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HomeMy WebLinkAboutAgenda Report - April 7, 2010 D-06AGENDA ITEM D s (0 &Q� CITY OF LODI COUNCIL COMMUNICATION Im AGENDA TITLE: Approve Issuance of a Request for Proposals for A-87 Compliant Cost Allocation Plans and Indirect Cost Rates MEETING DATE: April 7, 2010 PREPARED B Y Deputy City Manager RECOMMENDED ACTION: Approve issuance of a Request for Proposals for A-87 Compliant Cost Allocation Plans and Indirect Cost Rates. BACKGROUND INFORMATION: Compliance with Office of Management and Budget CircularA-87- Cost Principles for State, Local, and Indian Tribal Governments (OMB A-87) is a requirement for claiming indirect and overhead costs associated with federal and state grants. The City engaged MuniFinancial in 2007 to produce a central services cost allocation plan for the purpose of allocating central service costs to operating departments. The MuniFinancial engagement did not include a calculation of departmental indirect rates and submittal of the plan to cognizant agencies. Staff is recommending the use of an outside consultant as a means of expediting the development of the cost allocation plan and indirect rates. Further, the selected consultant will have expertise in developing such plans and rates along with expertise in negotiating approvalswith cognizant agencies. The proposed RFP requests that the successful contractor provide an OMB -87 compliant cost allocation plan and indirect rates for selected departments/divisions for a five-year period. Additionally, the successful contractor will be responsible for obtaining cognizant agency approval of the cost plan and indirect rates. Approval of indirect rates will allow those departments/divisions to include such additional costs in their grant claims, thereby increasing revenues. Consultant selection will be made by a committee of City staff along with participation from the Budget and Finance Committee. Selection criteria are defined in the RFP. A copy of the RFP is attached. FISCAL IMPACT: Annual costs are estimated to be under $25,000; unknown additional revenue will be generated by inclusion of indirect costs on grant claims. FUNDING AVAILABLE: Funding has been provided in Non -Departmental Services (100241.7323 in FY 2009/10 and will be provided in future years. Jordan Ayers Deputy City Manager Attachments APPROVED: Blair,4emgrotity Manager CITY OF LODI REQUEST FOR PROPOSALS FOR OMB A-87 COST ALLOCATION PLANS AND INDIRECT COST RATES Proposal Date: April 8, 2010 I. PROJECT OVERVIEW A. Goal The City of Lodi ("City") requests Proposals from qualified firms ("Consultant") to develop annual City-wide central service cost allocation plans and annual indirect cost rate proposals for selected divisions/business units in accordance with the Office of Management and Budget (OMB) Circular A-87 (Cost Principles for State, Local, and Indian Tribal Governments), and applicable state and federal regulations which will allow the City to maximize reimbursements from federal and state agencies. The City intends to award a contract covering five fiscal years. The Proposal must cover all points outlined in this document. B. Description of City The City is a general law city, duly created, organized and existing under the laws of the State of California. The City operates under the Council -Manager form of government and is governed by a 5 -member Council. The City provides the full spectrum of municipal services. The City has approximately 410 full time employees and consists of the following departments: City Manager, City Attorney, City Clerk, Internal Services, Police, Fire, Public Works, Electric Utility, Community Development, Parks and Recreation, Library and Community Center. The City operates with a Cost of Services allocation that had been completed in 2007. The City does not currently fully allocate central service costs to all operating departments and divisions. Exhibit 1 is the City's current organizational chart and a brief description of the central service units. In addition, a copy of the City's most recent audited financial statement is available on the City's website at www.lodi.gov. C. Proposal Requirements The City wishes to establish annual City-wide central service cost allocation plans in compliance with Federal OMB Circular A-87 that meet, at a minimum, the guidelines set forth by the California Department of Transportation (Caltrans), the Federal Highway Administration (FHWA) and/or the Federal Transit Administration (FTA), and the Federal Housing and Urban Development (HUD) and must be in a format acceptable to the City's cognizant federal agency. The City also desires annual indirect cost rate proposals to be calculated for selected RFP 1 OMB A-87 Cost Allocation Plans and Indirect Cost Rates divisions/business units of the City in accordance with the above-mentioned government organizations. The City's fiscal year is July 1St though June 30th. The cost allocation plans and indirect cost rate proposals will be based on audited data which will be available approximately November 15th following the end of each fiscal year. The City intends to award a five-year contract. The contract will cover the calculation of City- wide central service cost allocation plans and indirect cost rates for five consecutive years starting with Fiscal Year 2010-11. Successful experience working with Caltrans Department of Audits and Investigations, FTA and HUD is preferred. D. Scope of Services The Consultant is required, but not limited, to: Conduct appropriate interviews with City departments to identify appropriate allocation bases and methods of distributing costs that are most appropriate which may favorably impact indirect cost recoveries. 2. After appropriate consultations necessary to gain familiarity with City operations, recommend strategies and procedures to maximize potential recovery of City costs from grant sources. 3. Instruct City staff on OMB Circular A-87 concepts and application. Identify available data which can be effectively incorporated into the indirect cost allocation plans, and determine opportunities to simplify data collection activities for future plans. 4. Develop and prepare City-wide central service cost allocation plans and indirect cost rate proposals for selected divisions/business units of the City, in accordance with OMB Circular A-87 for federal and state grant reimbursement. The finished products should meet, at a minimum, the guidelines set forth by Caltrans, the FHWA and/or FTA, and HUD and will be in a format acceptable to City's cognizant federal agency. Assist in negotiating with cognizant agencies. Note: Should the cognizant agency not approve the plan or rate(s), the Consultant shall modify the document(s) to an acceptable level within the appropriate designated time frame. At its discretion, the City may withhold 5% of each yearly payment until a letter of approval from the appropriate cognizant agency is received by the City. 6. Provide the model used to calculate the allocations and indirect cost rates and train City staff in the model that Consultant uses such that City staff would be able to use the model independently after the termination of the contract resulting from this proposal. E. Project Deliverables At minimum, the Consultant will be required to provide the following products in the RFP 2 OMB A-87 Cost Allocation Plans and Indirect Cost Rates performance of the contract. The following schedule reflects the City's preferred timetable. Proposers shall indicate whether they accept the following timetable or propose an alternate schedule. 1. For Fiscal Year 2010-11 (based on 2008-2009 audited data) — Drafts of the following are due to the City by October 1, 2010, and in final form to the cognizant agency no later than November 5, 2010: a. City-wide Central Service Cost Allocation Plan b. Indirect Cost Rate Proposals for the units listed in Exhibit 1 2. For Fiscal Year 2011-2012 (based on 2009-2010 audited data) — Drafts of the following are due to the City by February 1, 2011, and in final form to the cognizant agency no later than March 1, 2011: a. City-wide Central Service Cost Allocation Plan b. Indirect Cost Rate Proposals for the units listed in Exhibit 1 3. For Fiscal Year 2012-2013 (based on 2010-2011 audited data) — Drafts of the following are due to the City by February 1, 2012, and in final form to the cognizant agency no later than March 1, 2012: a. City-wide Central Service Cost Allocation Plan b. Indirect Cost Rate Proposals for the units listed in Exhibit 1 4. For Fiscal Year 2013-2014 (based on 2011-2012 audited data) — Drafts of the following are due to the City by February 1, 2013, and in final form to the cognizant agency no later than March 1, 2013: a. City-wide Central Service Cost Allocation Plan b. Indirect Cost Rate Proposals for the units listed in Exhibit 1 5. For Fiscal Year 2014-2015 (based on 2012-2013 audited data) — Drafts of the following are due to the City by February 1, 2014, and in final form to the cognizant agency no later than March 1, 2014: a. City-wide Cost Allocation Plan b. Indirect Cost Rate Proposals for the units listed in Exhibit 1 The City reserves the right to eliminate from the Scope of Services in any year any sub- component of the Indirect Cost Rate Proposal. Should the City remove any sub -component in any year, payment to the Consultant will be modified by mutual agreement between the City and the Consultant. A summary table of the deliverables is included in Exhibit 2 for reference. Note: Electronic versions and five (5) written copies of Drafts and Final Documents are required for each year. RFP 3 OMB A-87 Cost Allocation Plans and Indirect Cost Rates F. Contract Term The City intends to award a five-year contract unless terminated sooner in accordance with Section 18 of the Sample Professional Services Agreement (Exhibit 3). The contract will cover the calculation of City-wide central service cost allocation plans and indirect cost rates for five consecutive fiscal years starting with 2010-2011. II. PROPOSAL INSTRUCTIONS AND DESCRIPTION OF THE PROPOSAL PROCESS A. Timeline for Proposal Submission Process RFP Issued Thursday, April 8, 2010 Request for Clarification Due Date Wednesday, April 21, 2010 by 4:00 PST Addendum (if necessary) Monday, May 3, 2010 Proposal Due Date Monday May 17, 2010 by 4:00pm PST Interviews (if necessary) Wednesday, June 3, 2010 or Thursday, June 4, 2010 City Council Award of Contract Wednesday, June 16, 2010 Notice to Proceed July 2010 (date TBD) B. Requests for Clarification, Corrections or Modifications Any requests for clarification, correction or modifications of proposal requirements shall be submitted in writing to the Deputy City Manager by 4:00 p.m. PST Wednesday, April 21, 2010. Any interpretation or modification of the Request for Proposals (RFP) will be made by written addenda only, duly issued by the Deputy City Manager no later than Monday, May 3, 2010. Copies of such addenda will be mailed or delivered to each firm receiving the RFP. All oral modifications of these conditions or specifications are void and ineffective. The City reserves the right to reject any Proposal that contains unauthorized conditions or exceptions. C. Proposal Submission An original Proposal and six (6) copies should be submitted in a sealed envelope marked, "OMB A-87 COST ALLOCATION PLANS AND INDIRECT COST RATES" and plainly endorsed with the Proposer's name and address. Proposals will be sent or delivered to the following address: Mail To: City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 RFP 4 OMB A-87 Cost Allocation Plans and Indirect Cost Rates Attention: Jordan Ayers, Deputy City Manager Hand Deliver To: City of Lodi Finance Division 310 West Elm Street Lodi, CA Attention: Jordan Ayers, Deputy City Manager Proposals must be received no later than Monday May 17, 2010 at 4:00pm PST. Proposals received after the time and date specified will not be considered. The City is not responsible for delayed deliveries due to mailing. The time received in the City office shall determine the official time received. Submission of a Proposal shall constitute a firm offer to the City for ninety (90) days from the submission deadline for Proposals. City staff will review all Proposals received and several finalists may be selected. These finalists may be invited to an oral interview. Please reserve Wednesday, June 3, 2010 and Thursday, June 4, 2010 as tentative dates for finalist interviews should interviews be conducted. It is requested that the attendees be restricted to those individuals who will have direct involvement with the program. D. Proposal Forms and Sample Documents The following documents are included in this RFP: ■ Exhibit 1: Description of Central Service Units and City Organizational Chart ■ Exhibit 2: Summary of Deliverables ■ Exhibit 3: Sample Professional Services Agreement ■ Exhibit 4: Proposal Form ■ Exhibit 5: Acknowledgment of Addenda (if applicable) The Proposal Form (Exhibit 4) must be completed and signed by one or more individuals with authority to bind the Proposer to the Proposal. If addenda are issued, the Proposer must complete and submit the Acknowledgment of Addenda (Exhibit 5) with its proposal. E. Proposal Content To achieve a uniform review process and obtain the maximum degree of comparability, it is required that Proposals include the following basic format. The Proposer is expected to provide services as outlined in this RFP and prepare its response to fully address its ability to satisfy these components. 1. General Information of Firm - Please provide the following: a) Firm's name and address b) RFP contact / phone / fax / email c) Names of authorized principals with authority to negotiate and contractually bind the firm d) A signed letter of transmittal stating the Proposer's understanding of the work RFP 5 OMB A-87 Cost Allocation Plans and Indirect Cost Rates to be done, a statement why the firm believes itself to be the best qualified to perform the engagement, and a statement that the proposal is a firm and irrevocable offer for the 90 days after June 17, 2010. Please confirm that the firm has accepted the Sample Professional Services Agreement included as Exhibit 3. e) Indicate whether there are any conflicts of interest that would limit your ability to provide services. See Section 22 of the Sample Professional Services Agreement (Exhibit 3). Provide any required disclosures pursuant to the Levine Act. See Section J below. 2. Oualifications and Experience of the Firm - Please address the following: a) Describe your firm's history and organizational structure. Include number of years in business, size of company (employees, yearly revenue). b) Describe your firm's experience with servicing public agency clients for services described in this RFP. c) How many years has your firm been doing work outlined in the scope of this RFP? d) Describe any known or perceived actual or potential conflicts of interest with the City, its Council members, officers, agents or employees. (Please refer to Section 22, Conflict of Interests of the Sample Professional Services Agreement in Exhibit 3). 3. Oualifications and Experience of Team a) How many staff would be assigned to conduct the scope of work? Identify the members of the plan service team including their tenure with your firm, background including any applicable licenses and certifications, education and location and the role they will play in managing the City's account. b) Will you utilize any subcontractors for the servicing of this plan? If yes, describe your relationship with the subcontractor, the subcontractor's history and experience in providing similar fund services and the experience of the subcontractor's employees that will provide services to the plan. 4. Approach a) Outline how your firm plans to accomplish the Scope of Services outlined in Section I.D. and Project Deliverables outlined in Section I.E. of this RFP. Submit a work plan that details your firm's approach and methodology, as well as a proposed timeline that indicates when each element of the Scope of Services will be performed and when each Project Deliverable will be completed. b) Describe in detail the information your firm would require from the City to complete the work requested. c) Attach as an Exhibit to your proposal a sample cost allocation plan and indirect cost rates that your firm has done in the last year, preferably, that was submitted to Caltrans or FTA for approval. You may redact confidential information as necessary. d) Please describe any other services and/or area of expertise, which are included in your total fee, or that may distinguish your firm's ability to provide the RFP 6 OMB A-87 Cost Allocation Plans and Indirect Cost Rates services requested in this RFP. e) Indicate whether the City's proposed manner of payment set forth in Section 13 of the attached Sample Professional Services Agreement (Exhibit 3) is acceptable. Propose an alternate payment methodology if desired. 5. Financial Stability a) Attach a copy of your AM Best rating or Dun and Bradstreet rating as an Exhibit to your proposal. b) Attach a copy of your most recent audited financial statement as an Exhibit to your proposal. c) If the Proposer is not a publicly held corporation and does not have AM Best or Dun and Bradstreet rating or audited financial statements, please provide internal unaudited financial statements, financial references, and any other pertinent information to allow the City to reasonably formulate a determination about the stability and financial strength of your firm. d) List any pending administrative proceedings, investigations and civil suits against the firm relating to the firm's performance of its professional duties 6. References Please list the names, addresses, and telephone numbers relating to three (3) existing clients and two (2) previous clients for whom your firm has developed recent (within the last three years) cost allocation plans and indirect cost rates, preferably, which were submitted to Caltrans or FTA for approval. Please provide a brief description of the work provided for each reference. 7. Fee Structure Please complete Proposal Form (Exhibit 4) to provide a fixed all-inclusive fee structure to perform all services described in the Scope of Services (Section I.D.) and Project Deliverables (Section I.E.) above. No additional reimbursement will be provided for travel time, expenses, telephone costs, copying costs, etc. Please also submit on a separate page hourly rates, by personnel category, for each year which will apply to any modification to the scope of services. The hourly rates set forth shall hold firm for each year. The City will evaluate cost proposals on the basis of the Grand Total sum of the Yearly Totals as indicated on the Proposal Form. 8. Certificate of Insurance Proposers are requested to provide a completed sample Certificate of Insurance evidencing the coverage types and the minimum limits required as described in Section 12 of the Sample Professional Services Agreement (Exhibit 3) with their proposal. The City requires this information to facilitate completing contract formalities in a timely manner if an award is made. The City may request additional information or clarification if necessary. F. Withdrawal of Proposal Submission of a Proposal shall constitute a firm offer to the City for ninety (90) days from the submission deadline for Proposals. A Proposer may withdraw its Proposal anytime before the date and time when Proposals are due, RFP 7 OMB A-87 Cost Allocation Plans and Indirect Cost Rates without prejudice, by submitting a written request for its withdrawal to the Deputy City Manager. A telephone request is not acceptable. G. Selection Criteria The City intends to award a Contract to the most qualified firm submitting a responsive Proposal. Ranking will be based on a maximum of 100 points, weighted as indicated on the following table. In determining the number of points a Proposal will receive in each category, the City will consider the Proposal material submitted, oral interviews (if applicable), and any other relevant information about a given Proposer. The firm submitting a responsive Proposal with the highest total weighted score, based on composite scoring of the selection committee, will be determined to be the most qualified. The following criteria will be used in the evaluation of the Proposals: The City may reject any Proposal in which the approach, qualifications or proposed compensation are not deemed to be within an acceptable or competitive range. The City may seek clarifications from any or all Proposers regarding their Proposals, or may request that Proposers submit modified Proposals. Following the initial review and screening of the written Proposals, using the Selection Criteria described above, one or more companies may be invited to participate in the final selection RFP 8 OMB A-87 Cost Allocation Plans and Indirect Cost Rates Points Selection Criteria Awarded 1. Qualifications and Experience of Firm 0-10 • Financial stability of firm • Quality of references of similar work performed • Firm's experience in servicing public agencies relating to the Scope and Services and Project Deliverables outlined in this RFP 2. Qualifications and Experience of Personnel Assigned to the Project 0-20 • Expertise and technical qualifications of firm's staff who will execute Scope of Services outlined in the RFP • Staff's experience (in particular with Caltrans and FTA) relating to the Scope and Services and Project Deliverables outlined in this RFP 3. Approach and Quality of Work Plan 0-40 • Comprehensiveness, feasibility, and effectiveness of Proposal and submitted work plan • Quality of sample cost allocation plan report and indirect rate proposals • Proposed schedule for performing all services and providing all deliverables 4. Fee Structure 0-30 Grand Total 0-100 The City may reject any Proposal in which the approach, qualifications or proposed compensation are not deemed to be within an acceptable or competitive range. The City may seek clarifications from any or all Proposers regarding their Proposals, or may request that Proposers submit modified Proposals. Following the initial review and screening of the written Proposals, using the Selection Criteria described above, one or more companies may be invited to participate in the final selection RFP 8 OMB A-87 Cost Allocation Plans and Indirect Cost Rates process, which may include participation in an oral interview and/or submission of any additional information as requested by the City. The City reserves the right to conduct pre -award negotiations with any or all Proposers, and the right to award the contract without negotiations. The City reserves the right to award the Contract without conducting interviews. This RFP does not commit the City to awarding a Contract. Proposers shall bear all costs incurred in the preparation of the Proposal and participating in the Proposal process. The City reserves the right to reject any and all Proposals, to accept the Proposal it considers most favorable to the City's interest in its sole discretion, and to waive minor irregularities. The City further reserves the right to seek new Proposals when such procedure is considered by it to be in the best interest of the City. H. Protest Procedures Protests based upon restrictive specifications or alleged improprieties in the RFP procedure shall be filed in writing with the Deputy City Manager at least five (5) calendar days prior to Proposal opening. The protest must clearly specify in writing the grounds and evidence on which the protest is based. Protests based upon City staff s recommendation for award of the Contract shall be submitted in writing to the Deputy City Manager within forty-eight (48) hours of receipt of notice of the staff recommendation for award. The protest must clearly specify in writing the grounds and evidence on which the protest is based. Failure to comply with any of the requirements set forth in this section of the RFP regarding proposal protest procedures may result in rejection of the protest. L Confidentiality The California Public Records Act (Cal. Govt. Code Sections 6250 et seq.) mandates public access to government records. Therefore, unless the information is exempt from disclosure by law, the content of any request for explanation, exception or substitution, response to these specifications, protest or any other written communication between the City and the Proposer shall be available to the public. If the Proposer believes any communication contains trade secrets or other proprietary information that the Proposer believes would cause substantial injury to the Proposer's competitive position if disclosed, the Proposer shall request that the City withhold from disclosure the proprietary information by marking each page containing such proprietary information as confidential. The Proposer may not designate its entire Proposal as confidential. Additionally, the Proposer may not designate Proposal Forms as confidential. If the Proposer requests that the City withhold from disclosure information identified as confidential, and the City complies with the Proposer's request, the Proposer shall assume all responsibility for any challenges resulting from the non -disclosure, indemnify and hold harmless the City from and against all damages (including but not limited to attorneys' fees that may be awarded to the party requesting the Proposer information), and pay any and all cost and expenses related to the withholding of the Proposer information. The Proposer shall not make a claim, sue RFP 9 OMB A-87 Cost Allocation Plans and Indirect Cost Rates or maintain any legal action against the City or its council members, officers, employees or agents in connection with the withholding from disclosure of Proposer information. If the Proposer does not request that the City withhold from disclosure information identified as confidential, the City shall have no obligation to withhold the information from disclosure and may release the information sought without liability to the City. J. Form of Professional Services Agreement The firm selected by the City to perform the services outlined in this RFP will be required to execute an Agreement for Professional Services with the City, the general form of which is attached as Exhibit 3 so that potential Proposers have an opportunity to review the terms and conditions that will be included in the Agreement. If a Proposer desires any modifications to the form of Agreement, they must be submitted for consideration with the Proposal. Otherwise, the Proposer will be deemed to have accepted the form of Agreement. Attention is directed, in particular, to the Indemnification and Insurance requirements set forth in Sections 11 and 12 of the Agreement. K. Ex Parte Communication Proposers and Proposers' representatives may not communicate orally with an officer, council member, employee or agent of the City, with the exception of the Deputy City Manager regarding this RFP until after a Notice to Proceed has been issued by the City. Proposers and their representatives are not prohibited, however, from making oral statements or presentations in public to one or more representatives of the City during a public meeting. In the context of this RFP, an "ex parte communication" is any communication between a Proposer (or the Proposer's representative) and the City's City Manager, Council Member, officer or employee, regardless of who initiates the communication, other than as part of the procurement process specified herein, before the City issues a Notice to Proceed, unless it is in writing and available for disclosure to the general public. RFP 10 OMB A-87 Cost Allocation Plans and Indirect Cost Rates