A&E OVERSIGHT TRAININGcalifornialtap.org/pdf/2019_Training_Final_Main_webinar_8_23_19.pdf · Kamal...
97
A&E OVERSIGHT TRAINING Office of Guidance & Oversight HQ Division of Local Assistance Local Assistance
Transcript of A&E OVERSIGHT TRAININGcalifornialtap.org/pdf/2019_Training_Final_Main_webinar_8_23_19.pdf · Kamal...
1
AampE OVERSIGHT TRAINING
Office of Guidance amp OversightHQ Division of Local Assistance
Loca
l A
ssis
tanc
e
2
Ray ZhangDivision Chief
Mark SamuelsonAssistant Division Chief
Kamal SahOffice Chief
Felicia HaslemProgram Manager
John YangSenior AampE Oversight Engineer
Dordaneh EslamianSenior AampE
Oversight Engineer
Trina LuoAampE Oversight
Engineer
Loca
l A
ssis
tanc
e
CaltransLocal Assistance Organization Chart
Thersquo PhamSenior AampE
Oversight Engineer
Carol GreenAampE Oversight
Engineer
3
Our RoleWe Do Not Create Regulations
Provide Guidance amp Oversight
Loca
l A
ssis
tanc
e
4
Process Review - Yearly Compliance
49
7782
20172014 2018
Loca
l A
ssis
tanc
e
5
24
COST ANALYSIS
38COST amp FEE
NEGOTIATIONS
60
POLICIES amp PROCEDURES
65
SECONDARY SCORE SHEETS
Target Areas for Improvement4 Lowest Areas Measured
Loca
l A
ssis
tanc
e
6
Important LinksLocal Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
7
Important Links
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
Local Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
8
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
2
Ray ZhangDivision Chief
Mark SamuelsonAssistant Division Chief
Kamal SahOffice Chief
Felicia HaslemProgram Manager
John YangSenior AampE Oversight Engineer
Dordaneh EslamianSenior AampE
Oversight Engineer
Trina LuoAampE Oversight
Engineer
Loca
l A
ssis
tanc
e
CaltransLocal Assistance Organization Chart
Thersquo PhamSenior AampE
Oversight Engineer
Carol GreenAampE Oversight
Engineer
3
Our RoleWe Do Not Create Regulations
Provide Guidance amp Oversight
Loca
l A
ssis
tanc
e
4
Process Review - Yearly Compliance
49
7782
20172014 2018
Loca
l A
ssis
tanc
e
5
24
COST ANALYSIS
38COST amp FEE
NEGOTIATIONS
60
POLICIES amp PROCEDURES
65
SECONDARY SCORE SHEETS
Target Areas for Improvement4 Lowest Areas Measured
Loca
l A
ssis
tanc
e
6
Important LinksLocal Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
7
Important Links
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
Local Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
8
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
3
Our RoleWe Do Not Create Regulations
Provide Guidance amp Oversight
Loca
l A
ssis
tanc
e
4
Process Review - Yearly Compliance
49
7782
20172014 2018
Loca
l A
ssis
tanc
e
5
24
COST ANALYSIS
38COST amp FEE
NEGOTIATIONS
60
POLICIES amp PROCEDURES
65
SECONDARY SCORE SHEETS
Target Areas for Improvement4 Lowest Areas Measured
Loca
l A
ssis
tanc
e
6
Important LinksLocal Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
7
Important Links
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
Local Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
8
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
4
Process Review - Yearly Compliance
49
7782
20172014 2018
Loca
l A
ssis
tanc
e
5
24
COST ANALYSIS
38COST amp FEE
NEGOTIATIONS
60
POLICIES amp PROCEDURES
65
SECONDARY SCORE SHEETS
Target Areas for Improvement4 Lowest Areas Measured
Loca
l A
ssis
tanc
e
6
Important LinksLocal Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
7
Important Links
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
Local Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
8
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
5
24
COST ANALYSIS
38COST amp FEE
NEGOTIATIONS
60
POLICIES amp PROCEDURES
65
SECONDARY SCORE SHEETS
Target Areas for Improvement4 Lowest Areas Measured
Loca
l A
ssis
tanc
e
6
Important LinksLocal Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
7
Important Links
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
Local Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
8
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
6
Important LinksLocal Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
7
Important Links
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
Local Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
8
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
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pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
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petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
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amp O
pen
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petit
ion
Selection Panel Must meet the federal regulations
46
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pen
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ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
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Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
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pen
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DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
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Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
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LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
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Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
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pen
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ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
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pen
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ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
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ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
7
Important Links
Subscribe to Local Assistance Emails dotcagovprogramslocal-assistanceother-important-issuessubscribe-to-dla-email-list
Local Assistance Blog localassistanceblogcom
Loca
l A
ssis
tanc
e
Local Assistance Consultant Selection amp Procurement dotcagovprogramslocal-assistance
8
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
8
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
9
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
10
Proc
urem
ent
Plan
ning
Written AampE Policies amp ProceduresPrescribed
-23 Code of Federal Regulations 1725-Provided and RequiredBy LAPM Chapter 10
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
11
Proc
urem
ent
Plan
ning
Master Agreement
Refer to your Master Agreement Such Requirements includes bull Project Administrationbull Fiscal Provisionsbull Audits
Agreement is between Local Agency and Caltrans DLA
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
12
Agencyrsquos Conflicts of
Interest(COI)
Agencyrsquos written code of standards of conduct governingbull Employeesbull Consultants under contracts
Meet the code of federal regulations (CFR)bull 2 CFR 200112bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws applies
Proc
urem
ent
Plan
ning
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
13
Proc
urem
ent
Plan
ning
Contract Administrator
Control of Records and Retention
Prepares amp distributes SolicitationAdvertisements
PerformIndependent Estimate
Follow Evaluation amp Selection Procedures
Negotiation Monitor consultant progress amp approve invoices
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
14
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
15
Proc
urem
ent
Plan
ning
Procurement Planning
Set Project Objectives
Identify Need for Consultant
Select Project
Determine Schedule
Appoint Contract Administrator
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
16
Proc
urem
ent
Plan
ning
Scope of Workbull Complete Clear and Concisebull Breadth and limitations of workbull Specific Task Detailsbull Deliverables
In solicitation ndash ask for details of scope of work to be provided in consultantrsquos proposal
SOW Guidance Scope of Work Writing Guide for AampE Consultant Contractshttpsdotcagovprogramslocal-assistanceenvironmental-and-other-policy-issuesconsultant-selection-procurement
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
17
Proc
urem
ent
Plan
ning
AampE ConsultantDefinition
Performed approved or logicallyjustifiably performed by a person licensed registered or certified as an engineer or architect
Includes licensed or certified environmental scientistprofessionals licensed surveyor and licensed landscape architects
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
18
Proc
urem
ent
Plan
ning
Program Management
DesignEngineering
Environmental
SurveyingConstruction Management
PreliminaryEngineering
Architectural Mapping
AampE ConsultantServices
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
19
Proc
urem
ent
Plan
ning
Consultant Services that may not be considered AampE
Non-AampE procedures must followCalifornia Public Contract Code 10335-10381
Right of Way Acquisitions
Testing
Planning Studies
Public Outreach
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
20
Proc
urem
ent
Plan
ning
Independent Cost EstimateBreakdown of the Cost Elements
bull Work or Labor Hoursbull Types or Classifications of Laborbull Direct Salary or wage rates bull Other Direct Costs
bull Materials travel etcbull Consultantrsquos fixed feebull Indirect Cost(Indirect Cost Rate)
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
21
Proc
urem
ent
Plan
ning
Sample Cost Estimate Analogous
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
22
Proc
urem
ent
Plan
ning
Independent Assessment
what would YOU expect to pay for services Historical Prices
Industry standardMarket survey
Firm
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
23
Proc
urem
ent
Plan
ning
Sample Cost Estimate for Project Specific Bottom Up
Types or Classifications of Labor
Indirect Cost Rate (ICR) ProfitFee
Other Direct Cost
Work or Labor Hours
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
24
bull Cost Per Unit of Workbull Lump Sum (not the same as firm fixed fee)
bull Cost-Plus-Fixed-Feebull Specific Rate of Compensation
Proc
urem
ent
Plan
ning
Determine Method of Payment
Cost Plus a Percentage of Cost amp Percentage of Construction Cost are NOT ALLOWED
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
25
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
$250hr x 250 x 100 hrs =
$62500 x 10 =
TOTAL =
$250hr x 250 x 120 hrs =
Fixed fee =
$62500
$ 6250
$68750
$ 6250
$75000
TOTAL = $81250
Proc
urem
ent
Plan
ning
Example Cost Plus Fixed Fee
When Labor Hours are Exceeded
Fixed Fee Stays the Same
Calculate Fixed Fee
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
26
$250hr x 250 x 80 hrs =
Fixed fee = $ 6250
$50000
TOTAL = $56250
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Cost Plus Fixed Fee
Fixed Fee Stays the Same
$62500 x 10 =
TOTAL =
$ 6250
$68750When Actual Labor Hours are Less
$250hr x 250 x 100 hrs = $62500Calculate Fixed Fee
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
27
bull Provides reimbursement at the loaded hourly billing ratebull For on-call contracts
bull Specify a maximum (not-to-exceed) dollar amount
Proc
urem
ent
Plan
ning
Specific Rate of Compensation
Used only when work or cost cannot be estimated
Contracting agency is in control of the hours worked
Contracting agency must manage amp monitor
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
28
$68750hr x 100 hrs = $68750
$68750hr x 120 hrs = $82500
$250hr x 250 X 110 = $68750hr
ldquoLoaded Hourly Billing Raterdquo
$68750hr x 80 hrs = $55000
Proc
urem
ent
Plan
ning
$250hr = Senior Engineer Firmrsquos ICR = 150 100 hrs Fixed fee = 10
Example Specific Rate of Compensation
When Labor Hours are Exceeded
When Actual Labor Hours are Less
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
29
100 hours = $68750
120 hours = $81250
100 hours = $68750
120 hours = $82500
Actual Cost PlusFixed Fee
Specific Rateof Compensationvs
A Cost Savings of $1250
Proc
urem
ent
Plan
ning
Comparison of the Provided Examples
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
30
Proc
urem
ent
Plan
ningbull City Engineer
bull Project Manager ndash chooses projects oversees a project or multiple projects and makes decisions on behalf of the agency
bull Dictates or persuades vs executes project or plan
Proc
urem
ent
Plan
ning
Consultant in a Management Support Role(CMSR)
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
31
Responsible Charge = full time public employeebull Contract negotiation contract payment consultant performance evaluation bull Being familiar with the contract requirements scope of services and products to be
produced bull Being familiar with the qualifications of the consultants staff amp changes in key
personnel bull Attending progress amp project review meetings to ensure project delivery according
to schedule milestones bull Ensuring consultant costs billed are allowable and consistent with the contract terms bull Evaluating and participating in decisions for contract modificationsbull Documenting contract monitoring activities and maintaining supporting contract
records as specified in 2 CFR 200333
Proc
urem
ent
Plan
ning
Local Agency Responsibilities
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
32
Example 1-Consultant performing project design shall not perform construction management on the same project
Example 2-Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project
Proc
urem
ent
Plan
ning
CMSR ndash Conflict of InterestBest Practice
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
33
Proc
urem
ent
Plan
ning
CMSR Approval Process
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
34
Proc
urem
ent
Plan
ning
Agency submits SOW amp COI Policy to
aeoversightdotcagov
FHWA Review
ApprovedNO
Agency Needs a CMSR
Step 1 Prior to Solicitation
Agency Advertises RFQ Selects Consultant amp Receives Exhibit 10-U from Consultant
YES
Agency Receives approved Exhibit
10-U FHWA
Agency submits Exhibit 10-U to
aeoversightdotcagov
FHWA Receives Exhibit 10-U
ApprovedNO
Step 2 After Solicitation amp Selection
YES
CMSR Approval Process
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
35
bull Incomplete independent cost estimate bull Inadequate record keeping and document retention
bull Retain for a period of 3 yearsbull Policies amp Procedures adoption
Proc
urem
ent
Plan
ning
Most Frequent Errors and Deficiencies
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
36
bullVisit Caltrans AampErsquos website dotcagovhqLocalProgramsAEbullLAPM Chapter 10 prescribes the written Procurement Policies amp ProceduresbullAn example Policies amp Procedures Adoption Resolution bullA signed Master Agreement is required which identifies the terms and conditions between the Local Agency and Caltrans
bullComplete amp Sign Exhibit 10-T Conflict of Interest and Confidentiality Statement for all committee members
bullExhibit 10-U required when a CMSR is applicable
Proc
urem
ent
Plan
ning
Forms amp Resources Procurement Planning
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
37
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
38
Competitive Negotiation
bull Qualifications-Based Selection methodbull Demonstrated Competencybull Professional Qualifications
bull Price shall NOT be used as a factor in analysis and selection
bull Not competitive biddingbull Clear and concise requirements Fu
ll amp
Ope
n C
ompe
titio
n
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
39
bull In-state and out-of-state firms given opportunities
bull Public announcementbull Agency website trade journals online
forumsbull Advertisement Period of 14 days
Full
amp O
pen
Com
petit
ion
Advertisement
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
40
Full
amp O
pen
Com
petit
ion
Two Step RFQRFP method
Used for
bull Establishing a ldquopre-qualified listrdquo of consultants bull Multiple on-call contracts for similar services
through single solicitation
bull Project Specific - More complex projects
02
RFP
01
RFQ
SOLICITATION
DOCUMENT
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
41
Full
amp O
pen
Com
petit
ion
Pre-qualified List of ConsultantsRFQ must include
bull Scope of services is defined broadly under general work categories or areas of expertise
bull Minimum qualifications (passfail) are established for Pre-qualification of consultants ndash qualification based selection and financial management system requirements
bull Annual statements of qualification are encouraged but no more than two years valid on the list
bull Performance evaluation data to update listRFP must include
bull Specific project or task requirements schedule amp deliverablesbull Consultants specific technical approach and qualifications (full QBS process)bull Subject to all other requirements in a One-Step RFP process such as method of
payment evaluation criteria audit and cost proposal submittals and DBE goal Etc
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
42
RFQ must includebull Single solicitation for multiple on-call contractsbull Scope of services is defined broadly to cover general categories
of projects or servicesbull Minimum qualifications of consultants and professional personnelbull Number of contractson-call consultants to be selectedbull A not-to-exceed dollar amount for each contractbull Each contract duration not-to-exceed 5 yearsbull Audit review and financial management system provisionsbull DBE Goal for each contract (Exhibit 10-I)bull Negotiating Price Agreements with selected consultants based on
specific rate of compensation method of paymentbull Provisions for the streamlined (or mini) RFP process to procure
project task or service specific contracts ndash full QBS
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
43
Mini RFP (additional QBS) may include
bull Project specific scope of work deliverables schedules duration
bull Circulate mini-RFP (with evaluation criteria Project or Task specific DBE goal) to all on-call consultants
bull Full competitive QBS process ndash cost is not a factor
bull Evaluate proposals and select most qualified consultant
bull Negotiate actual cost plus fixed fee for task order based on the on-call contract (labor) price agreement
Full
amp O
pen
Com
petit
ion
Multiple On-call Consultants for Similar Services
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
44
bull Minimum three membersbull Subject matter experts and Contract Administratorbull Review and evaluate proposals conduct interviewsbull Membership should be confidential
NOTE Participation by a Caltrans representative does not relieve the local agency of its responsibility to ensure that proper procurement procedures are followed and all requirements are met
Full
amp O
pen
Com
petit
ion
Consultant Selection Committee
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
45
Conflicts of Interest bull 2 CFR 200112
bull 23 CFR 1727(b)(4)bull 23 CFR 133
State and Local Laws also appliesConsult your city or countyrsquos attorneyCollect amp retain signed and dated statements Example is LAPM Exhibit 10-T
Proc
urem
ent
Plan
ning
Full
amp O
pen
Com
petit
ion
Selection Panel Must meet the federal regulations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
46
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-B
bull Qualifications Criteriabull Weightsbull Signaturebull Secondary score sheets
Based on the criteria established amp published within the public solicitation document
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
47
Full
amp O
pen
Com
petit
ionWhat is DBE
Contract GOAL
Disadvantage Business Enterprise
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
48
Contract estimated gt$500000Complete and Submit Exhibit 9-D to Caltrans DLAEApproval will be from OGO
Contract estimated lt$500000Exhibit 9-D is submitted to Caltrans DLAE for review
Full
amp O
pen
Com
petit
ion
Determining DBE Goal
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
49
1 Identify work
2 Determine work category codes for subcontracting
3 Search for available DBE firms by districts (CUCP) gt7
4 Apply DBE factors to sub work
5 Calculate a soft goal
6 Apply 80 factor
7 Round to nearest whole
Full
amp O
pen
Com
petit
ion
DBE Goal in 7 Simple Steps
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
50
Local Agency determined work itemsbull Environmental Support = 7bull CAD Services = 4
Consultant determined work itemsbull Environmental Support = 6bull CM Services = 5
Task Order 2 $150Kbull Final Roadway Design ($135K)bull CM Services ($15K)
Task Order 1 $100Kbull Preliminary Roadway DesignNEPA documentbull Environmental Support ($2K)bull Roadway Design ($98K)Estimated DBE by Agency = ($2119870119870)
$100119870119870= 2 Estimated DBE by Agency = ($15119870119870)
$150119870119870= 10
Close out contract using Final Utilization Exhibit 17-F ($120784120784120784120784+$120783120783120783120783120784120784)
($120783120783120783120783120783120783120784120784+$120783120783120783120783120783120783120784120784)= 68
Track DBE usage for task orders and close out task order projects using Exhibit 10-G
Full
amp O
pen
Com
petit
ion
Example Determining a DBE GoalOn-call Contract DBE Goal 11Exhibit 10-O1 and Exhibit 10-O2
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
51
Full
amp O
pen
Com
petit
ion
LAPM Exhibit 10-G
New Form
Individual AampE Task Order DBE Tracking Sheet
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
52
Project Specific 1Federal Project Number (FPN) BRLO-4111(015)
PE XYZ ConsultantSurveying on-callCON contractorProject Specific 2 FPN ATPL-4111(016)
PE In-houseSurveying On-call AampE ContractCON contractor
Task Order 2 ndash FPN ATPL-4111(016)
When Closing OutExhibit 17-F ContractorExhibit 17-F On-call Surveying(supported by 10-Grsquos for Task Orders)
Task Order 1 ndash FPN BRLO-4111(015)
Full
amp O
pen
Com
petit
ion
Example DBE Goal amp Utilization Master On-call
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
53
bull Lack of evaluation criteria with level of importance (weights) in RFPRFQ
bull No Conflict of Interest Statements by selection panelbull No method of payment specified in RFPRFQbull No cost proposal requirement specified in RFPRFQbull Inadequateundocumented advertisement method for
the RFPRFQbull Inadequate documentation of a responsiveness review
prior to acceptance of the RFPRFQ
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
54
bull Procurement schedule missingbull Oral interviews not identifiedbull Contract type missingbull Method of payment incorrect or missingbull Length of contract not included (on-call)bull DBE goals for on-call contracts missingbull Exhibit 10-R missingbull CMSR not approved prior to solicitation
Full
amp O
pen
Com
petit
ion
Most Frequent Errors and Deficiencies(Continued)
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
55
bullSolicitation Document examples are at our Caltrans AampErsquos website bullExhibit 10-B Suggested Consultant Evaluation Sheet is a sample scoring sheetbullExhibit 10-H Cost Proposal submitted in a separate concealed formatbullExhibit 9-D DBE Contract Goal Methodology can assist in establishing a DBE contract goal bullExhibit 10-I Notice to Proposers DBE Information can be used to specify a DBE contract goal in the solicitation
bullIncorporate Exhibit 10-R AampE Boiler Plate Agreement LanguagebullExhibit 10-U is required when scope of work includes a CMSR
bullCMSR Requires FHWA approval See approval CMSR process
Forms amp Resources Full amp Open Competition
Full
amp O
pen
Com
petit
ion
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
56
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
57
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
58
Qua
lific
atio
ns
Base
d Se
lect
ion
Con
trac
t ex
ecut
ion
Caltrans Local Assistance Procedures Manual (LAPM) Chapter 10
Federalbull Title 23 Code of Federal Regulation Part 172 (23 CFR 172)
ldquoProcurement Management and Administration of Engineering and Design Related Servicesrdquo
Statebull Government Code 4525-4529 ldquoContracting with AampE Firmsrdquo
Qualifications Based Selection
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
59
Qua
lific
atio
ns
Base
d Se
lect
ion
Engineer and design services are quality based similar to a doctor or helliphellip
CA regulations require all AampE Consultants to be selected based on qualifications not cost
Why Not Consider Price
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
60
Qua
lific
atio
ns
Base
d Se
lect
ion
Evaluations of Proposalsbull Evaluation criteria must be the same as in the solicitationbull Interviews
bull Retain all score sheets
Qualifications Based Selection
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
61
Qua
lific
atio
ns
Base
d Se
lect
ion
Sole source is allowed under the following circumstances
1 Only one consultant is qualified to perform work2 An Emergency situation3 Competition is determined to be inadequate after
solicitation of a number of sources
Sole Source
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
62
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Received only 1 proposalbull Prepare Public Interest Finding (PIF) ndash Exhibit 12-F
bull Approved by District Local Assistance Engineer (DLAE) for federal funding
bull Evaluatebull Negotiate to ensure fair and reasonable price for
services
Sole Source ndash After Advertisement
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
63
Qua
lific
atio
ns
Base
d Se
lect
ion
Responsiveness Review
Reject proposals that fail to meet submittal requirements and minimum qualifications
Establish submittal requirements minimum qualifications evaluation criteria
Non-responsive submittals must be rejected and documented in contract files
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
64
Qua
lific
atio
ns
Base
d Se
lect
ion
SAMPLE AampE CONSULTANTrsquoS SOPSOQ RESPONSIVENESS CHECKLIST
The following checklist is provided as a tool to assist Consultants responding to a Request For Qualifications (RFQ) or Request For Proposal (RFP) Solicitations may differ in their requirements therefore please read each solicitation carefully to ensure responsiveness Also refer to ldquoSubmittal Instructionsrdquo and ldquoGeneral Contract Process Informationrdquo NOTE Checklist must be modified to fit local agencyrsquos general contract process and procedures
SOQSOP REQUIREMENTS
Submittal Date and Time Required number of copies submitted
SOQSOP includes the following ___ sections
Section 1 ndash Transmittal Letters from Prime and Sub Consultants Section 2 ndash DBE Goal Documentation Section 3 ndash Workplan Schedules and Deliverables Section 4 ndash Staffing Plan Organizational Chart and Resumes Section 5 ndash Project References and Contacts Section 6 ndash Nondiscrimination Statement (if applicable)
Responsiveness Checklist
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
65
Qua
lific
atio
ns
Base
d Se
lect
ion
Exhibit 10-O1
Consultant must meet the DBE Goal or demonstrate a good faith effort
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
66
Qua
lific
atio
ns
Base
d Se
lect
ion
Convene the Selection Committeebull Review proposalsbull Complete score sheetsbull Sign and date all original score sheetsbull Contract Administrator compiles scores and rankingbull If conducting interviews develop short list of top 3 to 5 firmsbull If no interviews finalize ranking of top three firms and request
cost proposals in sealed envelopesbull Must inform top 3 firms on short list or final ranking
Evaluation amp Selection of Consultants
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
67
Qua
lific
atio
ns
Base
d Se
lect
ion
Committee performs reference checks (best practice)bull Develop standard questions to askbull Have one person perform reference checksbull Compile and document other information gathered independentlybull Retain records in contract filesbull Must be done prior to oral interviews if any
Evaluation amp Selection of Consultants
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
68
Qua
lific
atio
ns
Base
d Se
lect
ion
Prepare for Interviews of Short Listbull Prepare interview agenda questions and score sheetsbull Send invitation to (short list) firms with
bull Format of interview scoring criteria and time tablesbull Copy of Standard Agreement (boilerplate)bull Request for cost proposals in sealed envelopes to be
collected at time of interview
Evaluation amp Selection of Consultants
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
69
Qua
lific
atio
ns
Base
d Se
lect
ion
Conduct interviews of short listbull Conduct interviewsbull Collect cost proposals in sealed envelopesbull Record interview evaluations on score sheetsbull Develop final ranking (top three firms) and
inform short list of results per regulation
Evaluation amp Selection of Consultants
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
70
Qua
lific
atio
ns
Base
d Se
lect
ion
Sample Score Compilation and Ranking Exercise
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
71
Qua
lific
atio
ns
Base
d Se
lect
ion
bull Lack of retention of original score sheets from the evaluation process
bull Inadequate documentation during the secondary evaluation processinterview portion
bull Actual evaluation criteria differ from original described in the RFPRFQ without appropriate documentation
Most Frequent Errors and Deficiencies
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
72
Qua
lific
atio
ns
Base
d Se
lect
ion
bullVerify amp Document that proposals meet Responsiveness Items bullDistribute proposals to Consultant Selection CommitteebullEvaluate Based on Published Criteria in the solicitationbullConduct Interviews When Specified in the solicitationbullRank amp Notify Top 3 Consultants amp Select Most Qualified ConsultantbullRetain All Evaluation Sheets including secondary evaluations
Forms amp Resources Qualifications Based Selection
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
73
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
74
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
75
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Mostly labor
bull Named Key StaffClassificationsbull Professional and sub-professional licensedunlicensed
bull Multi-discipline OfficeField bull Level of Effort (Hours per Task) for Project Specific Contractbull Based on the method of payment
bull Actual cost plus fixed feebull Specific rate of compensation (On-call contracts)
Cost Proposal
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
76
Cos
t is
Fair
amp
Reas
onab
le
Includes the followingbull Labor Costs
bull Actual WageSalarybull Indirect Cost Rate (ICR)bull Other Direct Costs (ODC)
bull eg TravelPer Diem Rental Equipment or consumable suppliesbull Both Prime and Sub-consultantsbull Profit or Fee
Cost Proposal
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
77
Cos
t is
Fair
amp
Reas
onab
le
Exhibit 10-H Example Cost ProposalCost Plus Fixed Fee
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
78
Cos
t is
Fair
amp
Reas
onab
le
bull Review cost proposal from top ranked firmbull Must be in appropriate format (refer to LAPM Exhibit 10-H)bull Include detailedbroken down labor costs and Other Direct Costsbull Both Prime and Sub-consultants
bull Initiate contract audit and review process (LAPM chapter 10 Section 1013) and submit to Caltrans AampI at conformancereviewdotcagov
bull Begin contract negotiations with top ranked firmbull Compare with the Independent Cost Estimate (ICE)bull Document and retain all cost negotiations records
Contract Cost Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
79
Cos
t is
Fair
amp
Reas
onab
le
All costs must meet the Federal Cost Principles48 CFR 31
Indirect Cost Rate Schedule
Determining Cost Allowability
Federal Cost Principles
Allocable
Reasonable
Allowable
Consistency Documentation
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
80
Cos
t is
Fair
amp
Reas
onab
le
Cost AnalysisBreakdown of costs and verify ifa The elements add up to the total priceb You understand the need for each element of cost items are ordinary and necessaryc The same thing does not appear in more than one statement of costd General format is the same for similar items or services
Ways to document cost analysis1 Actual cost previously incurred2 Most recent cost estimate for the same or similar items or services3 Independent forecast of future costs
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
81
Cos
t is
Fair
amp
Reas
onab
le
Items that You have to Negotiate
Negotiable Items
Labor Escalation
ProfitFee
Cost Items ODCs
Classifications amp the Quality level of staff
Hours per task
WorkplanDeliverablesamp Schedules
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
82
Cos
t is
Fair
amp
Reas
onab
le
bull Firmrsquos indirect cost rate - ICR (or overhead) is subject to Audits review (FAR)bull Self certified by Consultant in Exhibit 10-Kbull Consultant ICR established by Cognizant Letterbull Voluntary reduction of consultant indirect cost rate
bull Firmrsquos direct labor is subject to verificationbull Payroll recordsbull Benchmarking of consultant direct salary rates
Items Not Negotiated
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
83
Cos
t is
Fair
amp
Reas
onab
le
If unsuccessful in negotiating contract cost with top ranked firm
bull Formally terminate negotiations with top ranked firm
bull Initiate cost negotiation with second ranked firm and repeat steps as before
bull Repeat steps with third ranked firm if necessary
Terminate Cost Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
84
Cos
t is
Fair
amp
Reas
onab
le
ProfitFee ()bull Scopesizebull Complexitybull Degree of riskbull Durationbull Number of sub-consultants
ProfitFee Negotiations
No Mark-Up (additional profit) on sub-consultantrsquos work
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
85
Cos
t is
Fair
amp
Reas
onab
le
Maximum profitfee is 15
Factors WeightsContract Amount 15Nature of Services 30Period of Performance (duration) 15Utilization () of Sub-consultants 20Degree of Risk 20
Estimating Profit ()
Example ProfitFee Negotiations
86
Cos
t is
Fair
amp
Reas
onab
le
Contract dollar Amount ndash Larger contracts yields lower profit percentage
Less than $20 M 100
$20 M - $65 M 0625 ndash 100
Above $60 M 0625
Nature of Services ndash Deliverable-based work yield higher profit percentage compared with labor-based work
Deliverable based ndash Labor based 100 ndash 0625
Period of Performance ndash Longer duration contracts result in greater risks therefore higher profit percentage
Less than 1 Year 0625
1 ndash 3 Years 0625 ndash 100
More than 3 Years 100
ProfitFee Negotiations (Continued)
87
Cos
t is
Fair
amp
Reas
onab
le
Number of Sub-consultantsSpecialty work performed by Subconsultants increases risk to Prime
Less than 15 0625
15 - 50 0625 ndash 100
More than 50 100
Degree of RiskRelated to level of complexity and sensitivity of the work
Low to High risk 0625 - 100
ProfitFee Negotiations(Continued)
88
Cos
t is
Fair
amp
Reas
onab
le
Estimating Profit ()
Factors Weights Rate RateXWeights
Contract Amount 15 1000 1500
Nature of Services 30 1000 3000
Period of Performance (duration) 15 0850 1275
Utilization of () Sub-consultants 20 0850 1700
Degree of Risk 20 1000 2000
Total 9475
9475
Example ProfitFee NegotiationsGiven For an AampE Contract to Provide Preliminary Engineering Environmental Process and Final Engineering amp Design for a Bridge Replacement Project bull Contract amount $2 Millionbull Contract duration 15 Years bull Using Sub-consultant for 35
of the work
89
Cos
t is
Fair
amp
Reas
onab
le
bull Exhibit 10-A (Contracts of $150000 and Greater) amp Exhibit 10-K
Must be submitted to IOAI for Indirect Cost Rate (ICR) acceptance prior to contract execution
bull ICR Acceptance ID
bull For IOAI information and resources visit igdotcagovresources
Independent Office of Audits amp Investigations (IOAI)
Visit Chapter 1013
90
Cos
t is
Fair
amp
Reas
onab
le
bullNo Cost analysis performedbullNo documented Cost amp Fee NegotiationsbullMissing fiscal provisions in Standard Agreement (boilerplate)bullMissing breakdown of ODCsbullMissing cost proposals for the subconsultantsbullIncomplete or inadequate cost proposal format usedbullUnallowable method of payment used (rate sheets)bullIncomplete Internal Control Questionnaire (ICQ)bullMissing andor incomplete certification forms (10-Ks)bullInconsistent Indirect Cost Rate (ICR) in 10-Ks and the cost proposal
Most Frequent Errors amp Deficiencies Cost is Fair amp Reasonable
91
Cos
t is
Fair
amp
Reas
onab
le
bullBottom-up Method ICE ExamplebullCost Analysis SamplebullInitiate IOAI Financial Review Including Indirect Cost Rate
bullSubmit Exhibit 10-A Exhibit 10-K and Exhibit 10-H Cost Proposal bullSee Exhibit 10-A for other applicable documentsbullIncludes Consultantrsquos Indirect Cost Rate Schedule
Forms amp Resources Cost is Fair amp Reasonable
92
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
93
94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
- Slide Number 1
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Slide Number 7
- Slide Number 8
- Slide Number 9
- Slide Number 10
- Slide Number 11
- Slide Number 12
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
- Slide Number 26
- Slide Number 27
- Slide Number 28
- Slide Number 29
- Slide Number 30
- Slide Number 31
- Slide Number 32
- Slide Number 33
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Slide Number 37
- Slide Number 38
- Slide Number 39
- Slide Number 40
- Slide Number 41
- Slide Number 42
- Slide Number 43
- Slide Number 44
- Slide Number 45
- Slide Number 46
- Slide Number 47
- Slide Number 48
- Slide Number 49
- Slide Number 50
- Slide Number 51
- Slide Number 52
- Slide Number 53
- Slide Number 54
- Slide Number 55
- Slide Number 56
- Slide Number 57
- Slide Number 58
- Slide Number 59
- Slide Number 60
- Slide Number 61
- Slide Number 62
- Slide Number 63
- Slide Number 64
- Slide Number 65
- Slide Number 66
- Slide Number 67
- Slide Number 68
- Slide Number 69
- Slide Number 70
- Slide Number 71
- Slide Number 72
- Slide Number 73
- Slide Number 74
- Slide Number 75
- Slide Number 76
- Slide Number 77
- Slide Number 78
- Slide Number 79
- Slide Number 80
- Slide Number 81
- Slide Number 82
- Slide Number 83
- Slide Number 84
- Slide Number 85
- Slide Number 86
- Slide Number 87
- Slide Number 88
- Slide Number 89
- Slide Number 90
- Slide Number 91
- Slide Number 92
- Slide Number 93
- Slide Number 94
- Slide Number 95
- Slide Number 96
- Slide Number 97
-
87
Cos
t is
Fair
amp
Reas
onab
le
Number of Sub-consultantsSpecialty work performed by Subconsultants increases risk to Prime
Less than 15 0625
15 - 50 0625 ndash 100
More than 50 100
Degree of RiskRelated to level of complexity and sensitivity of the work
Low to High risk 0625 - 100
ProfitFee Negotiations(Continued)
88
Cos
t is
Fair
amp
Reas
onab
le
Estimating Profit ()
Factors Weights Rate RateXWeights
Contract Amount 15 1000 1500
Nature of Services 30 1000 3000
Period of Performance (duration) 15 0850 1275
Utilization of () Sub-consultants 20 0850 1700
Degree of Risk 20 1000 2000
Total 9475
9475
Example ProfitFee NegotiationsGiven For an AampE Contract to Provide Preliminary Engineering Environmental Process and Final Engineering amp Design for a Bridge Replacement Project bull Contract amount $2 Millionbull Contract duration 15 Years bull Using Sub-consultant for 35
of the work
89
Cos
t is
Fair
amp
Reas
onab
le
bull Exhibit 10-A (Contracts of $150000 and Greater) amp Exhibit 10-K
Must be submitted to IOAI for Indirect Cost Rate (ICR) acceptance prior to contract execution
bull ICR Acceptance ID
bull For IOAI information and resources visit igdotcagovresources
Independent Office of Audits amp Investigations (IOAI)
Visit Chapter 1013
90
Cos
t is
Fair
amp
Reas
onab
le
bullNo Cost analysis performedbullNo documented Cost amp Fee NegotiationsbullMissing fiscal provisions in Standard Agreement (boilerplate)bullMissing breakdown of ODCsbullMissing cost proposals for the subconsultantsbullIncomplete or inadequate cost proposal format usedbullUnallowable method of payment used (rate sheets)bullIncomplete Internal Control Questionnaire (ICQ)bullMissing andor incomplete certification forms (10-Ks)bullInconsistent Indirect Cost Rate (ICR) in 10-Ks and the cost proposal
Most Frequent Errors amp Deficiencies Cost is Fair amp Reasonable
91
Cos
t is
Fair
amp
Reas
onab
le
bullBottom-up Method ICE ExamplebullCost Analysis SamplebullInitiate IOAI Financial Review Including Indirect Cost Rate
bullSubmit Exhibit 10-A Exhibit 10-K and Exhibit 10-H Cost Proposal bullSee Exhibit 10-A for other applicable documentsbullIncludes Consultantrsquos Indirect Cost Rate Schedule
Forms amp Resources Cost is Fair amp Reasonable
92
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
93
94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
- Slide Number 1
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Slide Number 7
- Slide Number 8
- Slide Number 9
- Slide Number 10
- Slide Number 11
- Slide Number 12
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
- Slide Number 26
- Slide Number 27
- Slide Number 28
- Slide Number 29
- Slide Number 30
- Slide Number 31
- Slide Number 32
- Slide Number 33
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Slide Number 37
- Slide Number 38
- Slide Number 39
- Slide Number 40
- Slide Number 41
- Slide Number 42
- Slide Number 43
- Slide Number 44
- Slide Number 45
- Slide Number 46
- Slide Number 47
- Slide Number 48
- Slide Number 49
- Slide Number 50
- Slide Number 51
- Slide Number 52
- Slide Number 53
- Slide Number 54
- Slide Number 55
- Slide Number 56
- Slide Number 57
- Slide Number 58
- Slide Number 59
- Slide Number 60
- Slide Number 61
- Slide Number 62
- Slide Number 63
- Slide Number 64
- Slide Number 65
- Slide Number 66
- Slide Number 67
- Slide Number 68
- Slide Number 69
- Slide Number 70
- Slide Number 71
- Slide Number 72
- Slide Number 73
- Slide Number 74
- Slide Number 75
- Slide Number 76
- Slide Number 77
- Slide Number 78
- Slide Number 79
- Slide Number 80
- Slide Number 81
- Slide Number 82
- Slide Number 83
- Slide Number 84
- Slide Number 85
- Slide Number 86
- Slide Number 87
- Slide Number 88
- Slide Number 89
- Slide Number 90
- Slide Number 91
- Slide Number 92
- Slide Number 93
- Slide Number 94
- Slide Number 95
- Slide Number 96
- Slide Number 97
-
88
Cos
t is
Fair
amp
Reas
onab
le
Estimating Profit ()
Factors Weights Rate RateXWeights
Contract Amount 15 1000 1500
Nature of Services 30 1000 3000
Period of Performance (duration) 15 0850 1275
Utilization of () Sub-consultants 20 0850 1700
Degree of Risk 20 1000 2000
Total 9475
9475
Example ProfitFee NegotiationsGiven For an AampE Contract to Provide Preliminary Engineering Environmental Process and Final Engineering amp Design for a Bridge Replacement Project bull Contract amount $2 Millionbull Contract duration 15 Years bull Using Sub-consultant for 35
of the work
89
Cos
t is
Fair
amp
Reas
onab
le
bull Exhibit 10-A (Contracts of $150000 and Greater) amp Exhibit 10-K
Must be submitted to IOAI for Indirect Cost Rate (ICR) acceptance prior to contract execution
bull ICR Acceptance ID
bull For IOAI information and resources visit igdotcagovresources
Independent Office of Audits amp Investigations (IOAI)
Visit Chapter 1013
90
Cos
t is
Fair
amp
Reas
onab
le
bullNo Cost analysis performedbullNo documented Cost amp Fee NegotiationsbullMissing fiscal provisions in Standard Agreement (boilerplate)bullMissing breakdown of ODCsbullMissing cost proposals for the subconsultantsbullIncomplete or inadequate cost proposal format usedbullUnallowable method of payment used (rate sheets)bullIncomplete Internal Control Questionnaire (ICQ)bullMissing andor incomplete certification forms (10-Ks)bullInconsistent Indirect Cost Rate (ICR) in 10-Ks and the cost proposal
Most Frequent Errors amp Deficiencies Cost is Fair amp Reasonable
91
Cos
t is
Fair
amp
Reas
onab
le
bullBottom-up Method ICE ExamplebullCost Analysis SamplebullInitiate IOAI Financial Review Including Indirect Cost Rate
bullSubmit Exhibit 10-A Exhibit 10-K and Exhibit 10-H Cost Proposal bullSee Exhibit 10-A for other applicable documentsbullIncludes Consultantrsquos Indirect Cost Rate Schedule
Forms amp Resources Cost is Fair amp Reasonable
92
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
93
94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
- Slide Number 1
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Slide Number 7
- Slide Number 8
- Slide Number 9
- Slide Number 10
- Slide Number 11
- Slide Number 12
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
- Slide Number 26
- Slide Number 27
- Slide Number 28
- Slide Number 29
- Slide Number 30
- Slide Number 31
- Slide Number 32
- Slide Number 33
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Slide Number 37
- Slide Number 38
- Slide Number 39
- Slide Number 40
- Slide Number 41
- Slide Number 42
- Slide Number 43
- Slide Number 44
- Slide Number 45
- Slide Number 46
- Slide Number 47
- Slide Number 48
- Slide Number 49
- Slide Number 50
- Slide Number 51
- Slide Number 52
- Slide Number 53
- Slide Number 54
- Slide Number 55
- Slide Number 56
- Slide Number 57
- Slide Number 58
- Slide Number 59
- Slide Number 60
- Slide Number 61
- Slide Number 62
- Slide Number 63
- Slide Number 64
- Slide Number 65
- Slide Number 66
- Slide Number 67
- Slide Number 68
- Slide Number 69
- Slide Number 70
- Slide Number 71
- Slide Number 72
- Slide Number 73
- Slide Number 74
- Slide Number 75
- Slide Number 76
- Slide Number 77
- Slide Number 78
- Slide Number 79
- Slide Number 80
- Slide Number 81
- Slide Number 82
- Slide Number 83
- Slide Number 84
- Slide Number 85
- Slide Number 86
- Slide Number 87
- Slide Number 88
- Slide Number 89
- Slide Number 90
- Slide Number 91
- Slide Number 92
- Slide Number 93
- Slide Number 94
- Slide Number 95
- Slide Number 96
- Slide Number 97
-
89
Cos
t is
Fair
amp
Reas
onab
le
bull Exhibit 10-A (Contracts of $150000 and Greater) amp Exhibit 10-K
Must be submitted to IOAI for Indirect Cost Rate (ICR) acceptance prior to contract execution
bull ICR Acceptance ID
bull For IOAI information and resources visit igdotcagovresources
Independent Office of Audits amp Investigations (IOAI)
Visit Chapter 1013
90
Cos
t is
Fair
amp
Reas
onab
le
bullNo Cost analysis performedbullNo documented Cost amp Fee NegotiationsbullMissing fiscal provisions in Standard Agreement (boilerplate)bullMissing breakdown of ODCsbullMissing cost proposals for the subconsultantsbullIncomplete or inadequate cost proposal format usedbullUnallowable method of payment used (rate sheets)bullIncomplete Internal Control Questionnaire (ICQ)bullMissing andor incomplete certification forms (10-Ks)bullInconsistent Indirect Cost Rate (ICR) in 10-Ks and the cost proposal
Most Frequent Errors amp Deficiencies Cost is Fair amp Reasonable
91
Cos
t is
Fair
amp
Reas
onab
le
bullBottom-up Method ICE ExamplebullCost Analysis SamplebullInitiate IOAI Financial Review Including Indirect Cost Rate
bullSubmit Exhibit 10-A Exhibit 10-K and Exhibit 10-H Cost Proposal bullSee Exhibit 10-A for other applicable documentsbullIncludes Consultantrsquos Indirect Cost Rate Schedule
Forms amp Resources Cost is Fair amp Reasonable
92
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
93
94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
- Slide Number 1
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Slide Number 7
- Slide Number 8
- Slide Number 9
- Slide Number 10
- Slide Number 11
- Slide Number 12
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
- Slide Number 26
- Slide Number 27
- Slide Number 28
- Slide Number 29
- Slide Number 30
- Slide Number 31
- Slide Number 32
- Slide Number 33
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Slide Number 37
- Slide Number 38
- Slide Number 39
- Slide Number 40
- Slide Number 41
- Slide Number 42
- Slide Number 43
- Slide Number 44
- Slide Number 45
- Slide Number 46
- Slide Number 47
- Slide Number 48
- Slide Number 49
- Slide Number 50
- Slide Number 51
- Slide Number 52
- Slide Number 53
- Slide Number 54
- Slide Number 55
- Slide Number 56
- Slide Number 57
- Slide Number 58
- Slide Number 59
- Slide Number 60
- Slide Number 61
- Slide Number 62
- Slide Number 63
- Slide Number 64
- Slide Number 65
- Slide Number 66
- Slide Number 67
- Slide Number 68
- Slide Number 69
- Slide Number 70
- Slide Number 71
- Slide Number 72
- Slide Number 73
- Slide Number 74
- Slide Number 75
- Slide Number 76
- Slide Number 77
- Slide Number 78
- Slide Number 79
- Slide Number 80
- Slide Number 81
- Slide Number 82
- Slide Number 83
- Slide Number 84
- Slide Number 85
- Slide Number 86
- Slide Number 87
- Slide Number 88
- Slide Number 89
- Slide Number 90
- Slide Number 91
- Slide Number 92
- Slide Number 93
- Slide Number 94
- Slide Number 95
- Slide Number 96
- Slide Number 97
-
90
Cos
t is
Fair
amp
Reas
onab
le
bullNo Cost analysis performedbullNo documented Cost amp Fee NegotiationsbullMissing fiscal provisions in Standard Agreement (boilerplate)bullMissing breakdown of ODCsbullMissing cost proposals for the subconsultantsbullIncomplete or inadequate cost proposal format usedbullUnallowable method of payment used (rate sheets)bullIncomplete Internal Control Questionnaire (ICQ)bullMissing andor incomplete certification forms (10-Ks)bullInconsistent Indirect Cost Rate (ICR) in 10-Ks and the cost proposal
Most Frequent Errors amp Deficiencies Cost is Fair amp Reasonable
91
Cos
t is
Fair
amp
Reas
onab
le
bullBottom-up Method ICE ExamplebullCost Analysis SamplebullInitiate IOAI Financial Review Including Indirect Cost Rate
bullSubmit Exhibit 10-A Exhibit 10-K and Exhibit 10-H Cost Proposal bullSee Exhibit 10-A for other applicable documentsbullIncludes Consultantrsquos Indirect Cost Rate Schedule
Forms amp Resources Cost is Fair amp Reasonable
92
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
93
94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
- Slide Number 1
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Slide Number 7
- Slide Number 8
- Slide Number 9
- Slide Number 10
- Slide Number 11
- Slide Number 12
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
- Slide Number 26
- Slide Number 27
- Slide Number 28
- Slide Number 29
- Slide Number 30
- Slide Number 31
- Slide Number 32
- Slide Number 33
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Slide Number 37
- Slide Number 38
- Slide Number 39
- Slide Number 40
- Slide Number 41
- Slide Number 42
- Slide Number 43
- Slide Number 44
- Slide Number 45
- Slide Number 46
- Slide Number 47
- Slide Number 48
- Slide Number 49
- Slide Number 50
- Slide Number 51
- Slide Number 52
- Slide Number 53
- Slide Number 54
- Slide Number 55
- Slide Number 56
- Slide Number 57
- Slide Number 58
- Slide Number 59
- Slide Number 60
- Slide Number 61
- Slide Number 62
- Slide Number 63
- Slide Number 64
- Slide Number 65
- Slide Number 66
- Slide Number 67
- Slide Number 68
- Slide Number 69
- Slide Number 70
- Slide Number 71
- Slide Number 72
- Slide Number 73
- Slide Number 74
- Slide Number 75
- Slide Number 76
- Slide Number 77
- Slide Number 78
- Slide Number 79
- Slide Number 80
- Slide Number 81
- Slide Number 82
- Slide Number 83
- Slide Number 84
- Slide Number 85
- Slide Number 86
- Slide Number 87
- Slide Number 88
- Slide Number 89
- Slide Number 90
- Slide Number 91
- Slide Number 92
- Slide Number 93
- Slide Number 94
- Slide Number 95
- Slide Number 96
- Slide Number 97
-
91
Cos
t is
Fair
amp
Reas
onab
le
bullBottom-up Method ICE ExamplebullCost Analysis SamplebullInitiate IOAI Financial Review Including Indirect Cost Rate
bullSubmit Exhibit 10-A Exhibit 10-K and Exhibit 10-H Cost Proposal bullSee Exhibit 10-A for other applicable documentsbullIncludes Consultantrsquos Indirect Cost Rate Schedule
Forms amp Resources Cost is Fair amp Reasonable
92
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
93
94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
- Slide Number 1
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Slide Number 7
- Slide Number 8
- Slide Number 9
- Slide Number 10
- Slide Number 11
- Slide Number 12
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
- Slide Number 26
- Slide Number 27
- Slide Number 28
- Slide Number 29
- Slide Number 30
- Slide Number 31
- Slide Number 32
- Slide Number 33
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92
Qualifications Based SelectionProcurement
Planning
Full amp Open Competition
Cost is Fair amp Reasonable
Contract Execution
AampE PROCUREMENT TIMELINE
93
94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
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93
94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
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- Slide Number 93
- Slide Number 94
- Slide Number 95
- Slide Number 96
- Slide Number 97
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94
Con
trac
t ex
ecut
ion
Modifies terms of original contract eg the duration Cost
Change of Scope or Added work must be within original scope of work of the contract
For on-call contracts the amendment is restricted to the work (task order) that has already been started and cannot include any new work
Must amend contract prior to original contract expiration date
Contract Amendments
YESTERDAY
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
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- Slide Number 94
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- Slide Number 96
- Slide Number 97
-
95
Con
trac
t ex
ecut
ion
bull AampE Contract Reviewer Checklist (Exhibit 10-C)
bull Contract DBE Information (Exhibits 10-O1 and 10-O2)
bull Executed contract to District
bull Exhibit 10-A and associated documents
bull Exhibit 10-U when applicable
Contract ExecutionSubmittals to Caltrans
NOTE Only work performed after Obligation Authority (E-76) approval is eligible for federalstate reimbursement
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
- Slide Number 1
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- Slide Number 96
- Slide Number 97
-
96
Con
trac
t ex
ecut
ion
bull Lack of Consultant Contract Reviewers Checklist (Exhibit 10-C)
bull Incomplete fiscal and miscellaneous provisions in final contract
bull Lack of documented contract approval process
Most Frequent Errors and Deficiencies Contract Execution
97
End Of Presentation
Questions
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97
End Of Presentation
Questions
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