ERC Recertification Summer 2014 Federalaid Program Contracts INDOTLPA

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 § 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 n n When does this happen? Contract Breakdown n n Sections I-VI Attachments A-D

INDOT-LPA Contract n Section III

INDOT-LPA Contract n Section IV n Section V

INDOT-LPA Contract n Section VI n n A-T provisions outlined in contract Some highlights to be aware of: Access to records n Audits n Compliance n Disputes n Non-discrimination (ADA, DBE) n

INDOT-LPA Contract n n 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 Hiring a consultant through competitive negotiation: What YOU need to know!

LPA-Consultant Contract n Objectives 1. Ability to understand the various types of contracts and their elements. 2. Empower YOU to successfully negotiate a contract. $$$ n Schedule n Appropriate for the project n

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

LPA-Consultant Contract n LPA Contracting Sequence 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. District Local Program Director reviews and advertises RFP. 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.

LPA-Consultant Contract n 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. After receiving ‘DBE Goal Met’ email reply, ERC completes the Consultant Contract Review Checklist and submits to District Local Program Director for approval. 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. District Local Program Director approves Consultant Selection Review Checklist and confirms that LPA can begin negotiation with #1 ranked firm.

LPA-Consultant Contract n LPA Contracting Sequence, cont’d. After negotiation of scope, schedule compensation and fees, draft contract is prepared using the boilerplate contract found on INDOT’s website. ERC completes the LPAConsultant Contract Review Checklist on the INDOT website and submits all required documentation along with draft contract to District Local Program Director reviews LPA-Consultant Contract Review Checklist and notifies ERC that draft contract can be executed. After signing the consultant contract, the ERC maintains a copy and sends a copy to the District Local Program Director.

LPA-Consultant Contract n Contract Compensation Methods n n n 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 n Lump Sum n n 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 n Negotiated Labor Rate n n 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 n Cost Plus Fixed Fee n n 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 n Unit Price n n n Good method for use with repetitive welldefined units of work. Typically used for geotechnical and right-ofway (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 n Advice about use of multiple methods n 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 n Consultant Contract Review Checklist n n n 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 n Escalation values for INDOT consultant contracts: n n n 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 n Real estate fee schedules: n n n 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”

Common Errors EXAMPLE #10: See handout: “Match App. D”

Common Errors EXAMPLE #11: See handout: “Appendix A”

Common Errors EXAMPLE #12: See handout: “Appendix B”

Common Errors EXAMPLE #13: See handout: “Appendix C”

Common Errors EXAMPLE #14: See handout: “Appendix D”

LPA-Consultant Contract FAQs n n 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?

Federal-Aid Program Contracts n KEY TAKEAWAYS: n INDOT-LPA Contract MEETING YOUR SCHEDULE IS IMPORTANT! n Attachments A-D- specific to your project n n LPA-Consultant Contract Different types of contracts n Following the RFP process is important- audits WILL happen after your project n You have the right to negotiate n Confused? Ask for help. n

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 n KEY TAKEAWAYS: LQR is a tool for everyone involved 2. The report is only as good as the info you put into it! (Garbage in, garbage out) 3. Technical support? 1.