objectives of this training - · pdf filelapg =local assistance program guidelines ... •...

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Instructor

Mohammad Maljai, P.E.Caltrans HQ

Division of Local Assistance

PROCURING A&E CONTRACTS

Module 5 – Contract Execution

• Improve knowledge of the requirements

– Identify and review process activities and tasks

Local Assistance Procedures Manual (LAPM) –Chapter 10

– Provide resources, references, and guides

– Identify and review forms, documents, and checklists

– Examine tools, templates, and samples

• Identify some of the most frequent errors/deficiencies

• Minimize risk of losing federal funds due to non-compliance findings

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Objectives of This Training

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Procurement Process

PROCUREMENT

PLANNING

SOLICITATION

DOCUMENTS AND

ADVERTISEMENT

EVALUATION AND

SELECTION OF

CONSULTANT

CONTRACT COST

NEGOTIATIONS

CONTRACT

EXECUTION

STEP #12: CONTRACT EXECUTION

#12 Offer and conduct debriefing meetings with consultant who asked for one

Send copies of executed contract, Contract Approval Checklist (see LAPM Exhibit 10‐C), and DBE Commitment

(see LAPM Exhibits 10‐O1 and 10‐O2) to DLAE

Close out contract procurement process

Caltrans DLAE

Prior to concurring with invoice payment related to consultant services, ensure that district has a copy of the executed

consultant contract on file as well as LAPM Exhibits 10‐C, 10‐O1 and 10‐O2

Check A&I database to ensure that LAPM Exhibit 10‐K, if applicable, has been received by A&I

Caltrans A&I

Perform Incurred Cost Audit, if selected

A&E = Architectural & Engineering

A&I = Caltrans Audits & Investigations

CT = Caltrans

DBE = Disadvantaged Business Enterprise

DLA = Division of Local Assistance

DLAE = District Local Assistance Engineer

LAPG = Local Assistance Program Guidelines

LAPM = Local Assistance Procedures Manual

MOP = Method of Payment

RFP = Request for Proposal

RFQ = Request for Qualifications

SOQ = Statement of Qualifications

SOW = Statement/Scope of Work

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• Evaluated consultant and selected most qualified based on qualification only

• Negotiated a fair and reasonable cost• Requested Caltrans A&I to perform a

conformance review• Provided boilerplate-language for

standard agreement to consultant for review

Recap of Earlier Phases

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• Contract Execution Phase– Finalize contract (what goes into it)– Contract approval process and Notice to proceed– Documents for contract files/DLAEs– Most Frequent Errors during Contract Execution

• Other Considerations– Contract Administration and Completion– Small Purchase Procedures & Non Competitive

Procurement– Procurement of Non-A&E Services– Conflict of interest issues

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Module 5 – Today’s Agenda

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• Finalize contract cost proposal

• Review final contract/agreement– DBE Commitment and Information (Exhibit 10-O1 and 10-O2)– Contract Provisions– Cost Proposal

• Address all deficiencies identified in the Conformance Review letter prior to contract execution

• Complete and file Consultant Contract Reviewer Checklist (LAPM Exhibit 10-C)

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Contract Execution

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EXHIBIT 10-O2 CONSULTANT CONTRACT DBE INFORMATION

(Inclusive of all DBEs listed at contract award. Refer to instructions on the reverse side of this form)

Consultant to Complete this Section

1. Local Agency Name: ________________________________________________________________________________________

2. Project Location: ___________________________________________________________________________________________

3. Project Description: _________________________________________________________________________________________

4. Total Contract Award Amount: $ ______________________

5. Consultant Name: __________________________________________________________________________________________

6. Contract DBE Goal %: ________________

7. Total Dollar Amount for all Subconsultants: $ ______________________

8. Total Number of all Subconsultants: _______________

Award DBE/DBE Information 9. Description of Services to be Provided 10. DBE/DBE Firm

Contact Information11. DBE Cert.

Number12. DBE Dollar Amount

Local Agency to Complete this Section 20. Local Agency Contract Number: ________________________________________________ 21. Federal-aid Project Number: ___________________________________________________ 22. Contract Execution Date: ________________________

Local Agency certifies that all DBE certifications are valid and the information on this form is complete and accurate:

_____________________________________________________________________________ 23. Local Agency Representative Name (Print)

___________________________________________________ ________________________ 24. Local Agency Representative Signature 25. Date ___________________________________________________ ________________________ 26. Local Agency Representative Title 27. (Area Code) Tel. No.

13. Total Dollars Claimed

$ ___________

14. Total % Claimed

__________ %

________________________________

15. Preparer’s Signature

________________________________ 16. Preparer’s Name (Print)

________________________________ 17. Preparer’s Title

____________ ___________________ 18. Date 19. (Area Code) Tel. No.

Caltrans to Complete this Section Caltrans District Local Assistance Engineer (DLAE) certifies that this form has been reviewed for completeness:

___________________________ _______________________________ ______________ 28. DLAE Name (Print) 29. DLAE Signature 30. Date

Distribution: (1) Copy – Email a copy to the Caltrans District Local Assistance Engineer (DLAE) within 30 days of contract award. Failure to send a copy to the DLAE within 30 days of contract award may result in delay of payment.

(2) Copy – Include in award package sent to Caltrans DLAE (3) Original – Local agency files

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• Approve and execute contract

– Document Board/Council/Contract Approver Authority Action

– Execute/sign contract

– Issue Notice to Proceed to the consultant

• Send copies to DLAE

– A&E Contract Reviewer Checklist (Exhibit 10-C)

– Contract DBE Information (Exhibits 10-O1 and 10-O2)

– Executed contract

– Any supporting documentation addressing Conformance Letter deficiencies

NOTE: Only work performed after Obligation Authority (E-76) approval is eligible for federal/state reimbursement 12

Contract Execution

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Most Frequent Errors/Deficiencies:

• Lack of Contract Reviewer Checklist (Exhibit 10-C)

• Incomplete fiscal and miscellaneous provisions in final contract

• Lack of documented contract approval process

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Contract Execution

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Procurement Process

PROCUREMENT

PLANNING

SOLICITATION

DOCUMENTS AND

ADVERTISEMENT

EVALUATION AND

SELECTION OF

CONSULTANT

CONTRACT COST

NEGOTIATIONS

CONTRACT

EXECUTION

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15

Contract Life Cycle

Procurement Planning

Procurement3-6 Months

PerformanceTypically 1-3 Years

Close-out2 Months

OtherConsiderations

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• Ensures communication between all parties

• Include prime, subconsultants, and local agency technical staff

• Discuss scope limits, lines of communication, accounting/invoicing, progress reporting requirements, and DBE utilization goals

• For on-call contracts, schedule meeting at convenience of consultant since there is no reimbursement for this activity

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Consultant ContractKickoff Meeting

• Local agency’s Contract Administrator shall:

– Invoice Caltrans with appropriate format and supporting documentation, including DBE utilization

NOTE: A new invoice review process requires DLAE to confirm receipt of Exhibit 10-Ks (for contracts over $150,000) prior to approval of invoice

– Maintain contract/project files

– Review technical products and deliverables

– Provide contract oversight and progress meeting records

– Review and approve progress payments

– Maintain accounting records and other documents

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Administer Contract

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• Local agency’s Contract Administrator shall:

– Pay final contract payments and close out

– Complete Consultant Performance Evaluation (LAPM Exhibit 10-S)

– Complete Final Report - Utilization of DBE, First-Tier Subcontractors (LAPM Exhibit 17-F)

– Document lessons learned

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Contract Completion (Close-Out)

• Modifies terms of original contract; Time and 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

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Contract Amendment

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• For contracts < $150,000 (Federal threshold)

• Informal and simplified procedures

• Open and competitive

• Must include “justification for selection”

• “Contract-splitting” is not allowed – to circumvent Brooks Act requirements

• For contracts + contract amendments < $150,000

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Small Purchase Procedures

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Required Not Required

• Competitive process (collect three bids)

• Conflict of interest determination

• Assigned Contract Administrator

• Defined scope of work/schedule of deliverables/start and end dates for contract

• Defined deliverables/prime and subconsultant responsibilities

• DBE goal for contract

• Cost estimate prior to receiving bids

• Best method of payment determination

• Contract provisions/clauses

• Evaluation of consultant

• Contract management responsibilities

• No RFP/RFQ

• No Selection Committee

• No evaluation criteria disclosure requirements

• No record of costs/profit negotiations

• No audit and review requirement of contract

Small Purchase Procedures

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1. Only one consultant is qualified to perform work

2. Emergency situation

3. Competition is determined to be inadequate after solicitation of a number of sources

• Prepare Public Interest Finding (PIF) (Exhibit 12-F)

• Develop adequate scope of work, evaluation factors and cost estimate

• Conduct negotiations with consultant to ensure fair and reasonable price for services

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Non-Competitive (Sole Source) Procurement

• Federal or state funding

• 23 CFR 172

• 2 CFR 200.317-200.326

• California State Public Contract Code 10335-10381

http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=pcc&codebody=&hits=20

• LAPM Chapter 10

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Non-A&E Consultant Contracts

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• No contracting agency employee who participates in the procurement, management, or administration of FAHP funded contracts or subcontracts shall have, directly or indirectly, any financial or other personal interest in connection with such contract or subcontract (as specified in 23 CFR 1.33)

• No person or entity performing services for a contracting agency in connection with a FAHP funded project shall have, directly or indirectly, any financial or other personal interest, other than employment or retention by the contracting agency, in any contract or subcontract in connection with such project (as specified in 23 CFR 1.33)

• No person or entity performing services for a contracting agency in connection with a FAHP funded project shall have, directly or indirectly, any financial or other personal interest in any real property acquired for the project (as specified in 23 CFR 1.33)

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Conflict of InterestRequirements

• Subject to 23 CFR 172 requirements:

– Providing oversight of an element of a highway program, function, or services on behalf of local agency, or

– Managing or providing oversight of a project, series of projects, and/or work of other consultants or contractors on behalf of local agency

• Requires prior approval if Federal-aid project funds reimbursement is sought (Exhibit 10-U)

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Consultant as Agency Engineeror in Management Support Role

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• City Engineer or equivalent

• Local agency must justify use of consultant in management role

• Individual or employee of firm

• Contract with qualified consultant in professional engineering capacity

• Subject to A&E procurement process requirements

• Appropriate conflict of interest policies and procedures and standards

• Precluded from providing additional services on projects, activities or contracts under its oversight

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Eligibility Requirement:

• Compliance with A&E procurement procedures

• Duty statement to document role and responsibilities

• Local agency must maintain “Responsible Charge” by full-time public employee

• Written policies and procedures to safeguard against conflict of interest concerns

– Completion of “Consultant in Management Position Conflict of Interest and Confidentiality Statement”LAPM Exhibit 10-U, subject to DLAE approval

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• Responsible Charge - a full time public employee (but not limited to):

– Contract negotiation, contract payment, consultant performance evaluation.

– Being familiar with the contract requirements, scope of services and products to be produced.

– Being familiar with the qualifications of the consultant's staff and changes in key personnel.

– Attending progress and project review meetings, to ensure project delivery according to schedule milestones.

– Ensuring consultant costs billed are allowable and consistent with the contract terms.

– Evaluating and participating in decisions for contract modifications.– Documenting contract monitoring activities and maintaining

supporting contract records, as specified in 2 CFR 200.333.

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• Responsibility for general supervision and oversight of construction project shall remain with local agency

– Full-time qualified public employee in Responsible Charge to oversee project Resident Engineer (RE) and inspectors

– Registered consultant performing construction engineering activities

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Construction ManagementServices

• Advantages:

– Project delivery efficiencies

• Disadvantage:

– Conflict of interest when design error and omissions arise

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Design Consultant Performing Construction Management

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• Consultant performing project design shall not perform construction management on the same project

• Consultant performing construction material quality control testing for construction contract shall not perform Construction Material Quality Assurance on the same project

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Construction ManagementServices: Caltrans Best Practice

• Mitigation and mitigation monitoring work accomplished through the use of A&E consultants

– Biological mitigation

– Cultural mitigation

• Funding obtained through Construction Engineering

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Miscellaneous Programs

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• Used to define specific project scope, cost, and schedule

• Used on project-specific contracts with large scopes or multiple phases

• Used as a mini-contract

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Task Order Development:Caltrans Best Practice

• Task order (mini-contract) process:

– Prepare draft task order scope of work

– DBE Utilization Goal

– Develop cost estimate and analysis

– Consultant prepares cost estimate

– Negotiate and approve task order

• If task order details conflict with contract language, follow the language in the contract

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Task Order Development:Caltrans Best Practice

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Procurement Process

PROCUREMENT

PLANNING

SOLICITATION

DOCUMENTS AND

ADVERTISEMENT

EVALUATION AND

SELECTION OF

CONSULTANT

CONTRACT COST

NEGOTIATIONS

CONTRACT

EXECUTION

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