erc recertification summer 2014

ERC Recertification

Summer 2014

Federal-aid Program Contracts

INDOT-LPA Contract

Stewardship & Oversight Agreement: INDOT & FHWA FHWA & INDOT are jointly responsible for how the Federal-

aid program is developed and implemented. INDOT, acting on behalf of FHWA, is expected to exercise

judgments similar to FHWA based on Federal laws, regulations and policies.

INDOT-LPA Contract

INDOT-LPA Contract This contract states agreement between both parties

on: Project description LPA Responsibilities, rights & duties INDOT Responsibilities, rights & duties Project Funds Terms & Schedule General Provisions & compliance

INDOT-LPA Contract When does this happen? Contract Breakdown

Sections I-VI Attachments A-D

INDOT-LPA Contract Section I

Section II

Section III

INDOT-LPA Contract Section IV

Section V

INDOT-LPA Contract Section VI

A-T provisions outlined in contract Some highlights to be aware of:

Access to records Audits Compliance Disputes Non-discrimination (ADA, DBE)

INDOT-LPA Contract Attachment A- Project

Description Attachment B- LPA’s Rights and

Duties Attachment C- INDOT’s Rights

and Duties Attachment D- Project Funds

When can I start my project?

LPA-Consultant Contract

What YOU need to know!

Hiring a consultant through competitive negotiation:

LPA-Consultant Contract Objectives

1. Ability to understand the various types of contracts and their elements.

2. Empower YOU to successfully negotiate a contract.

$$$ Schedule Appropriate for the project

Items to cover: Contracting sequence Contract compensation methods Contract review checklist Consultant prequalification letter Profit calculation worksheet Compensation/escalation value

LPA-Consultant Contract

LPA Contracting SequenceLPA-Consultant Contract

ERC reviews

the Consultant Selection Toolkit on the INDOT website.

ERC requests the

Disadvantaged Business Enterprise (DBE) goal

through email by going to the INDOT website.

ERC drafts a Request for Proposals

(RFP) using the RFP

template on the INDOT website.

When advertising is complete, ERC requests Past Performance Data for any

Letters of Interest (LOIs)

received.

District Local Program

Director reviews and advertises

RFP.

LPA-Consultant Contract LPA Contracting Sequence,

cont’d.ERC

verifies that the

responding firms are

prequalified for the

work types advertised by using INDOT’s

prequalified

consultant list online.

An LPA scoring

team (3-5 individuals) evaluates and ranks

all submitted

RFPs.

LPA scoring team

completes scoring and tabulation and ERC

confirms the DBE goal is being met by the #1

ranking firm by

requesting a DBE Goal Met email

and attaching

the Affirmative

Action Certification form (AAC) submitted

with the LOI.

After receiving ‘DBE Goal Met’ email reply,

ERC completes the Consultant Contract Review Checklist and

submits to District Local Program Director

for approval.

District Local Program Director approves

Consultant Selection Review Checklist and confirms that LPA can begin negotiation with

#1 ranked firm.

LPA-Consultant Contract LPA Contracting Sequence,

cont’d.After

negotiation of

scope, schedule compens

ation and fees, draft

contract is

prepared using

the boilerpla

te contract found on INDOT’s website.

ERC completes the LPA-

Consultant

Contract Review Checklist on the INDOT

website and

submits all

required documen

tation along with draft

contract to

District Local

Program Director.

District Local

Program Director reviews

LPA-Consulta

nt Contract Review Checklis

t and notifies ERC that

draft contract can be

executed.

After signing

the consulta

nt contract, the ERC maintains a copy

and sends a copy to

the District Local

Program Director.

Contract Compensation Methods Lump sum Negotiated labor rate Cost Plus Fixed Fee (CPFF) Unit price Cost plus % of cost is prohibited by

Indiana Code and Federal Regulations

LPA-Consultant Contract

Lump Sum Good method to use when the scope of

work is well-defined and when there is confidence in level of effort required.

Not acceptable for construction inspection.

LPA-Consultant Contract

EXAMPLE #1:

See handout: “Lump Sum: Appendix D”

LPA-Consultant Contract

Negotiated Labor Rate Acceptable method to use when the

scope is not well-defined, or when the consultant is not in control of the level of effort.

Typically used for construction inspection.

LPA-Consultant Contract

EXAMPLE #2:

See handout: “Negotiated Labor Rate: Appendix D”

LPA-Consultant Contract

Cost Plus Fixed Fee Acceptable method to use when the

scope is well-defined but there is a lower degree of confidence in the level of effort required.

Consultants must have full CPA Audit or Cognizant Audit prequalification financial approval to use this method.

LPA-Consultant Contract

EXAMPLE #3:

See handout: “Cost + Fixed Fee: Appendix D”

LPA-Consultant Contract

Unit Price Good method for use with repetitive

well-defined units of work. Typically used for geotechnical and

right-of-way (ROW) services. INDOT approved unit price rates for

ROW services are available on the INDOT website.

LPA-Consultant Contract

EXAMPLE #4:

See handout:“Unit Price”

LPA-Consultant Contract

Advice about use of multiple methods Lump sum and hourly compensation

elements should not be mixed in a contract unless the methods would be applied during different defined time periods or when there is no overlap in the staff who will be performing the work elements.

LPA-Consultant Contract

Consultant Contract Review Checklist Go to: http://www.in.gov/indot/index.htm Click: Doing Business with INDOT Click: LPA & Grants Administration Click: LPA Consultant Selection Under: Forms Select: Consultant Contract Review

Checklist

LPA-Consultant Contract

EXAMPLE #5:

See handout:“LPA-Consultant Contract Review Checklist”

LPA-Consultant Contract

EXAMPLE #6:

See handout: “Consultant Prequalification Letter”

LPA-Consultant Contract

EXAMPLE #7:

See handout:“Consultant Contracts Profit Calculation Worksheet”

LPA-Consultant Contract

Escalation values for INDOT consultant contracts: Go to:

http://www.in.gov/indot/index.htm Click on: Doing Business with INDOT Highlight: Consultants/Pre-construction Click on: Proposals & Contracts Under: Contract Compensation

Information Select: Employment Cost Index (ECI)

Rates

LPA-Consultant Contract

EXAMPLE #8:

See handout:“Escalation Values for INDOT Consultant Contracts”

LPA-Consultant Contract

Real estate fee schedules: Go to:

http://www.in.gov/indot/index.htm Click on: Doing Business with INDOT Highlight: Consultants/Pre-construction Click on: Proposals & Contracts Under Contract Compensation

Information Select: Current Real Estate Fee

Schedules

LPA-Consultant Contract

EXAMPLE #9:

See handout:“Increase in State Mileage Reimbursement Rate”

LPA-Consultant Contract

EXAMPLE #10:

See handout:“Match App. D”

Common Errors

Common ErrorsEXAMPLE #11:

See handout:“Appendix A”

Common ErrorsEXAMPLE #12:

See handout:“Appendix B”

Common ErrorsEXAMPLE #13:

See handout:“Appendix C”

Common ErrorsEXAMPLE #14:

See handout:“Appendix D”

How does the state negotiate consultant contracts?

If I don’t know anything about negotiating, who can I talk to?

If I include a work type on an RFP that ends up not being used, is that a problem? What if I don’t include one I end up needing?

What are some things I should be aware of in a consultant contract?

LPA-Consultant Contract FAQs

Federal-Aid Program Contracts KEY TAKEAWAYS:

INDOT-LPA Contract MEETING YOUR SCHEDULE IS IMPORTANT! Attachments A-D- specific to your project

LPA-Consultant Contract Different types of contracts Following the RFP process is important-

audits WILL happen after your project You have the right to negotiate Confused? Ask for help.

Local Quarterly Report (LQR)

Local Quarterly Report

https://itap.indot.in.gov

Local Quarterly Report

Local Quarterly Report

Local Quarterly Report

Local Quarterly Report

Local Quarterly Report

Local Quarterly Report

Local Quarterly Report

Local Quarterly Report

Local Quarterly Report

LQR Main Page

Tab Identification

General Questions

Comment Box

Project Cost and Budget Tab

Project Schedule Tab

Permits Tab

Tab for Post Bid Letting

Comments Tab

Document Upload Tab

Signing & Submitting Report

Review

Review

LQR KEY TAKEAWAYS:

1. LQR is a tool for everyone involved2. The report is only as good as the info

you put into it! (Garbage in, garbage out)

3. Technical support?