Consultant Q & AMarch 6, 2012

Nathan Czech, P.E., WisDOT

Randy Knoche, C.P.A., WisDOT

Deb Evers, P.E., SE Region CU Sup

Scott Lawry, P.E., SW Region CU Sup

Rick Shermo, P.E., NW Region CU Sup

Jim Thompson, P.E., NE Region CU Sup

Anna Wisner, P.E., NC Region CU Sup

Michele Carter, Statewide Bureaus, OBOEC

ACEC/WisDOT Transportation Improvement Conference

On occasion there are inconsistencies between Regions, within Regions, in postings on the Extranet, and in the FDM with respect to contract form and format issues. How is this

being addressed to avoid conflicting guidance to the consultant industry and to WisDOT staff? (Jim)

• Full staff levels in the Consultant Services Section• Review boilerplates and cover letters to update the FDM• Monthly Consultant Unit Supervisor Meetings• Discussions with each Region’s Consultant Unit Supervisor• Reconvene Contracts & Negotiation Taskforce• Notification on Extranet postings

Some Regions do not allow much more than the standard "canned" specials while others allow a well defined scope document to be inserted into the contract along with the

special provisions. It is in the client’s best interest to have a well written scope. Can a Basis of Understanding or Scoping Memorandum be included as part of the contract? (Anna)

•Contract Format, 8-15-1• Specials specific to project

• Prosecution & progress, basis of payment, materials furnished by WisDOT.

• Identify items of work to be included in the contract• Design Reports - will an encroachment report be needed?

• Other miscellaneous provisions not allowed• Detailed scoping beneficial

• Utilized for negotiations• Negotiation documentation

Are there any trends in construction Contract Modifications that the consulting industry and WisDOT should take note of

indicating issues with the project delivery that should be addressed? Are trends in Contract Modifications being

tracked? (Deb)

What are the most common, easy to avoid errors in preparing agreements with the Department? (Rick)

•Insure current pay rates are actual.•No pay escalation clauses.•Eliminate “cut and paste errors” (Project Titles, I.D.’s, etc.)•Consultant perform own QA/QC of documents, particularly math computations•Insure current overhead rate is used.•Standard templates/boiler plates are used with only necessary project specific information added.•Submit all documents at same time, including subconsultant’s.

What are the most common, easy to avoid errors in preparing agreements with the Department? (Rick)

(Continued)

•Include confidentiality language when staff is housed in a WisDOT office.•Prime to verify accuracy and completeness of sub’s documents.•Follow the available submittal checklists.•Use the most current document available on extranet.

When a DBE sub-consultant has Direct Expenses and/or a Sub-Consultant under them (second tier sub) as a part of

their contract, do these portions of the DBE’s contract count toward the DBE goal? (Nate)

• Direct expenses of the DBE firm count• Sub-Consultant work does not count• Definition of Sub-Consultant (FDM 8-10-25):

• A subconsultant is any person, organization, or entity not classified as an employee of the prime consultant on its official payroll records and to whom the prime consultant sublets, transfers, or assigns any portions of its obligations under a contract with WisDOT.

What are the current DBE requirements for 2-party, 3-party, and work order contracts? Some NOI’s have specific goals

listed, yet on other project without goals listed, some regions are still requiring the “20% of $400,000” language to be

included in the contracts. (Nate)

• DBE Goal of 20% for contracts over $400,000 is no longer in effect• Check each individual solicitation for DBE Goal

Contract Administration and Reporting (CARS) Update

Potential Schedule for Releases Release 0.5 – CARS Prototype September, 2011No Deployment, but WisDOT staff enter sample data and test the system.

Contract Administration and Reporting (CARS) Update

Release 1.0 - CARS Late 2012Deployment –System will be used by the same staff in a similar way the current database is used. Release 2.0 - Invoicing Spring 2013Deployment – System will be deployed to both internal and external customers.

Contract Administration and Reporting (CARS) Update

Release 3.0 - Audit Summer 2013 Deployment – System will be used by the same staff in a similar way to the current audit database. Release 4.0 – Final CARS 2014Upgrades including possible CFR & Solicitation Improvements

Contract Administration and Reporting (CARS) Update

These timelines are extremely approximate (other than for release 0.5)

as no funding has been authorized or contracts established beyond release 2.0.

Contract Administration and Reporting (CARS) Update

Karen Androfski, BITS Project LeaderTammy Gorzlancyk, Project Manager

Lisa Stern, DTSD Technical LeadBrian Rice, DTSD Technical Lead

Francis Schelfhout – DTSD Technical leadDiane Phaneuf, DTIM Technical Lead

Nate Czech, DTSD Project ChiefRandy Knoche, DTIM Project Chief

Additional members will be involved as the project progresses

ACEC/WisDOT Consultant Q&A (Randy)

Does the end contract date for subconsultant’s need to

match the prime, and if so, why?

•Record retention for primes and all subs is 3 years following final payment to prime.

•Contract is in force for 3 years following acceptance of service by WisDOT.

ACEC/WisDOT Consultant Q&A

Q: Within the FDM there is allowance for use of weighted averages for employee classifications. The term Key Personnel is used within the FDM to identify staff that shall be listed in the weighted average determination used in the calculation for contracts. Some WisDOT Project Managers and Consultant Supervisors require all staff to be named individually, and others allow staff initials or staff numbers to be used to identify staff. When is it necessary to list individual staff members as Key Personnel?

A: Policy for estimating direct labor is published in FDM 8-10-30.1

ACEC/WisDOT Consultant Q&A

Key Personnel vs. Weighted Averages• Key Personnel - Employee name, classification, and

hourly rate must be stated at the actual rates paid the employees by the consultant.

• Non-key Personnel - When two or more individuals within the same classification are assigned to perform the contract work, a weighted average based on their percentage of contribution may be used; or WisDOT may approve hourly labor rates based on the average of ALL employees within a classification.

ACEC/WisDOT Consultant Q&A

Key Personnel for Design Contracts

Key personnel are those considered project leaders and key technical experts that were considered by WisDOT in selecting the consultant for the contact.

A good place to start is personnel listed by the consultant as key staff on the Notice Of Interest.

The FDM provides guidance, the final decision lies with WisDOT negotiator.

ACEC/WisDOT Consultant Q&A

Key Personnel for Construction Contracts

Key personnel are those considered project leaders and other staff dedicated to the project on a full time basis.

The FDM provides guidance, the final decision lies with WisDOT negotiator.

ACEC/WisDOT Consultant Q&A

Proposing Direct Labor Rates

• Consultants may use employee numbers on fee comps if a separate “cross-walk” showing names and numbers is provided.

• Use of same employee in multiple classifications is under review.• Current pay rates means pay rates being paid when the fee comp is

submitted. Current does not mean a rate to be paid in the future. • WisDOT views fee comp submitted with contract as consultant’s

representation of current payroll/charge-out rates.

ACEC/WisDOT Consultant Q&A

ACEC/WisDOT Consultant Q&A

ACEC/WisDOT Consultant Q&A

Q:What is the current status of using the contracted OH rate during the life of the project?

A: FDM 8-25-10 requires consultants to invoice “estimated total indirect costs using the rate approved for current use.”

ACEC/WisDOT Consultant Q&A

Rate approved for current use is established by:

• WisDOT acceptance of Consultant Financial Report

• Audit accepted/approved for used by WisDOT• Cognizant Audit