regardless of amount are to be listed on the cost proposal.
This method of payment should only be used when it is not possible at the time of procurement to estimate the extent or the duration of the work, or to estimate costs with any reasonable degree of accuracy. This method should not be used for project-specific contracts and is recommended for on-call contracts for specialized or support type services, such as construction engineering and inspection, where the consultant is not in direct control of the number of hours worked, and it also requires management and monitoring of the consultant’s level of effort and the classification of employees used to perform the contracted work. The contract must also specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit 10-R, Article V Option 3).
Lump Sum
The consultant performs the services stated in the contract for an agreed amount as compensation, including a net fee or profit. This method of payment is appropriate only if the extent, scope, complexity, character, duration, and risk of the work have been sufficiently defined to permit fair compensation to be determined and evaluated by all parties during negotiations (see Exhibit 10-R, Article V: Option 4). Normally, a lump sum contract will be paid in full at end of the contract when completed. However, a lump sum contract can be negotiated with progress payment if feasible. The progress payment must be based on percent of work complete or completion of clearly defined milestones. The contract cost proposal must document the agreed-upon progress payment and include the necessary milestones costs, or the percent work complete schedule.
Changes to the cost proposal requiring resubmittal to Independent Office of Audits and Investigations (IOAI) for review:
• Consultant/subconsultant name change
• New participating subconsultant’s ICR
• Change in ICR rate
Since these changes require an amendment, the LPA is to update the A&E Consultant Contract form.
A firm fixed price method of payment is not the same as lump sum. A firm fixed price contract must not be amended.
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10.1.3 A&E Consultant Audit and Review Process
This section outlines the audit and review process for A&E contracts that at any time use state or federal-aid highway funds in furtherance of highway construction projects. All proposed A&E contracts and supporting documents are subject to audit or review by Caltrans’ Independent Office of Audits and Investigations (IOAI), other state audit organizations, or the federal government. Not all proposed contracts will be audited or reviewed; rather, they will be selected on a risk-based approach.
Applicable Standards
State and federal requirements listed below, and specific contract requirements, serve as the standards for audits and reviews performed.
LPAs, consultants, and subconsultants are responsible for complying with state, federal, and specific contract requirements. LPAs are responsible for determining the eligibility of costs to be reimbursed to consultants.
Applicable standards include, but are not limited to:
• Caltrans Local Assistance Procedures Manual (LAPM);
• State and Federal agreements between LPAs and Caltrans, (i.e., Master Agreements); • Project Program Supplemental Agreements;
• 23 U.S.C., Section 112 – Letting of Contracts;
• 40 U.S.C., Chapter 11: the Brooks Act;
• 23 CFR, Chapter 1, Part 172 - Procurement, Management, and Administration of Engineering and Design Related Services;
• 23 CFR, Chapter 1- Federal Highway Administration, Department of Transportation; • 48 CFR, Federal Acquisition Regulation (FAR), Chapter 1, Part 31- Contract Cost Principles and Procedures;
• 48 CFR, Chapter 99 – Cost Accounting Standards (CAS), Subpart 9900; • 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
• United States Government Accountability Office, Government Auditing Standards - Generally Accepted Government Auditing Standards (GAGAS); • California Government Code sections 4525-4529; and
• Proposed contract terms and conditions.
See Section 10.1.11: References of this chapter for links to above referenced standards.
Audit Guidance Available
The American Association of State Highway and Transportation Officials, Uniform Audit & Accounting Guide (AASHTO Audit Guide), which is referred to frequently in this section, is a valuable tool to guide LPAs, consultants, and Certified Public Accountants (CPA) through the requirements for establishing, and audits of FAR-compliant Indirect Cost Rates (ICR). The AASHTO Audit Guide is used extensively as an industry guide in the audit and review process.
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LPAs may seek accounting assistance from internal audit staff and an independent CPA for compliance. The consultant may seek professional guidance in selecting its independent CPA.
See also the AASHTO Audit Guide, Ch 2.5C. Selection of CPA Firm as Overhead Auditor for guidance in the selection process. Training is also offered by FHWA’s National Highway Institute (see https://www.nhi.fhwa.dot.gov/home.aspx). Courses offered include:
• Using the AASHTO Audit Guide for the Procurement and Administration of A&E Contracts (FHWA-NHI-231028)
• Using the AASHTO Audit Guide for the Development of A&E Consultant Indirect Cost Rates (FHWA- NHI-231029)
• Using the AASHTO Audit Guide for the Auditing and Oversight of A&E Consultant Indirect Cost Rates (FHWA-NHI-231030)
For training and additional information provided by Caltrans Local Assistance, visit the Caltrans Local Assistance Blog. For FHWA’s Q&A for ICRs and audits, and A&E related services, visit FHWA.
Allowable Costs
23 U.S.C.112(b)(2)(B) states that any A&E contract or subcontract awarded, whether funded in whole or in part with federal-aid highway funds in furtherance of highway construction projects, must be performed and audited in compliance with the Federal cost principles.
LPAs are required to perform a cost analysis to ensure all costs are allowable and in compliance with federal and state requirements and retain documentation of negotiation activities and resources. Hourly rate(s) for each key personnel and/or classification of employee(s) proposed in cost proposals must be reasonable for the work performed and actual, allowable, and allocable in accordance with the Federal cost principles. Costs must be allowable only if the cost is incurred and cost estimates included in negotiated prices are allowable in accordance with the federal and state regulations and procedures, and contract provisions.
LPAs are required to apply Caltrans-accepted consultant or subconsultant’s ICRs, to contracts.
An ICR is valid for the one-year applicable accounting period accepted or reviewed by Caltrans.
Consultants must update, on an annual basis, ICRs in accordance with the consultant’s annual accounting period and in compliance with the Federal cost principles. For further guidance, refer to 23 CFR 172.11(b)(1). If the consultant is subject to Cost Accounting Standards (CAS), the consultant must use the applicable ICR for the contract.
A consultant’s accepted ICR for its one-year applicable accounting period must be applied to contracts; however, once an ICR is established for a contract, it may be extended beyond the one-year applicable period, through the duration of the specific contract, provided all concerned parties agree. Agreement to the extension of the one-year applicable period must not be a condition or qualification to be considered for the work or contract award. The contract must clearly specify the ICR period if it is beyond the one-year applicable period.
Consultants must account for costs appropriately and maintain records, including supporting documentation, adequate to demonstrate that costs claimed have been incurred, and are allowable, reasonable, and allocable to the contract, and comply with Federal cost principles.
IOAI and representatives of the Federal Government have the right to conduct an audit of all contract costs. If the costs are subsequently determined to be unallowable, these costs are subject to repayment. For further guidance, refer to 23 CFR 172 and 48 CFR 31.
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Generally, whenever LPAs, consultants, and/or contractors are unable to provide requested documentation, it must be viewed that the services were either not performed or the costs not properly recorded. Retention of all documents is required as it reduces the possibility of audit findings and disallowed costs. For more references, refer to Applicable Standards in this chapter.
Safe Harbor Rate
Developing ICRs annually can place a significant burden on some small or new and emerging A&E consulting firms that lack financial sophistication to develop an ICR, as well as on other established A&E consulting firms that may not have previous experience with federally-funded contracts for which an ICR would have been developed in compliance with Federal cost principles 48 CFR 31. This may create a barrier for otherwise eligible and qualified firms to compete for federally-funded contracts.
To help alleviate and remove potential barriers, the Division of Local Assistance (DLA) has adopted Caltrans Division of Procurement and Contract’s (DPAC) Safe Harbor Rate (SHR) process and rates which took into account LPAs’ data. The SHR information and rates can be found at the following DLA A&E website: https://dot.ca.gov/programs/local-assistance/guidanceand-oversight/consultant-selection-procurement. To request information regarding the SHR methodology, email the DLA A&E branch at [email protected]. Eligible A&E consultant firms can choose to use the DLA SHR rate on new A&E contracts using federal-aid highway funds executed by LPAs in the State of California.
Use and application of the SHR by eligible firms provides reasonable assurance of consultant compliance with the Federal cost principles per 23 CFR 172.11(c)(2). A&E consulting firms approved to use the established SHR will have their accounting system evaluated for capabilities of accumulating and tracking direct labor for applying the SHR, as well as for billing other direct costs by contract, segregating indirect costs, etc.
Use of the SHR is voluntary on behalf of the A&E consulting firm and LPAs. LPAs have the discretion to determine certification of eligibility based on requirements shown on the following SHR certification form: Consultant Firm Certification of Eligibility and Certification of Financial Management System.
A&E consultant firms (prime and/or sub consultants) that have not had an ICR previously accepted by a cognizant agency may elect and request to use the SHR in a contract by submitting the completed SHR certification form, Consultant Firm Certification of Eligibility and Certification of Financial Management System, including the Questionnaire for Evaluating Consultant Firm’s Financial Management System section, and any other documents as needed.
This requirement is in addition to the A&E Consultant Audit and Review Process requirements described in this chapter.
It is the LPA’s responsibility to:
• Collect and screen all requests to use the safe harbor indirect cost rate. See SHR certification form, Consultant Firm Certification of Eligibility and Certification of Financial Management System, including the Questionnaire for Evaluating Consultant Firm’s Financial Management System section.
• Submit all SHR documents to the Independent Office of Audits & Investigations (IOAI) as part of the Financial Document Review Request package. The IOAI email address is:
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Requests to use the safe harbor indirect cost rate must be accepted/approved by IOAI before contracts are executed.
Approval or Acceptance of Indirect Cost Rates
Cognizant Letters of Approval
A cognizant approved ICR has been audited by a Cognizant agency (a State transportation agency of the State where the consultant's accounting and financial records are located or a State transportation agency to which cognizance for the particular indirect cost rate(s) of a consulting firm has been delegated or transferred to in writing by the State transportation agency where the consultant’s accounting and financial records are located) in accordance with generally accepted government auditing standards to test compliance with the requirements of the Federal cost principles (per 48 CFR 31), and the cognizant agency has either 1) issued an audit report of the consultant's indirect cost rate or 2) conducted a review of an audit report and related workpapers prepared by a certified public accountant and issued a letter of concurrence with the audited indirect cost rate(s). The cognizant agency approves the ICR and a cognizant approval letter is issued.
Caltrans Acceptance of Indirect Cost Rate
When the ICRs have not been established by a cognizant agency, Caltrans must perform an audit or review of a consultant’s and subconsultant’s ICR(s) to provide reasonable assurance of compliance with Federal cost principles.
An audit or review of the ICR may consist of one or more of the following:
• Perform a review to determine if the ICR was prepared in accordance with 23 CFR Part 172, and 48 CFR, Chapter 1, Part 31;
• Perform an audit to determine if the ICR was prepared in accordance with 23 CFR Part 172, and 48 CFR, Chapter 1, Part 31; and issue an audit report; • Review and accept an ICR audit report and related workpapers prepared by a CPA or another State Transportation Agency;
The outcome of an audit or review is for Caltrans to approve or accept the ICR so that it can be relied upon for future contracts with the consultant for a given one-year accounting period and for reliance by other contracting agencies using the same consultant. LPAs must ensure that only approved or accepted ICRs of consultants for the applicable one-year accounting period be applied to contracts, if rates are not under dispute. LPAs may check IOAI’s website for consultant’s approved or accepted ICRs. All approved or accepted ICRs are issued an Acceptance Identification (ID) number by IOAI that is posted to IOAI’s website. This ID number should be referenced on all future contracts that use the same fiscal year ICR. ICR can be fixed for the life of the contract in prior written document or annually updated. Once it has been updated, it must be annually updated and the most current fiscal year of ICR must be used.
ICRs that have not been accepted by Caltrans will not be eligible for indirect cost payment. An ICR approved by a cognizant agency may be used across states for the one-year applicable accounting period, but an ICR accepted by Caltrans may only be applied to A&E contracts with Caltrans or LPA contracts using pass-through Caltrans funding. LPAs include Cities, Counties, Metropolitan Planning Organizations, Special Districts, and Regional Transportation Planning Agencies.
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Financial Review Performed Prior to Contract Execution
All consultants, including prime and subconsultants, on a proposed contract with a dollar value equal to or greater than $1M are subject to an ICR financial review by IOAI. The financial documents required are detailed in the Financial Document Review Request form. IOAI will review the ICR financial documents to either accept or adjust the indirect cost rate prior to contract execution using a risk-based approach as dictated by factors that include but are not limited to:
• History of satisfactory performance and professional reputation of consultant; • Prior FAR compliant history and audit frequency;
• Experience of consultant with FAHP contracts;
• General responsiveness and responsibility;
• The approximate contract volume and dollar amount of all A&E contracts awarded to the consultant by Caltrans or an LPA in California within the last three calendar years; • The number of states in which the consultant does business; • The type and complexity of the consultant’s accounting system; • The relevant professional experience of any CPA performing audits of the consultants indirect cost rate;
• Assessment of consultant’s internal control. Responses to internal control questionnaire, see AASHTO Audit Guide, Appendix B;
• For ICRs that have been adjusted by IOAI, the consultant must provide a revised cost proposal that reflects the adjusted ICR.
Local Public Agencies’ Responsibilities
LPAs are responsible for obtaining all required ICR supporting documentation from A&E prime consultants and sub-consultants as outlined in the Financial Document Review Request form.
LPAs are responsible for forwarding these documents to IOAI for review. LPAs are also required to ensure that IOAI has a copy of the Certification of Indirect Costs and Financial Management System form. The ICR included in the LPA’s cost proposal must match the ICR included in the Certification of Indirect Costs and Financial Management System form and the consultant’s ICR schedule. The proposed ICR, however, can be lower than ICR in the Certification of Indirect Costs and Financial Management System form and the consultant’s ICR schedule if the consultant elects to propose a lower ICR. For contracts spanning more than one year, LPAs are responsible for ensuring the Certification of Indirect Costs and Financial Management System form and cost proposals are updated annually unless all concerned parties agree to fix the ICR for the term of contract, and this is clearly specified in the contract. ICR updates are not required to IOAI if the ICR is fixed for the life of the contract. ICR’s are only reviewed for consultants that are being awarded a contract, not consultants on a shortlist or prequalified list.
The cost proposal includes contract costs: direct salary or wage rates, fixed fees, other direct costs, indirect costs, total costs, and certification for the costs. LPAs must perform and retain documentation of activities and resources used to support that a cost analysis has been performed to establish that costs and elements were determined to be fair and reasonable in accordance with Federal cost principles.
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All contract supporting documentation must be retained by the LPA in project files for the required retention period. Unsupported costs may be disallowed and required to be returned to Caltrans. Having proper documentation policy and procedures, trained staff, and organized project files are essential for demonstrating that costs claimed and reimbursed have been incurred, are eligible, reasonable, allowable, and allocable to the contract and comply with Federal cost principles.
Contracts below $1 Million are not subject to the Caltrans Financial Document Review but LPAs are required to establish that all costs are in compliance with the Federal cost principles, 48 CFR, Chapter 1, Part 31, and other applicable requirements are met. All documents listed above, and cost analysis documents are required to be retained in the project files to demonstrate compliance.
Instructions are provided in the Financial Document Review Request form including requirements for submitting a complete Financial Review packet. Financial packets can be emailed to: [email protected].
Alternatively, if you do not have internet access, you can mail Financial Review packets to:
Department of Transportation
Independent Office of Audits and Investigations
MS 2 Attention: External Audit Manager
P.O. Box 942874
Sacramento, CA 94274-0001
Consultants’ Responsibilities (Both prime consultants and subconsultants) A&E prime consultants and subconsultants in contract with LPAs using state or federal-aid highway funds should refer to the Financial Document Review Request form for the ICR financial documents required to be submitted to their LPA. Consultants must complete the Certification of Indirect Costs and Financial Management System form that attests that the ICR rate proposed is in compliance with FAR (48 CFR, Chapter 1, Part 31) and that the consultant’s financial management system is adequate to accumulate and segregate reasonable, allowable, and allocable direct and indirect project costs. The Financial Document Review Request and Certification of Indirect Costs and Financial Management System forms should be submitted to the LPA who will forward a copy to IOAI along with all other related and required financial documents. For all future contracts within a same fiscal year, the consultant needs to only provide a copy of the Certification of Indirect Costs and Financial Management System form to the LPA.
Consultants must follow all the federal, state, and contract requirements outlined above in the Section above, “Applicable Standards”. Each contracting consultant must ensure its ICR is not combined with any parent company’s or subsidiary’s ICR.
ICR schedules for both prime consultants and sub-consultants should be prepared using the accrual basis of accounting and be presented in compliance with the Federal cost principles.
Figure 10-3 provides an example of a Standard Indirect Cost Rate Schedule that consultants can use when preparing their own.
For public works Prevailing Wage contracts, all workers must be paid the prevailing wage rate determined by the Director of the Department of Industrial Relations according to the type of work and location of the project: http://www.dir.ca.gov/Public-Works/Prevailing-Wage.html.
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For guidance see Caltrans’ Prevailing Wage Interpretive Guidance and webinar on IOAI’s website.
When determined necessary, IOAI may request additional information, such as a labor distribution summary and Executive Compensation Analysis (ECA). A consultant’s labor distribution summary report is a labor expense report that detail all hours worked (paid and unpaid) for a fiscal year, wages earned, and benefits accrued by all the consultant’s employees.
The labor summary report should include employee names, salaries, hourly rates, total hours worked segregated by direct hours, indirect hours, paid time off hours, and uncompensated hours and amounts.
An ECA is an evaluation by the consultant to determine the allowability and reasonableness of executive compensation in compliance with Federal cost principles and the AASHTO Audit Guide that can be based on either the National Compensation Matrix or independent compensation surveys.
Independent Office of Audits and Investigations’ Responsibilities After IOAI receives a consultant’s complete financial document packet (per the Financial Document Review Request form) from the LPA, IOAI will review the proposed ICR and supporting documents and notify LPAs in writing whether the proposed ICRs are accepted or adjusted.
Contracts will be executed after IOAI either accepts or adjusts the ICR. Correction of the final cost proposal, however, does NOT need to be cleared through Caltrans IOAI before executing the contract. An email notification from IOAI serves as documentation to support an accepted ICR.
Audits and Reviews to be Performed
After contract execution, a consultant’s ICR may be subject to further detailed review or audit by IOAI based on certain risk factors. Costs that are determined to be unallowable as a result of the review or audit will be subject to repayment.
Indirect Cost Rate Audits
During an ICR audit, IOAI or an independent CPA will examine the consultant’s proposed ICR for a one-year accounting period to ensure that unallowable costs have been removed from the indirect costs, that allowable costs have been correctly measured and properly charged and allocated, and that the ICR has been developed in accordance with the Federal cost principles (as specified in 23 U.S.C.112(b)(2)(B), 23 CFR 172.11, 48 CFR 31 and other FAR and State requirements). As a result of the audit, the LPA will work with the consultant to adjust the ICR based on audit recommendations.
For guidance regarding the existing policies and procedures set forth in the federal regulations, and acceptable ICR schedules, refer to the AASHTO Audit Guide, Chapter 5, and Figure 10-3 Standard Indirect Cost Rate Schedule in this Chapter. There is also a review program at Appendix A which serves as a guide for CPAs and IOAI when performing ICR audits and can also be used as a resource for consultants when preparing for an ICR audit.
CPA Workpaper Reviews
During a workpaper review of a CPA audit of an ICR, IOAI will review the CPA’s audit workpapers to determine whether to issue a Cognizant Letter of Approval for the ICR. The CPA Local Assistance Procedures Manual Chapter 10
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Workpaper Review determines whether: (a) the CPA’s audit of the ICR was conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS), (b) the CPA adequately considered the auditee’s compliance with the Federal cost principles and related federal and state laws and regulations. Chapter 11 of the AASHTO Audit Guide provides information to the CPA on the required audit disclosures.
IMPORTANT NOTE FOR CPAs: Contracts receiving state or federal funds are highly scrutinized. Materiality levels tend to be lower and more testing is required. GAGAS provides that auditors may find it appropriate to use lower materiality levels as compared with the materiality levels used in non-GAGAS audits because of the public accountability of government entities and entities receiving government funding, various legal and regulatory requirements, and the visibility and sensitivity of government programs. The AASHTO Audit Guide should be used as a tool for performing audits and attestations of A&E firms.
Contract Audits
During a Contract Audit, auditors will review a consultant’s financial management system and contract cost proposal to determine if:
• The consultants’ accounting system is adequate to accumulate and segregate costs; • Costs are reasonable, allowable, allocable, and supported adequately; • The contract contains all required fiscal provisions; • Proper state and federal procurement requirements were followed.
Incurred Cost Audits
During an Incurred Cost Audit, auditors will review incurred contract costs to determine if:
• Cost data are maintained in an accounting system that adequately gathers, records, classifies, summarizes, and reports accurate and timely financial data for direct and indirect project costs by account;
• Costs are adequately supported, reasonable, allowable, and allocable; • Costs incurred are in compliance with state and federal laws and regulations; • Costs incurred are in compliance with the Master Agreement and Supplemental Agreement;
• Costs incurred are in compliance with the fiscal provisions stipulated in the contract; and • The terms required by the Master Agreement and federal laws and regulations are in the contract.
Audit Findings and Review Deficiencies
If a consultant’s ICR is audited or reviewed, LPAs are responsible for ensuring all executed and future contracts reflect the audited and adjusted fiscal year ICR(s). LPAs should request reimbursement from the consultant for overpayment on rates that were adjusted down.
The LPAs may be subject to sanctions outlined in Section 10.5 Sanctions if the state or federal government determines that any reimbursements to the consultant are the result of lack of proper contract provisions, unallowable charges, unsupported activities, or an inadequate financial management system.
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Example of a FAR Compliant Indirect Cost Rate Schedule - Sample Consulting Company Statement of Direct Labor, Fringe Benefits, and General Overhead for the Year Ended December 31, 20xx Description
General
Ledger
Balance
Unallowable FAR
Reference
Total
Proposed
Home
Office
Field
Office
Direct Labor $123,456,789 ($934,568) (1)(15) $122,522,221 $85,765,555 $36,756,666 Fringe Benefits
Vacation/Paid Leaves $17,283,950 $17,283,950 $12,098,765 $5,185,185 Payroll Taxes $1,530,864 ($30,617) (15) $1,500,247 $1,050,173 $450,074 Medical Insurance $10,864,197 $10,864,197 $7,604,938 $3,259,259 401K Match $4,938,272 $4,938,272 $3,456,790 $1,481,481
Incentives and Bonus $15,308,642 ($3,123,456) (2) $12,185,186 $8,529,630 $3,655,556 Other Employee
Benefits $2,515,280 ($553,433) (3) $1,961,847 $1,373,293 $588,554 Total Fringe Benefits $52,441,206 ($3,707,506) $48,733,700 $34,113,590 $14,620,110 General &
Administrative Overhead
Indirect Overhead
Labor $72,696,030 ($4,452,541) (1)(2)(4)(15) $68,243,489 $65,790,948 $2,452,541 Purchased
Labor/Subconsultants $22,433,019 ($22,433,019) (5) $ - $ - $ - Office Rent $12,345,679 ($987,654) (6) $11,358,025 $11,038,025 $320,000 Supplies & Utilities $5,753,086 $5,753,086 $4,027,160 $1,725,926 Postage and
Shipping $1,770,000 $321,456 (5) $2,091,456 $1,464,019 $627,437 Equipment and
Maintenance $3,812,346 $3,812,346 $2,512,789 $1,299,557 Depreciation
Expense $6,202,469 ($1,345,678) (7) $4,856,791 $3,205,482 $1,651,309 Interest $123,456 ($123,456) (8) $ - $ - $ -
Dues and
Subscription $123,456 ($12,345) (9) $111,111 $77,778 $33,333 Advertising &
Marketing $427,406 ($45,678) (10) $381,728 $267,210 $114,518 Vehicles $5,896,123 ($147,403) (5)(11)(14) $5,748,720 $4,024,104 $1,724,616 Bad debts $12,345 ($12,345) (12) $ - $ - $ -
Legal and
Accounting Services $3,713,580 ($222,815) (13) $3,490,765 $3,490,765 $ - Fines and Penalties $80,000 ($80,000) (16) $ - $ - $ -
Total General &
Admin. Overhead $135,388,995 ($29,541,478) $105,847,517 $95,898,280 $9,949,237 Total Indirect Costs $154,581,216 $130,011,870 $24,569,347 Indirect Cost Rates 126.17% 151.59% 66.84%
Figure 10-3: Standard Indirect Cost Rate Schedule
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FAR References:
(1) FAR 31.202: Uncompensated overtime.
(2) FAR 31.205-6: Profit distribution and excess of the reasonable compensation. (3) FAR 31.205-46, 31.205-14 & 31.205-51: Meals not for valid business purposes and associated with lobbying and lacking adequate support
(4) FAR 31.201-2: Administrative staff costs billed to projects/clients. (5) FAR 31.201-2: Subconsultant labor and other direct costs billed to and paid by contracts/clients.
(6) FAR 31.205-36 and 31.205-17: Capital lease costs, rent paid in excess of reasonable costs, and idle facilities and capacity costs.
(7) FAR 31.201-2 & 31.205-6: Costs relates to personal use by employees and luxury vehicles.
(8) FAR 31.205-20: Interest and other financial costs not allowable. (9) FAR 31.201-2: Non-business related dues and subscriptions. (10) FAR 31.205-1: Costs for advertisement and public relations costs and trade show expense including labor.
(11) FAR 31.205-46(d) and 31.205-6(m)(2): Personal use of vehicle and lack of mileage logs and business purpose.
(12) FAR 31-205-3: Bad debts and collection costs.
(13) FAR 31.205-27 and 31.205-47: Reorganization and capital raising related costs and costs incurred in connection with violation of a law or regulation by the consultant. (14) FAR 31.205-46: Unreasonable costs and costs not supported by documents and lack of business purpose.
(15) FAR 31.201-6(a) & CAS 405-40: Labor costs associated with unallowable costs. (16) FAR 31.205-15: Fines and penalties resulting from violations of laws and regulations.
10.1.4 Consultant Selection Methods
Figure 10-4: Consultant Selection Flowchart shows the three methods normally used in selecting a consultant. They are:
• One-Step RFP
• One-Step RFQ
• Two-Step RFQ/RFP
The method used depends upon the scope of work, the services required, the project’s complexity, and the time available for selection of the consultant.
Beginning with Section 10.1.5: Consultant Selection Using the One–Step RFP Method, each of the selection methods is explained in detail. Regardless of the method used, the LPA must retain all consultant selection documentation in their project files as required by 23 CFR 172.
One-Step RFP
The One-Step RFP method may be used for Project–specific contracts when the scope of work is well-defined or for Multi-phased contracts where the defined scope of work is divided into phases. Other considerations include when the consultant’s services are highly specialized and there are few qualified consultants.
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One-Step RFQ
The One-Step RFQ method is used when the requested services are specialized, or the scope of work is defined broadly and may include multiple projects. Typical services are preliminary engineering, surveying, environmental studies, preparation of Plans Specifications and Estimate (PS&E) and environmental documents, or construction management. This method or the twostep selection process is used for procurement of on-call contract(s). Note that specifications and requirements in the RFQ must cover all aspects of the final need. An RFP specific to the project, task, or service must be included in the solicitation for evaluation of a consultant's specific technical approach and qualifications.
Two-Step (RFQ Followed by RFP)
The Two-Step RFQ/RFP method may be used when the scope of work is complex or unusual.
This method also may be preferred by LPAs that are inexperienced about negotiations and procedures for establishing compensation. However, the Two-Step RFQ/RFP method is recommended for procurement of multiple on-call contracts, or on-call list, through a single solicitation. Regardless of any process utilized for prequalification of consultants or for an initial assessment of a consultant's qualifications under a RFQ, a RFP specific to the project, task, or service is required for evaluation of a consultant's specific technical approach and qualifications.
For more information, refer to description of on-call contract in Section 10.1.2: Identifying & Defining a Need for Consultants. This method requires substantially more work and time than the other two methods described above.
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Figure 10-4: Consultant Selection Flowchart
Initiate Project Select Consultants
Complete First Step
ϖ Select Project
ϖ Set Project Objectives
ϖ Appoint Contract Administrator
ϖ Determine Project Schedule
Identify need
for consultant
Define Scope
of Consultant
Work
Specify
Products to be
delivered
Determine
Method of
Consultant
Selection
Segment
Project Work
Establish
DBE Goals
Estimate Cost
of Consultant
Work
Determine Type of Contract
ϖ Lump Sum
ϖ Cost-Plus-Fixed-Fee
ϖ Cost Per Unit of Work
ϖ Specific Rates of Compensation
Appoint
Consultant
Selection
Committee and
Develop Schedule
for Selection
Appointment
Consultant
Selection
Committee and
Development
Schedule for
Selection
Develop
Technical Criteria
for Evaluation of
Proposals
Prepare
Request for
Proposal
Advertise
for
Consultants
(RFQ)
Appoint
Consultant
Selection
Committee and
Develop Schedule
for Selection
Advertise
for
Consultants
(RFQ)
Develop
Qualification
Criteria for
Evaluation of
Proposals
Develop
Qualification
Criteria for
Evaluation of
Proposals
Receive
Statements of
Qualifications
Receive
Statements of
Qualifications
Advertise for
Consultants
Evaluate
Statements of
Qualifications &
Develop Shortlist
Evaluate
Statements of
Qualifications
& Develop
Shortlist
Issue Request
for Proposal
(RFP)
Notify
Consultants
of Shortlist
Notify
Consultants
of Shortlist
Issue Request
for Proposal
(RFP)
Conduct
Consultant’s
Conference or
Answer
Written
Questions
Receive and
Evaluate
Technical
Proposals
Interview &
Develop Final
Ranking of
Consultants
Notify
Consultants
of Results
*Request Cost Proposal & Negotiate
Contract with Top-Ranked
Consultant
Develop
Contract
Initiate A&E
Consultant Audit
Process (Figure 10-2)
Negotiate Contract with Next
Highest Ranked Consultant until
Successful
Evaluate Reference Checks &
Other Information Gathered
Independantly
Evaluate Reference Checks &
Other Information Gathered
Independently
Interview &
Develop Final
Ranking of
Consultants
Notify
Consultants
of Results
*Request Cost Proposal & Negotiate
Contract with Top-Ranked
Consultant
Develop
Contract
Initiate A&E
Consultant Audit
Process (Figure
10-2)
Negotiate Contract with Next
Highest Ranked Consultant until
Successful
Interview
Top-Ranked
Consultants
Conduct
Consultant’s
Conference or
Answer
Written
Questions
Receive and
Evaluate
Technical
Proposals
Develop
Final
Interview &
Ranking of
Consultants
Notify
Consultants
of Results
*Request Cost Proposal & Negotiate
Contract with Top-Ranked
Consultant
Develop
Contract
Initiate A&E
Consultant Audit
Process (Figure
10-2)
Negotiate Contract with Next
Highest Ranked Consultant until
Successful
Evaluate Reference Checks &
Other Information Gathered
Independently
“One-Step, RFP” Method: Request for Proposal followed by Negotiation (Use when there are few consultants)
“One-Step, RFQ” Method: Request for Qualifications followed by Interviews and Negotiation (Use when there are many consultants)
“Two-Step, RFQ/RFP” Method: Request for Qualifications followed by Request for Proposal and Negotiation (Use when scope of work is complex)
Develop
Final
Contract
Execute
Contract
Issue Notice
to Proceed to
Consultant
Administer
Contract
Complete
Project
Conduct
Consultant’s
Conference
or Answer
Written
Questions
Conduct
Consultant’s
Conference
or Answer
Written
Questions
Notify
Consultants
of Short-List
Notify
Consultants
of ShortList
Same as “One-Step
RFQ” Method
Same as “One-Step RFP” Method
Receive Conformance
Letter from A&I and
Implement Findings
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10.1.5 Consultant Selection Using the One-Step RFP Method Of the three methods discussed, this one is most easily modified for non-A&E consulting contracts. This procurement procedure usually involves a single step process with issuance of a request for proposal (RFP) to all interested consultants. For non-A&E consulting contracts, a cost proposal must be part of the RFP and the selection criteria. For A&E contracts, the cost proposal is not requested until the consultants have been final ranked based upon their submitted technical proposal.
Appoint Consultant Selection Committee
A consultant selection committee with a minimum of three members is appointed at the beginning of the consultant selection process. The committee reviews materials submitted by consultants, develops a shortlist of qualified consultants, and develops a final ranking of the most qualified proposals. Representation on the committee includes the Contract Administrator and subject matter experts from the project’s functional area. The members should be familiar with the project/segment to be contracted out and with the LPA standards that will be used in the contract. Participation by a Caltrans district representative is at the option of the agency and subject to availability of the DLAE staff. Caltrans participation on the interview panel does not relieve the LPA of its responsibility to ensure that proper procurement procedures are followed, and all requirements are met.
LPA Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 172) by completing and signing a conflict of interest statement prior to selection process initiation. A sample conflict of interest form is provided in Exhibit 10-T: Conflict of Interest & Confidentiality Statement.
Develop Technical Criteria for Evaluation of Proposals
The Contract Administrator is responsible for developing the technical criteria, and their relative importance which are used to evaluate and rank the consultant proposals. In-State or local preference must not be used as factor in the evaluation, ranking, and selection phase. All nontechnical evaluation criteria, including DBE participation, must not exceed 10 percent (23 CFR 172.7(a)(1)(iii)(D)). All price or cost related items which include, but are not limited to, cost proposals, direct salaries/wage rates, indirect cost rates, and other direct costs are prohibited from being used as evaluation criteria.
The criteria and relative weights must be included in the RFP, and the same criteria and relative weights must be used in the evaluation sheets. Failure to include criteria and relative weights and to use the same criteria and weights during the evaluation will result in the contract costs being ineligible for federal or state reimbursement. Exhibit 10-B: Suggested Consultant Evaluation Sheet is a recommended evaluation sheet with criteria and rating points for A&E consultants, where cost is not used as a rating factor. This format is not mandatory, but it is recommended in the interest of developing consistency among the hundreds of agencies and consultants operating in the state. The LPA should consult with the DLAE before making major changes to the suggested approach.
Develop Schedule for Consultant Selection
Before the contract is advertised, the Contract Administrator completes a contract procurement schedule including key dates for consultant selection activities. The Contract Administrator should confirm key dates with all selection committee members before completing the schedule.
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Prepare RFP
The information required in an RFP solicitation includes the following:
• Description of project;
• Clear, accurate, detailed Scope of work, technical requirements, and qualifications; • Services to be performed;
• Deliverables to be provided;
• Procurement schedule;
• Applicable standards, specifications, and policies;
• Schedule of work (including estimated start and end dates of the contract); • Method of payment, and cost proposal requirements. The cost proposal is submitted in a separate concealed format. Cost proposals are requested from the highest ranked firm.
If these negotiations are formally terminated, the cost proposal is then requested from the next highest ranked firm. See sample cost proposals at the A&E website; • Contract audit and review process requirements (see Section 10.1.3: A&E Consultant Audit and Review Process);
• Proposal format and required contents;
• Method, criteria, and weighting for selection;
• Requirements for any discussions that may be conducted with three or more of the most highly qualified consultants following submission and evaluation of proposals; • Specify contract type;
• Special provisions or contracts requirements;
• A DBE contract goal is specified in the solicitation (see Exhibit 10-I: Notice to Proposers DBE Information), if a federal-aid contract;
• CMSR requirements (see Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement);
• Protest procedures and dispute resolution process per 2 CFR 200.318(k) and 23 CFR 172.5(c)(18).
• Title VI of the Civil Rights Act of 1964 – disadvantage business enterprises will be afforded full opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, sex, national origin, religion, age, or disability in consideration for an award.
The RFP specifies the content of a proposal, the number of copies required, due date, mailing address, and a physical address where the submittals may be hand-delivered if different from the mailing address. A minimum of fourteen (14) calendar days is required between the time the RFP is published and time that proposals must be submitted. More time may be required for complex contracts or projects.
Items typically required in a technical proposal include:
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• Work plan (specify what is to be covered);
• Organizational chart;
• Schedule and deadlines;
• Staffing plan;
• Proposed Team—complete for prime consultant and all key subconsultants; • Key personnel names and classifications—key team members identified in the original proposal/cost proposal must not change (be different than) in the executed contract; • Staff resumes;
• Names of consultant’s project manager and the individual authorized to negotiate the contract on behalf of the consulting firm;
• Consultant DBE Commitment document, see Exhibit 10-O1: Consultant Proposal DBE Commitment;
• References.
Financial Management and Accounting System Requirements The LPA must ensure that consultant contract solicitation and advertising documents (RFPs) clearly specify that contracts must not be awarded to a consultant without an adequate financial management and accounting system as required by 48 CFR 16.301-3, 2 CFR 200, and 48 CFR 31. The LPA must ensure the selected consultants have adequate financial management systems as required by the applicable federal regulations.
Advertise for Consultants
The solicitation process for consultant services must be by public advertisement, or by any other public forum or method that assures qualified in-State and out-of-State consultants are given a fair opportunity to be considered for award of contract. The minimum length of advertisement is 14 calendar days.
Advertisement of the RFP in a major newspaper of general circulation, technical publications of widespread circulation, professional associations and societies, recognized DBE organizations, web hosting or clearing houses known for posting government contract solicitations such as BidSync, Planetbids, Public Purchase, or posting the RFP on the LPA’s or other widely used websites are all acceptable methods of solicitation.
To document website postings, the LPA should retain copies of screen shots displaying the posted begin/end dates.
The LPA must keep a record of all consultants that have downloaded RFP online as well as those receiving an RFP through other means, to ensure that any inquiry responses, addendums, or amendments to the RFP are given to all consultants that received the RFP.
Conduct Proposer’s Conference or Answer Written Questions The LPA may allow for clarification of the RFP by inviting submittal of written questions or by conducting a proposer’s conference, or by doing both. The LPA must publish or mail their responses to any written questions to all consultants receiving the RFP. No response should be given to verbal questions. It is important that all competing consultants receive the same Local Assistance Procedures Manual Chapter 10
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information. If a proposer’s conference is to be held, the exact time and place must be specified in the RFP. Attendance at a proposer’s conference normally is not mandatory. However, consultants not attending the conference do not receive notes from the meeting unless they request the notes.
Receive and Evaluate Technical Proposals
The Contract Administrator must verify that each proposal contains all of the forms and other information required by the RFP. If all required information is not provided, a proposal may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.
Documentation of when each proposal was received must be maintained in the project files.
Copies of date stamped envelope covers or box tops are recommended. The members of the consultant selection committee must evaluate each proposal according to the technical criteria listed in the RFP. Minimum of three proposals must be received and evaluated. If only two proposals are received, a justification must be documented to proceed with the procurement.
The justification should state that the solicitation did not contain conditions or requirements that arbitrarily limited competition per 23 CFR 172(a)(1)(iv)(D) and competition is determined to be inadequate and it is not feasible or practical to re-compete under a new solicitation per 23 CFR 172(a)(3)(iii)(C). If only one proposal is received, a Non-Competitive process must be justified and an Exhibit 12-F must be documented and signed by the DLAE. In either case, the readvertisement of the RFP should be considered as an option.
The committee must also evaluate reference checks and other information gathered independently. Reference checks must be completed, and other information gathered before the interviews are conducted. If necessary, the results of the reference checks or other information may be discussed with the highest ranked qualified consultants at the interviews.
Develop Final Ranking and Notify Consultants of Results The selection committee evaluates each proposal, interviews the three or more highest ranked consultants (short listed) if noted in solicitation, and develops a final ranking of the highest ranked consultants. All consultants that submitted proposals must be informed about the final ranking of consultants. It is important that all competing consultants receive the same information.
Most consultants will request information as to why they were not the highest ranked. The LPA may have an established procedure adopted for conducting debriefings but may also consider the following: The selection committee should keep notes as to why a particular consultant was not selected. When a consultant requests debriefing, the reasons for not being selected must be objective reasons. The consultant should not be compared to others and should not be provided with information about other consultants during this debriefing. Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing.
Negotiate Contract with Top-Ranked Consultant
Cost proposal (for both Prime and all Subconsultant), and contract audit and review documents such as the Certification of Indirect Costs and Financial Management System and Financial Document Review Request forms, whichever is applicable (see Section 10.1.3: A&E Consultant Audit and Review Process) should be submitted in a separate sealed envelope. Typically, the Local Assistance Procedures Manual Chapter 10
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cost proposals are submitted by the short-listed consultants only, at time of interview. However, if time is of the essence and it can be justified, or if no interviews are planned, the cost proposal can be requested from all consultants with their technical proposal.
The cost proposal for the most qualified consultant will be opened and used to begin negotiations. If agreement cannot be reached, then negotiations proceed to the next most qualified consultant. Each consultant’s cost proposal must remain sealed until negotiations commence with that particular consultant. The goal of negotiations is to agree on a final contract that delivers the services, or products required at a fair and reasonable cost to the LPA. At the completion of successful cost negotiations, all remaining sealed envelopes containing cost proposals must be returned to consultants.
Cost proposals in electronic form must be submitted separately from the RFP and contained in a secure database that is inaccessible to the members involved in the A&E consultant contract procurement process. Only the cost proposal of the most qualified consultant will be requested to be sent to the members. Cost proposals of unsuccessful consultants are confidential and must not be opened by the LPA or any private entity that the LPA uses to store the cost proposals. Any concealed cost proposals of the unsuccessful consultants must be returned unopened or properly disposed of in accordance with the LPA’s written policies and procedures.
The independent cost estimate, developed by the LPA in advance of requesting a cost proposal from the top-ranked consultant, is an important basis and tool for negotiations or terminating unsuccessful negotiations with the most qualified consultant. Items necessary for the independent cost estimate include, hours/detailed work, direct labor costs, indirect labor costs, other direct costs, and profit/fee. Agencies must retain documentation of how the cost estimate was developed. It can be revised, if needed, for use in negotiations with the next most qualified consultant. A contract audit and review may be required (see Section 10.1.3: A&E Consultant Audit and Review Process in this chapter). LPA Contract Administrator ensures that all required documentations are provided to Caltrans IOAI within 10 days of written request, including all documents for a Financial Review, if applicable. Caltrans IOAI will not proceed with a Financial Document Review until all required documentation is completed correctly and submitted.
Negotiations should be finalized after addressing all deficiencies noted in the Caltrans IOAI Financial Review Letter if applicable. An indirect cost audit may be performed within the record retention period of the contract.
Items typically negotiated include:
• Work plan;
• Schedule and deadlines (for deliverables and final duration of contract); • Products to be delivered;
• Classification, wage rates, and experience level of personnel to be assigned; • Cost items, payments, and fees. Fee is required to be negotiated as a separate element;
• Hours, level of effort by task and/or classification.
The consultant’s ICR is not a negotiable item. A lower rate cannot be negotiated by the LPA.
The LPA and the consultant will agree on the final cost proposal and incorporate into final contract. Retain all documentation related to negotiations.
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Before executing the consultant contract, the LPA must review contract to ensure that all federal and state requirements have been met and adjustment or denial of ICR as identified in the Financial Review Letter has been included in the final cost proposal, if applicable.
Prior to contract award, or after contract award but no later than the first invoice, the LPA must submit a completed A&E Consultant Contract form for all new federal funded A&E consultant contracts using the database at:
https://dla.dot.ca.gov/fmi/webd/AE%20Consultant%20Contract%20Form (please use Firefox or Chrome if not supported by your browser). Submission of the A&E Consultant Contract form is not required for non-A&E consultant contracts.
If there are any changes requiring an amendment to the contract after submittal of the A&E Consultant Contract form, refer to Section 10.1.8: Contract Amendments.
10.1.6 Consultant Selection Using the One-Step RFQ Method The RFQ method is used when the services being procured are specialized, or the scope of work is defined broadly and may include multiple projects.
Appoint Consultant Selection Committee
A consultant selection committee with a minimum of three members is appointed at the beginning of the consultant selection process. The committee reviews and scores the materials submitted by consultants in response to the RFQ, develops a shortlist of qualified consultants, interviews those consultants, and develops a final ranking of the most qualified consultants.
Representation on the committee includes the Contract Administrator and subject matter experts from the project’s functional area. The members should be familiar with the scope of work to be contracted out and with the LPA standards that will be used in the contract.
Participation by a Caltrans district representative is at the option of the LPA and subject to the availability of the DLAE staff. Caltrans participation on the interview panel does not relieve the LPA of its responsibility to ensure that proper procurement procedures are followed, and all requirements are met.
LPA Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 172) by completing and signing a conflict of interest statement prior to selection process initiation. A sample conflict of interest form is provided in Exhibit 10-T: Panel Member Conflict of Interest & Confidentiality Statement.
Develop Technical Criteria for Evaluation of Qualifications The Contract Administrator is responsible for developing the technical criteria, and their relative importance which are used to evaluate and rank the consultant qualifications. The criteria and relative weights must be included in the RFQ, and the same criteria and relative weights must be used in the evaluation sheets. Failure to include criteria and relative weights and to use the same criteria and weights during the evaluation will result in the contract costs being ineligible for federal or state reimbursement. Exhibit 10-B: Suggested Consultant Evaluation Sheet is a recommended evaluation sheet with criteria and rating points for A&E consultants, where cost is not used as a rating factor. This format is not mandatory, but it is recommended in the interest of developing consistency among the hundreds of agencies and consultants operating in the state. The LPA should consult with the DLAE before making major changes to the suggested approach.
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Develop Schedule for Consultant Selection
Before a contract is advertised, the Contract Administrator completes a contract procurement schedule including key dates for consultant selection activities. The Contract Administrator should confirm target dates with all selection committee members before completing the schedule.
Prepare RFQ
As a minimum, the RFQ generally includes the following:
• General description of the services or project(s);
• Scope of work;
• Schedule of work (including contract begin and end dates); • Method of payment, and cost proposal requirements. The cost proposal is submitted in a separate sealed envelope. See sample cost proposals at the A&E website; • Contract audit and review process requirements (see Section 10.1.3: A&E Consultant Audit and Review Process);
• Statement of Qualification (SOQ) format and required content to be submitted; • Method and criteria and weights for selection;
• A DBE contract goal is specified in the solicitation (see Exhibit 10-I: Notice to Proposers DBE Information), if a federal-aid contract;
• Consultants acting in a management support role requirements Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement; Protest procedures and dispute resolution process per 2 CFR 200.318(k).
The RFQ specifies the content of the SOQ, the number of copies required, due date, mailing address, and a physical address where the submittals may be hand-delivered if different from the mailing address. Two to four weeks is usually allowed between the time the RFQ is published and time that SOQs must be submitted. More time may be required for complex contracts or scope of work.
Items typically required in a statement of qualification include:
• Qualifications of key personnel (including consultant project manager) proposed for the contract. Key team members identified in the original proposal/cost proposal must not change (be different than) in the executed contract;
• Staff resumes;
• Related projects that key personnel have worked on;
• Qualifications/experience of the firm;
• Organizational chart;
• Forecast or Schedule of work;
• Consultant DBE Commitment document, see Exhibit 10-O1: Consultant Proposal DBE Commitment;
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• References.
Financial Management and Accounting System Requirements The LPA must ensure that Consultant contract solicitation and advertising documents (RFQs) clearly specify that contracts must not be awarded to a consultant without an adequate financial management and accounting system as required by 48 CFR 16.301-3, 2 CFR 200, and 48 CFR
31. The LPA must ensure the selected consultants have adequate financial management systems as required by the applicable federal regulations.
Advertise for Consultants
The solicitation process for consultant services must be by public advertisement or any other public forum or method that assures qualified in-State and out-of-State consultants are given a fair opportunity to be considered for award of contract. The RFQ must contain sufficient project work information, so that interested consultants can submit an appropriate SOQ.
Advertisements for RFQ may take one of two approaches. The most common is an advertisement or publication of the RFQ in a major newspaper of general circulation, technical publication of widespread circulation, professional associations and societies, recognized DBE organizations, web hosting or clearing houses known for posting contract solicitations such as Bid Sync, PlanetBids, or posting the RFQ on other widely used websites. To document website postings, the LPA should retain copies of screen shots displaying the posted begin/end dates.
In the second approach, the LPA advertises the availability of the RFQ in a major newspaper of general circulation, technical publications of widespread circulation, professional associations and societies, recognized DBE organizations, or through a web hosting or clearing houses known for posting contract solicitations such as BidSync or PlanetBids, and requests that interested consultants send a letter of interest to the LPA for the RFQ. The RFQs must then be sent to those firms who indicated interest in the RFQ. In some cases, it may be desirable to advertise nationwide for a particular project or service. This approach provides a registry for firms who received the RFQ and therefore facilitates the broadcast of any revisions or addenda to the RFQ, if necessary.
Issue/Publish RFQ
The LPA must publish the RFQ online and also issue the RFQ to all consultants responding to newspaper advertisement. The LPA must keep a record of all consultants that have downloaded the RFQ online as well as those receiving an RFQ through other means, to ensure that any inquiry responses, addendums, or amendments to the RFQ are given to all consultants that received the RFQ.
Receive/Evaluate Statements of Qualifications and Develop Shortlist The first step in the evaluation process is to determine that each SOQ contains all forms and other information required by the RFQ. Otherwise, the submittals may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, and submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.
Documentation of when each proposal was received must be maintained in the project files.
Copies of date stamped envelope covers or box tops are recommended.
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Minimum of three proposals must be received and evaluated. If only two proposals are received, a justification must be documented to proceed with the procurement. If only one proposal is received, a Non-Competitive process must be justified, and an Exhibit 12-F must be documented and signed by the DLAE. In either case, the re-advertisement of the RFP should be considered as an option.
The consultant selection committee reviews the submitted SOQ according to the published evaluation criteria and weighting factors. The committee makes an independent random check of one or more of the consultant’s references. This check applies to major subconsultants also.
The committee establishes a shortlist of consultants who are considered to be best qualified to perform the contract work. The shortlist includes enough qualified consultants to ensure that at least three consultants are interviewed.
Notify Consultants of Shortlist
All consultants that submitted an SOQ must be notified of the results of the review. The notification also identifies those consultants (short list) that will be requested to attend interviews if interviews were an option in the solicitation. Most consultants will request information as to why they were not placed on the shortlist. Therefore, the selection committee should keep notes why a particular consultant was not selected for the shortlist. When a consultant requests a debriefing, the reasons given for not being selected must be objective reasons. Consultants should not be compared with each other during the debriefing. Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing.
Interview Top-Ranked Consultants
Each consultant to be interviewed is given a copy of the draft of the proposed contract, defining the detailed scope of work, and/or description of required services, and other information. This should be sent with the initial notification of the interview.
Between the time of the notification of the shortlist and interviews, the LPA may answer any questions concerning the scope of work to be contracted out, if not done earlier during the solicitation. In addition, the LPA may conduct additional reference checks for each consultant to be interviewed. Consultants should submit their questions about the RFQ and receive their answers from the LPA in writing. It is required that all consultants on the shortlist receive the questions and answers and are given the same information.
The committee should evaluate reference checks and other information that is gathered independently. Reference checks must be completed, and other information gathered before the interviews are conducted. If necessary, the results of the reference checks and other information may be discussed with the consultant at the interview.
Interviews are to be structured and conducted in a formal manner. Each consultant must be allowed the opportunity to make a presentation if desired; however, a time limit should be specified. Interview questions are prepared in advance.
Two types of questions may be asked:
• Questions that are to be asked of all competing consultants, and • Questions relating to each specific consultant, based upon the reference checks, and the strengths and weaknesses identified during evaluation of the SOQ
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The agency can request competing consultants to bring additional information or examples of their work to the interviews; if the additional information facilitates the interview or evaluation process. Additional information requested should be kept at a minimum, that is, only information required to select the most qualified consultant for the contract. The selection committee or LPA must not gather additional information concerning the consultants after the interviews are completed.
Develop Final Ranking and Notify Consultants of Results All consultants interviewed must be informed about the final ranking of consultants. It is important that all competing consultants receive the same information.
Most consultants will request information as to why they were not selected as the most qualified.
Therefore, the selection committee should keep notes as to why a particular consultant was not selected. When a consultant requests debriefing, the reasons for not being selected must be objective. Consultants should not be compared with each other or provided with information about other consultants during the debriefing.
Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing. The next two sections provide guidance when the RFQ is solicited for specialized services and additional information is required prior to cost negotiations with consultant. For on-call contracts, skip the next two sections and begin Negotiation phase.
Conduct Scoping Meeting
The Contract Administrator should meet with the first-ranked consultant’s project manager to review the project, and to ensure that the consultant has a complete understanding of the work that is required. The consultant is shown as much material as is available regarding the project.
Any technical questions regarding the project are answered for the consultant.
Request Cost Proposal
The first-ranked consultant is asked to provide a cost proposal to perform the work described in the draft contract and discussed at the scoping meeting. The work is to be performed according to the conditions described in the draft contract using the payment method described therein.
Alternatively, if time is of the essence and it can be justified, sealed cost proposals may be requested from all of the consultants on the shortlist.
If the contract involves more than one project, the consultant must provide a separate cost proposal for each project in addition to a summary cost proposal for the total contract. If the contract involves milestones, the consultant must furnish a separate cost proposal for each milestone with a summary cost proposal for the total costs. If the contract involves subconsultants, the prime consultant must include a separate cost proposal for each subconsultant. Each subconsultant’s cost proposal must follow the same format as the prime consultant’s cost proposal.
Negotiate Contract with Top-Ranked Consultant
Cost proposals (for both Prime and all Subconsultant), and contract audit and review documents such as Certification of Indirect Costs and Financial Management System and Financial Document Review Request forms, whichever applicable (see Section 10.1.3: A&E Consultant Audit and Review Process), will be submitted in a separate sealed envelope. Typically, the cost Local Assistance Procedures Manual Chapter 10
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proposals are submitted by the short-listed consultants only, at time of interview. However, if time is of the essence and it can be justified, or if no interviews are planned, the cost proposal can be requested from all consultants with their statements of qualification.
After the top-ranked consultant submits a sealed cost proposal, the LPA reviews the cost proposal and compares it with the LPA’s confidential detailed independent cost estimate and enters into negotiations. The goal of negotiation is to agree on a final contract that delivers to the LPA the services or products required at a fair and reasonable cost. The independent cost estimate, developed by the LPA in advance of requesting a cost proposal from the top-ranked consultant, is an important basis and tool for negotiations.
Negotiations should commence with the most qualified consultant. If agreement on a fair and reasonable price cannot be reached, negotiations should then be formally terminated.
Negotiations then proceed to the next most qualified consultant, and so on. Each consultant’s cost proposal must remain sealed until negotiations commence with that particular consultant.
At the completion of successful cost negotiations, all remaining sealed envelopes containing cost proposals must be returned to consultants.
Cost proposals in electronic form must be submitted separately from the RFQ and contained in a secure database that is inaccessible to the members involved in the A&E consultant contract procurement process. Only the cost proposal of the most qualified consultant will be requested to be sent to the members. Cost proposals of unsuccessful consultants are confidential and must not be opened by the LPA or any private entity that the LPA uses to store the cost proposals. Any concealed cost proposals of the unsuccessful consultants must be returned unopened or properly disposed of by permanently deleting the cost proposals in accordance with LPA’s written policies and procedures.
A contract audit and review may be required (see Section 10.1.3: A&E Consultant Audit and Review Process earlier in this chapter). LPA Contract Administrator is responsible for the submittal of all required documentations to Caltrans IOAI in a timely fashion, including all documents for a Financial Review, if applicable. Caltrans IOAI will not proceed with a Financial Review until all required documentation is completed correctly and submitted. Negotiations may be completed after receipt of the Caltrans IOAI Financial Review Letter. An indirect cost audit may be performed within the record retention period of the contract.
The items typically negotiated include:
• Work plan;
• Staffing plan;
• Schedule (including contract begin and end dates);
• Products to be delivered;
• Classification, wage rates, and experience level of personnel to be assigned; • Cost items, payments, and fee. Fee is required to be negotiated as a separate element.
The consultant’s ICR is not a negotiable item. A lower rate cannot be negotiated by the LPA.
For on-call contracts, typically a price agreement is reached based on specific rate of compensation for the term of the contract. The subsequent task orders (or mini agreements for Local Assistance Procedures Manual Chapter 10
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individual project work) is negotiated based on cost plus fee, or lump sum, which is derived from the wage rates agreed upon earlier for the on-call contract.
Before executing the consultant contract, the LPA must review the contract to ensure that all federal and state requirements have been met, and receive Caltrans IOAI’s Financial Review acceptance letter, if applicable.
Prior to contract award, or after contract award but no later than the first invoice, the LPA must submit a completed A&E Consultant Contract form for all new federal-funded A&E consultant contracts using the database at
https://dla.dot.ca.gov/fmi/webd/AE%20Consultant%20Contract%20Form (please use Firefox or Chrome if not supported by your browser).
If there are any changes to the contract after submittal of the A&E Consultant Contract form, refer to Section 10.1.8: Contract Amendments.
10.1.7 Consultant Selection Using the Two-Step RFQ/RFP Method Combined RFQ and RFP
Selecting consultants using the Two-Step RFQ/RFP method requires combining certain steps from each of the other two methods previously described. The consultants are rated based upon both their qualifications and their technical proposals. This procurement procedure involves a two-step process with issuance of a request for qualifications (RFQ) whereby responding consultants are evaluated and ranked based on qualifications and an RFP is then provided to three or more of the most highly qualified consultants. The two-step method leads to an executed project specific contract.
A different process may also be used that includes assessing minimum qualifications of consultants to perform services under general work categories or areas of expertise through a prequalification process whereby annual statements of qualifications and performance data are encouraged. These consultants are not ranked, and an RFP must be submitted to the entire list for evaluation and consideration. Regardless of any process utilized for prequalification of consultants or for an initial assessment of a consultant's qualifications under a RFQ, a RFP specific to the project, task, or service is required for evaluation of a consultant's specific technical approach and qualifications.
The initial steps in this method (up to the development and notification of the shortlist) are similar to the steps followed when using the One-Step RFQ method. At this point, the consultants from the shortlist are issued an additional RFP. The remaining steps are the same as the later steps followed in the One-Step RFP method. The combination of these steps is indicated in Figure 10-4: Consultant Selection Flowchart. Because it is a combination of the One-Step RFQ and One-Step RFP methods, this method of consultant selection requires more work and time than the other two methods. Consequently, the combined RFQ/RFP method is recommended for use only when the scope of work is not clearly known, very complex, or unusual.
The Two-Step RFQ/RFP is also well-suited for procuring multiple on-call contracts through a single solicitation (see Section 10.1.2 Determine Type of Contract). The outcome of the first step RFQ will be multiple contracts, or on-call list of consultants. For multiple on-call contracts, project work will be procured through subsequent competition or mini-RFPs amongst the on-call consultants.
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LPAs may also use the Two-Step RFQ/RFP method to:
1. Develop and maintain a pre-qualified file/list of consultant firms by specific work categories or areas of expertise. This list includes all consultants that meet the minimum published pass/fail requirements. The pre-qualified list can be updated annually or at least every two years and must be maintained by the agency. This list has not gone through the evaluation process.
2. Create a short list of evaluated and ranked consultants that leads to executed contracts Because it is a combination of the One-Step RFQ and One-Step RFP methods, this method of consultant selection requires more work and time than the other two methods. Consequently, the combined RFQ/RFP method is recommended for use when the scope of work is very complex or unusual.
Categorize work
Descriptions of the categories of work, deliverables, and the minimum qualification standards for each category must be clearly identified.
The LPA may prequalify consulting firms in the following (or more) categories:
• Roadway Design
• Bridge Design
• Bridge Inspection
• Traffic Engineering
• Environmental Services
• Roadway Construction Inspection and Administration
• Landscape Architecture
• Land Surveying
• Intelligent Transportation System (ITS)
• Federal–aid Highway Project Development Support Services Establish Minimum Qualifications
In an effort to ensure quality performance and results, a consultant should be required to meet certain minimum qualifications to be eligible for consideration in the pre-qualification process.
General criteria guidelines should be established for consultant selection for a pre-qualified list.
The criteria may be established by an individual or a panel of subject matter experts for the specific task of developing the criteria. Some agencies also establish appropriate weights for each criterion. It may be necessary to modify the criteria to fit specific cases. When a RFQ is published, it should state the criteria that will be used in the selection process.
Criteria for evaluating statements of qualifications, may include but are not limited to:
• Special expertise and experience of the firm’s key employees • Proposed staffing (include number of licensed and specialized staff) for the project and previous experience of those identified
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• Experience of the firm and their personnel on previous projects similar to the one under consideration
• Consultant DBE Commitment document (see Exhibit 10-O1) • Professional references by the firm with the LPA
• Understanding of the project by the firm as demonstrated by their approach to organizing and management of the work
• Current workload of the firm and their ability to meet the proposed project schedule • Quality of previous performance by the firm with the LPA • Use of sub-consultants to accomplish work on the project • Equipment the firm has available and proposes to use as compatibility with ComputerAided Drafting and Design (CADD) and other equipment proposed to be used in accomplishing the work
• Familiarity with federal, state, and local codes, requirements, standards, and procedure • Examples of minimum qualifications for work categories above are provided here based on Caltrans best practices
Issue RFQ
The need for services of a consulting firm may be advertised in appropriate national, state, and local publications and web sites. Notices can also be sent to firms known to be qualified to do specific work, to professional societies, and to recognized Disadvantaged Business Enterprises (DBE) organizations. The advertisements and notices seek statements of interest and qualifications from consultants who are interested in the project. The DBE goal is established at the master on-call contract and included in the solicitation document.
The SOQ should list consulting firm details, names of principals, office locations, personnel by discipline, project experience and examples, current workload, types of service the firms are qualified to perform, and previous performance. Also, resumes of key persons, specialists, and other associates that may be assigned to the project or projects should be included. This information should be the basis for evaluating and placing a consulting firm on a general prequalification list.
Federal regulations require that any procedures related to pre-qualifying consultants cannot restrict competition.
Pre-qualification of consultants may be allowed as a condition for submitting a technical proposal for a contract only if the period between the date of the issuance of the RFP and the deadline for submitting a technical proposal affords sufficient time to enable a consultant to obtain pre-qualification status.
Another practice is to qualify consultants on a project-by-project basis. This is accomplished for some agencies by advertising or publishing notices in national, state, and local publications for needed services for specific, individual projects. These notices include a precise project location, a defined preliminary scope of services to be performed, a specific schedule within which the work is to be completed, and a list of products and deliverables to be provided by the consultant. Specific project advertisements usually are published when the proposed project is Local Assistance Procedures Manual Chapter 10
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large and complex, in-house resources are not available, special expertise is required, or the objectivity of an outside authority is desired.
Appropriate Federal-aid requirements should be complied with on Federal-aid projects.
Set-Up Evaluation Process
The first step in the evaluation process is to determine that each SOQ contains all forms, qualifications, and other information required by the RFQ. Otherwise, the submittals may be considered nonresponsive and rejected without evaluation. Documentation of when each SOQ was received must be maintained in the project files. Copies of date stamped envelope covers or box tops are recommended.
If all required information is not provided, a SOQ may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.
The LPA must establish a process by which SOQs are evaluated and consultants who are deemed meeting the minimum qualifications are accepted and placed on a per-qualified list.
Whether the LPA has a “committee” of experts evaluating the SOQs or individuals responsible for the evaluation, the process must be well-defined, open, and transparent. The prequalification process must also allow for consultants to be re-evaluated in cases of denials. The LPA must specify how long the pre-qualified list lasts, not to exceed two years. Federal regulation recommends refreshing the SOQs on an annual basis.
LPA Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 172) by completing and signing a conflict of interest statement prior to selection process initiation. A sample conflict of interest form is provided in Exhibit 10-T.
Evaluate Qualifications and Add Firm to List
All SOQs received should first be reviewed for completeness. Each response must contain all required forms and any other information requested in the advertisement. The response may be considered incomplete and rejected without further evaluation if all required information is not provided or if the submittal is late.
The qualifications of all responding firms are then reviewed according to established evaluation criteria or factors. The agency then establishes a short list of at least three consultants that are determined to be the most highly qualified to perform the required work. Firms not selected should be notified in writing.
Maintain List
Pre-qualification of a consultant expires in two years. Pre-qualified consultants must renew their pre-qualification status every two years. Firms can apply to be on the list at any time. After a period of two years, firms should re-apply (repeat the process of submitting SOQs) to be on the list. In addition to the required two-year renewal process, the consultant should also be required to update the firm’s organizational structure within one year when there is a corporate/affiliate change, ownership control, type of work expertise, capacity, or any other major change.
If the consultant does not meet the minimum requirements and their SOQ is rejected, the committee must respond to the consultant explaining the reason for their rejection. The Local Assistance Procedures Manual Chapter 10
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consultant is allowed to reapply to be on the list again provided the reasons for rejection are corrected.
The list of qualified firms can be maintained online through the agency’s website. Firms can also apply to be on the list through the agency website for ease of operation.
Issue RFP to Pre-Qualified Consultants on List
An RFP is sent to the short-listed firms. The RFP should indicate the content of the technical proposal, technical review procedures, anticipated schedule of activities, scope of work, project description, where the technical proposals are to be delivered, the number of copies required, and the due date.
Some agencies receive the technical proposal orally as part of an interview conducted for this purpose. In these cases, written documentation may not be required.
Items typically required in a technical proposal include:
• Work plan
• Organization plan
• Schedule for meeting time frame
• Available computer equipment and programs
• Staffing plan and resumes including sub-consultants
• Pre-award audit/financial package information (if deemed appropriate) • Examples of similar work previously completed
• Sub-consultants, DBE, their proposed participation, and other related information Conduct Proposer’s Conference or Answer Written Questions The LPA may allow for clarification of the RFP by inviting submittal of written questions or by conducting a proposer’s conference, or by doing both. The LPA must publish or mail their responses to any written questions to all consultants receiving the RFP. No response should be given to verbal questions. It is important that all competing consultants receive the same information. If a proposer’s conference is to be held, the exact time and place must be specified in the RFP. Attendance at a proposer’s conference normally is not mandatory. However, consultants not attending the conference do not receive notes from the meeting unless they request the notes.
Receive and Evaluate Technical Proposals
The Contract Administrator must verify that each technical proposal contains all forms and other information required by the RFP. If all required information is not provided, a technical proposal may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.
Documentation of when each technical proposal was received must be maintained in the project files. Copies of date stamped envelope covers or box tops are recommended.
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committee must evaluate each technical proposal according to the technical criteria listed in the RFP. A minimum of three technical proposals must be received and evaluated.
If only two technical proposals are received, a justification must be documented to proceed with the procurement. If only one technical proposal is received, a Non-Competitive process must be justified, and an Exhibit 12-F must be documented. In either case, the re-advertisement of the RFP should be considered as an option.
The committee must also evaluate reference checks and other information gathered independently. Reference checks must be completed, and other information gathered before the interviews are conducted. If necessary, the results of the reference checks or other information may be discussed with the highest ranked qualified consultants at the interviews.
Develop Final Ranking and Notify Consultants of Results The selection committee discusses and documents the strengths and weaknesses of each technical proposal, interviews the three or more highest ranked consultants (shortlisted), and develops a final ranking of the highest ranked consultants. All consultants that submitted technical proposals must be informed about the final ranking of consultants. It is important that all competing consultants receive the same information.
Most consultants will request information as to why they were not the highest ranked. Therefore, the selection committee should keep notes as to why a particular consultant was not selected.
When a consultant requests debriefing, the reasons for not being selected must be objective reasons. The consultant should not be compared to others and should not be provided with information about other consultants during this debriefing. Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing.
Request Cost Proposal and Negotiate Contract with Top-Ranked Consultant The first-ranked consultant is asked to provide a cost proposal to perform the work described in the draft contract and discussed at the scoping meeting. The work is to be performed according to the conditions described in the draft contract using the payment method described therein.
Alternatively, if time is of the essence and it can be justified, sealed cost proposals may be requested from all of the consultants on the shortlist.
If the contract involves more than one project, the consultant must provide a separate cost proposal for each project in addition to a summary cost proposal for the total contract. If the contract involves milestones, the consultant must furnish a separate cost proposal for each milestone with a summary cost proposal for the total costs. If the contract involves subconsultants, the prime consultant must include a separate cost proposal for each subconsultant. Each subconsultant’s cost proposal must follow the same format as the prime consultant’s cost proposal.
Cost proposals (for both prime and all subconsultants) and contract audit and review documents, such as Certification of Indirect Costs and Financial Management System and Financial Document Review Request forms, whichever applicable (see Section 10.1.3: A&E Consultant Audit and Review Process), will be submitted in a separate sealed envelope.
After the top-ranked consultant submits a sealed cost proposal, the LPA reviews the cost proposal and enters into negotiations. The goal of negotiation is to agree on a final contract that delivers to the LPA the services or products required at a fair and reasonable cost. The Local Assistance Procedures Manual Chapter 10
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independent cost estimate, developed by the LPA in advance of requesting a cost proposal from the top-ranked consultant, is an important basis and tool for negotiations.
Negotiations should commence with the most qualified consultant. If agreement on a fair and reasonable price cannot be reached, negotiations should then be formally terminated.
Negotiations then proceed to the next most qualified consultant, and so on. Each consultant’s cost proposal must remain sealed until negotiations commence with that particular consultant.
At the completion of successful cost negotiations, all remaining sealed envelopes containing cost proposals must be returned to consultants.
A contract audit and review may be required (see Section 10.1.3: A&E Consultant Audit and Review Process). The LPA Contract Administrator is responsible for the submittal of all required documentations to Caltrans IOAI in a timely fashion, including all documents for a Conformance Review, if applicable. Negotiations may be completed after receipt of the Caltrans IOAI Conformance Letter. An indirect cost audit may be performed within the record retention period of the contract.
Items typically negotiated include:
• Work plan
• Schedule and deadlines (for deliverables and final duration of contract) • Products to be delivered
• Classification, wage rates, and experience level of personnel to be assigned • Other Direct Cost items, and profit or fee
The consultant’s ICR is not a negotiable item. A lower rate cannot be negotiated by the LPA.
The LPA and the consultant will agree on the final cost proposal and incorporate into final contract.
Before executing the consultant contract, the LPA must review the contract to ensure that all federal and state requirements have been met.
10.1.8 Completing the Project
Develop the Final Contract
The Contract Administrator requests a revised cost proposal from the consultant after:
(1) negotiations have been completed, (2) the LPA and consultant have agreed to a fair and reasonable price, and (3) a letter, if applicable, is released by Caltrans IOAI that accepts, denies, or makes an adjustment to the proposed ICR. The Contract Administrator should review the revised cost proposal to ensure that all the items and changes discussed during negotiation were included. This revised cost proposal then becomes the final cost proposal and is attached to and made a part of the consultant contract. Sample contract language and format have been included as Exhibit 10-R: A&E Boilerplate Agreement Language.
The Contract Administrator has responsibility to ensure that the final negotiated contract is complete and has verified that all required backup documents have been provided. Copies of the contract are sent to the consultant for signature first.
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Review and Approval of Contracts
Proposed contracts for consultant services (including subcontracted work) must be reviewed by the LPA to verify that:
• Compensation is fair and reasonable and includes prevailing wage rates, if applicable; • Work activities and schedules are consistent with the nature and scope of the project; • DBE goal Exhibit 10-O2: Consultant Contract DBE Commitment is included for all contracts regardless of goal;
• Certification of Indirect Costs and Financial Management System (for Prime and Subs) and Financial Document Review Request forms and all supporting documents, if applicable (contracts at or above $1 Million), have been submitted to Caltrans IOAI; • If applicable, adjustment or denial of the ICR identified in the Financial Review Letter have been included in the final cost proposal;
• A&E Consultant Contract database must be used to ensure that required documentation has been provided;
• A cost proposal must include the costs of materials, direct salaries, payroll additions, other direct costs, indirect costs, fees, and backup calculations.
Before approving a contract for consulting services, the Contract Administrator must be satisfied that the consultant’s organization:
• Is qualified to perform the services required;
• Is in a position, considering other work commitments, to provide competent and experienced personnel to perform the services in the time allowed; • Is fully aware of all applicable federal and state laws including implementing regulations, design standards, specifications, previous commitments that must be incorporated into the design of the project, and administrative controls including those of Caltrans and FHWA.
• Has an adequate financial management system as required by the applicable federal regulations.
• Is not disbarred or suspended from state or federally-funded contracts. Per 23 CFR 172.7(b)(3) “A contracting agency shall verify suspension and debarment actions and eligibility status of consultants and subconsultants prior to entering into an agreement or contract in accordance with 2 CFR 1200 and 2 CFR 180.”
The contract must provide for a defined level of acceptability and a statement to the effect that the consultant may be required to modify its work as necessary; to meet that level of acceptability as defined in the contract. The contract must provide for LPA reviews at appropriate stages during performance of the work, to determine if any changes or other actions are warranted.
The contract must provide that the consultant and subconsultants must maintain all books, documents, papers, accounting records, and other information pertaining to costs incurred.
Such materials must be available for inspection and audit by federal, State, and LPA authorized representatives; and copies thereof must be furnished, if requested.
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Following final settlement of the contract accounts with the State or FHWA, such records and documents may be archived at the option of the LPA and must be retained for a three-year period after processing of the final voucher by FHWA.
Execute Contract and Issue Notice to Proceed to Consultant The Contract Administrator sends the consultant a fully executed copy of the contract with an original signature and issues a notice to proceed. Funds may not be used to reimburse the agency for any work or costs incurred before the Authorization to Proceed is issued, or for consultant costs incurred prior to the execution of the consultant contract. All executed on-call contracts must have a begin and end date. All executed project-specific or multiphase contracts must have a begin date and should have an end date prior to the Project End Date. Work performed after the Project End Date is not eligible for reimbursement; see LAPM Chapter 3.
LPA consultant selection and contract execution costs may be reimbursable.
For on-call contracts, a fully executed copy of the contract with original signatures will be sent to the consultant. Each subsequent task order (for individual project) will be accompanied with a copy of the signed task order and a Notice to Proceed, once it is negotiated and approved. Task order expiration dates must not exceed the Master On-call agreement end date.
Administer the Contract
Project work begins as specified in the contract after the notice to proceed is issued to the consultant. Thereafter, the LPA manages and administers the contract to ensure that a complete and acceptable product is received on time, within standards, and within budget and terms of the contract.
Contract administration activities help to ensure that contractual obligations are completed satisfactorily. Generally, these activities include:
• Monitoring project progress and compliance with contract requirements; • Receiving, reviewing, and assessing reports, plans, and other required products/ deliverables;
• Receiving and reviewing state prevailing wages (see Department of Industrial Relations websites below):
o DIR FAQ website: http://www.dir.ca.gov/OPRL/FAQ_PrevailingWage.html o DIR Wage Determination website:
http://www.dir.ca.gov/oprl/DPreWageDetermination.htm
• Reviewing invoices to ensure costs claimed are in accordance to the method of payment and contract cost proposal, approving payments;
• If new consultant personnel are added or substituted, labor rates must be verified prior to approving invoices.
• Record keeping and reporting;
• Controlling costs;
• Identifying changes to the scope of work and preparation of amendments (must ensure that any changes to the scope is within the constraints of the original RFP/RFQ; Local Assistance Procedures Manual Chapter 10
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• Completing the consultant performance evaluations (see Exhibit 10-S: Consultant Performance Evaluation).
Substitution of Consultant Personnel and Subconsultants After contract execution the consultant should not substitute key personnel (project manager and others listed by name in the cost proposal) or subconsultants without prior written approval from the LPA. Refer to LAPM Chapter 9: Civil Rights & Disadvantaged Business Enterprise and 49 CFR 26 for DBE substitution requirements. To do so can result in the costs being ineligible for federal or state reimbursement. The consultant must request and justify the need for the substitution and obtain approval from the LPA prior to use of a different subconsultant on the contract.
The proposed substituted person must be as qualified as the original, and at the same or lower cost. For engineering types of consultant contracts, the consultant’s project manager must be a registered engineer in the State of California.
Invoicing (or Progress Payments)
The frequency and format of the invoices/progress payments are to be determined by the contract. Program Supplement Agreements (see LAPM Chapter 3: Project Authorization) need to have been prepared prior to any payments being requested. Payments to the consultant are to be in arrears. In other words, the consultant must have actually incurred and paid the costs before invoicing the LPA.
For federal reimbursement of consultant costs on a project, the LPA must submit the following to the DLAE, for each consultant or consulting firm used on the project (failure to do so will result in the consultant’s invoices for reimbursement being returned to the agency unprocessed):
• Copy of Executed Consultant contract;
• Exhibit 10-O1: Consultant Proposal DBE Commitment
• Exhibit 10-O2: Consultant Contract DBE Commitment
• Copy of issued task order and Exhibit 10-O2 for the task order for on-call contracts.
DLAE must confirm that the LPA has submitted copies of the Certification of Indirect Costs and Financial Management System form (for Prime and Subconsultants) to Caltrans IOAI and that LPA has submitted the A&E Consultant Contract form to Caltrans.
The LPA is to follow the procedures given in LAPM Chapter 5: Invoicing, to obtain reimbursement of federal or state funds.
Contract Amendments
Contract amendments are required to modify the terms of the original contract for changes such as extra time, added work, or increased costs. Only work within the original advertised scope of services must be added by amendment to the contract. The addition of work outside the original advertised scope will make that work ineligible for federal or state reimbursement (see Q&As).
There is no prescribed format for contract amendments. They may take the form of letter-type agreements meeting the legal requirements of the LPA, clearly outlining the changes and Local Assistance Procedures Manual Chapter 10
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containing a mutually agreed-upon method of compensation. Such agreements must conform to the requirements of this manual with regard to payment.
A consultant contract may be amended at any time prior to the expiration date of the original contract. The most common amendment is to extend the ending date of the contract. All contract amendments must be fully executed before the ending date of the contract by formal amendment. Failure to amend a contract prior to the ending date will make the subsequent costs ineligible for federal and state reimbursement. Task orders are not considered an amendment and therefore not appropriate to extend the terms of the contract.
All contract amendments must be negotiated following the same procedures as the negotiation of the original contract and must be in writing and fully executed by the consultant and LPA before reimbursable work begins on the amendment. For any additional engineering and design related services outside of the scope of work established in the original solicitation, a contracting agency must either procure the series under a new solicitation, perform the work itself using agency staff, or use a different, existing contract under which the services would be within the scope of work. Overruns in the costs of the work must not automatically warrant an increase in the fixed fee portion of a cost-plus-fixed fee reimbursed contract. Permitted changes to the scope of work or duration may warrant consideration for adjustment of the fixed fee portion of cost-plus-fixed fee or lump sum reimbursed contracts. If an emergency exists of such magnitude that a delay cannot be tolerated, the LPA and the consultant may agree on an amendment initiating the work, so that reimbursable work may begin. The initiating amendment is then followed by a final amendment once the full scope of the emergency work is known and agreed to by both parties. In both cases, sufficient funding should be included in the amendments to pay for all work to be performed by the consultant. The final amendment must be executed as quickly as possible. Failure to fully comply with this section may result in the loss of LPA funding. Section 10.1.3: A&E Consultant Audit and Review Process of this chapter must apply to the entire contract and must be completed prior to execution of the contract amendment. For contracts greater than or equal to $1 Million, submit the Financial Document Review Request form to IOAI for all amendments on consultant/subconsultant's name change, amending an ICR, or adding new subconsultant's ICR. ICRs that have not been accepted by IOAI are not eligible for federal or state reimbursement. For contracts with original amounts under $1 Million but subsequently became greater than or equal to $1 Million after amendment, IOAI Financial Document Review is not required. If there are any changes to the contract after submittal of the A&E Consultant Contract form, the LPA must submit an amended form to the database prior to the first invoice after the contract has been amended. Submission of the A&E Consultant Contract form is not required for non-A&E consultant contracts. All amendments must incorporate any current requirements of the federal regulations including the federal fiscal provisions and submit the A&E Consultant Contract form to the database prior to the first invoice after the contract has been amended (please use Firefox or Chrome if not supported by your browser).
Performance Evaluation
Pursuant to 23 CFR 172.9(d)(2) agencies are required to prepare an evaluation of the consultant when the project has been completed. The Contract Administrator evaluates the consultant’s performance after the consultant’s final report has been submitted, and the Contract Administrator has conducted a detailed evaluation with the consultant’s project manager. See Exhibit 10-S: Consultant Performance Evaluation for a suggested format for use by the LPA.
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Project Records
Federal-Aid Highway Program funding recipients and sub-recipients must maintain adequate and readily accessible project performance and financial records, supporting documents, and other records considered pertinent to the grant agreement and in compliance with federal laws and regulations (e.g., 23 USC 112; 40 USC 1101-1104, 23 CFR 172, 48 CFR 31, and 2 CFR 200). These records must be maintained for a minimum of three (3) years following issuance of the final voucher from FHWA (forwarded by Caltrans) and the closure of all other pending matters (2 CFR 200.333).
For audit purposes, project records and documentation must be kept for three (3) years after payment of the final federal or state voucher. Among the records to be retained are as follows (not an all-inclusive list):
• Copies of RFPs and RFQs, changes, addendums, etc. and bidder’s list; • Documentation of DBE participation (including Exhibit 10-O1: Consultant Proposal DBE Commitment, Exhibit 10-O2: Consultant Contract DBE Commitment), Exhibit 10-G:
Individual A&E Task Order DBE Tracking Sheet, Exhibit 17-F: Final Report – Utilization of DBE and First-Tier Subcontractors or Exhibit 17-F1: Final Report-Utilization of Disadvantaged Business Enterprise (DBE) for On-Call Contracts, and Exhibit 17-O: DBE Certification Status Change.
• Solicitation and advertisement records;
• Identification of selection committee members;
• Record of receiving proposals, statement of qualifications; • Evaluation and ranking records such as original score sheets from all panel members, short list questions, and other documentation (see Exhibit 10-B: Suggested Consultant Evaluation Sheet);
• Independent cost estimate (prepared in advance of requesting a cost proposal from the top-ranked consultant);
• Record of negotiations (to include a separate negotiation of profit in accordance with federal guidelines);
• Financial Review Letter and Cognizant Agency Letter, when applicable; • CPA-audited ICR Audit Report or Approved State DOT Cognizant Indirect Rate Letter, if any;
• Consultant Certification of Costs and Financial Management (Certification of Indirect Costs and Financial Management System form) for contracts at or above $1 Million; • A&E Consultant Audit Request Letter and Checklist (Financial Document Review Request form) for contracts at or above $1 Million and all supporting documentation. • Executed consultant contracts, cost proposals, and amendments (see Exhibit 10-R: A&E Boilerplate Agreement Language);
• Contract oversight and progress meeting documents;
• Progress and final payments, and supporting documentation; • Performance evaluation (see Exhibit 10-S: Consultant Performance Evaluation); Local Assistance Procedures Manual Chapter 10
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• A&E Consultant Contract form (see A&E Consultant Contract database); • Accounting records documenting compliance with State and federal administrative requirements;
• Certifications and Conflict of Interest forms (Exhibit 10-T: Conflict of Interest & Confidentiality Statement, all personnel involved in the procurement of the agreement should complete Exhibit 10-T, Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement, and Exhibit 10-Q: Disclosure of Lobbying Activities, as appropriate). Exhibit 10-Q is included in the solicitation and must be completed if the consultant needs to disclose any lobbying activities.
Retention Clauses
At the option of the LPA, a retention clause may be included in the consultant contract. A retention clause in the consultant contract is recommended (see Exhibit 10-R: A&E Boilerplate Agreement Language, Article VIII).
Review of Local Public Agency Actions
Federal-aid or state reimbursement is contingent on meeting the federal or state requirements and can be withdrawn, if these procedures are not followed and documented. The LPA files are to be maintained in a manner to facilitate future FHWA or Caltrans process reviews and audits.
As specified in the Review and Approval of Contracts above, the Contract Administrator must review the proposed consultant contract before execution.
The A&E Consultant Contract form is to be completed prior to award, or after contract award but no later than the first invoice. A copy of this form must be retained in the LPA project files.
10.1.9 Miscellaneous Considerations
Agreements with Other Governmental Agencies
Intergovernmental or inter-entity agreements are encouraged if appropriate. If another governmental agency is requested to do work or provide services to an agency, an interagency agreement is needed (2 CFR 200 and California Government Codes 10340 and 11256).
Small Purchase Contracts
Contracts that are less than $250,000 are considered small contracts in accordance with federal regulations. However, within the State of California, there is no recognized small purchase procedure and all A&E contracts are procured using qualifications based selection and not cost.
For federal contracts that are less than $250,000 and are not anticipated to exceed this amount, the agency must use either Section 10.2: State-Only Funded A&E Contracts or the federal guidance for contracts greater than $250,000. If the contract is anticipated to exceed $250,000, use one of the accepted procurement procedures listed in the previous sections. Small contracts using the simplified acquisition procedure (State-Only funded section) must not exceed $250,000 or the additional costs are considered not reimbursable. The entire contract could also be considered ineligible by FHWA depending on circumstances. The scope of work, project phases, and contract requirements must not be broken down into smaller components to permit the use of small purchase procedure. DBE requirements apply for all federally-funded projects.
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Noncompetitive Negotiated Contracts (Sole-Source)
Procurement by noncompetitive proposals may be used only when the award of a contract is infeasible under sealed bids or competitive proposals (23 CFR 172.7(a)(3)).
FHWA considers these types of contracts as Sole Source contracts and should be used only in very limited circumstances. An Exhibit 12-F prepared by the LPA and approved by Caltrans is required before establishing these services (23 CFR 172.7(a)(3); also see Exhibit 12-F: CostEffectiveness/Public Interest Finding/A&E Noncompetitive.
Conditions under which noncompetitive negotiated contracts may be acceptable include:
• Only one organization is qualified to do the work;
• An emergency exists of such magnitude that cannot permit delay; • Competition is determined to be inadequate after solicitation of a number of sources.
The LPA must:
• Follow its defined process for noncompetitive negotiation; • Develop an adequate scope of work, evaluation factors, and cost estimate before solicitation;
• Conduct negotiations to ensure a fair and reasonable cost.
The LPA must carefully document details of the special conditions, obtain Caltrans approval on the Exhibit 12-F and retain all documents in the project files for future Caltrans’ or FHWA’s review.
Retaining a Consultant in a Management Support Role (CMSR) An LPA may retain a qualified CMSR on its staff in professional capacities for federal-aid projects such as:
• A City Engineer (or equivalent) who manages the engineering unit for the city, providing oversight of a project, series of projects, managing or directing work of other consultants or contractors on behalf of the city.
• A County Engineer (or equivalent) who manages the engineering unit for the county such as duties described above.
• A Project Manager (or equivalent) who manages and oversees a project, series of projects, or the work of other consultants and contractors on behalf of the public agency. • A Program Manager (or equivalent) who manages and oversees an element of a highway program, function, or service on behalf of the public agency.
However, typically a CMSR is not:
• A consultant engineer performing project-specific design, and/or construction contract administration and construction engineering for the public agency. • A consultant providing support to administrative duties such as federal authorization process, labor compliance activities, and other management and administrative tasks.
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The use of a CMSR should be limited to unique or very unusual situations. These situations require a thorough justification as to why the LPA cannot perform the management. Consultants used in management support roles must be selected using the same procedures as those for other consultants specified in this chapter. A CMSR funded by local or state funds must have approval from FHWA to be considered qualified to manage federal projects or consultants providing services on federal projects.
Eligibility for federal or state reimbursement for a CMSR requires the following:
• Compliance with the selection procedures specified in this chapter; • Existence of a contract between the LPA and the consultant specifying the LPA engineering services to be performed;
• Written designation by the LPA of the responsibilities and authority of the consultant as an agency engineer;
• For a federal-aid project, completion of Exhibit 10-T: Conflict of Interest & Confidentiality Statement by all members (both consultants and employees) prior to participating in the Architect & Engineering (A&E) Selection Panel pertaining to the specific selection process and the firms being considered;
• Selection of consultants for A&E management positions must be by the use of qualification-based selection procedures on an open and competitive basis resulting in a contract with defined beginning and ending dates not to exceed five (5) years; • For a federal-aid project, the LPA’s CMSR must not:
o Participate in, or exercise authority over the A&E selection process, if that consultant’s firm is one of the proposing firms, or subconsultant to a proposing firm;
o Participate in, or exercise authority over management of work performed by the consultant’s firm, or to a consultant’s firm of which the LPA consultant firm is a subconsultant. This would include, but not be limited to, managing or directing the work, approving changes in the schedule, scope, or deliverables; and approving invoices.
o Apply for or receive reimbursement of federal-aid funds for the LPA’s federal-aid project if either of the foregoing has occurred. However, reimbursement for the construction contract portion of the project will still be allowed provided all other federal-aid requirements have been met.
o Where benefiting more than a single federal-aid project, allocability of consultant contract costs for services related to a management support role must be distributed consistent with the cost principles applicable to the contracting agency in 23 CFR 172.7(b)(5).
If engineering services for a project are within the scope of the services described in the retained consultant’s contract, these services may be performed by the person or firm designated as an agency engineer. If the services are not within the scope, eligibility for federal reimbursement for these services require a new consultant contract to be developed using the selection procedures in this chapter. Retained consultants involved in the preparation of the RFP or RFQ must not be considered in the selection of consultants for the resulting project specific work.
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When a CMSR is procured with federal-aid funds, the LPA (subgrantee) must fully comply with the following:
• Subparagraphs of 2 CFR 200.318 maintain a contract administration system and maintain a written code of standards. No employee, officer, or agent of the subgrantee must participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. • Subparagraph of 23 CFR 172.7(b) requires that the LPA must receive approval from FHWA.
• Liability insurance should normally be required from the consultant (errors and omissions, etc.).
For federally-funded projects, LPAs that solicit to hire A&E consultant(s) in a management support role must obtain FHWA approval prior to contract execution.
In order for a contract for a CMSR to be federally eligible, the following are required prior to contract execution:
• The LPA must submit a request for approval via email, the Scope of Work (SOW) and Conflict of Interest (COI) Policy to the Division of Local Assistance-Headquarters (DLAHQ) at [email protected], prior to solicitation. • Once the LPA receives FHWA’s written response, the LPA may need to revise the documents reflecting FHWA’s opinions and can proceed with the RFQ. • After consultant selection, the LPA must submit the completed Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement to the DLA-HQ at [email protected]. LPA will receive FHWA’s approved Exhibit 10-U via email.
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Figure 10-5: Consultant in a Management Support Role Flowchart Construction Engineering Services
Under federal-aid regulations and state policy, the primary responsibility for general supervision of construction must remain with the LPA. The LPA must also ensure that the work is performed in accordance with the approved plans and specifications, by employing or retaining as a consultant a registered engineer for construction engineering services on the project.
All construction engineering activities performed by a consultant must be under the overall supervision of a full-time employee of the agency who is in responsible charge. These activities may include preparation of contract change orders, construction surveys, foundation investigations, measurement, and computation of quantities, testing of construction materials, checking of shop drawings, preparation of estimates, reports, and other inspection activities necessary to ensure that the construction is being performed in accordance with the plans and specifications. The construction engineering consultant’s contract defines the relative authorities and responsibilities of the full-time employee of the LPA in charge of the project and the consultant’s construction engineering staff.
If a technical inspection consultant is to provide professional assistance to the LPA, a formal consultant contract must be executed which follows this chapter’s requirements. The contract must provide for reviews at appropriate stages during performance of the work to determine if any changes or other actions are warranted. These reviews are to be made by the LPA.
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10.1.10 Program Management
According to 23 CFR 172.5, LPAs are required to adopt written policies and procedures prescribed by Caltrans. As such, the LPA must adopt Caltrans Local Assistance Chapter 10:
Consultant Selection, which contain the A&E policies and procedures.
To meet this requirement, LPAs are required to email and provide one of the following documents to the DLA Office of Guidance and Oversight (OGO) at [email protected]:
1. A Board Resolution showing that the LPA is adopting Caltrans LAPM Chapter 10; OR
2. An official letter signed by the LPA’s Public Works Director or equivalent manager addressed to the DLA OGO Office Chief, stating that the agency is adopting Caltrans LAPM Chapter 10
The DLA A&E website includes an example of the adoption resolution and letter. These examples are for reference only; the appropriate language to be used is determined by the individual agency.
LPAs are responsible for providing all resources necessary for the procurement, management, and administration of A&E consultant contracts including subcontracts. Ensuring consultant costs billed are allowable in accordance with the Federal cost principles and consistent with the contract terms as well as the acceptability and progress of the consultant's work; • Monitoring the consultant's work and compliance with the terms, conditions, and specifications of the contract;
• Preparing a consultant's performance evaluation when services are completed and using such performance data in future evaluation and ranking of consultant to provide similar services;
• Closing-out a contract;
• Retaining supporting programmatic and contract records, as specified in 2 CFR 200.333 and the requirements of this part;
• Determining the extent to which the consultant, which is responsible for the professional quality, technical accuracy, and coordination of services, may be reasonably liable for costs resulting from errors and omissions in the work furnished under its contract; • Assessing administrative, contractual, or legal remedies in instances where consultants violate or breach contract terms and conditions, and providing for such sanctions and penalties as may be appropriate; and
• Resolving disputes in the procurement, management, and administration of engineering and design related consultant services.
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10.1.11 References
2 CFR Part 200
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1
2 CFR Part 215 Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations https://www.govinfo.gov/app/details/CFR-2012-title2-vol1/CFR-2012-title2-vol1-part215/context 23 U.S.C. Letting of Contracts
http://www.fhwa.dot.gov/map21/docs/title23usc.pdf
23 CFR 172
https://www.ecfr.gov/current/title-23/chapter-I/subchapter-B/part-172 40 U.S.C.1104 Brooks Act
https://www.govinfo.gov/app/details/USCODE-2011-title40/USCODE-2011-title40-subtitleIchap11/context 41 CFR Public Contracts and Property Management
http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title41/41tab_02.tpl 41 U.S.C. Public Contracts
https://www.govinfo.gov/content/pkg/USCODE-2009-title41/html/USCODE-2009-title41.htm
48 CFR, Chapter 1, Subpart 15.404
https://www.acquisition.gov/far/part-15
48 CFR, Chapter 1, Part 31
https://www.acquisition.gov/far/part-31
48 CFR, Chapter 1, Part 16 – Types of Contracts
https://www.acquisition.gov/far/part-16
48 CFR 27, Chapter 1, Subpart 27.3 – Patent Rights under Government Contracts https://www.acquisition.gov/far/part-27
48 CFR, Chapter 1, Subpart 31.201-3 – Determining Reasonableness https://www.acquisition.gov/far/part-31
48 CFR, Chapter 99 – Cost Accounting Standards, Part 9904 https://www.acquisition.gov/chapter_99
49 CFR 26 Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs
http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title49/49cfr26_main_02.tpl American Association of State Highway and Transportation Officials (AASHTO) Uniform Audit and Accounting Guide
https://audit.transportation.org/
Caltrans Division of Procurement and Contracts Website
http://www.dot.ca.gov/dpac/index.html
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California Labor Code, Section 1775
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB§ionNum=1775 Government Auditing Standards (GAS) issued by the United States Government Accountability Office
http://www.gao.gov/yellowbook/overview
Government Code Sections 4525 through 4529.5 and Sections 4529.10 through 4529.20 https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=5.&title=1.& part=&chapter=10.&article=
Standard Environmental Reference (SER)
http://www.dot.ca.gov/ser/
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10.2 STATE-ONLY FUNDED A&E CONTRACTS
10.2.1 General
LPAs are required to follow all applicable local and state regulations including those listed in LAPM Chapter 10 in accordance with their State Master Agreement. Although the requirements listed in this section are minimum requirements, the LPA must use good engineering judgment and best practices to document their processes and procedures when procuring A&E contracts utilizing qualifications based selections. LPAs using local funds to procure an A&E Consultant on a state-only funded project and will not seek state reimbursement for consultant cost may choose not to follow the selection and contracting procedures detailed in Section 10.2 of this chapter.
All consultants must comply with 48 CFR 31: Contract Cost Principles and Procedures. Also, consultants and LPAs must comply with 2 CFR 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, excluding sections 200.318-200.326 Procurement Standards (reference Federal Highway Administration December 4, 2014 Memorandum Action: 2 CFR 200 Implementation Guidance).
Agency state-only funded (SOF) agreements must contain the required federal fiscal provisions from 2 CFR 200 in all Division of Local Assistance funded agreements. Exhibit 10-R: A&E Boilerplate Agreement Language contains 2 CFR 200 requirements and may also be used in SOF agreements. Depending upon the scope of work, the required contract provisions may need to include the California State Prevailing Wages.
All proposed A&E contracts and supporting documents (including state-only funded) are subject to audit or review by Caltrans’ Independent Office of Independent Office of Audits and Investigations (IOAI), other state audit organizations, or the federal government and required to follow LAPM Section 10.1.3 A&E Consultant Audit and Review Process.
For consultant contracts, procured with local or state funds, to provide services for federal-aid projects, or to oversee or manage other consultants providing these services, the Consultant in Management Support Role process must be completed to be eligible for reimbursement. Refer to Section 10.1.9 Miscellaneous Considerations: Retaining a Consultant as an Agency Engineer or in a Management Support Role.
DBE contract goals are not required for state-only funded contracts.
This guidance is for contracts utilizing state funds only. If any federal funds are added or reimbursed, the federal process must be followed.
Non-A&E consultant contracts reference Section 10.3: Non-A&E Contracts.
Reference: California Government Code Title 1, Division 5, Chapter 10, Contracts with Private Architects, Engineering, Land Surveying, and Construction Project Management Firms §4525- 4529.5.
10.2.2 Definition of A&E
Architectural, landscape architectural, engineering, environmental, and land surveying services includes those professional services of an architectural, landscape architectural, engineering, environmental, or land surveying nature as well as incidental services that members of these professions and those in their employ may logically or justifiably perform.
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Construction project management means those services provided by a licensed architect, registered engineer, or licensed general contractor. Any individual or firm proposing to provide construction project management services must provide evidence that the individual or firm and its personnel carrying out onsite responsibilities have expertise and experience in construction project design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost-benefit analysis, claims review and negotiation, and general management and administration of a construction project.
Environmental services mean those services performed in connection with project development and permit processing in order to comply with federal and state environmental laws.
Reference: California Government Code §4527
10.2.3 Minimum Audit Requirements
A. Written Procedures
Local agencies shall follow the minimum requirements listed below in addition to any local laws and regulations.
Reference: California Government Code §4526
B. Conflict of Interest
The LPA must develop and maintain a written code of conduct governing the performance of its employees engaged in the award and administration of state-funded contracts, including the prevention of conflicts of interest.
References:
California Government Code §4526
California Government Code §1090
California Government Code §4529.12
C. Records
Local agencies shall keep adequate records of all contracts including the procurement, project management, accounting, and financial administration.
References:
California Government Code §4529.14
California Government Code §4006
D. Full & Open Competition
All A&E contracts shall be procured through a qualifications-based selection utilizing open and fair competition. Evaluate at least three consultants using published evaluation criteria and rank these firms in order of preference. If less than three consultants are evaluated, provide justification for agency file.
References:
California Government Code §4526
California Government Code §4527
California Government Code §4529.12
E. Selection Basis
Selection of a firm shall be based on qualifications and the order of ranked preference.
References:
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California Government Code §4526
California Government Code §4527
F. Publication
Solicitations for A&E contracts shall be in a manner that is open and competitive.
Reference: California Government Code §4527
G. Solicitation
The solicitations shall include published evaluation criteria to rank in order of preference. Clearly define expectations in the solicitation in order to evaluate firms.
Reference: California Government Code §4527
H. Cost Analysis
An independent cost comparison to the consultant’s cost proposal shall be done in order to ensure the contract is negotiated at a fair and reasonable price.
Reference: California Government Code §4528
I. Negotiations
Negotiations must be documented to verify a fair and reasonable contract has been executed using public funds.
Reference: California Government Code §4528
J. Audit and Review Process
A&E contracts procured by public agencies shall be subject to standard accounting practices and may require financial and performance audits. All agencies shall follow the Audit and Review Process as stated in Section 10.1.3: A&E Consultant Audit and Review Process.
Financial Document Review Request form.
References:
California Government Code §4529.14
2 CFR 200
K. A&E Consultant Contract Form
The A&E Consultant Contract form must be completed and submitted in the database at https://dla.dot.ca.gov/fmi/webd/AE%20Consultant%20Contract%20Form (please use Firefox or Chrome if not supported by your browser) prior to contract award, or after contract award but no later than the first invoice for all new state-only funded A&E consultant contracts.
If there are any changes requiring an amendment to the contract after submittal of the A&E Consultant Contract form, the LPA must submit an updated form to the database prior to the first invoice after the contract has been amended. Submission of the A&E Consultant Contract form is not required for non-A&E consultant contracts.
Reference: LAPM Ch.10.2
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CA Government Code References
California GOV §1090
(a) Members of the Legislature, state, county, district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity. (b) An individual shall not aid or abet a Member of the Legislature or a state, county, district, judicial district, or city officer or employee in violating subdivision (a).
(c) As used in this article, “district” means any agency of the state formed pursuant to general law or special act, for the local performance of governmental or proprietary functions within limited boundaries.
California GOV §4006
Plans, specifications, work authorizations describing work to be performed, and all other information referred to in this chapter are open to inspection and examination as a public record.
California GOV §4525
For purposes of this chapter, the following terms have the following meaning:
(a) “Firm” means any individual, firm, partnership, corporation, association, or other legal entity permitted by law to practice the profession of architecture, landscape architecture, engineering, environmental services, land surveying, or construction project management.
(b) “State agency head” means the secretary, administrator, or head of a department, agency, or bureau of the State of California authorized to contract for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services. (c) “Local agency head” means the secretary, administrator, or head of a department, agency, or bureau of any city, county, city and county, whether general law or chartered, or any district which is authorized to contract for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services.
(d) “Architectural, landscape architectural, engineering, environmental, and land surveying services” includes those professional services of an architectural, landscape architectural, engineering, environmental, or land surveying nature as well as incidental services that members of these professions and those in their employ may logically or justifiably perform.
(e) “Construction project management” means those services provided by a licensed architect, registered engineer, or licensed general contractor which meet the requirements of Section 4529.5 for management and supervision of work performed on state construction projects. (f) “Environmental services” means those services performed in connection with project development and permit processing in order to comply with federal and state environmental laws. “Environmental services” also includes the processing and awarding of claims pursuant to Chapter 6.75 (commencing with Section 25299.10) of Division 20 of the Health and Safety Code.
California GOV §4526
Notwithstanding any other provision of law, selection by a state or local agency head for professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. In order to implement this method of selection, state agency heads contracting for private architectural, landscape architectural, professional engineering, environmental, land surveying, and construction project management services shall adopt by regulation, and local agency heads contracting for private architectural, landscape architectural, professional engineering, environmental, land surveying, and construction project management services may adopt by ordinance, procedures that assure that these services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the public agencies. Furthermore, these procedures shall assure maximum participation of small business firms, as defined by the Director of General Services pursuant to Section 14837.
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In addition, these procedures shall specifically prohibit practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit government agency employees from participating in the selection process when those employees have a relationship with a person or business entity seeking a contract under this section which would subject those employees to the prohibition of Section 87100.
California GOV §4527
In the procurement of architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services, the state agency head shall encourage firms engaged in the lawful practice of their profession to submit annually a statement of qualifications and performance data. (a) When the selection is by a state agency head, statewide announcement of all projects requiring architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services shall be made by the agency head through publications of the respective professional societies. The agency head, for each proposed project, shall evaluate current statements of qualifications and performance data on file with the agency, together with those that may be submitted by other firms regarding the proposed project, and shall conduct discussions with no less than three firms regarding anticipated concepts and the relative utility of alternative methods of approach for furnishing the required services and then shall select therefrom, in order of preference, based upon criteria established and published by him or her, no less than three of the firms deemed to be the most highly qualified to provide the services required. (b) When the selection is by a local agency head, the agency head may undertake the procedures described in subdivision (a). In addition, these procedures shall specifically prohibit practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit government agency employees from participating in the selection process when these employees have a relationship with a person or business entity seeking a contract under this section.
California GOV §4528
(a) When the selection is by a state agency head the following procedures shall apply:
(1) The state agency head shall negotiate a contract with the best qualified firm for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services at compensation which the state agency head determines is fair and reasonable to the State of California or the political subdivision involved.
(2) Should the state agency head be unable to negotiate a satisfactory contract with the firm considered to be the most qualified, at a price the agency head determines to be fair and reasonable to the State of California or the political subdivision involved, negotiations with that firm shall be formally terminated. The state agency head shall then undertake negotiations with the second most qualified firm. Failing accord with the second most qualified firm, the state agency head shall terminate negotiations. The state agency head shall then undertake negotiations with the third most qualified firm. (3) Should the state agency head be unable to negotiate a satisfactory contract with any of the selected firms, the state agency head shall select additional firms in order of their competence and qualification and continue negotiations in accordance with this chapter until an agreement is reached. (b) When the selection is by a local agency head, the local agency head may undertake the procedures described in subdivision (a).
California GOV §4529
This chapter shall not apply where the state or local agency head determines that the services needed are more of a technical nature and involve little professional judgment and that requiring bids would be in the public interest.
California GOV §4529.12
All architectural and engineering services shall be procured pursuant to a fair, competitive selection process which prohibits governmental agency employees from participating in the selection process when they have a financial or business relationship with any private entity seeking the contract, and the procedure shall require compliance with all laws regarding political contributions, conflicts of interest or unlawful activities.
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California GOV §4529.14
Architectural and engineering services contracts procured by public agencies shall be subject to standard accounting practices and may require financial and performance audits as necessary to ensure contract services are delivered within the agreed schedule and budget.
California GOV §4529.20
This act seeks to comprehensively regulate the matters which are contained within its provisions. These are matters of statewide concern and when enacted are intended to apply to charter cities as well as all other governmental entities.
Federal Highway Administration Memorandum 2 CFR Part 200 Implementation Guidance 12/4/2014
Attachment A: FHWA 2 CFR Part 200 Uniform Guidance – Questions and Answers Question 21: “Will the FHWA/USDOT provide a waiver of the requirements in 2 CFR 200.317 for subrecipients to comply with State procurement requirements or other policies and procedures approved by the State (200.317)?” Answer: Yes. The USDOT requested and received an OMB waiver of the requirements in 2 CFR 200.317 concerning procurement by subrecipients. This waiver provides an exception to the requirement for all subrecipients of a state to follow the procurement requirements in Sections 200.318 through 200.326. The waiver will allow States and subrecipients to continue to use state-approved procurement procedures as they did under part 18 prior to the adoption of the Uniform Guidance.
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10.3 NON-A&E CONTRACTS
Scope
This section covers the procurement requirements for the services that are not included in Section 10.1 Federally-Funded A&E Contracts and Section 10.2 State-Only Funded A&E Contracts. This guidance is for contracts utilizing federal-aid funds and state funds. Federal regulations refer to state and local regulations for non-A&E type contracts. Although LPAs are required to follow 2 CFR 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards for all contracts, the Procurement Standards section 200.318- 200.326 is exempt. The guidance in this section follows the established regulations in the California Public Contract Code. Depending upon the scope of work, the required contract provisions may need to include the California State Prevailing Wages.
LPA must designate one person within the LPA as a contract manager. (PCC 10348.5)
LPAs using local funds to procure non-A&E Consultants on a federal-aid funded or state-only funded project and will not seek federal or state reimbursement for consultant cost may choose not to follow the selection and contracting procedures detailed in Section 10.3 of this chapter.
Determining Non-A&E
After identifying that there is a need for consulting services, the LPA must determine that the services needed are more of a technical nature and involve minimal professional judgement and that requiring a cost proposal would be in the public’s best interest. These type of consultant services that are not directly related to a highway construction project or that are not included in the definition of engineering and design-related services are considered non-A&E. The services must not be included in Section 10.2.2 Definition of A&E.
The determining factor is whether the services being procured are related to a specific construction project and whether the services require work to be performed, provided by, or under the direction of a registered engineer or architect.
Example of Determining Non-A&E
Material testing has been requested to ensure quality assurance on a construction project. The service includes only performing the material test and providing material test data. Although the service is related to a construction project, the overall service did not provide an evaluation or a discipline report. In this example, the LPA can determine that the service provided is more of a technical nature and is therefore a non-A&E service.
The following is a list of the more common non-A&E services:
• Right-of-Way Appraisal
• Right-of Way acquisition activities
• Conducting public outreach during environmental clearance or construction • Active Transportation Program educational and outreach activities • Intelligent Transportation System (ITS)
• Non-Infrastructure
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• Local Roadway Safety Plan (LRSP) associated with Highway Safety Improvement Program (HSIP)-funded projects
Intelligent Transportation System (ITS) Projects
Intelligent Transportation System (ITS) means electronic, communications, or information processing used singly or in combination to improve the efficiency or safety of a surface transportation system. ITS projects are those that in whole or in part, fund the acquisition of technologies or systems of technologies that provide significant contributions to the provision of one or more ITS user services as defined in the National ITS Architecture.
The federal-aid procurement regulations identify three possible contract procurement procedures for ITS projects including engineering and design related services (A&E), construction, and non-engineering/non-architectural (non-A&E).
If ITS projects include physical installation of field devices and/or communications infrastructure, such as new traffic signals, new controller cabinets, changeable message signs, radio and computers, vehicle detectors, and conduits for cabling in the roadway, then that work and required equipment usually meets the definition of construction. The construction contract must be procured based on competitive bidding. If the ITS project involves software development, system integration, hiring engineers, and specialists for ITS design and installation support, inspection, design documentation, training and deployment, it may be considered an engineering and design services contract and the contract must be procured as an A&E consultant contract. If the scope of work is unclear as to whether it is an A&E type of work, contact [email protected] for assistance.
However, if an ITS project does not meet either the definition of construction or engineering and design services, then the contract may be considered to be a non-A&E consultant contract.
Examples of non-A&E consultant contracts are:
• The procurement of hardware and software associated with incident management system;
• Software systems for arterial and freeway management systems; • Operating the 511 traveler information service;
• Nonprofessional services for system support such as independent validation and verification, testing and specification development;
For more information regarding Intelligent Transportation Systems (ITS) Program procurement requirements, refer to LAPG Chapter 13: Intelligent Transportation Systems.
Non-Infrastructure Projects
Non-infrastructure (NI) projects are those transportation-related projects that do not involve either engineering design, Right-of-Way acquisition (for additional guidance refer to LAPM Chapter 13), or the eventual physical construction of transportation facilities.
Procurement of non-A&E consultant contracts associated with non-infrastructure projects must follow Non-A&E procurement procedures described in this chapter. For more information on NI projects, refer to LAPM Chapter 3: Project Authorization.
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Governing Regulations and Codes for Non-A&E
When procuring non-A&E services with federal-aid funds, LPAs must comply with 2 CFR 200:
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, excluding sections 200.318-200.326 Procurement Standards (reference FHWA December 4, 2014 Memorandum Action: 2 CFR 200 Implementation Guidance, Attachment A).
LPAs must follow the same policies and procedures that the State uses for procurement with its non-Federal funds. When procuring non-A&E services with federal-aid and state-only funds, the governing procurement code is Public Contract Code 10335-10381.
Procurement of Non-A&E Consultant Contracts
All non-A&E procurements contracts must be conducted in a manner providing full and open competition consistent with federal and state standards. LPA must meet the code of conduct governing the performance of its employees engaged in the award and administration of federal-aid and state-funded contracts, including the preventions of conflict of interest in PCC 10410.
The following are the fundamental rules when procuring a non-A&E consultant contract.
1. The request for proposal (RFP) must not limit the competition directly or indirectly to any one consultant. The RFP must be publicized, and all evaluation factors and their relative importance identified (PCC 10339).
2. Splitting a single transaction into a series of transactions for the purpose of evading the procurement requirements is not allowed (PCC 10329).
3. LPA must secure at least three competitive proposals for each contract. (PCC 10340) When receiving less than three proposals, refer to the Cost-Effective/Public Interest Finding in this section as an alternative to re-advertisement.
4. No proposals must be considered which have not been received at the place, and prior to the closing time as stated in the RFP (PCC 10344(a)).
5. LPA must have a written procedure for evaluating proposals (PCC 10344).
RFP Basic Requirements
There are two general types of consulting service contract solicitations:
A. Request for Proposal using Cost only
B. Request for Proposal using Cost and Qualifications
The LPA must include the following in the request for proposal:
A. A clear, precise description of the work to be performed or services to be provided.
B. Description of the format that proposals must follow and the elements they must contain.
C. The standards the agency will use in evaluating proposals. This includes qualifications and certifications if applicable.
D. The date the proposals are due.
E. The procurement schedule that the LPA will follow in reviewing and evaluating the proposals.
(PCC 10344)
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Additional Requirements and Evaluation Criteria
Additional Requirements for Request for Proposal using Cost only A. LPA must require consultants to submit their proposals and cost in a separate, sealed envelope.
B. LPA must determine those that meet the format requirements and the standards specified in the request for proposal.
C. The sealed envelopes containing the price and cost information for those proposals that meet the format requirements and standards must then be publicly opened and read.
D. Contract must be awarded to the lowest responsible consultant meeting the standards. (PCC 10344(b))
Additional Requirements for Request for Proposal using Cost and Qualifications A. LPA must include in the proposal the description of the evaluation and scoring method.
Substantial weight in relationship to all other criteria utilized must be given to the cost amount proposed by the consultant.
B. LPA must determine those that meet the format requirements specified in the RFP.
C. LPA evaluation committee must evaluate and score the proposals using the methods specified in the RFP. All evaluation and scoring sheets must be available for public inspection after the committee scoring process. Evaluation committee should comply to the prevention of conflict of interest in PCC 10410.
D. The non-A&E contract must be awarded to the consultant whose proposal is given the highest score by the evaluation committee.
(PCC 10344(c))
When using RFP (Cost and Qualifications), the criteria used to evaluate the consultant’s proposals must have a logical foundation within the scope of work or within other technical requirements contained in the RFP. Each criterion must have a weight or level of importance, and it is recommended that total possible score for the evaluation criteria be one hundred (100) points. The proposed cost should be at least thirty percent (30%) of total points in evaluation criteria.
An example RFP for non-A&E is provided on the Local Assistance website at https://dot.ca.gov/- /media/dot-media/programs/local-assistance/documents/ae/files/rfp-example-non-ae.docx and may be modified.
Submission of the A&E Consultant Contract form is not required for non-A&E consultant contracts.
Consultant’s Proposal
The consultant’s proposal should include the following information:
• Consultant Project Manager – qualifications, roles, and responsibilities. • Methodology - description of work and overall approach, specific techniques that will be used and specific administrative and operations expertise to be used.
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• Workplan and Work Schedule - the technical proposal should include activities and tasks, and their delivery schedule.
• Personnel - List of personnel who will be working on the project, and their resumes. • Facilities and resources (If applicable) - Explanation of where the services will be provided and what type of equipment is needed to perform services. • Sub-contracts - Identify all sub-contracts that are to be used, description of each, and the work by each sub-consultant/sub-contractor. No work must be subcontracted unless listed in the technical proposal. Sub-consultant resumes should be provided. • References - The technical proposal should provide at least three (3) clients for whom the proposer has performed work of similar nature to the request.
Cost Proposal Worksheet
The RFP should provide a standard format for cost proposal that all proposers must include in their proposal. The cost proposal format can be broken down by specific tasks, showing hourly labor rates, level of effort and material, and/or by milestones and deliverables.
LPA is not required to award a contract if it is determined that the contract price is not reasonable (PCC 10340(c)).
DBE Consideration
DBE consideration is required on all federal-aid funded contracts including non-A&E.
Administrative Requirements
Advertisement for RFPs may be through the LPA website, local publications, and national publications. Minimum solicitation time is 14 calendar days. The solicitation should inform potential qualified consultants that questions must be submitted in writing to the Agency Contract Manager/Administrator by a specified date and time. All pertinent technical information and answers to consultant’s questions must be provided to all potential consultants. Written responses to all questions will be collectively compiled and provided as an addendum.
A proposal may be considered nonresponsive and rejected without evaluation if all required information is not provided. Proposals without information regarding, or not meeting, the required DBE utilization goal or without a Good Faith Effort documentation (see Exhibit 15-H:
Proposer/Contractor Good Faith Efforts), late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected.
Submittal of additional information after the due date must not be allowed. Documentation of when each proposal was received must be maintained in the project files. Copies of date stamped envelope covers or box tops are recommended.
No consultant who has been awarded a consulting service contract may be awarded a subsequent contract for the services or goods which are required as an end product of the consulting service contract, unless the subcontract is no more than 10 percent of the total monetary value of the consulting services contract. Excludes A&E contracts. (PCC 10365.5)
Contracts may be modified or amended only if the contracts so provide. Amendments must be requested and executed prior to the termination date of the most recently approved original or amended contract. All records of contract activities must be kept for three years after federal Local Assistance Procedures Manual Chapter 10
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final voucher E-76 or state final voucher for State-Only funds. Costs are reimbursable after state allocation by the California Transportation Commission (CTC) and/or the issuance of the federal E-76. The per diem rate must not exceed the state rate. Contract Managers are responsible for monitoring expenditures on all contracts and verifying categories of work that require prevailing wage. A person in Responsible Charge of contract management is required for all federallyfunded projects.
Oral Presentations Optional
When oral presentations are required by the LPA, the evaluation criteria must include factors/sub-factors and weights used to score the proposers performance at the oral presentation. The evaluation committee will only be able to score each proposer based upon these criteria. The Contract Manager/Administrator should develop a set of questions related to the scope of work or the project to be asked during the evaluation committee question and answer (Q & A) section of the oral presentations. All proposers are asked the same questions for consistency.
The committee must also evaluate reference checks and other information gathered independently. Reference checks must be completed, and other information gathered before the interviews are conducted. If necessary, the results of the reference checks or other information may be discussed with the highest ranked qualified consultants at the interviews.
Cost-Effective / Public Interest Finding
A minimum of three proposals must be evaluated to establish effective competition. Any agency that has received less than three proposals on a contract must document the names and addresses of the firms or individuals it solicited for proposals. Prepare an explanation as to why less than three proposals were received. When only two proposals are received, a justification must be documented to proceed with the procurement. When only one proposal is received, a Non-Competitive process must be justified and a Public Interest Finding (PIF) (Exhibit 12-F:
Cost-Effective/Public Interest Finding/A&E Noncompetitive) must be documented. In either case, the re-advertisement of the RFP should be considered as an option. Retain document as supporting documentation in the contract file.
(PCC 10340(c))
Protest / Appeals / Reinstatement Procedures
Both state and federal regulations require well-defined protest/reinstatement procedures. It is essential that the procedures include a reasonable opportunity for the prospective consultant to present his/her case. The appeals procedures strengthen the process by which the contracting agency reaches its ultimate goal and helps defends its action against a claim of lack of due process. A termination clause and a provision for settlement of contract disputes are required.
Protest procedures and dispute resolution processes should be in accordance with PCC 10345.
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10.4 A&E OVERSIGHT PROGRAM AND PROCESS REVIEW
General
The A&E Oversight Branch is responsible for the oversight of consultant contracts procured by LPAs complying with federal regulations 23 CFR 172 and 23 U.S.C.112, and state regulations California Government Code 4525.
For locally-administered federal-aid highway projects, A&E consultant contract oversight reviews will be performed by Caltrans’ Local Assistance A&E Oversight Engineers (A&EOEs).
DLAE staff should participate in the reviews.
Type of Reviews
The purpose of A&E consultant contract oversight reviews is to verify LPA compliance with federal and state consultant contract administration requirements. A risk-based approach has been identified by the A&E branch to aid LPAs with compliance that includes requiring agencies to complete and submit the A&E Consultant Contract form prior to contract award, or after contract award but no later than the first invoice. The objective is to create a database documenting all consultant contracts and to perform process reviews on a sample of contracts for the annual performance measures report.
Although the risk-based approach is the submittal of the A&E Consultant Contract form via the database, a process review may be conducted on projects for reporting purposes and to determine accuracy of the A&E Consultant Contract form information.
A&E Consultant Contract Form Review
The purpose of the A&E Consultant Contract form is to provide oversight and guidance to an LPA regarding consultant contract administration on a federal or state-funded project prior to the award of the contract. The database includes items considered critical for compliance with federal and state regulations.
Subsequent process reviews may be performed on selected state and/or federal projects requiring a greater degree of oversight if deemed necessary for agencies with a noncompliance history.
The following factors may be used when selecting projects for subsequent review:
• LPAs with identified deficiencies during an Incurred Cost Audit • Projects administered by agencies with previous sanctions/findings • Lack of experienced/trained LPA personnel
• Request by LPA or DLAE for additional assistance
During subsequent process reviews, the A&EOE will meet with the LPA's consultant contract administration team and discuss project record documentation requirements using the A&E Consultant Contract form. The timing of these types of reviews is targeted for preadvertisement, pre-negotiations, and pre-award of the consultant contract. This will allow for any changes to take place prior to execution or termination of negotiations for re-advertising. The A&EOE will also explain new policies or procedures, discuss available training, and highlight common problem areas and the means to avoid them.
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Review Findings and Deficiencies
Caltrans will not be involved in most project-level reviews and approval activities. Instead, the Process Review as outlined in this section is Caltrans’ primary method of ensuring that federal and state requirements are met. During a Process Review of an LPA’s project files, errors and/or deficiencies that may violate federal or state law or regulation could be found. If that happens, federal and/or state funds may be withdrawn from a project depending on the severity and circumstance of the deficiency, as well as the possibility of jeopardizing future federal and/or state funding opportunities for the agency’s other projects.
It is important to note that the formal process review is not the only method of discovering project deficiencies. Errors or deficiencies are discovered occasionally as part of the normal routine of processing project submittals by DLAEs or DLA Area Engineers.
Review findings from any subsequent reviews will be forwarded to the LPA and the DLAE within five business days. Deficiencies identified during a review may require development of a corrective action plan by the LPA in consultation with the District within 30 calendar days of receipt of the deficiency notification, unless the agency disagrees with the deficiencies identified and appeals the decision as discussed below.
A list of common A&E consultant procurement-related deficiencies is found at the A&E website.
These examples, not all-inclusive, should assist LPAs with knowing common deficiencies found in the past and the possible ramifications for those errors and deficiencies. The key to avoiding possible sanctions is to follow the procedures outlined in this chapter and other appropriate policies and guidelines, and if you have any questions, to consult your DLAE.
Corrective action plans, if required, will identify actions the LPA will take to address each deficiency noted. Corrective actions may include the following: Re-advertising, modifications of LPA policies and procedures, and participation in training to address systemic related deficiencies. Project-specific issues may require additional measures to remedy deficiencies to ensure compliance with federal and state requirements and ensure reimbursement eligibility.
Corrective action plans must also include timelines for each action to be implemented. Failure to provide and implement corrective actions may result in sanctions or federal/state ineligibility notices against the project or LPA and could prevent federal or state participation in all or a portion of the project.
In the event the LPA disagrees with the deficiencies identified, the LPA will have 30 calendar days from receipt of the deficiency notification to submit their written request for appeal in accordance with the DLA’s Local Agency Dispute Resolution Process. If the appeal is denied, the LPA will have 30 calendar days from receipt of the decision to submit their corrective action plan.
The Dispute Resolution Process provides a means for the LPA to appeal a sanction that they feel has been imposed upon them unfairly or they feel the penalty is too harsh for the error or deficiency. This appeal process is not limited to just the appeal of sanctions; it can be used by LPAs when they disagree with the decision, they receive from a district office.
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10.5 SANCTIONS
Depending on the severity and circumstances of the deficiencies which may require sanctioning by Caltrans, the DLA or DLAE may impose one of the following sanctions:
• Freeze on all future programming of federal or state funds until corrective action is implemented
• Freeze progress payments for a federal-aid project until the project’s deficiency is corrected
• Percentage of federal or state funds for a project withdrawn • All federal or state funds withdrawn from a project
The DLAE will be responsible for notifying the LPA of sanctions imposed. Whether or not sanctions are imposed against an LPA, the LPA will be expected to develop a corrective action plan and implement it to correct the deficiencies. LPAs will be given adequate time to develop and implement their action plan. Failure to correct the deficiencies in a timely manner will be grounds for imposing additional sanctions
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Grant Acceptance For A Grant Awarded From The University Of California – Davis School Of Veterinary Medicine
PRESENTED BY: Michael Scott, Interim Chief of Police
SUMMARY:
In 2022, The Ridgecrest Animal Shelter was awarded a grant as part of a pilot program through the University of California – Davis School of Veterinary Medicine. Animal Welfare Volunteer Lauren Brown, was instrumentally in applying for the pilot program and received on the behalf of our Shelter an award in the amount of $147,000. The program goal was to increase capacity of spay/neuter services above and beyond what currently existed. Approximately 2,300 local animals were spayed/neutered as a result of that program award.
As a result of the great results from the pilot program, our Shelter was asked by UC-Davis to submit for continuation grant funding. Our shelter was then awarded $562,441 to continue the strong efforts of the spay/neuter program. $507,000 was awarded for surgery services focusing on spay/neuter.
Additional necessary surgeries discovered during the spay/neuter are allowed such as:
1. Cryptorchid
2. Pregnancy
3. In heat
4. Umbilical hernia
5. Mammary gland repair/removal
6. Any minor surgical procedure while under anesthesia for spay or neuter The remaining $55,441 of the grant award is dedicated to surgery/medical supplies in our on-site facility to assist our mobile veterinarians in conducting program surgeries.
The grant funds are paid in advance and there is no reimbursement procedures needed.
The grant period begins September 28, 2023 and ends December 31, 2024.
FISCAL IMPACT:
Approximate revenue to the city in the amount of $562,441.
ACTION REQUESTED:
Approval of Resolution.
CITY MANAGER’S RECOMMENDATION:
Action as requested:
Submitted by: Captain Justin Dampier Action Date: Dec 06, 2023 This Page Intentionally Left Blank
RESOLUTION NO. 23-XX
A RESOLUTION OF THE RIDGECREST CITY COUNCIL AUTHORIZING ACCEPTANCE OF THE UNIVERSITY OF CALIFORNIA – DAVIS SCHOOL
OF VETERINARY MEDICINE, SPAY/NEUTER GRANT
WHEREAS, the California for All Animals Program which is administered through the University of California – Davis School of Veterinary Medicine seeks to increase spay/neuter services in California animal shelters; and,
WHEREAS, the Ridgecrest Animal Shelter has the need to increase its spay/neuter program; and,
WHEREAS, the Ridgecrest Animal Shelter has been awarded grant funding in the amount of $562,441; and,
WHEREAS, the grant period is September 28, 2023 through December 31, 2024.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby:
1. Certifies that the project will be well-maintained during its usual life; and,
2. Certifies that this agency will implement the project with diligence once funds are available and the Shelter Services Agreement has been consummated between UCDavis and Animal Control Division of the Ridgecrest Police Department.
BE IT FURTHER RESOLVED, that the City Council of the City of Ridgecrest authorizes the City Manager, or his designee, to approve this grant with the University of California – Davis School of Veterinary Medicine, and to sign and execute any and all documents relating to the grant award, including amendments, and is authorized to make any necessary adjustments to the FY24 budget.
APPROVED AND ADOPTED THIS 6
th day of December, 2023, by the following vote.
AYES:
NOES:
ABSTAIN:
ABSENT:
_____________________________
Eric Bruen, Mayor
ATTEST:
_______________________
Ricca Charlon
City Clerk
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CITY COUNCIL/SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY/HOUSING AUTHORITY AGENDA ITEM
SUBJECT: Proposed Action To Adopt A Resolution Of The Ridgecrest City Council Authorizing Submittal Of Application For CalRecycle SB1383 Local Assistance Grant Program FY 22-23
PRESENTED BY: Megan McKenzie, Administrative Analyst
SUMMARY:
The SB 1383 Local Assistance Grant Program is a non-competitive grant program offered by the Department of Resources Recycling and Recovery (CalRecycle) pursuant to Chapter 395, Statues of 2016. The FY 22-23 Cycle will provide one-time funding to local jurisdictions to assist with the implementation of regulation requirements associated with SB 1383.
Timeline to Qualify for FY 22-23 Funding:
• Application Due Date: November 15, 2023
[Submitted 11/15/23]
• Approved Resolution Due Date: December 20, 2023*
• Grants Awarded by Q2 2024 (tentative)
• Grant Term Ends April 1, 2026
In order for a jurisdiction to be eligible to receive funding, the governing body must declare by resolution certain authorizations related to the administration of the payment and grant program. The Resolution authorizes the City to submit an application for CalRecycle payment programs and authorizes the City Manager to execute all related documents on behalf of the City for a period of five (5) years.
According to the Notice of Funding Availability page provided by CalRecycle, the City of Ridgecrest is eligible to receive an estimated sum of $75,000 of the $90 million allocated for this grant cycle FY 22-23. The City intends to utilize the bulk of funding to improve edible food recovery efforts – including the purchase of a refrigerated truck & edible food recovery software. A smaller portion of Grant funds will be used to procure three-stream collection bins for public spaces in City facilities (i.e. City Hall, KMCC, Senior Center).
FISCAL IMPACT: None
ACTION REQUESTED: Approve Resolution
CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:
Action as requested
Submitted by: Megan McKenzie Action Date: Dec. 6, 2023
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RESOLUTION NO. 23-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST,
CALIFORNIA, AUTHORIZING SUBMITTAL OF APPLICATION(S) FOR ALL
CALRECYCLE GRANT AND PAYMENT PROGRAMS FOR WHICH THE CITY
OF RIDGECREST IS ELIGIBLE
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and,
WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and, WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest authorizes the submittal of applications to CalRecycle for all grants for which the City of Ridgecrest is eligible; and,
BE IT FURTHER RESOLVED that the City Manager, or their designee, is hereby authorized and empowered to execute in the name of the City of Ridgecrest all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and, BE IT FURTHER RESOLVED that these authorizations remain effective for five years from the date of adoption.
ADOPTED AND APRROVED this 6
th day of December, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Eric A. Bruen, Mayor
ATTEST:
Ricca Charlon, City Clerk
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA)
PRESENTED BY:
L. Scott Hayman, City Council / IWVGA Representative
SUMMARY:
Report and discussion regarding Board meetings of the IWVGA. Including, Board discussion and consideration of issues of importance requiring action by the IWVGA.
FISCAL IMPACT: None
ACTION REQUESTED: Discuss
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: Dec. 6, 2023
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Resolution Of The City Council Of The City Of Ridgecrest Authoring The City Manager To Execute Agreements With The California Department Of Transportation For The Inyokern Transfer Hub Xeriscaping Project
PRESENTED BY: Travis Reed
SUMMARY: The California Department of Transportation (Caltrans) developed the Clean California Local Grant Program through which funds will go to local communities to beautify and improve local streets and roads, tribal lands, parks, pathways, and transit centers.
Through the combination of adding beautification measures and art in public spaces along with the removal of litter and debris, this effort will enhance communities and improve spaces for walking and recreation.
The goals of the Clean CA Local Grant Program are to:
• Reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces.
• Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces and mitigate the urban heat island effect.
• Enhance public health, cultural connection, and community placemaking by improving public spaces for walking and recreation.
• Advance equity for underserved communities.
In August of 2023 City of Ridgecrest Transit staff worked with Caltrans staff to apply to the Clean California Grant program for funding in the amount of one hundred and eight seven thousand ($187,000) to xeriscape the Inyokern Transfer Hub located at 1401 North Third Street in Inyokern, California. The application was approved by Caltrans and requires a Restricted Grant Agreement to be executed by the City Manager to move forward.
FISCAL IMPACT: Provides $187,000 in state funding for capital projects within the Transit Division. (100% Funding)
ACTION REQUESTED: Approve a Resolution Authorizing the City Manager to Execute All Agreements with the California Department of Transportation for the Inyokern Transfer Hub Xeriscaping Project
CITY MANAGER’S RECOMMENDATION:
Action is Requested
Submitted by: Action Date: December 6, 2023
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RESOLUTION NO. 23 - Xx
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST
AUTHORING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH
THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR THE
INYOKERN TRANSFER HUB XERISCAPING PROJECT
WHEREAS, the City Council of the City of Ridgecrest is eligible to receive State funding for certain transportation related work through the California Department of Transportation; and,
WHEREAS, a Restricted Grant Agreement is needed to be executed with the California Department of Transportation before such funds can be claimed through the Clean California Transit Grant Program; and,
WHEREAS, the City of Ridgecrest wishes to delegate authorization to execute these agreements and any amendments thereto.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby;
1. Authorizes the City Manager, Ronald Strand, or designee, to execute all Restricted Grant Agreements and any amendments thereto with the California Department of Transportation.
APPROVED AND ADOPTED this 6Th day of December, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Eric A. Bruen, Mayor
ATTEST:
_______________________
Ricca Charlon
City Clerk
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Shrub, Evergreen Broadleaf
Red Bird-Of-Paradise 5 Caesalpinia pulcherrimaRosemary 23 Rosmarinus officinalis 'Lockwood'Sage, Texas Ranger 54 Leucophyllum frutescensYucca, Red 29 Hesperaloe parvifolia Tree, Deciduous
Chastetree 11 Vitex agnus-castusPalo Verede, Blue 14 Parkinsonia florida syn. Cercidium floridum Legend
Common Name Qty Botanical Name
3/32" = 1'
Scale:
Date: 9/17/2023Revision #: 0 01 Bernie Mondragon
TRANSIT HUB (INYOKERN)Landscape Plan:
Bernies LandscapingLandscape Design by:
5' Landscape Strip
2,200 SF
Existing Curb
Edge Of Pavement
Existing Curb
Proposed Curb
Proposed Curb
Edge Of
Pavement Edge Of
Pavement
Existing Curb
Palo Verede, Blue
Vitex agnus-castus
3/4" Bark Brown Rock Small Arizona River Rock
Sage, Texas Ranger (Leucophyllum frutescens)
3'-4' Granite Boulder
6" Concrete Border
6" Concrete Border
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: A Resolution To Accept The Base Bid As Submitted By All American Fence Erectors, Allocate Budgeted Capital Funds, And Up To $12,961.00 For A Contingency For A Maximum Total Of Up To $107,111.00. Award A Construction Contract To All American Fence Erectors To Construct The CDBG Leroy Jackson Fencing Project; Project No. 17.21.1, For Ninety-Four Thousand One Hundred Fifty Dollars ($94,150.00); And, Authorize The City Manager, Ronald Strand, To Execute The Contract & Agreement PRESENTED BY: Travis Reed, Deputy City Manager/Public Work Director SUMMARY:
On Thursday, November 16th, 2023 bids were opened to construct the CDBG Leroy Jackson Fencing Project. The Base Bid was comprised of one Bid Schedule which made up the Base Bid. A total of one bid was received as follows:
Bidder Bid Schedule A Total Bid
All American Fence $94,150.00 $94,150.00
Engineers Estimate $100,000.00 $100,000.00
Funding – Source: Budgeted Capital Improvements
Item Cost
Base bid $ 94,150.00
13.8% Construction Contingency $ 12,961.00
Total (Not to Exceed) $ 107,111.00
The Leroy Jackson Fencing Project, was solicited on October 24th, 2023. Bids were received on November 16
th, 2023 and were opened at the City Clerk Counter by City staff in the presence of Contractor Representatives. After the presentation an apparent low bidder, All American Fence Erectors, was announced with the caveat that bids were subject to review by City Staff.
After Staff Review, it was recommended that the Contract be awarded to the Lowest responsible bidder, All American Fence Erectors.
Staff has completed a few construction projects with All American Fence Erectors thus reference checks were un necessary. An example project would be the Fencing and Gate Project for IWVWD and the City OD Area.
Staff recommends the contract be awarded for the base bid to the lowest responsible and responsive bidder. Said recommendation is to award the construction contract to All American Fence Erectors.
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
Staff also recommends the approval of a Contingency in the amount of 13.8% or an amount up to what was budgeted. Said costs as noted above will come from Budgeted Capital Expenses; these costs are not to exceed $12,961.00 or Ten percent (13.8%), without authorization from the council.
Construction Contingencies are crucial to the successful completion of a project. Staff took special precaution and did extensive research, conducted field walks, & site survey etc. to limit the unknowns, but with every construction project, we don’t know what we don’t know.
These funds will be utilized for unforeseen work that may arise during the construction process which was unforeseen at the time of bidding.
If Council approves, a purchase order will be issued to All American Fence Erectors for the total contract amount of $107,111.00 ($94,150.00 + $12,961.00) inclusive of: the base bid price and contingency.
FISCAL IMPACT:
$107,111.00 for Construction Costs and contingency, funded from Capital expenditures.
ACTION REQUESTED:
1. Allocate Capital Budgeted funds of $107,111.00 for the Construction of the CDBG Leroy Jackson Fencing Project; Project No. 17.21.1.
2. Authorizes the award of a Construction Contract to All American Fence Erectors, to Construct the Project, in the Amount of Ninety-four thousand one hundred and fifty dollars and no cents. ($94,150.00).
3. Authorizes the Finance Director to amend the budget to reflect all appropriate capital, revenue and transfer accounts and create a purchase order for All American Fence Erectors, in the amount of $107,111.00.
4. Authorizes The City Manager, Ronald Strand, To Execute the Contract & all Agreements.
CITY MANAGER’S RECOMMENDATION: Action as Requested
Submitted by: Travis Reed Action Date: December 6
th
, 2023
RESOLUTION NO. 23-Xx
Resolution No 23-Xx Page 1 of 2
A RESOLUTION TO ACCEPT THE BASE BID AS SUBMITTED BY All AMERICAN FENCE ERRECTORS. ALLOCATE BUDGETED CAPITAL FUNDS, AND UP TO $12,961.00 FOR A CONTINGENCY. A MAXIMUM TOTAL OF UP TO $107,111.00. AWARD A CONSTRUCTION CONTRACT TO ALL AMERICAN
FENCE ERECTORS TO CONSTRUCT THE CDBG LEROY JACKSON FENCING PROJECT; PROJECT NO. 17.21.1, FOR NINETY-FOUR THOUSAND ONE HUNDRED FIFTY DOLLARS ($94,150.00); AND, AUTHORIZE THE CITY
MANAGER, RONALD STRAND, TO EXECUTE THE CONTRACT & AGREEMENT WHEREAS, On Thursday, November 16TH, 2023 bids were opened to construct the CDBG Leroy Jackson Fencing Project; and,
WHEREAS, A total of one bid was received and the results are as follows:
Bidder Bid Schedule A Total Bid
All American Fence $94,150.00 $94,150.00
Engineers Estimate $100,000.00 $100,000.00
WHEREAS, The bids were reviewed and analyzed by Deputy City Manager, Travis Reed, for a recommendation of the lowest responsible and responsive bidder. All American Fence Erectors with a base bid of $94,150.00 was recommended as the lowest responsive and responsible bidder; and,
WHEREAS, An amount of $12,961.00, or thirteen point eight percent (13.8%) of the $94,150.00 bid amount is needed for construction contingencies; and, WHEREAS, The amount of Budgeted Capital funds needed is $107,111.00 for the Base Bid, and contingency; and,
WHEREAS, A purchase order will be issued to All American Fence Erectors for the total bid amount plus 13.8% contingency; for a total amount of $107,111.00 to construct the Project; and,
WHEREAS, Federal Aid from CDBG grant funds will reimburse the capital expenditure in the amount of $ 107,111.00; and,
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby:
1. Allocate Capital funds of $107,111.00 for the CDBG Leroy Jackson fencing Project.
2. Authorizes the award of a Construction Contract to All American Fence Erectors, to Construct the CDBG Leroy Jackson Fencing Project, in the Amount of Ninetyfour thousand one hundred and fifty dollars ($94,150.00).
3. Authorizes the Finance Director to amend the budget to reflect all appropriate capital, revenue and transfer accounts and create a purchase order for All American Fence Erectors, in the amount of $107,111.00.
Resolution No 22-__ Page 2 of 2
Description Budget
(FY24)
Amount
Necessary
Difference Prev. FY
PE -- -- -- --
Construction
Capital $ 107,111.00 $ 107,111.00 $00.00 --
CE $00.00 $00.00 $00.00 --
Total Cost 107,111.00
Reimbursement ($ 107,111.00)
Cost to City $ 00.00
4. Authorizes The City Manager, Ronald Strand, To Execute the Contract & Agreement.
APPROVED AND ADOPTED this 6
th day of December, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Eric A. Bruen, Mayor
ATTEST:
_______________________
Ricca Charlon
City Clerk
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CITY COUNCIL/SUCCESSOR REDEVELOPMENT AGENCY/FINANCING
AUTHORITY/HOUSING AUTHORITY AGENDA ITEM
SUBJECT: A CONTINUED Public Hearing And Resolution Approving The Fiscal Year 2024- 2025 Annual Application Regarding The Kern County Community Development Block Grant (CDBG) Program
PRESENTED BY: Nerissa Wegener, Parks and Recreation Director SUMMARY:
A noticed Public Hearing for December 6, 2023 was established to discuss and prioritize proposed Community Development Block Grant (CDBG) Projects for the Fiscal Year 2024- 2025 Annual Application for Community Development Programs within the County of Kern.
The anticipated fair share amount for FY 2024-2025 is $148,632.94. Public comments are solicited and will be heard and accepted before approval of the selected project. The Resolution is presented to confirm the allocation of funds at the conclusion of the Public Hearing and must be filed, along with the project application, with the County of Kern.
It would be appropriate to open the public hearing, receive public comments, review and discuss projects as may be desired and determined.
It is staff’s recommendation that the CDBG funding allocation should be considered for improvements to Freedom Park. Staff recommends that the CDBG funding in the amount of $148,632.94 is used to add an inclusive playground near the Splash Pad.
The estimated cost of the project is $577,190.00 with the full cost of the project being augmented with Park Impact Fees and Measure P funds.
Project Funding Breakdown:
1. CDBG - $148,632.94
2. Park Impact Fees - $100,000.00
3. Measure P Funding - $328,557.06
Staff will Budget the use of Parks Impact fees to cover the design plans so that once this project agreement is signed the project is ready to go out to bid. This will help save some time in the process.
This area is utilized by residents of all ages and demographics. The community uses this area for parties, sports, events, and staying cool in the summer. This project will also address the public concerns of there not being an all-inclusive playground anywhere in the city. Staff feels that with all the improvements being done in the near future to this area, this will be another great opportunity to improve overall Quality of Life.
Staff considered other possible projects using the CBDG funds, such as adding a pump track to the skate park area or additional skate features, but ultimately felt the all-inclusive playground would fit better with this funding opportunity.
Both project ideas went before the Quality of Life Committee on November 7, 2023 and the committee approved the project to be considered at the public hearing for the CBDG grant.
FISCAL IMPACT: Park Impact Fees $100,000.00
Measure P Funding $ 328,557.06
ACTION REQUESTED:
Hold the Public Hearing and adopt the Resolution approving the Fiscal Year 2024-2025 Annual Application and approve the Kern County Community Development Block Grant Application and direct staff to submit the application.
CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:
Action as requested
Submitted by: Nerissa Wegener, Parks and Recreation Director Action Date: December 6, 2023 RESOLUTION NO. 23-Xx
A PUBLIC HEARING AND RESOLUTION APPROVING THE FISCAL
YEAR 2024-2025 ANNUAL APPLICATION REGARDING THE KERN
COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM
WHEREAS, the Kern County Department of Community Development requires that public comment be obtained for proposed Community Development Block Grant (CDBG) Projects for the FY 2024-2025; and,
WHEREAS, the City Council of the City of Ridgecrest on December 6, 2023 held a duly noticed Public Hearing for the purpose of obtaining public input and identifying unmet needs of the community; and,
WHEREAS, the anticipated fair share amount for FY 2024-2025 is $148,632.94; and,
WHEREAS, after the Public Hearing and input from city staff, City Council elected to use the funding allocation for improvements to Freedom Park – Inclusive Playground; and,
WHEREAS, the estimated cost of the project is $577,190.00 with the full cost of the project being augmented with Park Impact Fees or another funding source; and, WHEREAS, if this project is approved it will be included in the FY25 budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest does hereby agree to the above and adopt this resolution; and,
1. Authorized the City Manager to execute and sign the CBDG application and related documents.
APPROVED AND ADOPTED this 6
th day of December 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Eric Bruen, Mayor
ATTEST:
Ricca Charlon, City Clerk
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KERN COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT
APPLICATION
City of Ridgecrest
Ricca Charlon, City Clerk
100 W. California Ave., Ridgecrest, CA 93555
760-499-5002 or [email protected]
Nerissa Wegener, Parks and Recreation Director
100 W. California Ave., Ridgecrest, CA 93555
760-499-5171 or [email protected]
Project Name: City of Ridgecrest – Freedom Park Upgrades
PROJECT PURPOSE AND BENEFIT
A. What is the purpose of the project? Provide a brief statement of the problem to be addressed and describe what the project will accomplish. (See attached list of Eligible Activities and National Objectives, Appendix A.)
The CDBG money will be helping to provide an all-inclusive playground to Freedom Park. This will allow the city to address the publics request to provide these items and provide a playground and small shaded gathering area that everyone can use while also being in an underserved area of Ridgecrest. This area will be undergoing many improvements over the next few years including a new pool and an extended Splash Pad renovation that will also include all-inclusive features. Using these funds to provide a playground and small seating area will be a great way to create a cohesive space within the park and will increase use of this park, encourage movement, socializing, provide shade for when temperatures reach triple digits and better Quality of Life for the residents of Ridgecrest.
B. Provide a map showing the specific geographic service area boundaries of your project. (See attached description of Determining Service Areas, Appendix B.) Ridgecrest City Limits C. Describe who or what group(s) will benefit from the project. Include characteristics such as race, gender, income, age, etc. (See attached form pursuant to HUD requirements of Outcome Performance Measurement, Appendix C.) The public, tourists, and community members all of which have users who vary in race, gender, age, ability and income.
PROJECT DESCRIPTION
Describe all components of the project, in a detailed narrative. Indicate “N/A” if the question is not applicable to your project:
A. Where is the project to be located?
100 West California Ave. Ridgecrest, CA 93555
APN# 478-010-07
Maps and photographs attached
B. MAJOR WORK ITEMS (one or more may apply):
1. For acquisition of property, a building, or public easement, provide the following: N/A
2. For new construction, provide the following: N/A
3. For rehabilitation, renovation or expansion of an existing facility, provide the following:
Some of the deficiencies we would like to correct at Freedom Park is to provide an all-inclusive playground and small shaded seating area. This will be the first all-inclusive playground in Ridgecrest and will also provide shade/coverings for community members to utilize during the summer when temperatures reach triple digits. These renovations will help increase utilization of the park and create a more cohesive area for the community to gather throughout the entire year. Currently this facility is maintained by the City of Ridgecrest and no third-party agreement is needed.
C. For larger scale projects, will this project be phased? This project will be completed simultaneously and no phasing will be needed.
D. Who will implement this project (complete design, conduct bid advertising, contracting, etc.)? The Parks and Recreation Director will oversee the project. The design is not currently complete and will be contracted out.
E. Please describe all alternative sites and alternative project designs that were considered:
Upgrades and additional features being added to the skate park located at Leroy Jackson Sports Complex were also considered. This project was not chosen as the playground and seating area project was a better fit for this funding process and fit better within the timeline for all the other upgrades being provided in this area.
FUNDING SOURCES/PROJECT COST ESTIMATE
A. Please explain why CDBG assistance is needed for this project? The City of Ridgecrest is still recovering from many unforeseen events and natural disasters such as COVID19, the 2019 earthquakes, and Hurricane Hilary that resulted in loss of revenues and issuance of additional funding for unforeseen emergency repairs and revitalization. We have also seen a decrease in program participation due to the economic decline and increased cost of living. This has limited our Recreation Department’s ability to provide necessary upgrades to our facilities and programs throughout several years. CBDG assistance is needed for this project as we feel it is important to be able to provide our community with adequate facilities that fit our extreme climate and current circumstances.
B. Itemize all sources of funding expected to be available and used for this project.
NOTE: Total funding as shown above must match the “Total Project Cost” shown on the next page of the application.
For all non-CDBG funding sources provide:
C. Please identify the source of funds for annual operating & maintenance costs (if any) associated with this project? City of Ridgecrest General Fund.
D. Provide an itemized cost estimate using the format shown on next page.
Source of Funds Amount of Funding Expected
Community Development Block Grant $
Other Federal Source(s) $
State Source(s) $
Local/Applicant Source(s) $
Total Funding $
148,632.94
428,557.06
577,190
PROJECT COST ESTIMATE
Note: Pricing estimates should take into account federal and state prevailing wage requirements.
Prepared By: Nerissa Wegener, Director Date Prepared: November 2023
Construction Cost $ 239,000
Real Property Acquisition (if applicable) $ 0
Design Cost (10% of construction cost) $ 23,900
Advertisement $ 250
Construction Inspection (15% of construction cost) $ 35,850 Contract Administration/HUD Monitoring (5% of construction cost) $ 11,950 Contingency (10% of construction cost) $ 23,900
Escalation (6% of construction cost) $ 14,340
Project Delivery Cost (Planning and Natural Resources Department – CD Costs) $ 0
TOTAL PROJECT COST** $ 577,190
Description of Item Quantity Unit of Measure* Unit Price Total Price Playground Area
Equipment 1 Total $200,000 $200,000
Benches & Tables 1 Total $28,000 $28,000
Total materials
$228,000
Flat land covered with mainly grass. Roads run on the West, Parking lot on the South side of the site.
G. Will these improvements:
1.) Increase residential densities? No
2.) Make a vacant building habitable? No
3.) Convert the type of use of a building to habitation? No
PLANNING ISSUES
A. What is the current zoning of the project site? RSP (Recreation, Schools and public use) What is the current Specific or General Plan Designation of the project site? Parks Are the proposed uses consistent with the current Land Use Categories assigned under the local plan? Yes
B. Will a general plan amendment, zone change, conditional use permit or zoning variance / modification be required for the proposed use of the site? N/A
C. Are there any Federal or State review and approval process required for the proposed project? N/A D. What is the proposed source of water for the project? IWV Water District for potable water, well systems for landscape and irrigation.
What is the proposed method of sewage disposal? N/A
Are new connections proposed in association with the project? N/A E. Have you received all clearances and/or commitments from affected public utility companies (electricity, sewer, water, etc.) or railroads to complete this project? N/A
ENVIRONMENTAL DATA
Prior to HUD’s release of Grant conditions and/or funds for a CDBG-funded project, a review of the project’s potential impact on the environment must be conducted, and the County of Kern must certify to HUD that it has complied with all applicable environmental procedures and requirements. Complete answers to the following questions must be provided in order to initially assess a proposed project’s potential environmental issues/concerns. Project conditions or mitigation, if any, may be an additional project cost.
A. Land Use
1. What use(s) currently occupy the project site (e.g., vacant, industrial, residential, etc.)? Recreation
2. What land uses (e.g., agriculture, residences, school, etc.) are north, south, east, & west of the site? Schools to the West, Residences to the South, Parks to the West, Businesses to the North and East
3. How many structures are on the site? 3
4. Please provide the year built of all buildings or structures on the site. City Hall - 1988, Kerr McGee Community Center -1988 and Freedom Park pre-fabricated Bathroom 2020
B. Environmental Studies/Reports: None
C. Are there any storage tanks/containers (larger than 100 gallons) on the project site or in a mile of the project’s vicinity? N/A
D. Describe any surface waters on the site or in the surrounding area (e.g., wetlands, rivers, drainage basins, lakes, etc.) N/A E. Noise Sources: N/A
F. Describe the project site’s topography and vegetation.
Appendix
OUTCOME PERFORMANCE MEASUREMENT
(This section must be completed in order to be considered for funding) HUD requires recipients of federal funds to assess the objectives and outcomes of all projects undertaken. A Performance Measurement System has been designed by HUD to establish and track measurable goals and objectives for the CDBG, ESG, and HOME Programs. Applicants are required to identify the objectives and outcomes of their proposed projects and to predict benefits and measure performance. If a project is approved for funding, the applicant must agree to collect and report all data required in accordance with the requirements set forth by HUD and as stipulated in the project agreement.
1. Project Objectives:
Why is the proposed project/program needed?
This project is needed so that we can provide a much-needed resource to our community members in installing an all-inclusive playground and small seating- area as well as shade. It is important to our community that our facilities meet their needs so that they may improve their quality of life, health and physical education through socialization and community connections.
r
2. Project Outcomes:
What changes do you expect will be achieved as a result of the proposed project or program? We expect that this project will increase quality of life for all Ridgecrest residents. It will allow for all community members to participate together in a cohesive family friendly area. This will encourage community members, groups and organizations to utilize our park and also encourages socialization in a healthy outdoor environment.
3. Project Benefit:
a. How many persons or households is the proposed project/program expected to benefit? Ridgecrest projected population of 29,136
b. How many jobs is the proposed project/program expected to create and/or retain? N/A c. How many dwelling units is the proposed project/program expected to create and/or rehabilitate? 0 Additional Application Information Required for Outcome Performance Measurement:
1. Will the project provide a new service or benefit to residents? Yes
2. Will the project provide improved service or benefit to residents? Yes
3. Will the project upgrade a currently substandard service, facility or improvements? Yes
4. Will the facility provide overnight shelter or other emergency housing? No
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