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HomeMy WebLinkAboutAgenda Report - November 20, 2019 C-26AGENDA ITEM Crrv or Lonr CouNcrL CoMMUNTcATToN AGENDA TITLE:Adopt Resolution Adopting Caltrans' LocalAssistance Procedure Manual- Chapter 10 (and Subsequent Updates) for the Procurement of Architectural and Engineering Services where Federal Funds are Used for Services (Excluding Federal Tiansit Authority Funds) MEETING DATE: November 20,2019 PREPARED BY: Public Works Director RECOMIllIENDED ACTION: Adopt resolution adopting Caltrans' LocalAssistance Procedure Manual - Chapter 10 (and subsequent updates) for the procurement of architectural and engineering services where Federalfunds are used for services (excluding Federal Transit Authority funds). BAGKGROUND INFORMATION: ln2017, Caltrans issued Office Bulletin 17-O2 "Architectural and Engineering Consultant Contract Review" (OB 17-02), as a result of a Federal review of general local agency project administration practices. The Federal review determined that many local agency architectural and engineering (A/E) contracts were not in compliance with federal regulations, and that Caltrans had not provided the necessary oversight of these contracts. ln response, Caltrans issued Local Programs Procedure 17-01 requiring local agency's to either adopt a resolution adopting the Caltrans' Local Assistance Procedure Manual (LAPM) - Chapter 10 for federally funded A/E services procurement, or require the local agency's process be reviewed and approved by Caltrans. lf neither of these options are utilized, Caltrans will cease local agency reimbursement for A/E contracts. This action item formalizes the City's use of the Caltrans LAPM - Chapter 10 processes for all federally funded A/E procurements. This item excludes Federal Transit Authority funded procurements, as they have their own guidelines that are separate from the Caltrans LAPM. Staff recommends adopting Caltrans' Local Assistance Procedure Manual- Chapter 10 (and subsequent updates) for the procurement of architectural and engineering services where Federal funds are used for services (excluding Federal Transit Authority funds). FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. C-MU,A Charles E. Swimìey, Jr Public Works Director Prepared by Sean Nathan, Senior Civil Engineer cES/SN/tdb Attachment cc: City Engineer G2b fM APPROVED: K:\WP\COUNCIL\201 9\CC Caltrans LAPM-'1 0.doc , City Manager 11t6t2019 Local Assistance Procedures Manual Chopter 10 Consullqnt Seleclion Contents Section 10.1: FEDERALLY FUNDED A&E CONTRACTS. 10.1.1General Scope of Consultant Work Non-Discrimination Clause ....... Cost Per Unit of Work Specified Rates of Compensation Lump Sum or Firm Fixed Price .... 10.1.3 A&E Consultant Audit and Review Process. Applicable Standards Audit Guidance Available Allowable Costs Approval or Acceptance of lndirect Cost Rates Chapter 10 Consultant Selection VI Definition of an Architectural and Engineering Consultant.. Architectural and Engineering Consultants .....1 Non-A&E Consultants Selecting the Project.. Su bcontracted Services.. Organizational and Consultant Conflicts of lnterest 2 Federal Regulation Governing Conflict of lnterest (23 CFR t72.7(b[4ll Requires that: .......3 Consultants Performing Work on Multiple Phases of Federal-aid Projects 3 LO.L.2ldentifying & Defining a Need for Consultants 4 Appointing the Contract Adm in istrator..................5 Segmenting Consultant Work..........................6 Figure 10-2: Segmenting Consultant Work 7 Specify Products to be Delivered.................... 1 1 T .,2 2 2 7 7 .....7 Disadvantaged Business Enterprise (DBE) Participation.......... .............7 Determine Type of Contract.....9 Determining the Project Schedule Determine Method of Payment.... Actual Cost-Plus-Fixed Fee............ 10 ........11 11 7t 72 12 L2 13 13 T4 15 ......15 Page i of ix January 2019 Cognizant Letters of Approval Local Assistance Procedures Manual Chapter 10 Consultant Selection Caltrans Acceptance of lndirect Cost Rate......15 Financial Review Performed Prior to Contract Execution ..................16 Local Agencies' Responsibilities Consultants' Responsibilities (Both prime consultants and subconsultants) lndependent Office of Audits and lnvestigations' Responsibilities.................. Audits and Reviews to be Performed ............. lndirect Cost Rate Audits CPA Workpaper Reviews Contract Audits lncurred Cost Audits Audit Findings and Review Deficiencies ......... IO.L.4 Consultant Selection Methods..... One-Step RFP One-Step RFQ... Two-Step (RFQ Followed by RFP)........... 10.1.5 Consultant Selection Using the One-Step RFP Method Appoint Consultant Selection Committee Develop Technical Criteria for Evaluation of Proposals... Develop Schedule for Consultant Selection Financial Management and Accounting System Requirements.. Advertise for Consultants .............. lssue/Publish RFP........... Conduct Propose/s Conference or Answer Written Questions... Receive and Evaluate Technical Proposals Develop Final Ranking and Notify Consultants of Results Negotiate Contract with Top-Ranked Consultant. 10.1.6 Consultant Selection Using the One-Step RFQ Method Appoint Consu ltant Selection Committee ...... Develop Technical Criteria for Evaluation of Qualifications Develop Schedule for Consultant Selection.... Financial Management and Accounting System Requirements Advertise for Consultants ............. lssue/Publish RFQ ,T7 .18 .19 ,L9 .19 .19 .20 .20 .20 .22 .23 .23 .23 .26 .26 .26 .27 .27 .28 .28 .29 .29 .29 .30 .30 .31 .32 .32 .32 .32 .33 .34 .34 .34 Page ii of ix January 2019 Receive/Evaluate Statements of Qualifications and Develop Shortlist Local Assistance Procedures Manual Notify Consultants of Shortlist.......... I nterview Top-Ranked Consultants Develop Final Ranking and Notify Consultants of Results...... Conduct Scoping Meeting........ Request Cost Proposa1............. Negotiate Contract with Top-Ranked Consultant LO.L.7 Consultant Selection Using the Two-Step RFøRFP Method Combined RFQ and RFP .......... Categorize work Establish M inimum Qualifications ............ lssue RFQ.... Set-Up Evaluation Process Evaluate Qualifications and Add Firm to List Maintain List lssue RFP to Pre-Qualified Consultants on List Conduct Propose/s Conference or Answer Written Questions Receive and Evaluate Technical Proposals Develop Final Ranking and Notify Consultants of Results Request Cost Proposal and Negotiate Contract with Top-Ranked Consultant 10.1.8 Completing the Project Develop the Final Contract Review and Approval of Contracts Execute Contract and lssue Notice to Proceed to Consultant Admin ister the Contract Substitution of Consultant Personnel and Subconsultants ......... lnvoicing (or Progress Payments) Contract Amendments.................. Performance Evaluation Project Records... Retention Clauses Review of Local Agency Actions....... 10.1.9 Miscellaneous Considerations Agreements with Other Governmenta I Agencies.. Small Purchase Contracts ...... Noncompetitive Negotiated Contracts (Sole-Source) Chapter 10 Consultant Selection .35 .35 .36 .36 .36 ..36 ..38 ..38 ..39 ..40 ..40 4t 42 42 42 43 43 43 .44 .45 .45 .45 .46 .47 .47 .48 .48 .49 .49 .51 .51 ..51 ..51 ..51 ..52 52 Page iii of ix January 2019 Personal Services Contracts.... Local Assistance Procedures Manual Retainíng a Consultant as an Agency Engineer or in Management Support Ro|e............. Construction Engineering Services ...... 10. 1. 10 Program M anagement .................. 10.1.11 References. 10.2: STATE-ONLY FUNDED A&E CONTRACTS tO.2.! General... L0.2.2 Definition of A&E LO.2.3 Minimum Audit Requirements A. V/ritten Procedures.. B. Conflict of Interest C. Records. E. Selection Basis .......... G. Solicitation H. Cost Analysis D. Full & Open competition I. Negotiations.................... 10.3: NON-A&E CONTRACTS.............. Determining Non-A&E Example of Determining Non-A&E Non-lnfrastructure Projects Governing Regulations and Codes for non-A&E Procurement of Non-A&E Consultant Contracts RFP Basic Requirements......................... Additional Requirements and Evaluation Criteria Consultant's Proposal Cost Proposal Worksheet.............. DBE Consideration Administrative Requirements Oral Presentations Optional......... Cost-Effective/Pu blic I nterest Finding........ Protest/Appeals/Reinstatement Procedu res.. 2 2 Page iv of ix January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Exhibits Exhibits applicable to this chapter can be found at: https://dot.ca.gov/pragramslocal-assìstance/forms/local-assistance-procedures-monual-forms Exhibit 70-A: A&E Consultant Finonciol Document Review Request Exhibit L0-8: Suggested Consultont Evoluation Sheet Exhibit 7O-C: A&E Consultant Controct Reviewers Checklist Exhibit 70-G: lndividuol A&E Task Order DBE Utilizøtion linked) Exhibit 70-H: Somple Cost Proposal (Example#7 thru #4) Exhibit 70-l: Notice to Proposers DBE tnformotion Exhibit 70-K: Consultant Annuol CertiÍication of lndirect Costs and Finoncial Manogement System Exhibit 70-0L: Consultont Proposal DBE Commitment Exhibit 70-02: Consultont Controcts DBE Commitment Exhibit 70-Q: Disclosure of Lobbyinq Activities Exhibit 70-R: A&E Somple Contract Lanquoqe Exhibit 70-S: Consultant Performance Evaluation Exhibit 70-T: Conflict of lnterest & ConÍidentiolity Stotement Exhibit 70-U: Consultdnt in Monogement Support Role Conflict of interest and Confidentiolity Stotement Page v of ix January 2019 Procuîement PlannÍng 1 2 3 *Select Project *Set Project Objectives *Determine Project Schedule *Obtain CTC Al location/Federal Authorization to Proceed prior to beginning reimbursable work *LAPM Exhibit 70-U: Consu lta nt i n Mo noqe m e nt Support Role Conflict of I nte re st o nd Co nfide ntio I itv Stote m e nt, if applicable: submit Conflict of lnterest and Scope of Work (SOW) to DLA-HQ prior to contract advertisement. *ldentify 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 *Determine Type of Contract (Project Specific or On-Call) *Determine MOP: Lump Sum; Actual Cost-Plus- Fixed-Fee; Cost Per Unit of Work; or Specific Rate of Compensation Local Assistance Procedures Manual Secr¡o¡¡ 1O.I: FEDERAIIY FUNDED A&E CONTRACÏS Figure 10-1: A&E Contract Procurement Process Workflow Diagram Chapter 10 Consultant Selection Page vi of ix January 2019 A&E = Architectural and Engineering lOAl = Caltrans lndependent Office of Audits and lnvestigations CT = Caltrans DBE = Disadvantaged Business Enterprise DLA = Division of local Ass¡stance DLAE = D¡str¡ct Local Assistance Engineer D[A-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 = ¡sat.tt for Qualifications SOQ = 51"¡"rent of Qualifications SOW = Statement/Scope of Work Local Assistance Procedures Manual Figure 10-1: A&E Contract Procurement Process Workflow Diagram- continued Chapter 10 Consultant Selection Page vii of ix January 2019 645 *Prepare RFP or RFQ documents ,*lnclude SOW, evaluation process/criteria, DBE goals, MOP and cost proposal format (see Exhib¡t 70-H: Sample Cost Pro posa ll minimum requirement of Proposal or SOQ, Notice to Proposers DBE lnformation (see Exhibit 70-l: Not¡ce to Proposers DBE I nformotio d, submittal deadline *Advertise RFP or RFQ on public forum (newspaper, technical publications, Web Hosting Site, other local websites) *lssue RFP or RFQ (direct mailing, web postine) *Prepare to respond to RFP/RFQ questions *Conduct Proposers Conference, if applicable *Receive Proposals or SOQs *.Determine Solicitation Document; RFP or RFQ *Appoint Consultant Selection Committee *Collect signed Conflict of lnterest forms and Confidentiality Statements (see Exhibit 70-T: Conflict of lnterest & Co nf id e nt io I itv Stote m e ntl f r om ' all members involved in process * Determine Procurement Schedule *Develop Technical Criteria with level of importance (weights) for Evaluation of Proposals or the SOQ Local Agency Local Agency Local Agency A&E = Architectural and Engineering lOAl = Caltrans lndependent Office of Audits and lnvestigations CT = Caltrans DBE = Disadvantaged Business Enterprise DIA = Division of Local Ass¡stance DIAE = D¡str¡ct tocal 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 = fsqu.tt for Qualifications SOQ = 5¡"¡".ent of Qualificat¡ons SOW = Statement/Scope of Work Local Assistance Procedures Manual Figure 10-1: A&E Contract Procurement Process Workflow Diagram- continued Chapter 10 Consultant Selection Page viii of ix January 2019 Contract Necotiation 8 97 *Open and analyze cost proposal from the Highest Ranked firm *Distribute Proposals or SOQs to Selection Committee members *Ensure Committee members receive the appropriate score sheet to use (see Exhib¡t 70-B: Suaqested Co nsu lto nt Evo luotio n 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 Líst (two- step process) *Conduct lnterview 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 Sømple Contrøct Lønguøge for standard contract language and provisions) (see Exhibitlj-R: A&E *Review and evaluate f@! pockoqe and supporting documents, if applicable *lssue 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 Local AgencyLocal Agency Local Agency 1 , , , Ì i ¡ l ' l :ì r .' l : r. ; ,, r " l il ì i \ ; 1 , : ,:,i ,) \ ¡, i , . t t . , r 1 i l :; l t f , r t , ì i A&E = Architectural and Engineering lOAl = Caltrans Independent Office of Audits and lnvest¡gat¡ons CT = Caltrans DBE = Disadvantaged Business Enterpr¡se DLA = Division of local Ass¡stance DLAE = District Local Assistance Engineer D[A-Hq = Division of local Assistance-Headquarters IAPG = Local Assistance Program Guidelines LAPM = Local Assistance Procedures Manual MOP = Method of Payment RFP = Request for Proposal RFQ = Pstt.tt for Qualifications SOQ = 5¡¡¡".ent of Qualifications SOW = Statement/Scope of Work Local Assistance Procedures Manual Chapter 10 Consultant Selection Page ix of ix January 2019 Contract Nesotiation 10 11 t2 *Negotiate contract costs with the most qualified Consu ltant *Prepare and retain record of cost negotiations *lnitiate CT lOAl Financial Review Section (LAPM Section 10.1.3) and send documents (Exhibit 70-A: A&E Consultont Finonciol' Document Review Reouestl,if applicable, to Caltrans lOAl *Receive and analyze findings of the Financial Review Letter from CT lOAl, if any *Address and resolve all findings by lOAl and incorporate into final contract and cost proposal *lf negotiations with First ranked firm is unsuccessful, formally terminate cost negot¡ations with Consultant and begin Step 9 w¡th next ranked consultant *send Exhibit 10-c to DLA-HQ for acceptance prior to award *Retain acceptance of Exhibit 10-c from DLA-HQ *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 70-01: Consultant Proposol DBE Co m m it m ent o nd EIþ!þ|IJ0-OZ Cons ulta nt Controct DBE Commitmentl to DLAE *Close out contract procurement process A&E = Architectural and Engineering lOAl = Caltrans lndependent Office of Audits and lnvestigations CT = Caltrans DBE = Disadvantaged Business Enterprise DLA = Division of Local Ass¡stance DIAE = D¡str¡ct Local Assistance Eng¡neer D[A-HQ = Division of local Assistance-Headquarters IAPG = Local Assistance Program Guidelines LAPM = Local Ass¡stence Procedures Manual MOP = Method of Payment RFP = Request for Proposal RFQ = ¡gtt.tt for Qualifications SOQ = Statement of Qualificat¡ons SOW =of Work *Prior to concurring with ¡nvoice payment related to consultant services, ensure that district confirms acceptance of Exhibit 10-C and has a copy ofthe executed consultant contract on file and 7OQ7 ond 70Q2. Also, check lOAl database to ensure that LAPM Exhibit 70-K: Con su I to nt An n u a I Ce rtilicati o n gflndirect Costs and Financìol Management Svstem, iÍ applicable, has been received by toAt *Perform lncurred Cost Audit, if selected Local AgencyLocal Agency Local Agency Figure 10-1: A&E Contract Procurement Process Workflow Diagram- cont¡nued Local Assistance Procedures Manual Chapter 10 Consultant Selection t 0.1.1 G¡¡¡¡nar Inlroductlon A local agency may engage consultants to perform architecfural, engineering, and related services to develop a federal-aid funded project. Local agencies requesting federal funds to reimburse A&E Consultants must follow the selection and contracting procedures detailed in this chapter. Definilion of on Archileclurol ond Engineering Consullonl 23 Code of Federal RegulationsSlT2 and CA State Law further defines A&E services and includes those private consulting firms providing architectural, landscape architectural, engineering, environmental, land surveying, construction engineering, or program management are termed Architectural and Engineering (A&E) Consultants. Architeclurql qnd Engineerlng Consullqnls The Brooks Act (40 USC, Section 1104) requires local agencies to award federally funded engineering and design related contracts based on fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 Code of Federal Regulations (CFR), Paft172), atafatu and reasonable price (48 CFR 31.201-3). Cost proposals submitted to the local agency must be sealed and shall not be included as a criterion for rating such consultants. After ranking, cost negotiations may begin with the most qualified consultant and only their cost proposal will be opened. Should negotiations fail or result in a price that the local agency does not consider fair and reasonable, negotiations must be formally terminated and the local agency 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 local agency must then undertake negotiations with the third most qualified consultanf and so on, until the price is determined to be fair and reasonable by the local agency. 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 worþ the required contract provisions may need to include the Califomia 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 worþ soils or foundation investigations, environmental hazardous materials and so forth. California State Prevailing Wage information is available through the Califomia Deparhnent of Industrial Relations 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 Page L of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection treatrnent of delta base and delta fringe, and verify the accounting treatrnent is consistent every yeaf. o DIR FAQ website: http : / / www. dir. c a. sov / OPRL / FAQ-PrevailinsWa se.htrnl DIR Waee Determination website: http:/ /www.dir.ca.govl oprl/ DPreWa geDetermination.hhn Caltrans Prevailins Wage Interpretive Guidance: http: / /www.dot.ca.gov/hq/audits/documents/prevailing-wage-interpretive- guidance.pdf Non-A&E Consullonls Consultants other than A&E consultants may be selected using cosf 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 'I.,0.3 Non-A€¡E Contrøcts of this chapter Selecling lhe Profecl The local agency 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 local agency must identify the projecfs 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. Subconlrocled Servlces The consultant is responsible for performing the work required under the contract in a manner acceptable to the local agenry. The consultanfs 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 local agency. 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)(+) 2 CFR 200.331. Orgonizolionql ond Consultqnl Conflicls of lnleresl In the procurement of contracts for engineering services by private consulting firms using federal-aid highway funds, local agencies must take all the steps necessary to prevent fraud, waste, and abuse. The local agency 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) Page 2 of 72 January 2019 a Local Assistance Procedures Manual Chapter 10 Consultant Selection 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. Federql Regulolion coverning Conflict of lnlerest (23 CFR 172.7(b)(4)) Requires lhqft Local agency shall maintain a written code of standards of conduct for employees engaged in the award and administration of engineering and design service contracts; No contracting agenry employee who participates in the procurement, management, or administration of federal funded contracþ or subcontracts shall have, directly or indirectly, ny financial or other personal interest in connection with such contract or subcontracÇ a a a a a a No person or entity performing services for a contracting agency in connection with a federal funded project shall have, directly or indirectly, ffiy financial or other personal interest, other than employment or retention by the contracting agency, in any contract or subcontract in connection with such projecf No person or entity performing services for a contracting agency in connection with a federal-aid highway funded project shall have, directly or indirectly, ffiy financial or other personal interest in *y real property acquired for the projecü No contracting agency employees or agents shall neither solicit nor accept grafuities, favors, or anything of monetary value from consultants, potential consultants, or parties to subagreements; Local agency shall disclose in writing any potential conflict of interest to FHWA Consullonls Performing Work on Mulliple Phqses of tederol-old Projects Local agencies sometimes wish to hire the same consultant firm to perform construction engineering andf 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 andf or inspection services provides another level of review and reduces the risk of, or potential for, a conflict of interest. Page 3 oi 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Although federal regulations do not expressly prohibit the same firm from providing services on subsequent phases, the local agencies 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. \Mhen 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 peiform 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 consfouction phase services unless the desired 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: Consultantin Management Suryort Role Conflict of Interest ønd ConfidentiøliV Statement (see Section 10.1-.9: Miscellaneous Considerations in this chapter) and retain it in the local agency files. Miscellqneous Considerqlions Aulhorizolion lo Proceed The Federal Highway Administration (FHWA) must give the local agency an Authorization to Proceed (E-76) with the work prior to performing of any work for which federal reimbursement is to be requested, (see the LAPM Chnpter 3: Project Authorization). For state funded projects see Section 10.2: State-Only Funded A€¡E Contracfs and the Local Assistance Program Guidelines (LAPG). Chnpter 23: Locøl Agency Støte Transportøtion Improuement Progrøm Projects. for guidance on when work may proceed. Copies of the Authorization to Proceed and the consultant contract must be retained in the local agency project files for future audit. 10.1.21o¡rur¡ylr,¡G & DEFTNTNG A N¡¡o FoR CoNsuuANrs The need for a consultant is identified by comparing the projecfs schedule and objectives with the local agency's capabilities, its staff availability of the required expertise, and its funding resources. If the local agency does not have sufficient staff capabilities, it may solicit assistance from another agency, or use a qualified private consultant to perform the required work. Page 4 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection If the local agency determines that there is a need to solicit assistance from another local agency, or to use a consultant, the District Local Assistance Engineer (DI-A,E) should be notified if federal-aid funds are to be requested for the project segment to be contracted out. Appointing lhe Conlrqcl Adminislrqlor 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 consultanfs work. The Contract Administrator must be a qualified local agency employee or have staff that is qualified to ensure the consultanfs 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)(7) and include: e Contract negotiation, conhact payment, and evaluation of compliance performance, and quality of services provided by the consultang . Being familiar with the contract requirements, scope of services to be performed, and products to be produced by the consultanÇ . Being familiar with the qualifications and responsibilities of the consultanls staff and evaluating any requested changes in key personne| . Scheduling and attending progress and project review meetings, commensurate with the magnifude, complexity, and type of work, to ensure the work is progressing in accordance with established scope of work and schedule milestones; o 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 worþ and Request for Proposals (RFP), if used; ¡ Prepares the draft contracÇ . Arranges for preparation before an independent estimate of the value of the work to be contracted ouü . Ensures that the selection procedures are followed; . Analyzes the selected/best-qualified consultanfs cost proposal; . Ensures contract audit and review procedure is followed; 5 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection r Ensures that fee/profit negotiation is conducted and keeps records; r Serves as the local agenry's primary contact person for the successful consultanq ¡ Monitors the consultanfs progress and provides direction; . Ensuring consultant costs billed are allowable in accordance with the Federal cost principles and consistent with the conkact terms as well as the acceptability and progress of the consultanfs work; . Identifies other local agency staff for the consultant to contact if needed; . Closes out the contract at completiort by processing the final invoice; completing a mandatory consultant evaluatior¡ and final DBE utilization reports (Exhibit L7'F: Finøl Report Utilization of Disadaøntaged Business Enterprises (DBE\ ønd First-Tier Subcontractors). Segmenling Consullonl 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 engineerþg needed to analyze project alternatives and produce an engineering and plaruring assessment. Initial project studies include only as much traffic and engineering analysis of altematives, as is needed to produce a sound EA or EIS (see LAPM Chnpter 6 Enaironmentøl Procedures and Standard Environmental Reference €ERLChapters 31: Environmental Assessment (EA) and Findins of No Simificant Impact (FONSI) and Chapter 32: Environmental Impact Statement (EIS). Final design shall not begin until NEPA environmental approval has been received if federal reimbursement is desired. Refer to Figure 1.0-2: Segmenting Consultant Work below, which illustrates several satisfactory ways to segment consultant activities. Page 6 of72 January 20L9 llell-st¡'uctured Pfojert$ lf itù Simple Rlglrf of lVr¡ Requiremeuts l\:tll-structured Projects lVifl Compler Riglrt of \Ìr¡' Requirements 1lorr Difficulf P[oJrcts 1'ri'l' Compler ProJects Preliminâ rl. Eügineeri¡¡g EuYilonmetrtâl Anel¡'sis PlâD$, Specificâtiolrs &Estimates RJghf of lTa¡ l\ctirltier ['ti¡ig' Reloc|fio¡ (lonstruction Enginrering Local Assistance Procedures Manual Chapter 10 Consultant Selection Figure 10-2: Segment¡ng Consultant Work Speclfy Producls lo 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 Consullonl 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 worþ consultants respond to a project advertisemen! 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. Non-Discriminqlion Clquse The Non-Discrimination Clause (Ëxhibit 10-R: AùE Boilerplate Agreement Lnnguøge, Article XVI 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. Disqdvonlqged Business Enlerprise (DBE) Porlicipolion When administering federal-aid projects, federal regulations (49 CFfÇ Patt26) require a local agency 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: Ciail Rights ønd Disadvantaged Business Enterprises for DBE requirements for A&E Consultant Contracts. PageT of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Esllmoled Cosl of Consullqnt Work An independent estimate for cost or price analysis is needed for all consultant contracts (23 CFR 172.7(a)(7)(vXB) to ensure that consultant services are obtained at a fair and reasonable price. The estimate is prepared in advance of requesting a cost proposal from the top-ranked consultanf so the local agency's negotiating team has a cost comparison of the project to evaluate the reasonableness of the consultanfs cost proposal. The estimate, which is specifically for the use of the local agency'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, mustbe clearþ 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 contrac! 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 acfual 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. 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 tasþ 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. Page 8 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection For on-call (as-needed) contracts, the cost estimate/analysis should include at minimum, a historical analysis of annual needs for consultant worþ professional labor cost and market analysis, and reasonable profit analysis. Delermine Type of Conlrqct Types of contracts to be used are described as follows: o Project-specific contract is between the local agency 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 ProSresses. . 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. 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 sfudies, geotechnical sfudies, 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 shall specify a reasonable maximum length of contracf not to exceed 5 years, and a maximum total contract dollar amount (23 CFR 172).The maximum dollar amount for all contracts awarded under the solicitation is stated in the solicitation. The maximum dollar amount is the aggregate of the on-call contracts anticipated to be awarded. If the solicitation lists that up to 5 contracts may be awarded, the aggregate amount of these 5 contracts is the maximum contract dollar amount. 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 (two options exist: geographically designated areas or additional competitive solicitation to all consultants who provide the same type of service and awarded a contract under the same solicitation). o To maintain the intent of the Brooks Act (40 USC 1101-1104) in promoting open competition and selection based on demonstrated competence and qualifications, on- call consultant contracts established through the RFQ process must meet the following requirements : r Must define a general scope of work, complexity, and professional nafure of serr¡ices. Specify a task order procedure the local agency uses to procure project specific work under the contract. No task order is valid unless the on-call contract is still enforced. For example, if the on-call contract is expired, all task orders issued after the contract expiration date will become invalid. Page9 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection 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. o Specify procurement procedures in the contracts the local agency will use to award/execute task orders among the consultants: . Either through an additional qualification-based selection process (see the Two-Step RFQ/RFQ process later in this chapter), OR r 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 "backrtp" 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)(S)@)(Z). The "backup" option needs to be listed in the respective contracts. o An exarnple of øcceptable contract wording in multiple on-call contracts for the same Ape of sentice: . "AgencV has or will enter into three (3) tøsk order contracts for perþrmance of the Scope of Sensices identifed in Exhibit "A", incluùing this Agreement ("CM Sensices Task Order Contracts"). The other CM Seraices Task Order Contracts øre [identify other two contracts by agreement numbers and consultant frmsl. The total amount payable by Agency for the CM Seraices Tøsk Order Contrøcts shall not exceed ø cumulatiae møximum total oalue of Seuen Million, Fiae Hundred Thousønd D ollars (fi7,500,000) ('NTE Sum" ) . It is understood ønd øgreed that there is no guarantee, either expressed or implied that this dollør ømount will be authorized under thz CM Sercices Task Order Contracts through Task Orders. Eøch time ø Tøsk Order is øwarded under øny of the CM Seruices Tøsk Order Contrøcts, the Agency shall send written notification to Consultant and eøch of the other consultants entering into the CM Sercices Task Order Contracts. The notice shall identify the totøl funds allocøted under issued Task Orders, and the remaining unencumbered amount of the NTE Sum. Consultant acknowledges ønd øgrees that Agency shall not pay øny amount under this Agreement thnt would exceed the NTE Sum, and Consultønt shall not enter into n Task Order that exceeds thg NTE SLtm." ¡ Selecting the consultang o Developing the consultant contrac! . Completing the A&E consultant contract audit process; . Conducting meetings and project reviews. Page IO ol72 January 2019 ¡ Delermining lhe Projecl Schedule The local agency develops a schedule for performance of work and completion of the project. The schedule must include sufficient time to allow for: Local Assistance Procedures Manual Chapter 10 Consultant Selection Delermine Method of Poymenl The method of payment of contract must be specified. Four methods are permitted depending on the scope of services to be performed reference 23 CFR 172.9(b): ¡ Actual Cost-Plus-Fixed Fee (see Exhibit 10-H: Sømple Cost Proposal, Example #1); o Cost Per Unit of Work (see Exhibit L0-H,Example #3); . Specific Rates of Compensation (see Exhibit L0-H. Example #2); . Lump Sum (see Ë,xhibit L0-H. Example #1). The method of payment to the consultant shall be set forth in the original solicitatiory contracÇ and in any contract modification thereto. A single contract may contain different payment methods as appropriate for compensation of different elements of work. The cost plus a percentage of cost and percentage of construction cost methods of payment shall not be used. Both of these methods are explicitly prohibited by Federal Regulations. Acluql Cosl-PIus-Fixed Fee The consultant is reimbursed for actual 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 shall take into account the size, complexity, duratiory 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 clearþ stated in the contract. 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 L5 percent of the total direct labor and indirect costs of the contract may be justified only when exceptional circumstances exist. The contract shall specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit L0-H: Sample Cost Proposal Exømple #1 and Exhibit 10-R: AtE Sømple Contract Lønguage, Article Y, Option I in this chapter). The contract cost proposal must idenfrfy all key employees andf or classifications to be billed. New key employees andf or classifications must be approved before they incur work on the contract or the costs can be questioned or disallowed. Cosl Per Unll 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 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 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 shall also specify a reasonable maximum length of Page LL of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection contract period and a maximum total contract dollar amount (see Exhibit L0-H, Example #3 and Exhibitl}-R. Article Y Option2). Specified Rqles of Compensol¡on 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 consultanf 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. 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 ot support type services, such as construction engineering and inspectiorç where the consultant is not in direct control of the number of hours worked, and it also requires management and monitoring of the consultanfs level of effort and the classification of employees used to perform the contracted work. The contract shall also specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit L0-H, Example #2 and Exhibit 10-R, Article Y Option 3_). lump Sum or Firm Fixed Price 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 extenÇ scope, complexity, character, duratiory 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-H: Sømple Cost Proposal, Example #L and Exhibit L0-R: AtE Sample Contract La:nguage. Article Y, Option 4). Normally, a lump sum contract will be paid in fulI at end of the contract when completed. However, a lump sum contract can be negotiated with progress payment if feasible. The progress payment shall be based on percent of work complete or completion of clearþ defined milestones. The contract cost proposal shall document the agreed upon progress payment and include the necessary milestones costs, or the percentwork complete schedule. Changes to Exhibit L0-H requiring resubmittal to Independent Office of Audits and Investi gations for review: . Consultant name change . New participating subconsultant ¡ Change in ICR rate IO.I.3 A&E CoISUITANT Auo¡r AND REUEw PRocEss This section outlines the audit and review process for A&E contracts that at any time use state or federal funds. All proposed A&E contracts and supporting documents are Page 12 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection suþect to audit or review by Caltrans' Independent Office of Independent Office of Audits and Investigations (IOAI), other state audit organizations/ or the federal govemment. Not all proposed contracts will be audited or reviewed; rather, they will be selected on a risk-based approach. Applicoble Slqndqrds State and federal requirements listed below, and specific contract requirements, serve as the standards for audits and reviews performed. Local agencies, consultants, and subconsultants are responsible for complying with state, federal, and specific contract requirements. Local agencies are responsible for determining the eligibility of costs to be reimbursed to consultants. Applicable standards include, but are not lirnited to: . Caltrans Local Assistance Procedures Manual (LAPM); . State and Federal agreements between local agencies and Caltrans, (i.e. Master Agreements); . Project Program Supplemental Agreements; . 23 United States Code (U.S.C.), Section 112 - Letting of Contracts; . 40 U.S.C., Chapter L1: the Brooks Acü . 23 CFR, Chapter 1, Part l72-Proctrement Management and Administration of Engineering and Design Related Services; . 23CFR, Chapter l.- Federal Highway Administratiorç Departrnent of ITransportation; I . 48 CFR, Federal Acquisition Regulation (FAR), Chapter L, Part 3L- Contract Cost Principles and Procedures; . 48 CFR, Chapter 99 - Cost Accounting Standards (CAS), Subpart 9900; . 2 CFR, Part200 - UniformAdministrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards; . United States Government Accountability Office, Government Auditing Standards - Generally Accepted Government Auditing Standards (GAGAS); . California Govemrnent Code sections 4525-4529; and . Proposed contract terms and conditions. See section 1.0.10 "References" of this Chapter for links to above referenced standards. Audit Guidonce Avqllqble The American Association of State Highway and Transportation Officials, Uniform Audit & Accounting Guide (AASHTO Audit Guide), which is referred to frequently in this sectiorL is a valuable tool to guide local agencies, consultants and Certified Public Accountants (CPA) through the requirements for establishing, and audits of FAR compliant Indirect Cost Rates Page L3 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection (ICR). The AASHTO Audit Guide is used extensively as an industry guide in the audit and review process. Local agencies may seek accounting assistance from internal audit stalf and an independent CPA for compliance. The consultant may seek professional guidance in selecting its independent CPA. See also the AASHTO Audit Guide, Ch 2.5 C. Selection of CPA Firm as Oaerhead Auditor for guidance in the selection process. Training is also offered by FFIWA s National Highway Institute (see http:/ /www.nhi.fhwa.dot.govldefault.aspx). Courses offered include: . Using the AASHTO Audit Guide for the Procurement and Administration of A&E Contracts (FHWA-NHI-231.0213) . Using the AASHTO AuditGuide for the Development of A&E Consultant Indirect Cost Rates (FFIWA- NHI-231029) . Using the AASHTO Audit Guide for the Auditing and Oversight of A&E Consultant Indirect Cost Rates (FHWA-NHI-231030) If consultants desire training on how to build an ICR and basic timekeeping, there are Indirect Cost Rate and Timekeeping webinars created by the Washington State Departrnent of Transportation. The link to the webinars is available ath@: / / www.dot.ca.gov / audits / (click on Architectural & Engineering Contracts/General A&E Contract Resources/Other State DOT Training Module). For training and additional information provided by Caltrans Local Assistance, visit Caltrans Local Assistance Blog at htÞ://www.localassistanceblog.com,/. For FHWA's Q&Afor ICRs and audits, and A&E related services, visit FHWA at ]lrttçt:/ /www.fhwa.dot.gov /prograrnadmin/172qa.cfrn. Allowoble Costs 23 USC 712 þ)(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, shall be performed and audited in compliance with the Federal costprinciples. Local agencies 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 shall 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. Examples of Cost Analysis Worksheets are provided at Exhibit 10-H1 tfuough 4. Local agencies are required to apply Caltrans accepted consultant or subconsultanfs ICRs, to contracts. An ICR is valid for the one-year applicable accounting period accepted or audited by Caltrans. Consultants shall 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 Part172.\'1"(bx1). If the consultant is suþect to Cost AccountingStandards (CAS), the consultantmustuse the applicable ICR for the contract. Page 14 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection A consultanfs accepted ICR for its one-year applicable accounting period shall 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 shall notbe 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 shall 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 Governmenthave the right to conduct an audit of all contract costs. If the costs are subsequently determined to be unallowable, these costs are suþect to repayment. For further guidance, refer to 23 CFR Paft772 and 48 CFR Part 31. Generally, whenever local agencies, consultants and/or contractors are unable to provide requested documentation, it shall 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 auditfindings and disallowed costs. For more references, refer to Applicable Standards in this chapter. Approvol or Acceplqnce of lndirecl Cosl Rotes Cognlzonl letlers of Approvol 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 kansferred to in writing by the State transportation agency where the consultanfs accounting and financial records are located) in accordance with generally accepted govemrnent auditing standards to test compliance with the requirements of the Federal cost principles (per 48 CFR part 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 agenry approves the ICR and a cognizant approval letter is issued. C<rllrqns Acceplonce of lndirecl Cosl Rqle When the ICRs have notbeen established by a cognizant agerrq¡, Caltrans shall perform an audit or review of a consultant's and subconsultanfs 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 CFR772, and48 CFR, Chapter 1, Part31; . Perform an audit to determine if the ICR was prepared in accordance with 23 CFR172, and 48 CFII Chapter L, Part 31; and issue an audit reporÇ . Review and accept an ICR audit report and related workpapers prepared by a CPA or another State Transportation Agenry; Page 15 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection 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. Local agencies shall ensure that only approved or accepted ICRs of consultants for the applicable one-year accounting period be applied to contracb, if rates are not under dispute. Local agencies rruìy check IOAI's website for consultanfs approved or accepted ICRs. All approved or accepted ICRs are issued an Acceptance Identification (ID) numberby IOAI thatis posted to IOAI's website at httçt:/ / www.dot.ca.gov /hq/ audlts/. 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 mostcurrentfucalyear of ICR mustbe 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-ye¿ìr applicable accounting period, but an ICR accepted by Caltrans may only be applied to A&E contracts with Caltrans or local agency contracts using pass-tlrough Caltrans fuodi.g. Local agencies include Cities, Counties, Metropolitan Planning Organizatiorç Special Districb, and Regional Transportation Planrring Agencies. Finonclol Review Performed Prlor lo Conlrqcl Execulion All consultants, including prime and subconsultants, on a proposed contract with a dollar value greater than $150K are suþect to an ICR financial review by IOAI. The financial documents required are detailed in Exhibit loÀ, A€tE Consultønt Finøncinl Document Reuieu) Request Letter and Exhibit L0-A Checklisf. 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 consultanq . Prior FAR compliant history and audit frequency; . Experience of consultant with FAHP contracts; . General responsiveness and responsibility; . The approximate contractvolume and dollar amount of all A&E contracts awarded to the consultant by Caltrans or a local agency in California within the last three calendar years; . The number of states in which the consultant does business; . The type and complexity of the consultanfs accounting system; . The relevant professional experience of any CPA performing audits of the consultants indirect cost rate; . Assessment of consultanf s internal control. Responses to internal control questioruraire, see AASHTO Auditcuide, Appendix B; . For ICRs thathave been adjusted by IOAI, the consultant must provide a revised cost proposal that reflects the adjusted ICR. Page L6 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection locql Agencies' Responsibililies Local Agencies are resporìsible for obtaining all required ICR supporting documentation from A&E prime consultants and sub-consultants as outlined in Exhibit 1,0-A (AtE Consultant Financial Document Reaiew Request) and the Exhibit 10-A-Checklist. Local Agencies are responsible for forwarding these documents to IOAI for review. Local agencies are also required to ensure that IOAI has copies of the Exhibit 10-K " Consultønt Certification of Contract Costs and FinønciøI Manøgement System" and Exhibit 10-H "Cost Proposal" Íor all consultants, both prime and sub-consultants. The ICR included in Exhibit 10-H must match the ICR included in the Exhibit 10-K and the consultanfs ICR schedule. The proposed ICR, however, can be lower than ICR in Exhibit 10-K and the consultanfs ICR schedule if the consultant elects to propose a lower ICR. For contracts spanning more than one year, local agencies are responsible for ensuring the Exhibit 10-K and cost proposals are updated annually unless all concerned parties agree to fix the ICRfor the term of contract, and this is clearly specified in the contract. ICR updates are not require 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 bench or shortlist. The Exhibit 10-H "Cost Proposal" includes contract costs: direct salary or wage rates, fixed fees, other direct costs, indirect costs, total costs, and certification for the costs. Local agencies must perform and retain documentation of activities and resources used to support that a cost analysis has been performed to establish thatcosts and elements were determined to be fair and reasonable in accordance with Federal cost principles. All contract supporting documentation must be retained by the local agency 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 clairned and reirnbursed have been incurred, are eligible, reasonable, allowable, and allocable to the contract and comply with Federal cost principles. Contracts below $150,000 are not suþect to the Caltrans Financial Document Review but local agencies are required to establish that all costs are in compliance with the Federal cost principles,43 CFR, Chapter 1, Part 3L, 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 Exhibit L0-A on the requirements for submitting a complete Financial Review packet. Financial packets can be e-mailed to: conformance.review@dot.ca. gov. Alternatively, it yolt do not have Internet access, you can mail Financial Review packets to Departrnent of Transportation Independent Office of Independent Office of Audits and Investigations, MS 2 Attention: Extemal Audit Manager PageLT of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection P.O. Box 942874 Sacramento, CA 94274-000'L Consullonts' Responsibilities (Both prime consullonls ond subconsultonts) A&E prirne consultants and subconsultants in contract with local agencies using state or federal-aid highway funds should refer to Exhibit 10-A and the 10-A Checklist for the ICR financial documents required to be submitted to their local agency. Consultants must complete the "Arurual Certification of Indirect Costs and Financial Management Systerr{' (Exhibit 10-K) that attests that the ICR rate proposed is in compliance with FAR (48 CFR, Chapter 1., Part 31.) and that the consultanfs financial numagement system is adequate to accumulate and segregate, reasonable, allowable, and allocable direct and indirectproject costs. For all future contracts within a same fiscal year, the consultant needs to only provide a copy of the Exhibit 10-K to the Local Agency. The Exhibit 10-A and 10-K should be submitted to the local agenry who will forr,r'ard a copy to IOAI along with all other related and required financial documents. For guidance see Training Module for Financial Document Requirements for A&E Contracts witlr Local Agencies on IOAI's website http: / / dot.ca.gov / audits / (click on Architectural & Engineering Contracts/A&E Contracts with Local Agencies/Training Modules). Consultants must follow all the federal, state, and contract requirements outlined above in the Sectionabove,"Applicøble Støndards". 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<onsultants should be prepared using the accrual basis of accounting and be presented in compliance with the Federal cost principles. Figure 10-3 at the end of this chapter 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 Deparbnent of Industrial Relations according to the type of work and location of the project. http:/ /wvyw.dir.ca.govlPublic- Works/Prevailing-Wage.hknl. Prime and sub-consultants must include prevailing wage rate information in the cost proposal (see Exhibit 1.0-H4 for example) and provide a Prevailing Wage Rate Policy on company letterhead, signed and dated. The policy must document the accounting treatrnent for prevailing wage deltas and including the following information: . Description of types of work that require payment of prevailing wage rates. . Explanation of how the firm pays prevailing wage deltas (e.9. pay directly to employee as single amount to cover delta base and delta fringe, pay delta base to employee and pay delta fringe amount to a third-party plan, etc.) . Accounting method used for prevailing wage delta base costs. . Accounting method used for prevailing wage delta fringe costs. For guidance see Caltrans' Prevailing Wage Interpretive Guidance and webinar on IOAI's website www.dot.ca.sovlaudits When determined necessary,IOAI may request additional information, such as a labor distribution suÍunary and Executive Compensation Analysis (ECA). A consultanfs labor distribution suÍunary reportis a labor expense report that detail all hours worked (paid and unpaid) for a fiscal year, wages earned, and benefits accrued by all the consultanfs employees. Page LB of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection The labor sumnary 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. lndependenl Office of Audils qnd lnvestigolions' Responslbililies After IOAI receives a consultanfs complete financial documentpacket þer Exhibit 10-A and Exhibit 10-A Checklist) from the local agency, IOAI will review the proposed ICR and supporting documents and notify local agencies in writing whether the proposed ICRs are accepted or adjusted. Con'tracts willbe executed after IOAI either accepts or adjusts the ICR and a revised final cost proposal (if applicable) is received. 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 qnd Reviews lo be Performed After contract executiorÌ, a corìsultanfs ICR may be suþect 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 suþect to repayment. lndirect Cost R<¡le Audils During an ICR audit, IOAI or an independent CPA will examine the consultanfs 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. Section 112(bX2XB), 23 CFR Part172.1'1.,48 CFR Part 3L and other FAR and State requirements). As a result of the audit, the local agency will work with the consultant to adjust the ICR based on audit recomrnendations. 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 Workpoper Revlews 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 Workpaper Review determines whether: (a) the CPA's auditof the ICR was conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS), þ) the CPA Paget9 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection 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 higtrly 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 audiis because of the public accountability of government entities and entities receiving govemrnent funding, various legal and regulatory requirements, and the visibility and sensitivity of goveffunent programs. The AASHTO Audit Guide should be used as a tool for performing audits and attestations of A&E firms. Conlrocl Audits During a Contract Audit, auditors will review a consultanfs 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 adequateþ; . The contract contains all required fiscal provisions; . Proper state and federal procurement requirements were followed. lncurred Cosl Audils 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, record.s, classifies, summarizes, and reports accurate and timely financial data for direct and indirect project costs by accoun! . 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 Agreemen! . Costs incurred are in compliance with the fiscal provisions stipulated in the contracü and . The terms required by the Master Agreement and federal laws and regulations are in the contract. Audlt Flndlngs qnd Revlew Deflclenc¡er If a consultanfs ICR is audited or reviewed,local agencies are responsible for ensuring all executed and future contracts reflect the audited and adjusted fiscal year ICR(s). Local agencies should request reirnbursement from the consultant for overpayment on rates that were adjusted down. The local agencies may be suþect to sanctions outlined inLAP}y'-C]napter 20: Deficiencies and Sanctions if the state or federal government deterrnines that any reirnbursements to the Page2O of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Page 2I oÍ72 January 2019 consultant are the result of lack of proper contract provisions, unallowable charges, unsupported activities, or an inadequate financial management system. Exomple of q FAR Compliont lndirecl Gosl Rqle Schedule - Sample Consulting Company Statement of Direct Labor, Fringe Benefits, and General Overhead for the Year Ended December 31,,20rcx Description General Ledger Balance Unallowable FAR Reference Total Proposed Home Office Field Office Direct Labor fi123,456,789 ($934,568)(1X15) fi1.22,522,2n $85,765,555 936,756,666 Fringe Benefits Vacation/Paid Leaves 917,283,950 fi17,283,950 fii2,098,765 $5,185,18s Payroll Taxes 91,530,864 ß30,61n (1s)s7,s00.247 $1.050.173 s4s0,074 Medical Insurance ffi,o,8e,797 $10,864,197 97,604,938 93,2s9,2s9 401K Match fi4,938,272 s4,938,272 93,4s6,790 97,487,487 Incentives and Bonus 61.s,308,@2 (fi3,123,4s6\(2\fi'L2,185,186 $8,529,630 $3,6s5,ss6 Other Employee Benefits 92,575,280 ($553,433)(3)fi1.,961,,947 fiL,373,2g3 $588.554 Total Fringe Benefits s52,4n,206 $3,707,s06\948,733,700 634,113,590 g'1.4,620,17O General & Administrative Overhead Indirect Overhead Labor s72,696,030 (94,4s2,541\t1x2)t4x15)968,243,489 $65,790,948 62,452,547 Purchased Labor/Subconsultants fi22,433,079 (fi22,433,019',)ls)$$-$- Office Rent 912,345,679 ($987,654\(6)$11,358,02s $11,038,02s $320,000 Supplies & Utilities 55,753,086 $5,753,096 fi4,027,760 $7,725,926 Postage and Shippins fiL,770,O00 932f,456 (s)52,091,456 8L,464,019 9627,437 Equipment and Maintenance fi3,872,346 93,872,346 $2,51.2,789 91.,299,557 Depreciation Expense 96,202A69 (fi1.,345,678)(n $4,956,791 fi3,205A82 fi7,651,,309 Interest 6123,456 (9123,456)(8)$$-$- Dues and Subscription 9123,4s6 ($12,345)(e)$111,111 fi77,778 $33,333 Advertising & Marketins fi427,406 (945,678)(10)fi381,,728 fi267,270 $114s18 Vehicles fis,996,123 (fi147,403)(sx11x14)fis,749,72O 94,024,7M fi7,72/1,676 Bad debts fi12,345 (fi12,345)(12)$$-$- Legal and Accounting Services $3,713,580 (fi222,81,s)(13)fi3,490,765 fi3,490,765 $- Fines and Penalties $8o,ooo ($8o,ooo)(16)$$-$- Total General & Admin. Overhead $135,388,995 (629,54'1,478)fi105,U7,577 $95,898,280 fi9,949,237 Local Assistance Procedures Manual Total Indirect Costs Indirect Cost Rates 97s4,581,,21,6 126.17% Chapter 10 Consultant Selection S130,011,870 $24,569,347 151.59y. 66.U% Page 22 ot72 January 2019 Figure 10.3: Standard lndirect Cost Rate Schedule FAR References: or FAR 3'1,.202: Uncompensated overtime. er FAR 31,.205-6: Profit distribution and excess of the reasonable compensation. or FAR 3'1..205-46,3'1..205-14 & 31.205-51: Meals not for valid business purposes and associated with lobbying and lacking adequate support ør FAR 31..201-2: Administrative staff costs billed to projects/clients. or FAR 31.201.-2: Subconsultant labor and other direct costs billed to and paid by contracts/clients. rur FAR 31..205-36 and 31.205-17: Capltal lease costs, rent paid in excess of reasonable costs, and idle facilities and capacity costs. ra FAR 31".207-2 & 31.205-6: Costs relates to personal use by employees and luxury vehicles. o FAR 3'1..205-20: hrterest and other financial costs not allowable. e FAR 3'1".201,-2: Non-business related dues and subscriptions. go¡ FAR 31..205-1.: Costs for advertisement and public relations costs and trade show expense including labor. o,r FAR 31,.205-46(d) and 31.205-6(m)(2): Personal use of vehicle and lack of mileage logs and business purPose. oa FAR 3'1,-2013: Bad debts and collection costs. o,r FAR 31".205-27 and 31.20547: Reorganization and capital raising related costs and costs incurred in connection with violation of a law or regulation by the consultant. oÐ FAR 31".205-46: Unreasonable costs and costs not supported by documents and lack of business purPose. oq FAR 31.201-6(a) & CAS 405-40: Labor costs associated with unallowable costs. oo FAR 31-.205-15: Fines and penalties resulting from violations of laws and regulations. This section outlines the audit and review process for A&E contracts that at any time use federal and/or state funds. All proposed A&E contracts and supporting documents are subject to audit or review by Caltrans' Independent Office of Independent Office of Audits and Investigations (IOAÐ, other state audit organizations, or the federal goverrunent. Not all proposed contracts will be audited or reviewed; rather, they will be selected on a risk-based approach. l0.l .4 Co¡¡sulrrNT SEtEcTroN METHoDS Figure 1"0-4: Consultant Selection Flowchart shows the three methods normally used in selecting a consultant. They are: . One-Step RFP; Io One-Step RFQ; I. Two-Step RFQ/RFP I LocalAssistance Procedures Manual Chapter 10 Consultant Selection The method used depends upon the scope of work, the services required, the projecfs complexity, and the time available for selection of the consultant. Beginning with 1-0.1-.5 : Consultant Selection Usi each of the selection methods is explained in detail. Regardless of the method used, the local agency shall retain all consultant selection documentation in their project files as required by 23 CFR Part172. 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 consultanfs services are highly specialized and there are few qualified consultants. 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 two-step 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. A 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-Slep (RFO 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 local agencies 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 f{FQ, a RFP specific to the projecÇ 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.L.2: Identifuing t DeÍining a Need for Consultønts. This method requires substantially more work and time than the other two methods described above. Page 23 of 72 January 2019 Local Ass¡stance Procedures ManualIdti¡te PrcjætSelect Consult¡¡ús(Use flhü sc@ of wük it cotulá)hy Reqa6tfot Prqßal ødd NqøtiationF¡gure 104: Consultânt Selêction Flowchartchapter 10C¡nsultent SelectionComplefePrcjætFrcæ$ (FiF lo-2)NÉso&É Co¡tær úú N*6sM@dCodrútEdlSw.dd.Èqed Cùl hÞdÈd & Ncaonùco¡Eær qiú T+-RúdColdbtNÉpde CoDtær wiú N€s6gbd@Co¡eltetútls¡@dil+&qrr Cod hPd & NESotiûkC6kæt{i6Top-MClüuLetNÉgodôÈ co¡aær $ iù Ndr6sÞr@Codtú¡BdlS@3ddrtuSÉt Cód tuÞôrd & Ncaôti!ÈcoDEsr qiù T@-wÊdN"üliNoú-y@)SeÈa @-SÞ@ ÀÆOtuhbGdô!c¿&d¡!¿+¡,útly@Q)(R¡Q)"On¿-gbp, R.FP" Urêthod. R.4uâtÍor PrqÑdlfoilæen by NeAoti.ttøn(Ase vhu thee telæ coßultuß)"Oùe-s..p, RFQ" M..hø¿ R¿qr6tÍü QualißdúoßfoilNed by rn@iM üd Nqøtiation(Ase wheñ ,here ûe runy coeløna)cñpLÈ Fh SÞS.t Prq.c. Obj.ùß.&p¿tn¡ Ctudt Åhaisruøù¡.ñ,-. Pqt.¡ Sà.tubÞturyFÕtc(er@ ?dtPIß-Fùd-F..@ cdtP.rLñ¡4weú sþafutusúCryúúe"s. z+ otl tzJanuary 2019 Local Assistance Procedures ManualChapter 10Consultant SelectionPaEe25 ol72January 2019¡$¡ Local Assistance Procedures Manual Chapter 10 Consultant Selection l0.l .5 Cor,¡sunnNr SEtEcTroN UsrNG THE ONE-STEp RFP M¡rxoo 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 shall 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 Consullqnt Selection Commltlee 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 ContractAdministrator and suþect matter experts from the projecfs functional area. The members should be familiar with the project/segment to be contracted out and with the local agency 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 local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met. Local agency 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 tn Exhibit 10-T: Panel Interest €¡Statement. Develop Technicol Criterlq for Ev<¡luqlion of Proposols 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 shall not be used as factor in the evaluation, ranking, and selection phase. All non- technical evaluation criteria, including DBE participatiory shall not exceed 10 percent (23 CFR 772.7(a)(1)(iiÐ(D)). All price or cost related items which include, but are not limited to, cost proposals,, direct salarie s f wage rates, indirect cost rates, and other direct costs are prohibited from being used as evaluation criteria. The criteria and relative weights mustbe 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 Consultønt Eaøluation 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 local agency should consult with the DLAE before making major changes to the suggested approach. Page26 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Develop Schedule for Consultonl Seleclion 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. Prepore RtP The information required in an RFP solicitation includes the following: . Description of projec! . Clear, accurate, detailed Scope of work, technical requirements, and qualifications; . Services to be performed; . Deliverables to be provided; . Procurementschedule; . 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 Exhibit 1.0-H: Sømple Cost Proposal (Example 3l for sample cost proposal formats; o Contract audit and review process requirements (see Section'10.3: A{¡E Consultant Auitit and Reuierp Process); . Proposal format and required contents; . Method, criteria and weighting for selection; o Requirements for any discussions that may be conducted with three or more of the most highly qualified consultants following submission and evaluation of proposals; . Specifycontracttype; . Special provisions or contracts requirements; . A DBE contract goal is specified in the solicitation (see Exhibit 1-0-I: Notice to Proposers DBE Informntion), if a federal-aid contracÇ . Consultants acting in a management support role requirements Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and ConrtdenhøliU Stntement; o Protest procedures and dispute resolution process per 2 CFR Part 200.318(k),2 CFR 172.5(c)(18). Page27 of72 January 2019 Local Assistance Procedu res Manual Chapter 10 Consultant Selection 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: . Work plan (specify what is to be covered); o Organizational charÇ . 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 shall not change (be different than) in the executed contracÇ . Staff resumes; ¡ Names of consultanfs project manager and the individual authorized to negotiate the contract on behalf of the consulting firm; . Consultant DBE Commitunent document, see Exlúbit 1-0-0L: Consultant Proposøl DBE Commitment; References. Finonclql Monogement ond Accounling Syslem Requiremenls The local agency must ensure that consultant contract solicitation and advertising documents (RFPs) clearly specify that contracts shall not be awarded to a consultant without an adequate financial management and accounting system as required by 48 CFR Part 16.301-3, 2 CFR Part 200, and 48 CFR Part 31. The local agency must ensure the selected consultants have adequate financial management systems as required by the applicable federal regulations. Adverlise for Consullonls The solicitation process for consultant services shall 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 circulatiory technical publications of widespread circulation, professional associations and societies, recognized DBE organizations, web hosting or clearing houses known for posting goverïrnent contract solicitations such as BidSync, Planetbids, or posting the RFP on the local agency's or other widely used websites are all acceptable methods of solicitation. Page 28 of 72 January 2019 Local Assistance Procedu res Manual Chapter 10 Consultant Selection To document website postings, the local agency should retain copies of screen shots displaying the posted begin/end dates. lssue/Publish RFP The local agency shall publish the RFP on line and also issue the RFP to all consultants responding to newspaper advertisement. The local agency shall keep a record of all consultants thathave downloaded RFP on line 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. Conducl Proposer's Conference or Answer Wrltlen Queslions The local agency may allow forclarification of the RFP by inviting submittal of written questions or by conducting a proposer's conference, or by doing both. The local agency 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. Recelve qnd Evqluqle Technicol Proposols 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 shall be rejected. Submittal of additional information after the due date shall 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)(f)(iv) (O) and competition is determined to be inadequate and it is not feasible or practical to re-compete under a new solicitation pet 23 CFR 172(a)(3XüÐ(C). If only one proposal is received, a Non-Competitive process must be justified and a Public Interest Finding (PIF) must be documented and signed by the DLAE. 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 shall 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. Page 29 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Develop Finol Ronking ond Notify Consullonls of Results The selection committee discusses and documents the strengths and weaknesses of each proposal; interviews the three or more highest ranked consultants (short listed); 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. Therefore, the selection committee should keep notes as to why a particular consultant was not selected. l¡Vhen 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. Negotiote.Conlrqct wilh Top-Ronked Consultqnl Cost proposal (for both Prime and all Subconsultant), and contract audit and review documents such as Exhibit L0-K: Consultant Certification of Costs nnrl fi.nanrial Ma.naçement Sustem of Costs and Financial Management System and Exhibit L0-A: A€¡E Consultant Financiøl Document Reoiew Request and Checklist. whichever is applicable (see Section'1.0.'1.3: A€¡E Consultønt Auitit and Reoiew Process) should be submitted in a separate sealed envelope. Typically, the 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 proceeds to the next most qualified consultant. Each consultanfs 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 local agency. At the completion of successful cost negotiations, all remaining sealed envelopes containing cost proposals shall be retumed to consultants. Cost proposals in electronic form shall 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. Onty 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 shall not be opened by the local agency or any private entity that the local agency uses to store the cost proposals. Any concealed cost proposals of the unsuccessful consultants must be refurned unopened or properly disposed of in accordance with the local agency's written policies and procedures. The independent cost estimate, developed by the local agency in advance of requesting a cost proposal from the top-ranked consultanç 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 worþ direct labor costs, indirect labor Page 30 of 72 January 201.9 Local Assistance Procedures Manual Chapter 10 Consultant Selection 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 L0.1.3: A€¡E Consultønt Audit and Rersiew Process in this chapter). Local agency 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 elemenÇ Hours, level of effort by task andf or classification. The consultanf s ICR is not a negotiable item. A lower rate cannot be negotiated by the local agency. The local agency and the consultant will agree on the final cost proposal and incorporate into final contract. Retain all documentation related to negotiations. Before executing the consultant contracÇ the local agency must review contract to ensure that all federal and state requirements have been met (see Exhibit 10-C: A€¡E Consultant Contract Reoiewers Chtcklist), ut d adjustnnent 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, the local agency must submit a completed Exhibit 10-C signed by the Contract Administrator for all new or amended federal funded A&E consultant contracts to aeoversight@dot.ca.gov for Caltrans review and acceptance. If there are any changes to the contract after Caltrans acceptance of Exhibit 10-C, the local agency must notify Caltrans and provide a copy of an updated Exhibit 10-C and all contract amendments to aeoversight@dot.ca.gov. Execution of an A&E consultant contract without Caltrans acceptance may result in ineligibility for reimbursement. Submissionol Exhibit L0-C to Caltrans HQ for acceptance is not required for non-A&E consultant contracts. 10.1.ó Co¡¡surraNr SEt¡cTtoN UstNG rHE ONE-SIEp RFQ M¡rxoo 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. Page 3t of 72 January 2019 a a a a a a Local Assistance Procedures Manual Chapter 10 Consultant Selection Appoint Consullqnl Selection Commitlee A consultant selection committee with a minimum of tfuee 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 projecfs functional area. The members should be familiar with the scope of work to be contracted out and with the local agency standards that will be used in the contract. Participation by a Caltrans district representative is at the option of the local agency and subject to the availability of the DLAE staff. Caltrans participation on the interview panel does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met. Local agency 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 n Exhibit 10- T: Panel Member Conflict of Interest t ConfidentialiV Støtement. Develop Technlcql Criteriq for Evoluqllon of Quolificqlions 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 Consultønt Ëaaluøtion Sheet 1s 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 local agency should consult with the DLAE before making major changes to the suggested approach. Develop Schedule for Consultont Seleclion Before a contract is advertised, the Contract Administrator completes a contract procurement schedule including key dates for consultant selection activities. The Contract Adminisfoator should confirm target dates with all selection committee members before completing the schedule. Prepore 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); Page 32 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Page 33 of 72 January 2019 . Method of payment and cost proposal requirements. The cost proposal is submitted in a separate sealed envelope. See Exhibit L0-H: Sample Cost Proposøl for sample cost proposal formats; o Contract audit and review process requirements (see Section L0.1..3: A€¡E Consultant AuìLit and Reuians Process); ¡ Statement of Qualification (SOa) format and required content to be submitted; . Method and criteria and weights for selection; . A DBE contract goal is specified in the solicitation (see Exltibit L0-l: Notice to Proposers DBE Information), if a federal-aid contracÇ . Consultants acting in a management support role requirements Ë,xhibit 10-U: Consultant in Manøgement Support RoIe Conflict o.f Interest and ConfidentiøW s Protest procedures and dispute resolution process per 2 CFR Part 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: o Qualifications of key personnel (including consultant project manager) proposed for ' the contract. Key team members identified in the original proposal/cost proposal shall not change (be different than) in the executed contrac! Staff resumes; Related projects that key personnel have worked on; Qualifications/experience of the firm; Organizational char! Forecast or Schedule of work; Consultant DBE Commitrnent document see Exltibit 10-01: Consultant Proposal DBE Commitment; References. tinonclol Monogemenl qnd Accounting Syslem Requiremenls The local agency must ensure that Consultant contract solicitation and advertising documents (RFQs) clearþ specify that contracts shall not be awarded to a consultant without an adequate financial management and accounting system as required by 48 CFR Part L6.30L-3, 2 CFR Part 200, and 48 CFR Part 3L. The local agency must ensure the selected consultants have adequate financial management systems as required by the applicable federal regulations. a a a a o a a Local Assistance Procedures Manual Chapter 10 Consultant Selection Adverlise for Consullonls The solicitation process for consultant services shall be by public advertisement or any other public forum or method that assures qualified in-State and out-of-State consultant 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 local agency should retain copies of screen shots displaying the posted begin/end dates. In the second approacþ the local agency advertises the availability of the RFQ in a major newspaper of general circulation, technical publications of widespread circulatiory professional associations and societies, recognized DBE organizations, or tfuough 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 local agency for the RFQ. The RFQs shall 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. lssue/Publish RFQ The local agency shall publish the RFQ online and also issue the RFQ to all consultants responding to newspaper advertisement. The local agency shall keep a record of all consultants thathave downloaded the RFQ on line 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/Evqluqle Slqlemenls of Quqlificqllons qnd 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 locatioru and submittals with inadequate copies are considered nonresponsive and shall be rejected. Submittal of additional information after the due date shall notbe 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. 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 a Public hrterest Finding (PIF) must be documented and signed by the DLAE. In either case, the re-advertisement of the RFP should be considered as an option. Page34 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection 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 consultanfs 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. Notlfy Consullqnts 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. 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 fór 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. lnlerview Top- Ronked Consullqnls Each consultant to be interviewed is given a copy of the draft of the proposed contracf defining the detailed scope of work, andf 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 local agency may ¿rnswer any questions concerning the scope of work to be contracted out, if not done earlier during the solicitation. In addition, the local agency 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 local agency 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 shall 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 shall 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: o Questions that are to be asked of all competing consultants, and I Io Questions relating to each specific consultant, based upon the reference checks, I and the strengths and weaknesses identified during evaluation of the SOQ I 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 Page35 ot72 January 2019 Local Assistance Procedu res Manual Chapter 10 Consultant Selection information required to select the most qualified consultant for the contract. The selection committee or local agency shall not gather additional information concerning the consultants after the interviews are completed. Develop Finql Rqnking ond Notlfy Consullqnls of Resulls 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. Conducl Scoping Meeling The Contract Administrator meets with the first-ranked consultanfs 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 ¿urswered for the consultant. Request Cost Proposol 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. Altematively, 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 sepatate cost proposal for each subconsultant. Each subconsultanf s cost proposal must follow the same format as the prime consultanfs cost proposal. Negotlole Conlrqct with Top-Rqnked Consultonl Cost proposal (for both Prime and all Subconsultant), and contract audit and review documents such as Exhibit 10-K: Consultant Certification of C,osts anrl Finnnrinl Manaçcmcnt SusÍ,em. and Exhibit 10-A: A€¡E Consultant Financiøl Document Rwiew Request ønd Checklist, whichever Page 36 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection applicable (see 10.1,3: A€¡E Consultant Audit and will be submitted in a separate sealed envelope. Typically, the 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 consultant with their statements of qualification. After the topranked consultant submits a sealed cost proposal, the local agency reviews the cost proposal and compares it with the local agency'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 local agency the services or products required at a fair and reasonable cost. The independent cost estimate, developed by the local agency in advance of requesting a cost proposal from the top-ranked consultanf 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 consultanf s cost proposal must remain sealed until negotiations commence with that particular consultant. At the completion of successful costnegotiations, all remaining sealed envelopes containing cost proposals shall be refurned to consultants. Cost proposals in electronic form shall 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 shall not be opened by the local agency or any private entity that the local agency uses to store the cost proposals. Any concealed cost proposals of the unsuccessful consultants must be refurned unopened or properly disposed of by permanently deleting the cost proposals in accordance with local agency's written policies and procedures. A contract audit and review may be required (see Section10.L.3: AbE Consultant Audit ønd Rwiew Process earlier in this chapter). Local agency Contract Administrator is responsible for the submittal of all required documentations to Caltrans IOAI in a timely fashiory 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; o Schedule (including contract begin and end dates); ¡ Products to be delivered; ¡ Classification, wage rates, and experience level of personnel to be assigned; Page37 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Cost items, payments and fee. Fee is required to be negotiated as a separate element. The consultanf s ICR is not a negotiable item. A lower rate cannot be negotiated by the local agency. For on-call contracts, typically a price agreement is reached based on specific rate of compensation for the terrn of the contract. The subsequent task orders (or mini agreements for individual project work) is negotiated based on actual 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 local agency must review contract to ensure that all federal and state requirements have been met (see Exhibit L0-C: A€¡E Consultønt Contrøct Ret¡iewers Clæcklist), *d receive Caltrans IOAI's Financial Review acceptance letter, if applicable. Prior to contract award, the local agency must submit a completedExhibit 10-C signed by the Contract Administrator for all new or amended federal funded A&E consultant contracts to aeoversight@dot.ca.gov for Caltrans review and acceptance. If there are any changes to the contract after Caltrans acceptance oÍ Exhibit 10-C, the local agency must notiír Caltrans and provide a copy of an update d Exhibit 10-C and all contract amendments to aeoversight@dot.ca.gov. Execution of an A&E consultant contract without Caltrans acceptance may result in ineligibility for reimbursement. Submission of E (hibit L0-C is not required for non- A&E consultant contracts. t 0.1.7 Cor,¡sulrnNT SErEcnoN UstNG THE Two-SrEp RFQ/RFP M¡rnoo Combined RFQ ond RtP 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 multiphase 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. 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 armual 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 f?.FQ, a RFP specific to the project tasþ 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 1.0-4: Consultant Selection Flowchart. Because it is a combination of the One- Page 38 of 72 January 2019 a Local Assistance Procedures Manual Chapter 10 Consultant Selection 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 knowry very complex or unusual. The Two-Step RFQ/RFP is also well suited for procuring multiple on-call corttracts through a single solicitation. The outcome of the first step RFQ will be multiple contracts, or on-call list of consultants. For multiple on-call contracts, projectwork will be procured thru subsequent competition or mini-RFPs amongst the on-call consultants. 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. Local agencies may also use this method to develop and maintain a pre-qualified file/list of consultant firms by specific work categories or areas of expertise or to create a bench list of evaluated and ranked consultants. The pre-qualified data file or interest list can be updated annually or every two years. This list contains minimum qualifications and has not gone through the evaluation process. The pre-qualification list must be maintained by the agency. The mini-RFP contains evaluation criteria that matches the strengths of the qualified firms to the "p""ifi"r of the known tasks, thereby selecting the most qualified firm for each task. The evaluation can include: availability of personnel, staff capabilities, DBE (10% or less of overall score), completion time, experience of consultanÇ specialized expertise, and past performance. The overall DBE goal was established at the master on-call contract. 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. Colegorize work Descriptions of the categories of work, deliverables and the minimum qualification standards for each category must be clearly identified. The local agency may prequalify consulting firms in the following (or more) categories: . Roadway Design . Bridge Design . Bridge Inspection . Traffic Engineering r EnvironmentalServices . Roadway Construction Inspection and Administration . LandscapeArchitecture o Land Surveying o Intelligent Transportation System (ITS) . Federal-aid Highway Project Development Support Services Page 39 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Esloblish Minimum Quqllflcollons 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 * 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. lÅy'hen 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 o Experience of the firm and their personnel on previous projects similar to the one under consideration . Consultant DBE Commitment document (see Exhibit 10-01) . Professional references by the firm with the local agency . Understanding of the project by the firm as demonstrated by their approach to organizing and management of the work o Current workload of the firm and their ability to meet the proposed project schedule r Quality of previous performance by the firm with the local agency . lJse of sub-consultants to accomplish work on the project ¡ Equipment the firm has available and proposes to use as compatibility with Computer- Aided Drafting and Design (CADD) and other equipment proposed to be used in accomplishing the work o 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. lssue 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 perforrn, 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 Page 4O of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection information should be the basis for evaluating and placing a consulting firm on a general pre- qualification list. Federal regulations require that any procedures related to pre-qualifyi.g consultant carmot 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 locatioru 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 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 Evqluqlion 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 locatiory or submittals with inadequate copies are considered nonresponsive and shall be rejected. Submittal of additional information after the due date shall not be allowed. Local agency 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 Local agency has a "committee" of experts evaluating the SOQs or individuals responsible for the evaluation, the process must be well defined, open and transparent. The pre- qualification process must also allow for consultants to be re-evaluated in cases of denials. The local agency must specify how long the pre-qualified list last, not to exceed two years. Federal regulation recommends refreshing the SOQs on an annual basis. Local agenry Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 772)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. Page 4L of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Evoluqle Quqlificqlions qnd 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. M<¡lnloin Hsl 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. [r addition to the required two-year renewal process, the consultant should also be required to update the firrfs organizational structure within one year when there is a corporate / afhliate 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 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 lo Pre-Quqllfied Consullonls 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 descriptiory 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 r Staffing plan and resumes including sub-consultants r 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 Page 42 ol 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Conducl Proposer's Conference or Answer Wdtlen Queslions The local agency may allow for clarification of the RFP by inviting submittal of written questions or by conducting a proposey's conference, or by doing both. The local agency must publish or mail their responses to any writteir 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 propose/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 ond Evqluole Technicol Proposols 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 shall be rejected. Submittal of additional information after the due date shall 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. A consultant selection committee with a minimum of three members is appointed at the beginning of the consultant selection process. The members of the consultant selection 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 a Public Interest Finding (LAPM 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 shall 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 tinol Rqnking ond Notify Consultqnls of Resulls The selection committee discusses and documents the strengths and weaknesses of each technical proposal, interviews the three or more highest ranked consultants (shortlisted), u.d 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 requestinformation 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. \,1/hen 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 Page 43 ol72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing. Requesl Cosl Proposol qnd Negoliole Conlrocl wilh Top-Rqnked Consullonl 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. Altematively, 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 subconsultanfs cost proposal must follow the same format as the prime consultanf s cost proposal. Cost proposal (for both prime and all subconsultants) and contract audit and review documents, such as Exhibit 10-K and Exhibit 10-4, whichever applicable (see Section L0.1.3: A€¡E Consultønt Audit and Reoiew Process), will be submitted in a separate sealed envelope. After the top-ranked consultant submits a sealed cost proposal, the local agency reviews the cost proposal and enters into negotiations. The goal of negotiation is to agree on a final contract that delivers to the local agency the services or products required at a fair and reasonable cost. The independent cost estimate, developed by the local agency in advance of requesting a cost proposal from the top-ranked consultanf 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 consultanf 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 shall be retumed to consultants. A contract audit and review may be required (see Section10.1.3: A€¡E Consultant Audit øndRet¡iew Process). The local agency Contract Administrator is responsible for the submittal of all required documentations to Caltrans IOAI in a timely fashiory 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 Page 44 of72 January 2019 Local Assistance Procedures Manual a Other Direct Cost items, and profit or fee Chapter 10 Consultant Selection The consultanfs ICR is not a negotiable item. A lower rate cannot be negotiated by the local agency. The local agency and the consultant will agree on the final cost proposal and incorporate into final contract. Before executing the consultant contract, the local agency must review contract to ensure that all federal and state requirements have been met (see Exhibit rc-q, and all deficiencies identified in the Conformance Letter have been addressed and resolved, if applicable. The completed checklist is to be signed by the ContractAdministrator and the original retained in the project file, one copy is to be sent to the DLAE (for review of completeness) and filing within 30 days after awarding the contract. 10.1.8 ConnprmNc rHE PRo¡ecr Develop the Flnql Conlrqcl The Contract Administrator requests a revised cost proposal from the consultant after: (1) negotiations have been completed, (2) the local agency 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 adjusûnent 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, is attached to and made a part of the consultant contract. Sample contract language and format have been included as Exhibit L0-R: AtE 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. Revlew qnd Approvol of Contrqcls Proposed contracts for consultant services (including subcontracted work) must be reviewed by the local agency to verify that: o Compensation is fair and reasonable and includes prevailing wage rates, if applicable; . Work activities and schedules are consistent with the nafure and scope of the projecÇ ¡ DBE goalExhibit L0-02: Consultønt ContrøctDBE Commitment is included for all contracts regardless of goal.; . Exhibit 10-K: Consultønt Certificøtion of Contract Costs and Financiøl Mønøqement System (for Prime and Subs), artd Exhibit 10-A: A€¡E Consultant FinanciøI Document Reaiew Request and Checklist and all supporting documents, if applicable (contracts above $150,000), have been submitted to Caltrans IOAI; Page 45 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection o If applicable, adjustrnent or denial of the ICR identified in the Financial Review Letter have been included in the final cost proposal; o Exhibit 10-C: A€¡E Consultant Contrøct Reuiewers Checklist must be used to ensure that required documentation has been provided; . A cost proposal (see Exhibit 1,0-H: Sømple Cost Proposøl), 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 consultanfs organization: o Is qualified to perform the services required; . Is in a position, considering other work commitnenfs, 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 commitrnents that must be incorporated into the design of the project and administrative controls including those of Caltrans and FHWA. o 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 CFf<V2.7(bX3) "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 part 1200 and 2 CFR part 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 shall provide for local agency reviews at appropriate stages during performance of the worþ to determine if any changes or other actions are warranted. The contract shall provide that the consultant and subconsultants shall 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 local agency authorized representatives; and copies thereof shall be furnished, if requested. Following final settlement of the contract accounts with the State or FHWA, such records and documents may be archived at the option of the local agency and shall be retained for a three- year period after processing of the final voucher by FHWA. Execute Conlrqcl qnd lssue Nolice to Proceed to Consullqnt The Contract Administrator sends the consultant a fully executed copy of the contract with an original signafure 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 Page 46 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection consultant costs incurred prior to the execution of the consultant contract. All executed contracts shall have a begin and end date. Local agency 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 send 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 may not exceed the Master On-call agreement end date. Adminisler lhe Conlrqct Project work begins as specified in the contract after the notice to proceed is issued to the consultant. Thereafter, the local agency 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; o Receiving, reviewing and assessing reports, plans, and other required products/ deliverables; o Receiving and reviewing state prevailing wages. (S"" Departrnent of Industrial Relations websites below. o DIR FAO website: http: //www.dir.ca.govlOPRL/FAO PrevailingWage.html o DIR Waee Determination website http: / /www.dir.ca. gov/ oprl/ DPreWageDetermination.htm o 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. o Record keeping and reporting; o 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; . Completing the consultant performance evaluations (see Exhibit 10-S: Consultønt P e rform øn ce Ea øIu øti on) . Subslllutlon of Consullonl Personnel qnd Subconsullqnls After contract execution the consultant should not substitute key personnel (project m¿ìnager and others listed by name in the cost proposal) or subconsultants without prior written Page 47 ol72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection approval from the local agency. Refer to LAPM Chapter 9: Ciail Rights €¡ DisadaantøgedBusiness Enterprise and Title 49 CFR 26 for DBE substitution requirements. To do so can resultin 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 local agency 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 consultanfs project manager must be a registered engineer in the State of Califomia. lnvoicing (or Progress Poymenls) The frequency and format of the invoices/progress payments are to be determined by the contract. Program Supplement Agreements (see LAPM Chnpter 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 local agency. For federal reimbursement of consultant costs on a projecf the local agency 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 consultanfs invoices for reimbursement being retumed to the agency unprocessed): . Copy of Executed Consultant contracÇ . Exhibit L0-O'L: Consultant Proposal DBE Commitment . Exhibit 10-02: Consultønt Contrøct DBE Informøtion DLAE must confirm that the local agency has submitted copies of Exhibit L0-K: Consultant ts Financial tem (for Prime and Subconsultants) to Caltrans IOAI and received acceptance of Exhibit L0-C: Consultant Contract Rniewers Checklist from Caltrans. The local agency is to follow the procedures given inLAPM Chapter 5: Inaoicing, to obtain reimbursement of federal or state funds. Conlrocl Amendmenls Contract amendments are required to modify the terms of the original contract for changes such as extra time, added worþ or increased costs. Only work within the original advertised scope of services shall be added by amendment to the contract. The addition of work outside the original advertised scope will make thatwork ineligible for federal or state reimbursement (see O&As at: htto : / / www.fhwa. dot. sov / nrosramadm in / 17 2sa 01.cfm). . There is no prescribed format for contract amendments. They may take the form of letter-type agreements meeting the legal requirements of the local agenc/, clearþ outlining the changes and containing a mutually agreed upon method of compensation. Such agreements must conform to the requirements of this manual with regard to payment. Page 48 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection A consultant contract may be amended at any time prior to the expiration date of the original contract. The most corrunon amendment is to extend the ending date of the contract. All contract amendments must be fully executed before the ending date of the contract. Failure to amend a contract prior to the ending date will make the subsequent costs ineligible for federal and state reimbursement. For on-call consultant contracts, the amendment is restricted to the work (task order) that has already been started by the consultant and can not include any new work. Task orders are not considered an amendment and therefore not appropriate to extend the terms of the contract. All contract amendments shall 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 local agency 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 solicitatioru a contracting agency shall 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 shall 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 adjushnent of the fixed fee portion of cost plus fixed fee or lump sum reimbursed contracts. If an emergency exists of such magnifude that a delay cannot be tolerated, the local agency and the consultant may agree on an amendment initiating the worþ 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 local agency funding. Section'10.L.3: A€¡E Consultønt Audit and Reaiew Process of this chapter shall apply to the entire contract and must be completed prior to execution of the contract amendment. All amendments shall incorporate any current requirements of the federal regulations including the federal fiscal provisions and submit Exhibit 10-C: Consultant Contrøct Reuiewers Checklist to aeoversight@dot.ca.&ov for review completing Section D for amendments. Performqnce Evoluolion Pursuant to 23 CFR 5172.9(d)(2) agencies are required to prepare an evaluation of the consultant when the project has been completed. The Contract Administrator evaluates the consultanf s performance after the consultanfs final report has been submitted, and the Contract Administrator has conducted a detailed evaluation with the consultanls project manager. See Exhibit 10 - S : Consultant P erformance Ea aluation for a suggested format for use by the local agency 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 CFR172,48 CFR 31, and 2 CFR Part Page 49 ol72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection 200). These records shall be maintained for a minimum of three (3) years following issuance of the final voucher from FFIWA (forwarded by Caltrans) and the closure of all other pending matters (2 CFR Part 200.333). For audit pu{poses, project records and documentation shall 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 biddey's lisÇ . Documentation of DBE participation (including Exhibit 10-01: Consultønt ProposøI DBE Commitment and Exhibit 10-02: Consultønt Contract DBE Commitment); o Solicitation and advertisement records; . Identification of selection committee members; ¡ Record of receiving proposals, statement of qualifications; o Evaluation and ranking records such as original score sheets from all panel members, short list questions and other documentation (see Exhibit'10-B: Suggested Consultønt Eaaluøtion 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); o 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(Exhibit 10-K: Consultant Cerürtcøilon of Contrøct Costs ønd Finønciøl Mønøgement System,) for contracts over $150,000 of mofe; o A&E Consultant Audit Request Letter and Checklist (Exhibit L0-A: A€¡E Consultant Audit Request Letter and Checklist) for contracts over $L50,000 and all supporting documentation. o Executed consultant contracts, cost proposals and amendments (see Exhibit 10-R: A€¡E Boilerpløte Agreement Language and Exhibit 10-H: Sample Cost Proposal); o Contract oversight and progress meeting documents; . Progress and final payments, and supporting documentation; . Performance evaluation (see Exhibit 10-S: Consultant Performønce Eaaluøtioù; . Consultant contract checklists (see Exhibit'L0-C: A€¡E Consultant Contract Reoiewers Checklist); Page 50 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Accounting records documenting compliance with State and federal administrative requirements; Certifications and Conflict of hrterest forms (Exhibit 10-T: Conflict of Interest €¡ Conrtdentiality Støtement, all personnel involved in the procurement of the agreement should complete Exhibit 1,0-T Exhibit 10-U: Consultønt in Manøgement Support Role Conflict qf Interest and ConrtfunfialiV Statement and Exhibit 10-Q: Disclosure o.f Lobbying Actiaities, as appropriate). Exhibit L0-Q is included in the solicitation and shall be completed if the consultant needs to disclose any lobbying activities. Relenlion Clquses At the option of the local agency, a retention clause may be included in the consultant contract. A retention clause in the consultant contract is recommended (see Exhibit L0-R: AtE Boilerplate Agreement Language. Article XXXÐ. Review of locql Agency Aclions 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 local agency files are to be maintained in a manner to facilitate fufure 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. Exhibit 10-C: A€¡E Consultønt Contract Reuiewers Clhecklist is to be completed and signed. A copy shall be emailed to Caltrans at aeoversight@dot.ca.gov prior to contract award for acceptance. This acceptance of Exhibit 10-C must be retained in the local agency project files. t 0.1 .9 Mrsc¡lnNEous Co¡¡sro¡nAT¡oNs Agreemenls with Olher Governmentol Agencies Intergovernmental or inter-entity agreements are encouraged if appropriate. If another governmental agency is requested to do work or provide services to an agenc/, an interagency agreement is needed. See 2 CFR 200 and CA Government Codes 10340 and11256. Smoll Purchqse Conlrqcts Contracts that are less than $250,000 are considered small contracts in accordance with federal regulations. However, within the State of California, there is not a recognized small purchase procedure. For federal contracts that are less than $250,000 and are not anticipated to exceed this amount the agency shall use the State-Only Funded A€¡E Contracts: Section 10.2.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 shall 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 shall not be broken down into smaller components to Page 51 of 72 January 2019 a Local Assistance Procedures Manual Chapter 10 Consultant Selection permit the use of small purchase procedure. DBE requirements apply for all federally funded projects. N onc om pelilive N eg otioled C onlrocts (Sole - Sourc e) 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. A Public Interest Finding prepared by the local agency and approved by Caltrans is required before establishing these services (23 CFR172.7(a)(3); also see Exhibit 1-2-F : Cost-EffectiaenessfPublic Interest Findins. 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 local agency shall: . Follow its defined process for noncompetitive negotiation; . Develop an adequate scope of worþ evaluation factors, and cost estimate before solicitation; . Conduct negotiations to ensure a fair and reasonable cost. The local agency must carefully document details of the special conditions, obtain Caltrans approval on a Public Interest Finding and retain all documents in the project files for future Caltrans' or FHWA's review. A Public Interest Finding (see Exhibit 12-F: Cost-Effectiaeness/Public Interest Finding) is not required for a local agency to be reimbursed for contract administration activities associated with non-infrastructure type projects such as many Safe Routes to School or Transportation Altematives Program projects.). Personql Services Conlrocts A personal services contract is characterizedby the employer-employee relationship created between the local agency and the contract personnel who essentially perform similar duties as the employees. Such services must be under the direction and control of a full-time employee of the local agency in responsible charge. Compensation for construction engineering services should be based on acfual costs incurred, plus a fixed fee, or in the case of individual compensation on an agreed-upon hourly or daily rate. Lump sum payments should not be used for construction engineering services. For personal service contracts, the following information must be documented by the local agency and retained in the project files: Page 52 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection . Explanation of the services needed, and why they cannot be provided by the local agency; . Name and qualification of the consultant who provided the services; . Documentation of the fees showing how the fee was calculated, and that it is reasonable by comparative standards; . Any other records needed to show compliance with federal-aid program regulations. Relolnlng o Consullonl os qn Agency Englneer or in Monogement Supporl Role A local agency may retain qualified consultants in a management support role on its staff in professional capacities for federal-aid projects such as: o A City Engi4eer (or equivalent) who manages the engineering uni! 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 projecÇ series of projects or the work of other consultants and contractors on behalf of the public agency . A Prog;ram 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 consultant in a management support role is not: ¡ A consultant engineer performing project-specific design, andf ot 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. The use of a consultant in a m¿rnagement supportrole should be limited to unique or very unusual situations. These situations require a thorough justification as to why the local agency cannot perform the management. Consultants used in mÍrnagement support roles must be selected using the same procedures as those for other consultants specified in this chapter. Consultants in a Management Support Role 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 consultant in a management support role requires the following: . Compliance with the selection procedures specified in this chapter; o Existence of a contract between the local agency and the consultant specifying the local agency engineering services to be performed; ¡ Written designation by the local agency of the responsibilities and authority of the consultant as an agency engineer; Page 53 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection . For a federal-aid project, completion of Exhibit L0-T: Conflict of Interest €¡ Confrdentialit:A 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; o Selection of consultants for A&E management positions shall be by the use of qualification based selection procedures on an open and competitive basis resulting in a contract with defined begirming and ending dates not to exceed five (5) years; . For a federal-aid project, a local agency consultant in a management support role shall not: o Participate in, or exercise authority over the A&E selection process, if that consultanls 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 consultanf s firm, or to a consultanfs firm of which the local agency 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 local agency'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 shall 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 consultanfs 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 shall not be considered in the selection of consultants for the resulting project specific work. When engineering or architectural consultants in a management support role are procured with federal-aid funds, the local agency (subgrantee) shall 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 shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interesf ieal or apparen! would be involved. . Subparagraph of 23 CFR 5172.7þ) requires that the local agency shall receive approval from FHWA. In addition, any federal-aid projects designated as Projects of Division Interest may also need approval from FHWA. Page54 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection . Liability insurance should normally be required from the consultant (errors and omissions, etc.). For federally funded projects, local agencies that solicit to hire A&E consultant(s) in a management support role must obtain FHWA approval prior to contract execution. I In order for a contract for a consultant in a management support role to be federally eligible, the following are required prior to contract execution: The local agency shall 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 (DLA-HQ) at aeoversight@dot.ca. gov, prior to solicitation. Once the loc¡l agency receives FHWA's. written response, the local agency may need to revise the documents reflecting FHWA's opinions and can proceed with the RFQ. After consultant selection, the local agency shall submit the completed Exhibit 10-U: Conflict of Interest and Statement to the DI-A-HQ at aeoversight@dot.ca.gov. Local agency will receive FHWA's approved Exhibit 10-U via email. Page 55 of 72 January 2019 a o a Approve Lollect 1O-UReview RFQ 10-Lt Approved 10-L' Adve¡'tise Contracl A&t [m¿rl Acccunt sow & c()t Policy A&t Email Accou¡rt Revtew for Consisten.y LPA DLA6 FHWA trl;TF !, ÐrA-HQ dû JVÈr ,iRirlÍ;J(lrll L.r.flû!' Figure 10-5: Consultant in a Management Support Role Flowchart Local Assistance Procedu res Manual Chapter 10 Consultant Selection Conslruclion Engineer¡ng Services Under federal-aid regulations and state policy, the primary responsibility for general supervision of construction must remain with the local agency. The local agency 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, measuremenÇ 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 consultanf s contract defines the relative authorities and responsibilities of the full-time employee of the local agency in charge of the project and the consultanf s construction engineering staff. If a technical inspection consultant is to provide professional assistance to the local agency, a formal consultant contract must be executed which follows this chapter's requirements. The contract shall 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 local agency. t 0.1 .10 Pnoonmr Mn¡¡ro¡lue¡¡r According to 23 CFR S172.5,local agencies are required to adopt written policies and procedures prescribed by Caltrans. The local agency shall adopt Caltrans Local Assistance Chapter 10 Consultant Selection. Local agencies 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; o Monitoring the consultant's work and compliance with the terms, conditions, and specifications of the contracÇ . 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; o Closing-out a contracÇ . Retaining supporting programmatic and contract records, as specified in 2 CFR 200.333 and the requirements of this parÇ e 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 contracÇ . Assessing administrative, contracfual, 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 Page 56 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Resolving disputes in the procurement management, and administration of engineering and design related consultant services. An example resolution is located at: http: / / www, dot.ca. gov/hq/ Loc4lPrograms/AE / 2018/ P&P-Adoption-Resolution. doc t 0.1 .l I R¡ren¡ruc¡s 23 CFR, Part L72 Administration of Engineering and Design Related Service Contracts latþ: / / vrww.ecfr. gov/ cgi-bin/ text-idx?rgn= div5&node:23:1,0.7.2.3 a a a o 40 USC, Section LL04 a a a Brooks Act htþ:/ / www.fhw a.dot. gov / programadm in/ 121205.ctm 41 CFR Public Contracts and Property Management http://v,rww.ecfr.gov/cgi-bin/text-idx?tpl:/ecÊúrowse/Title4l/47tab_02.tpl 41USC Public Contracts htlp : / / law. onecle. com / vsco de / 41,/ index. htrnl 23 USC Letting of Contracts l;rttp : / / www. fhwa. d ot. g ov / map21. / docs / title23usc.p df a 48 CFR. Chapter 1, Pørt 15.404 https: / / wvvw.acquisition .gov / fat /}rLhnl/FARTOCP1S.htrnl O 48 CFR, Chnpter 1, Pørt 31 htþs : / / www. acquisition . gov / lar / llLhnl/ FARTOCP1 s.htrnl Title 48, Part 1,6 - Twes of Contracts http:/ /www.elaws.us/subscriber/signin?retumufl=htlp:/ /federal.elaws.rts/ cfr/trtle/4 /10/2013/ ltle48/chapterl/paft1.6&IsHistory:1&AspxAutoDetectCookieSupport=1 a 48 CFR2 27.3 - Paten https: / / www .law .cornelledu / cfr f text/ 48/ part-27 / subpart-27 .3 a 48 CFR 3L.201"-3 htþs://www.gpo.govlfdsys/ pkg/ CFR-2011-title4$-voll/pdflCFR-2011-title48-vol1- sec31-201"-6.pdf 48 CFR, Chapter 99 - Cost Accounting Standørds, Subpørt 9900 https://www.gpo.gqv/fdsys/ granule/CFR-2002-title48-vol7/CFR-2002-title48-vol7- chap99 Page57 ol72 January 2019 a Local Assistance Procedures Manual Chapter 10 Consultant Selection a 2 CFR Part 200 }lrtLp:/ /www.ecfr. sov / csi-bin / text- 2cfr2 00 main 02.tpl 49 CFR, Pørt 26 Participation by Disadvantaged Business Enterprises in Departrnent of Transportation Financial Assistance Programs http://v,rww.ecfr.gov/cgi-bin/text-idx?þl:/ecfrbrowse/Title49/49cÍr26_matn_02.tpl Americøn Association of Støte Highrnay andTrønsportation Officials (AASHTO\ Uniform Audit and Accountins Guide http: / / audit.transportation.org/ Pages/ default.aspx CøItrans Diaision of Procurement ønd ContractsWebsite http: / / wvrw. dot.ca. gov / dpac / index.htnl Cølifornia Løbor Code, Section 1775 http : / / law. one cle. c om / calil ornia / labot / 17 7 5 .llrfrnl Goaernment Auditins Standørds (GAS) issuedbu the United Støtes Gwernment Accountabilitv Office htlp : / / www . gao. gov f yellowbook/ overview Gooernmen t Code Sections 4525 throush4529.5 a a a a a a a a http: / / vrv,rw.leginfo.ca.gov / cgi-bn/displaycode?section:gov&group=S{Q91- 050 O0&file = 4525- 4529 .5 OMB Circular A-LL0 Uniform Administrative Requirements for Grants and Agreements with Instifutions of Higher Education, Hospitals, and Other Non-Profit Organizations htþs:/ / www.whitehouse. gov/ omb/ circulars_a1"1"0 S tøndør d Enair onmental Reference ( S ER) http; / /www.dot.ca. gov/ ser / Page 58 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Page 59 of 72 January 2019 FHWA: this is the new State-Only funded section that will be used for state-only funded projects. 10.22 STATE-ONtY FUNDED A&E CONTRACTS A&E State-Only Division of Locol Assistonce Minimum Requirements for State-only funded A&E Contracts I A. Written Procedures B. Conflict of lnterest C. Records D. Full & Open Competition E. Selection Basis F. Publication G. Solicitation H. Cost Analysis I I. Negotiations J. Audit and Review Process I K. Exhibit l}-C.2: State-Only Funded A&E Consultant Contracts Local Assistance Procedures Manual Chapter 10 Consultant Selection 10.2.1G¡t¡¡net Local Agencies are required to follow all applicable local and state regulations including those listed in LAPM Chapter l0 in accordance with their State Master Agreement. Although the requirements listed in this section are minimum requirements, the local agency shall use good engineering judgment and best practices to document their processes and procedures when procuring A&E contracts utilizing qualifìcations based selections. All consultants must comply with 48 Code of Federal Regulations (CFR) Part 3l: Contract Cost Principles and Procedures. Also, consultants and Local Agencies must comply with 2 CFR Part200: Uniþrm Adminístrative Requirements, Cost Principles, ønd Audit Requirements þr Federal Awards, excluding sections $200.318-200.326 Procurement Standards (reference Federal Highway Administration December 4,2014 Memorandum Action: 2 CFR 200Implementation Guidance, Attachment 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 lÙ-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 Chapter 10.1.9 Miscellaneous Considerations: Retainíng a Consultant as an Agency Engineer or in a Management Support Role https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/lapm/ch 10.pdf. 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 LAPM Section 10.3: Non-A&E Contracts. Reference: Cøliforniø Government Code Title I, Dìvßíon 5, Chapter 10, Contrøcts wìth Privøte Archìtects, Engíneeríng, Land Suneyìng, ønd Constructíon Projecl Management Fírms 54525-4529.5. 10.2.2 Drn¡rn¡o¡r 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. Page 6O of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection 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 shall 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: Cølífornia Government Code 94527 I0.2.3 Mrn¡munn Auou R¡eurn¡merurs A. Written Procedures Local agencies shall follow the minimum requirements listed below in addition to any local laws and regulations. Reference: Californíø Government Code $4526 B. Conflict of Interest The local agency 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: Caliþrnía Government Code $4526 Caliþrnìø Government Code $1090 Californìa Government Code $4 5 29. I 2 C. Records Local agencies shall keep adequate records of all contracts including the procurement, project management, accounting and financial administration. References: Calífornía Government Code $4 529. I 4 Calífornìa 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 ofpreference. References: Calífornìa Government Code $4526 Calífornía Government Code $4527 Page 6L of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection E. Selection Basis Selection ofa firm shall be based on qualifications and the order ofranked preference. References: Calíþrnía Government Code $4526 Caliþrnía Government Code $4527 F. Publication Solicitations for A&E contracts shall be in a manner that is open and competitive. Reference: CøIiþrniø 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: Calíþrnía Governmenl Code 94527 II. Cost Analvsis 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: Cølìþrnia Government Code $4528 I. Neeotiations Negotiations must be documented to verify a fair and reasonable contract has been executed using public funds. Reference: Cølífornía 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 LAPM Section 10.3: A&E Consultant Audit and Review Process. https://dot.ca.govl-lmedia/dot-media/programs/local-assistance/documents/lapm/ch l0.pdf https:i/dot.c a.govl-lmedia/dot-media/programs/local-assistance/docum entsllapmlcl0/10a.pdf Reference: Caliþrnia Government Code $4 5 29. I 4 K. Exhibit 10-C.2: State-Onlv Funded A&E Contracts Exhibit lÛ-C.2: State-Only Funded A&E Consultant Contract Reviewers Checklist must be sent to aeoversight@dot.ca.gov for review prior to contract award. Page 62 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection CA Government Code References CalÍfornia GOV 51090 (a) Members of the Legislature, state, county, district, judiciøl dislrict, and city fficers or employees shall not befinancially interested in any contracl mode by them in their fficial capacity, or by any body or board ofwhich they are members. Nor shall state, county, district, judicial district, and city fficers or employees be purchasers at any sale or vendors at any purchase made by lhem in their fficial cøpacity. þ) 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 ofthe state formed pursuant îo general law or special act, for the local perþrmance of governmental or proprietaryfunctions within limited boundaries. Cølifornia GOV 54006 Plans, Specifications, work authorizations describing work to be perþrm:ed, and all other inþrmation referred to in this chapter are open to inspection and examination as a public record. Calífornia GOV 54525 For purposes of this chapter, the following terms have the following meaning: (a) "Firm" means any individual, Jìrm, partnership, corporation, association, or other legal entity permitted by law to practice the profession ofarchitecture, landscape architecture, engineering, environmental services, land suweying, or c onstruclion pr oj ect manage ment. þ) "State agency head" means the secretary, odministrator, or head of a department, agency, or bureau of the State of California authorized to contractfor architectural, landscape architectural, engineering, environmental, land sunteying, and c ons truc t i on pr oj ec t mønage me nt sem ice s. (c) "Local agency head" means the secretary, administrator, or head ofa department, agency, or bureøu ofany city, county, city and county, whether general law or chartered, or any district which is øuthorized to contractfor architectural, landscape architecturø|, engineering, environmental, land sumeying, and construction project management services. (d) "Architeclural, landscape architectural, engineering, environmental, and land suweying services" includes those professional semices of an architectural, landscape architectural, engineering, environmental, or land sumeying nature as well as incidental services that members of these professions and those in their employ may logically or justifiably perform. (e) "Construction project manogement" means those services provided by a licensed archítect, registered engineer, or licensed general contractor which meet the requiremenls of Section 4529.5 for mdnagement and supewision of work perþrmed on støte construction projects. (fl " Environmental services " means those services performed in connection with project development and permit processing in order to comply withÍederal and state environmental løws. "Environmenlal semices" also includes the processing and awarding of claims pursuant to Chapter 6.75 (commencingwith Section 25299.l,0) of Division 20 of the Health and Safety Code. CølÍfornia GOV 54526 Notwithstanding any other provision oflavt, selection by a state or local agency headfor professional semices ofprivate architectural, landscape architectural, engineering, environmental, land suweying, or conslruction project management firms shall be on the basis of demonstrated competence and on the proþssional qualifications necessary for the satisfactory perþrmance of the services required. In order to implement this method of selection, stale agency heads contractingfor private architectural, landscape architectural, professional engineering, environmental, land sumeying, andconstruction project management services shall adopt by regulation, and local agency heads contractingfor prívate architectural, landscape architectural, professional engineering, environmental, land surveying, and construclion project management services may adopt by ordinance, procedures that assure that these services are engaged on the basis ofdemonstrated competence and qualifications for the types of services to be pedormed and at fair and reasonable prices to the public Page 63 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection agencies. Furthermore, these procedures shall assure maximum participation of small businessfirms, as defined by the Director ofGeneral Services pursuanl to Section 14837. In addition, these procedures shall specifically prohibit practices which might result in unlowful activity including, but not limited to, rebates, kickbacks, or other unlav,ful consideration, and shall specifically prohibit government dgency employees from participating in.the selection process when those ernployees have a relatìonship with a person or business entily seeking a contract under this section which would subject those employees to the prohibition ofSection 87 100. California GOV 54527 In the procurement ofarchitectural, Iandscape architeclural, engineering, environmental, land surveying, and construction project mønagement services, the state qgency head shall encouragefirms engaged in the lawful practice oftheir profession to submit annually a statement of qualifications and perþrmance data. (a) l{hen the selection is by a state agency head, statewide announcement ofall projects requiring architectural, landscape architectural, engineering, environmental, land surveying, or construction project management setyices shall be made by the agency head through publications ofthe respective professional societies. The agency head, for each proposed project, shall evaluate cunent statements of qualiJìcations and performance daîa onJìle with the agency, together with those thøt may be submitted by oîher firms regarding the proposed project, and shall conduct discussions wilh no less than three firms regarding anticipated concepts and the relative utility of alternative methods of approach for furnishing the required semices and then shall select therefrom, in order ofpreference, based upon criteria established and published by him or her, no less than three of the Jìrms deemed to be the most highly qualified to provide the services required. þ) lVhen 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 limiled to, rebqtes, kickbacks, or other unlatuful 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 lhis section. Calíþrníø GOV 54528 (a) When the selection is by a state agency head the following procedures shall apply: (l) The state agency head shall negotiate a contrøct with the best qualifiedJìrm for architectural, landscape àrchitectural, engineering, environmental, land surveying, and construction project manøgement sewices at compensation which the stale 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 qualiJìed, at a price the agency head determines to be fair and reasonable to îhe State of California or the political subdívision involved, negotiations with that Jìrm shall be formally terminated. The stale agency head shall then undertake negotiations with the second most qualifiedfirm. Føiling accordwith the second most qualified/ìrm, the state agency head shall terminate negotiations. The stqte agency head shall then undertake negotiations with the third most qualified .frrm (3) Should the stqte agency head be unable to negotiate a satisfactory contract with any ofthe selectedfirms, the state agency head shall select additionalfirms in order oftheir competence and qualification and continue negotiations in accordance with this chapter until an agreement is reached. (b) Ilrhen the selection is by a local øgency head, the local agency head may undertake the procedures described in subdivision (a). Californìa GOV 54529 This chapter shall not apply where the state or local agency head determines that the services needed are more ofa technical nature and involve little professional judgment and that requiring bids would be in lhe public interest. Page 64 o172 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Californía GOV S4 S 29. I 2 All architectural and engineering semices shall be procured pursuant to afair, competilive selection process which prohibits governmental agency employeesfrom participating in the selection process when they have afinancial or business relationship with any private entity seeking the conlract, and the procedure shall require compliance with all laws regarding political contributions, conflicts of interest or unlawful activities. Cølifornia G O V S4 5 29. I 4 Architeclural and engineering services conlracts procured by public agencies shall be subject 1o standørd accounting practices and may require Jìnancial and performance audits as necessary to ensure conlract services are delivered wilhin the agreed schedule and budget. Californía G O V S4 5 29. 2 0 This act seelcs to comprehensively regulate the matters which øre containedwithin its provisions. These are matters of statewide concern anil when enacted are intended to aþply to charter cities as well as all other governmental entities. Federøl Híshwav Admínistration Memorandum 2 CFR 200 Implementatíon Guídønce 12/4/2014 Attachment A: FHlltA 2 CFR 200 Uniform Guídance - Queslìons ønd Answers Question 2 I : "Ifiil the FHII/A/USDOT provide a waiver of the requirements in 2 CFR 200.3 I 7 for subrecipients to comply with State procurement requirements or other policies and procedures approved by the Støte (200.3 I 7)? " Answer: Yes. The USDOT requested and received an OMB waiver of the requirements in 2 CFR 200.3 I 7 concerning procurement by subrecipients. This waiver provides an exception to the requirementfor all subrecipients ofa state tofollow the procurement requirements in Sections 200.318 through 200.326. The waiver will allow States and subrecipients to cont¡nue to use state-approved procurement procedures as lhey did under part 18 prior to the adoption ofthe Uniform Guidance. Page 65 o172 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Page 66 of72 January 2019 Figure 10.2 State-Only Funded Procurement Criteria To comp ly w¡lh CA Government Code { GC} ¿tSZ5-¿1529.5, ¿¡8 Code of Federâl RegulEtion5 (CFR) Pårt 31: Contrsct Cost Pr¡ nc¡ples and Procedures, 2 CFF Pârt 200: Un¡form Adm¡nistrât¡ve Requirements, Cost Pr¡nc¡ples, ând Audit Requirements for Federâl Awârds {excluding se ct¡ons 200.318- 200.326}, Caltrânsr Local Assistânce Procëdurës Mânual (LApMl änd other appllcâble STATE ând FEDERAL regulât¡ons, 'M ¡n¡ grooks Act - Stðte regulat¡on requ¡r¡ng the initiãl sèlect¡on of engineer¡ng and ârch¡tecture f¡rms be based upon quâlif¡cations and exper¡ence râther thðn by price. pr¡{e is then later negot¡âtêd. R.qu¡rcmcnts for L€A¡ thrt urrrStrtc frrndl¡g Ucc Statc rcqulrcmsnts bclow A.Written Procedures 6C 4525 B,Conflict of lnterest 6C 1090, 6C 4527{b}, 6C 4529.L2 c.Records 6C4529.14 4006 D.Full & Open Competition 6C 4s26, GC 4527, GC 4529. 12 E.Selection Basis GC4526*,4527 F Publication 6C4527 G.Solicitation 6C4527 H Cost Analysis GC4528 Negotiãt¡ons 6C4528 A&l Audit & Review Process 6C4529.t4, LAPM Ch. 10. 2 CFR200 K.Exhibit 10-C.2: State-Only Funded A&E Consultant Contracts IAPM Ch. 10.2 Local Assistance Procedures Manual Chapter 10 Consultant Selection I 0.3: NON-A&E CONTRACTS SCOPE This section covers the procurement requirements for the services that are not included in Section 1.0.1. Federal and Section 10.2 State-Only. 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 local agencies are required to follow 2 CFR200: Uniþrm Adrninistrøtiae Requirements, Cost Principles, and Audit Requirements for Federal Awards for all contracts, the Procurement Standards section 5200.318-200.326 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 Califomia State Prevailing Wages Local agency shall designate one person within the local agency as a contract manager. (PCC 10348.5) D¡r¡nnru¡¡rNc NoN-A&E After identifying that there is a need for consulting services, the local agency shall determine that the services needed are more of a technical nafure 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 1,0.2,2 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, provide dby, or under the direction of a registered engineer or architect. Ex¡mpu oF DETERM¡NING NoI,¡.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 conskuction project, the overall service did not provide an evaluation or a discipline report. In this example, the local agency can determine that the service provided is more of a technical nafure 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 o Active Transportation Program educational and outreach activities o IntelligentTransportation System (ITS) o Non-Infrastrucfure Page67 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection lnrelucenl TRANspoRrATroN Svsrrnn (lTS) Pnorecrs 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 funds 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- engi4eering/ 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 developmenf system integration, hiring engineers and specialists for ITS design and installation support inspection, design documentatioru 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 aeoversight@dot.ca.gov 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 mÍrnagement systems; . Operating the 511 traveler information service; . Nonprofessional services for system support such as independent validation and verificatiorL testing and specification developmen! For more information regarding Intelligent Transportation Systems (ITS) Program procurement requirements, refer to LAPG, Chapter L3 LAPG Chapter,1"3: hrtelligent Transportation Systems. Not¡ - | n rnAsrRUcTU RE PRoJ EcTs 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 L3), 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. Page 68 of72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection Goven¡¡¡Itc REGUIATIoNS AND Cooes IoR NoN.A&E When procuring non-A&E services with federal-aid funds, Local agencies must comply with 2 CFR Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, excluding sections 5200.318-200.326 Procurement Standards (reference Federal Highway Administration December 4, 20'1.4 Memorandum Action: 2 CFR 200 Implementation Guidance, Attachment A). Local agencies 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 1.0335- 10381. PnocunrmENT oF No¡l-A&E Cor.lsunnNT CoNTRAcTS All non-A&E procurements contracts must be conducted in a manner providing full and open competition consistent with federal and state standards. Local agency 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) shall not limit the competition directly or indirectly to any one consultant. The RFP mustbe 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. Local agency shall secure at least three competitive proposals for each contract. (PCC 10340) l4trhen 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 shall be considered which have not been received at the place, and prior to the closing time as stated in the RFP. (PCC 1ß (a)) 5. Local agency must have a written procedure for evaluating proposals. (PCC 10344) RFP Besrc R¡ou¡n¡nnr¡¡rs A. There are two general types of consulting service contract solicitations B. Request for Proposal using Cost only C. Request for Proposal using Cost and Qualifications The local agency must include the followi^g i^ 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 shall follow and the elements they shall 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. Page 69 of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection E. The procurement schedule that the local agency will follow in reviewing and evaluating the proposals. (PCC 10344) Aoolr¡oruAr REeutREMENIs AND EvAruATtoN Cnlr¡rua Additional Requirements for Request for Proposal using Cost only A. Local agency must require consultants to submit their proposals and cost in a separate, sealed envelope. B. Local agency shall 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 informaEon for those proposals that meet the format requirements and standards shall 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 Oualifications A. Local agency must include in the proposal the description of the evaluation and scoring method. Substantial weight in relationship to all other criteria utilized shall be given to the cost amount proposed by the consultant. B. Local agency shall determine those that meet the format requirements specified in the RFP. C. Local agency evaluation committee must evaluate and score the proposals using the methods specified in the RFP. All evaluation and scoring sheets shall 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 shall be awarded to the consultant whose proposal is given the highest score by the evaluation committee. (PCC lmaa(c) When using RFP (Cost and Qualifications), the criteria used to evaluate the consultanfs 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 http:/ /www.dot.ca.gov/hq/LocalPrograms/AEl2016/RFP-Example-Non-AE.docx and may be modified. Submission of Exhibit 10-C Consultant Contract Reoiewers Checklist to Caltrans HQ for acceptance is not required for non-A&E consultant contracts. Cot¡su lrlNr's PRoPosAt The consultanfs proposal should include the following information: PageTO of 72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection . Consultant Project Manager - qualifications, roles and responsibilities. o Methodolov - description of work and overall approacþ specific techniques that will be used and specific administrative and operations expertise to be used. o Workplan øndWork Schedule - the technical proposal should include activities and tasks, and their delivery schedule. . Personnel - List of personnel who will be working on the projecÇ and their resumes. . Føcilities 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 shall 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. Cosr Pnoposnl Wonrsn¡¡r 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. Local agency is not required to award a contract if it is determined that the contract price is not reasonable. (PCC 1æ40(c)) DBE CoItSIDERATIoN DBE consideration is required on all federal-aid funded contracts including non-A&E. AonnlN lsrRATtvE R¡oul n¡nn¡¡¡ts Advertisement for RFPs may be through the local agency website, local publications, and national publications. Minimum solicitation time is L4 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 consultanfs questions shall 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,late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and shall be rejected. Submittal of additional information after the due date shall 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 L0 percent of the total monetary value of the consulting services contract. Excludes A&E contracts. PageTLoÍ72 January 2019 Local Assistance Procedures Manual Chapter 10 Consultant Selection (PCC 10365.s) 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 shall be kept for three years after federal 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 shall not exceed the state rate. Contract Managers are responsible for monitoring expendifures on all conhacts and verifying categories of work that require prevailing wage. A person in Responsible Charge of contract management is required for all federally funded projects. Onm Pnesr¡¡ranoNs OPiloNAr When oral presentations are required by the local agency, 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 (O & 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 shall 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. Cosr- ErrEcrvE/Pu Buc I NTEREST FTNDTNG A minimum of three proposal must be evaluated to establish effective competition. Ary agency that has received less than three proposals on a contract shall 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) (LAPM Exhibit 12-F: Cost- Effective/Public Interest Finding) 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 1ß40(c)) Pnor¡sr/AppEArs/RETNSTATEMENT PRocEDu REs 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 L0345. Page72 ol 72 January 2019