1. Home
  2. Programs
  3. Procurement and Contracts (DPAC)
  4. A&E Contract Information
  5. Financial Documents Submittal Folders - Must Read Information

Financial Documents Submittal Folders - Must Read Information

Refer to the contract-specific Financial Documents Submittal Folders sent by the A&E Contract Analyst for the latest information.

All required forms are included in the folders and may be requested by emailing AE Customer Service.

Prime Consultant

Completed Checklist

If you are utilizing a Caltrans Acceptance ID # (CAID #), then you must submit the e-mail from DPAC showing the contract number for which the CAID # was issued.

Each consultant must complete the checklist independently.

Payroll

Unsupported payroll will result in removal of Consultants' employee from the contract or pay rate will be adjusted to the supported rate.

  • (New) Payroll and Offer Letters must be grouped by classification and listed in the same order as the resume's shown in the Statement of Qualification.
  • Consultants (including Safe Harbor Rate firms) must submit information showing the salary breakdown for the Payroll period prior to the RFQ date. Payroll information must include but is not limited to:
    • Employee name
    • Pay period
    • Hours
    • Rate of pay
    • Deductions
    • Net pay
    • Fringe benefits
  • This information will be used to verify the hourly rates for all personnel shown in the Cost Proposal.
  • Caltrans reserves the right to request W-2, 1099-Misc, and DE-9 at any time throughout the life of the contract.
  • Labor Compliance and the Independent Office of Audits and Investigations (IOAI) reserve the right to verify all information presented at any time.
  • For employees who were hired after the RFQ date, see Offer Letter instructions.
  • Payroll Certification form is required with payroll submittals.
  • Must sign and submit payroll certification form.

Offer Letter

If payroll records are not available for newly hired employees the payroll period prior to the RFQ date, provide copies of Offer Letters and supporting Payroll. The majority of the employees proposed must be supported by payroll; however, Caltrans will accept offer letters that meets the following requirements:

  • (Clarification) Offer letters must be signed and dated by both parties under the penalty of perjury (the company representative and the employee).
  • (Clarification) Offer letters must specify the following:
    • Job title and description
    • Supervisor's name
    • Full/ part-time/ Contract employee (number of hours)
    • Exempt-hourly, exempt-salary, or non-exempt
    • Payrate
    • Start date
    • All benefits including but not limited to pension, health benefits, vacation, sick leave, etc.
    • Any cost reimbursement agreed upon by both parties (e.g., mileage reimbursement, cell phone reimbursement, etc.)
    • Payroll, as of the employee start date identified on the Offer Letter, must be submitted

Any offer letter that does not meet the requirement specified above will be rejected. Offer letter should be accompanied with supporting payroll documentation. Caltrans reserves the right to conduct employee interviews to verify the accuracy of any information presented at any time throughout the life of the contract.

Fringe Benefit

This is applicable to prevailing wage and non-prevailing wage contracts.

Overhead Direct Cost (ODC) Support Documents

ODCs that are unsupported or are included in the overhead should not be proposed on the Schedule of ODC Items.

  • ODCs are costs, other than direct labor and operational direct costs, that can be identified with a final cost objective (48CFR, Chapter 1, Part 31.202 and 31.203) and incurred specifically for this contract.
    • Title 2 Section 200.413 defines direct costs also as follows: "Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy."
    • FAR 31.202(a) provides that "no final cost objective shall have allocated to it as a direct cost any cost if other cost incurred for the same purpose in like circumstance have been included in any indirect cost pool to be allocated to that or any other final cost objective."
      For example, employee personal vehicle mileage must be allocated to similar cost objectives in the same manner as company vehicle mileage. One category of like costs may not be allocated directly to contracts while the related like cost category are recovered as part of the indirect cost rate.
  • For unit rate(s) being proposed, the consulting firm must provide justification/support on development of rate(s) based on actual historical costs (not based on estimates or quotes) to justify a fair and reasonable rate(s). Refer to AASHTO, 5.3-Cost Centers.
  • All variables/components in unit rate(s) calculation must be supported. Supporting documentation must include, but is not limited to:
    • General Ledger/Trial Balance Accounts and related Account # associated with expenses included in the unit rate calculation.
    • Detailed General Ledger reports.
    • Explanations, including a crosswalk if necessary, that allows a reviewer sufficient detail to verify amounts used in the unit rate calculation have been removed from the indirect expense pool.
    • Invoices supporting large dollar equipment purchases when the costs are used to establish unit rates.
    • Usage logs or accounting records to support the basis of the unit rate (such as mileage logs or number of cars used to calculate a vehicle usage rate).

Caltrans is currently developing a Vehicle and Equipment Interpretive Guidance Document. Once it is released, these instructions will be updated, and a link will be included.

Prevailing Wage

The Prevailing Wage Policy (Policy) must be:

  • on company letterhead, and
  • signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy. The policy must be signed under the penalty of perjury.

Delta is the difference between the prevailing wage base and fringe, and the non-prevailing wage base and fringe.

The Policy should outline the following information, at a minimum:

  • Description of types of work the firm performs which requires payment of Prevailing Wage rates.
  • Explanation of how the firm pays Prevailing Wage Deltas (Base & Fringe) to employees (e.g. pay directly to employee as a single amount to cover Delta Base and Delta Fringe, pay Delta Base to employee and pay Delta Fringe amount to a third-party plan, etc.)
  • Explanation of how the Delta Base is accounted for (recorded): Direct Labor, Other Direct Cost, or Indirect Cost.
  • Explanation of how the Delta Fringe is accounted for (recorded): Direct Labor, Other Direct Cost, or Indirect Cost.

If a firm has an independent Certified Public Accountant (CPA)-Audited Indirect Cost Rate(s) (ICR), the Audit Report must include a Disclosure Note describing the firm's accounting treatment of both the Prevailing Wage Delta Base and Delta Fringe amounts. The CPA firm is expected to perform testing to verify the information disclosed in the footnote, including testing to support that the Consultant accounts for the Prevailing Wage Deltas consistently and in line with their established Prevailing Wage Policy.

Consultants with an independent CPA-Audited ICR will be allowed to provide other supporting documentation while transitioning to inclusion of a Disclosure Note in the Audit Report. Without an independent CPA-Audited ICR, Consultants will be required to submit their Prevailing Wage Policy prior to contract execution. Caltrans reserves the right to perform additional procedures at any time, as deemed necessary, to verify the Consultant's accounting treatment is consistent and properly supported.

Note: If the accounting treatment for Delta Base and Delta Fringe is unclear/unidentified in the Policy submitted by the firm, the recommended multiplier for Delta Base and Delta Fringe will be “0."

For more information, refer to Prevailing Wage Interpretive Guidance Document.

Supporting Documentation:

Firms must be prepared to provide the following supporting documentation to Audits, upon request, whether requested during the financial document review (negotiation phase), or for an Audit which is performed after contract execution:

  • Identify the Account(s) number(s) used to record all Delta Base & Delta Fringe costs.
  • Include the total amount of Delta Base recorded and used to calculate the FYE ICR proposed on the contract.
  • Include the total amount of Delta Fringe recorded and used to calculate the FYE ICR proposed on the contract.
  • If more than one ICR is calculated (i.e., Home and Field), then identify the amount of Delta Base & Delta Fringe prorated to each category to calculate the Home and Field ICRs, respectively.

Overtime Policy (OT Policy)

If a consulting firm does not submit an overtime policy or address the minimum items listed below, then the IOAI will recommend no reimbursement for overtime premium on the contract.

Furthermore, if inconsistencies are found with the information submitted, and sufficient supporting documentation is not submitted by the deadline, then the IOAI will recommend no reimbursement for overtime premium on the contract.

The OT Policy must be:

  • on company letterhead, and
  • signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy and accounting practices. The policy must be signed under the penalty of perjury.

Caltrans reserves the right to perform additional procedures at any time, as deemed necessary, to verify the Consultant's accounting treatment is consistent and properly supported.

The OT Policy shall outline the following information, at a minimum:

  • How the OT Premium is accounted for (recorded) as either: Other Direct Cost, Indirect Cost (overhead), Direct Labor.
  • Amount of Project Direct Premium overtime and account number must be specified.
  • What classifications are considered exempt hourly and/or exempt salary. Specify how the various treatments impact the rate (e.g. 1.5 x normal rate, 2 x normal rate, straight, or not compensated).
  • What classifications are considered non-exempt. Specify how the various treatments impact the rate (e.g. 1.5 x normal rate, 2 x normal rate, straight, or not compensated).
  • The OT Policy must be consistent with the responses provided in Internal Control Questionnaire (ICQ), and the Independent CPA Indirect Cost Report's Disclosure Notes.

Caltrans will reimburse premium overtime as an ODC only. Failure to provide all the requested information specified above will result in the IOAI recommending "zero" reimbursement for premium overtime.

Please refer to the AAHTO Guide, Chapter 5 - Cost Accounting.

Bonus Policy

Certain contracts that require working out of field locations, for example, project trailers located at projects sites, and/or offices or other facilities provided by Caltrans and others for task orders of any duration.

In cases where an engineering consultant does not have an established field rate, the consultant may propose a supported project specific rate. The project specific rate must be developed in accordance to the methodology identified in Chapter 5 of the AASHTO Audit and Accounting guide section 5.6.

If a Bonus Policy is not submitted or amounts paid are not consistent with FAR 31.205-6(f), or the Policy is not consistent with what's included in the ICQ and/or CPA's Disclosure Notes, then the IOAI will recommend the removal of all bonus costs from the ICR.

The Bonus Policy (Policy) must be:

  • on company letterhead, and
  • signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy. The policy must be signed under the penalty of perjury. 

Internal Control Questionnaire (ICQ)

The latest edition of the AASHTO Uniform Audit & Accounting Guide (AASHTO Guide), Appendix B, Internal Control Questionnaire (ICQ) (current version 2016-01), must be completed in its entirety.

(Clarification) The "Certifying Official" must be an individual executive or financial officer of the firm at a level no lower than a Vice President or Chief Financial Officer, or equivalent, who has the authority to represent the financial information utilized to establish the indirect cost rate(s) and with direct knowledge of the company's policies, procedures, controls, and accounting practices.

The information contained in the ICQ and the accounting period must be consistent with each consultant's proposed fiscal year end Indirect Cost Rate (ICR). If any inconsistency between the ICR and ICQ are found, the Independent Office of Audits and Investigations (IOAI) will require the submittal of additional documentation and written justification for the inconsistency. The burden of proof shall be upon the consulting firm to support all costs proposed.

When completing the ICQ, if an item is not applicable to a firm, then indicate "N/A". It is not acceptable to leave anything blank.

Caltrans reserves the right to perform additional procedures at any time, as deemed necessary, to verify the Consultant’s accounting treatment is consistent and properly supported.

The Policy should outline the following information, at a minimum:

  • The Policy should be established in line with the guidance provided in the Uniform Audit & Accounting Guide (AASHTO Guide), 7.11-Bonus and Incentive Pay Plans (see the Must Read - Internal Control Questionnaire (ICQ) below).
  • The Policy must be consistent with the response provided in the AASHTO Guide's Internal Control Questionnaire (ICQ), and if applicable, the independent CPA Indirect Cost Report's Disclosure Notes. 

Checklist

If you are utilizing a Caltrans Acceptance ID # (CAID #), then you must submit the e-mail from DPAC showing the contract number for which the CAID # was issued.

Each consultant must complete the checklist independently.

Indirect Cost Rate

Only one folder may be submitted per consultant. Delete the non-applicable folders.

  • The indirect cost rate (ICR) fiscal year-end (FYE) to be applied to the contract is based on the RFQ advertisement date. Consultant firms must submit the latest ICR report available. Under no circumstance shall the consultant's ICR fiscal year end be older than 18-months preceding the RFQ date.
    For example:
    In this scenario, the consultant ICR coincide with the calendar year:
    • If the RFQ was advertised prior to 7/1/2020, the FYE 2019 ICR must be applied to the contract.
    • If the RFQ was advertised prior to 4/1/2020, the FYE 2019 ICR must be applied if available, otherwise, Caltrans will consider the 2018 ICR.
    • If the RFQ was advertised after 01/05/2020, the FYE 2018 ICR will be accepted.
  • The ICR must be submitted in one of the following five forms in the order of priority:
    • If you have received a State DOT Cognizant Approval for the fiscal year ICR proposed, then the approval letter must be submitted including the audited ICR Schedule for which the approval letter was issued.
    • Certified Public Accountant (CPA) audited ICR Schedule and audit report (including disclosure notes) must address the most recently completed financial fiscal year. Required for Prime Consultant participating in a contract at or above $3.5 million. (Note: SHR firms cannot be a Prime on contracts ≥ $3.5 million)
    • (Clarification) CPA compiled ICR Schedule is accepted, but this cannot be substituted for a CPA audited ICR for contracts equal to or greater than $3.5 million.
    • In-house prepared ICR Schedule must be FAR compliant.
    • Safe Harbor Rate
  • If an ICR is unsupported, an adjustment will be made to the ICR if unallowable costs are determined, otherwise, zero (0) overhead reimbursement will be recommended.

Field rate requirements:

(Clarification) Per FAR 31.203(f): "Separate cost groupings for costs allocable to offsite locations may be necessary to permit equitable distribution of costs on the basis of the benefits accruing to the several cost objectives." When a consulting firm has multiple business segments and the contract is for Prevailing Wage work (field), then the ICR Schedule must include separate Home and Field Office rates for the business segment performing the work.

(Clarification) If a Field Office rate (or a project specific rate) is not provided, the Cost Proposal will be deemed incomplete the firm demonstrates that field work is the only service that a firm provides.

(Clarification) All prevailing wage contracts and contracts where the consultant is expected to work out of Caltrans facility, a field or project specific rate must be submitted. Caltrans will only accept field rates prepared utilizing the methodology specified in the AASHTO Audit and Accounting Guide.

  • The Facilities Capitol Cost of Money (FCCM) rate must not be combined with ICR. Consulting firms may enter the FCCM rate on the Cost Proposal in the designated cell.
  • The accrual basis of accounting must be used when preparing the ICR.
  • Direct Labor must be used as the base to calculate the ICR.

If your firm accounts for Uncompensated Overtime on the effective rate method, the ICR Schedule must be adjusted before submitting the ICR Schedule, per the "Uncompensated Overtime Interpretive Guidance Document" found on the Inspector General Independent Office of Audits and Investigations website.

Contractor Cost Certification

Every consulting firm must complete the Contractor Cost Certification (CCC) included in this folder in its entirety. If the contract is for prevailing wage work, then the CCC must include both Home and Field ICRs.

(For Clarification) Under the following conditions a field rate must be included in the cost proposal:

  • Any contract requiring prevailing wage work

Indirect Cost Quote

The latest edition of the AASHTO Uniform Audit & Accounting Guide (AASHTO Guide), Appendix B, Internal Control Questionnaire (ICQ) (current version 2016-01), must be completed in its entirety.

(Clarification) The "Certifying Official" must be an individual executive or financial officer of the firm at a level no lower than a Vice President or Chief Financial Officer, or equivalent, who has the authority to represent the financial information utilized to establish the indirect cost rate(s) and with direct knowledge of the company's policies, procedures, controls, and accounting practices.

The information contained in the ICQ and the accounting period must be consistent with each consultant's proposed fiscal year end Indirect Cost Rate (ICR). If any inconsistency between the ICR and ICQ are found, the Independent Office of Audits and Investigations (IOAI) will require the submittal of additional documentation and written justification for the inconsistency. The burden of proof shall be upon the consulting firm to support all costs proposed.

When completing the ICQ, if an item is not applicable to a firm, then indicate "N/A". It is not acceptable to leave anything blank.

Payroll

Unsupported payroll will result in removal of Consultants' employee from the contract or pay rate will be adjusted to the supported rate.

  • (New) Payroll and Offer Letters must be grouped by classification and listed in the same order as the resume's shown in the Statement of Qualification.
  • Consultants (including Safe Harbor Rate firms) must submit information showing the salary breakdown for the Payroll period prior to the RFQ date. Payroll information must include but is not limited to:
    • Employee name
    • Pay period
    • Hours
    • Rate of pay
    • Deductions
    • Net pay
    • Fringe benefits
  • This information will be used to verify the hourly rates for all personnel shown in the Cost Proposal.
  • Caltrans reserves the right to request W-2, 1099-Misc, and DE-9 at any time throughout the life of the contract.
  • Labor Compliance and the Independent Office of Audits and Investigations (IOAI) reserve the right to verify all information presented at any time.
  • For employees who were hired after the RFQ date, see Offer Letter instructions.
  • Payroll Certification form is required with payroll submittals.
  • Must sign and submit payroll certification form.

Offer Letter

If payroll records are not available for newly hired employees the payroll period prior to the RFQ date, provide copies of Offer Letters and supporting Payroll. The majority of the employees proposed must be supported by payroll; however, Caltrans will accept offer letters that meets the following requirements:

  • (Clarification) Offer letters must be signed and dated by both parties under the penalty of perjury (the company representative and the employee.)
  • (Clarification) Offer Letters must specify the following:
    • Job title and description
    • Supervisor's name
    • Full/ Part-time/ Contract employee (Number of hours)
    • Exempt-hourly, Exempt-salary, or Non-Exempt
    • Payrate
    • Start date
    • All benefits including but not limited to pension, health benefits, vacation, sick leave, etc.
    • Any cost reimbursement agreed upon by both parties. (e.g., mileage reimbursement, cell phone reimbursement, etc.)
    • Payroll as of the employee start date identified on the Offer Letter must be submitted.

Any offer letter that does not meet the requirement specified above will be rejected. Offer letter should be accompanied with supporting payroll documentation. Caltrans reserves the right to conduct employee interviews to verify the accuracy of any information presented at any time throughout the life of the contract.

Fringe Benefit Statement

This is applicable to prevailing wage and non-prevailing wage contracts.

Supporting Documents

ODCs that are unsupported or are included in the overhead should not be proposed on the Schedule of ODC Items.

  • ODCs are costs, other than direct labor and operational direct costs, that can be identified with a final cost objective (48CFR, Chapter 1, Part 31.202 and 31.203) and incurred specifically for this contract.
    • Title 2 Section 200.413 defines direct costs also as follows: "Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy."
    • FAR 31.202(a) provides that "no final cost objective shall have allocated to it as a direct cost any cost if other cost incurred for the same purpose in like circumstance have been included in any indirect cost pool to be allocated to that or any other final cost objective."
      For example, employee personal vehicle mileage must be allocated to similar cost objectives in the same manner as company vehicle mileage. One category of like costs may not be allocated directly to contracts while the related like cost category are recovered as part of the indirect cost rate.
  • For unit rate(s) being proposed, the consulting firm must provide justification/support on development of rate(s) based on actual historical costs (not based on estimates or quotes) to justify a fair and reasonable rate(s). Refer to AASHTO, 5.3-Cost Centers.
  • All variables/components in unit rate(s) calculation must be supported. Supporting documentation must include, but is not limited to:
    • General Ledger/Trial Balance Accounts and related Account # associated with expenses included in the unit rate calculation
    • Detailed General Ledger reports
    • Explanations, including a crosswalk if necessary, that allows a reviewer sufficient detail to verify amounts used in the unit rate calculation have been removed from the indirect expense pool.
    • Invoices supporting large dollar equipment purchases when the costs are used to establish unit rates
    • Usage logs or accounting records to support the basis of the unit rate (such as mileage logs or number of cars used to calculate a vehicle usage rate)

Caltrans is currently developing a Vehicle and Equipment Interpretive Guidance Document. Once it is released, these instructions will be updated and a link will be included.

Policies

If a consulting firm does NOT submit an overtime policy or address the minimum items listed below, then the IOAI will recommend no reimbursement for overtime premium on the contract.

Furthermore, if inconsistencies are found with the information submitted, and sufficient supporting documentation is not submitted by the deadline, then the IOAI will recommend no reimbursement for overtime premium on the contract.

The Overtime Policy (OT Policy) must be:

  • on company letterhead, and
  • signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy and accounting practices. The policy must be signed under the penalty of perjury.

Caltrans reserves the right to perform additional procedures at any time, as deemed necessary, to verify the Consultant's accounting treatment is consistent and properly supported.

The OT Policy shall outline the following information, at a minimum:

  • How the OT Premium is accounted for (recorded) as either: Other Direct Cost, Indirect Cost (overhead), Direct Labor
  • Amount of Project Direct Premium overtime and account number must be specified.
  • What classifications are considered exempt hourly and/or exempt salary. Specify how the various treatments impact the rate (e.g. 1.5 x normal rate, 2 x normal rate, straight, or not compensated)
  • What classifications are considered non-exempt. Specify how the various treatments impact the rate (e.g. 1.5 x normal rate, 2 x normal rate, straight, or not compensated)
  • The OT Policy must be consistent with the responses provided in Internal Control Questionnaire (ICQ), and the Independent CPA Indirect Cost Report's Disclosure Notes.

Caltrans will reimburse premium overtime as an ODC only. Failure to provide all the requested information specified above will result in the IOAI recommending "zero" reimbursement for premium overtime.

Please read the important information from the AAHTO Guide, Chapter 5 - Cost Accounting.

Bonus Policy

If a Bonus Policy is not submitted or amounts paid are not consistent with FAR 31.205-6(f), or the Policy is not consistent with what's included in the ICQ and/or CPA's Disclosure Notes, then the IOAI will recommend the removal of all bonus costs from the ICR.

The Bonus Policy (Policy) must be:

  • on company letterhead, and
  • signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy. The policy must be signed under the penalty of perjury.

Caltrans reserves the right to perform additional procedures at any time, as deemed necessary, to verify the Consultant's accounting treatment is consistent and properly supported.

The Policy should outline the following information, at a minimum:

  • The Policy should be established in line with the guidance provided in the Uniform Audit & Accounting Guide (AASHTO Guide), 7.11-Bonus and Incentive Pay Plans.
  • The Policy must be consistent with the response provided in the AASHTO Guide's Internal Control Questionnaire (ICQ), and if applicable, the independent CPA Indirect Cost Report's Disclosure Notes.

Safe Harbor Rate

If you are utilizing a Caltrans Acceptance ID # (CAID #), then you must submit the e-mail from DPAC showing the contract number for which the CAID # was issued.

Each consultant must complete the checklist independently.

Payroll

Unsupported payroll will result in removal of Consultants' employee from the contract, or pay rate will be adjusted to the supported rate.

  • (New) Payroll and Offer Letters must be grouped by classification and listed in the same order as the resume's shown in the Statement of Qualification.
  • Consultants (including Safe Harbor Rate firms) must submit information showing the salary breakdown for the Payroll period prior to the RFQ date. Payroll information must include but is not limited to:
    • Employee name
    • Pay period
    • Hours
    • Rate of pay
    • Deductions
    • Net pay
    • Fringe benefits
  • This information will be used to verify the hourly rates for all personnel shown in the Cost Proposal.
  • Caltrans reserves the right to request W-2, 1099-Misc, and DE-9 at any time throughout the life of the contract.
  • Labor Compliance and the Independent Office of Audits and Investigations (IOAI) reserve the right to verify all information presented at any time.
  • For employees who were hired after the RFQ date, see Offer Letter instructions.
  • Payroll Certification form is required with payroll submittals.
  • Must sign and submit payroll certification form.

Offer Letter

If payroll records are not available for newly hired employees the payroll period prior to the RFQ date, provide copies of Offer Letters and supporting Payroll. The majority of the employees proposed must be supported by payroll; however, Caltrans will accept offer letters that meets the following requirements:

  • (Clarification) Offer letters must be signed and dated by both parties under the penalty of perjury (the company representative and the employee).
  • (Clarification) Offer Letters must specify the following:
    • Job title and description
    • Supervisor's name
    • Full/ Part time/ Contract employee (Number of hours)
    • Exempt-hourly, Exempt-salary, or Non-Exempt
    • Payrate
    • Start Date
    • All benefits including but not limited to pension, health benefits, vacation, sick leave, etc.
    • Any cost reimbursement agreed upon by both parties. (e.g., mileage reimbursement, cell phone reimbursement, etc.)
    • Payroll as of the employee start date identified on the Offer Letter must be submitted

Any offer letter that does not meet the requirement specified above will be rejected. Offer letter should be accompanied with supporting payroll documentation. Caltrans reserves the right to conduct employee interviews to verify the accuracy of any information presented at any time throughout the life of the contract.

Fringe Benefit Statement

This is applicable to prevailing wage and non-prevailing wage contracts.

Other Direct Costs (ODC) Supporting Documents

ODCs that are unsupported or are included in the overhead should not be proposed on the Schedule of ODC Items.

  • ODCs are costs, other than direct labor and operational direct costs, that can be identified with a final cost objective (48CFR, Chapter 1, Part 31.202 and 31.203) and incurred specifically for this contract.
    • Title 2 Section 200.413 defines direct costs also as follows: "Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy."
    • FAR 31.202(a) provides that "no final cost objective shall have allocated to it as a direct cost any cost if other cost incurred for the same purpose in like circumstance have been included in any indirect cost pool to be allocated to that or any other final cost objective."
      For example, employee personal vehicle mileage must be allocated to similar cost objectives in the same manner as company vehicle mileage. One category of like costs may not be allocated directly to contracts while the related like cost category are recovered as part of the indirect cost rate.
  • For unit rate(s) being proposed, the consulting firm must provide justification/support on development of rate(s) based on actual historical costs (not based on estimates or quotes) to justify a fair and reasonable rate(s). Refer to AASHTO, 5.3-Cost Centers.
  • All variables/components in unit rate(s) calculation must be supported. Supporting documentation must include, but is not limited to:
    • General Ledger/Trial Balance Accounts and related Account # associated with expenses included in the unit rate calculation
    • Detailed General Ledger reports
    • Explanations, including a crosswalk if necessary, that allows a reviewer sufficient detail to verify amounts used in the unit rate calculation have been removed from the indirect expense pool.
    • Invoices supporting large dollar equipment purchases when the costs are used to establish unit rates
    • Usage logs or accounting records to support the basis of the unit rate (such as mileage logs or number of cars used to calculate a vehicle usage rate)

Caltrans is currently developing a Vehicle and Equipment Interpretive Guidance Document. Once it is released, these instructions will be updated and a link will be included.

Prevailing Wage Policy

The Prevailing Wage Policy (Policy) must be:

  • on company letterhead, and
  • signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy. The policy must be signed under the penalty of perjury.

Delta is the difference between the prevailing wage base and fringe, and the non-prevailing wage base and fringe.

The Policy should outline the following information, at a minimum:

  • Description of types of work the firm performs which requires payment of Prevailing Wage rates.
  • Explanation of how the firm pays Prevailing Wage Deltas (Base & Fringe) to employees (e.g. pay directly to employee as a single amount to cover Delta Base and Delta Fringe, pay Delta Base to employee and pay Delta Fringe amount to a third-party plan, etc.)
  • Explanation of how the Delta Base is accounted for (recorded): Direct Labor, Other Direct Cost, or Indirect Cost.
  • Explanation of how the Delta Fringe is accounted for (recorded): Direct Labor, Other Direct Cost, or Indirect Cost.

If a firm has an independent Certified Public Accountant (CPA)-Audited Indirect Cost Rate(s) (ICR), the Audit Report must include a Disclosure Note describing the firm's accounting treatment of both the Prevailing Wage Delta Base and Delta Fringe amounts. The CPA firm is expected to perform testing to verify the information disclosed in the footnote, including testing to support that the Consultant accounts for the Prevailing Wage Deltas consistently and in line with their established Prevailing Wage Policy.

Consultants with an independent CPA-Audited ICR will be allowed to provide other supporting documentation while transitioning to inclusion of a Disclosure Note in the Audit Report. Without an independent CPA-Audited ICR, Consultants will be required to submit their Prevailing Wage Policy prior to contract execution. Caltrans reserves the right to perform additional procedures at any time, as deemed necessary, to verify the Consultant's accounting treatment is consistent and properly supported.

Note: If the accounting treatment for Delta Base and Delta Fringe is unclear/unidentified in the Policy submitted by the firm, the recommended multiplier for Delta Base and Delta Fringe will be “0."

For more information, refer to Prevailing Wage Interpretive Guidance Document.

Supporting Documentation:

Firms must be prepared to provide the following supporting documentation to Audits, upon request, whether requested during the financial document review (negotiation phase), or for an Audit which is performed after contract execution:

  • Identify the Account(s) number(s) used to record all Delta Base & Delta Fringe costs.
  • Include the total amount of Delta Base recorded and used to calculate the FYE ICR proposed on the contract.
  • Include the total amount of Delta Fringe recorded and used to calculate the FYE ICR proposed on the contract.
  • If more than one ICR is calculated (i.e., Home and Field), then identify the amount of Delta Base & Delta Fringe prorated to each category to calculate the Home and Field ICRs, respectively.

Overtime Policy

If a consulting firm does NOT submit an overtime policy or address the minimum items listed below, then the IOAI will recommend no reimbursement for overtime premium on the contract.

Furthermore, if inconsistencies are found with the information submitted, and sufficient supporting documentation is not submitted by the deadline, then the IOAI will recommend no reimbursement for overtime premium on the contract.

The Overtime Policy (OT Policy) must be:

  • on company letterhead, and
  • signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy and accounting practices. The policy must be signed under the penalty of perjury.

Caltrans reserves the right to perform additional procedures at any time, as deemed necessary, to verify the Consultant's accounting treatment is consistent and properly supported.

The OT Policy shall outline the following information, at a minimum:

  • How the OT Premium is accounted for (recorded) as either: Other Direct Cost, Indirect Cost (overhead), Direct Labor
  • Amount of Project Direct Premium overtime and account number must be specified.
  • What classifications are considered exempt hourly and/or exempt salary. Specify how the various treatments impact the rate (e.g. 1.5 x normal rate, 2 x normal rate, straight, or not compensated)
  • What classifications are considered non-exempt. Specify how the various treatments impact the rate (e.g. 1.5 x normal rate, 2 x normal rate, straight, or not compensated)
  • The OT Policy must be consistent with the responses provided in Internal Control Questionnaire (ICQ), and the Independent CPA Indirect Cost Report's Disclosure Notes.

Caltrans will reimburse premium overtime as an ODC only. Failure to provide all the requested information specified above will result in the IOAI recommending "zero" reimbursement for premium overtime.

Please read the important information from the AAHTO Guide, Chapter 5 - Cost Accounting.

Bonus Policy

If a Bonus Policy is not submitted or amounts paid are not consistent with FAR 31.205-6(f), or the Policy is not consistent with what's included in the ICQ and/or CPA's Disclosure Notes, then the IOAI will recommend the removal of all bonus costs from the ICR.

The Bonus Policy (Policy) must be:

  • on company letterhead, and
  • signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy. The policy must be signed under the penalty of perjury.

Caltrans reserves the right to perform additional procedures at any time, as deemed necessary, to verify the Consultant's accounting treatment is consistent and properly supported.

The Policy should outline the following information, at a minimum:

  • The Policy should be established in line with the guidance provided in the Uniform Audit & Accounting Guide (AASHTO Guide), 7.11-Bonus and Incentive Pay Plans.
  • The Policy must be consistent with the response provided in the AASHTO Guide's Internal Control Questionnaire (ICQ), and if applicable, the independent CPA Indirect Cost Report's Disclosure Notes.

Safe Harbor Rate

Latest Edition of the Safe Harbor Rate forms must be used.

  • Questionnaire (Dated May 2019)
  • Certification (Dated May 2019)
  • Table 6-1 (AASHTO Guide 2016)

The Questionnaire and Certification must be signed and dated by the executive or financial officer of the organization at a level no lower than a Vice President or Chief Financial Officer, or equivalent, with the authority to represent the Policy.

When completing the forms, if an item is found to be not applicable, then you must state as such and not leave any blanks.

Completed Cost Proposal

  • The prime consultant is to combine all the cost proposals received from all sub-consultant including all the ODC sheets.
  • The Cost Proposal is to be submitted in excel format. The Cost Proposal (ADM 2033) consists of one excel workbook with multiple excel sheets (tabs). The first excel sheet(s) with formulas are for Direct Labor (DL).
    • Each subconsultant must be on a separate sheet within the workbook excel file.
    • The last excel sheet should be the schedule of Other Direct Cost (ODC) items for all subconsultants combined.

Checklist

Firm Name

Identify the prime consultant or subconsultant firm's legal business name that corresponds with the appropriate firm type:

  • No Caltrans Acceptance Identification Number (CT ID#) assigned for the proposed Indirect Cost Rate (ICR) fiscal year end (FYE)
  • CT ID# assigned for the proposed ICR FYE
  • Safe Harbor Rate (SHR) firm
  • Vendor

Other Direct Cost Proposal

Cost Proposal (ADM 2033) for Direct Labor and the Schedule of Other Direct Cost (ODC) Items in excel format with formulas can be viewed on the A&E Contract Information page. Cost proposal should be complete and accurate; all personnel should be properly identified (no vacancies). Provide a description of any information (excluding information shown in the actual salary column) contained in the cost proposal that is different from any other cost proposal your firm has submitted after the close of the last financial fiscal year.

Administrative classifications should not be included in the cost proposal.

All Seasonal/Temporary/On-Call employees should be clearly identified on the Cost Proposal as such and

Executive Compensation Analysis

Executive Compensation Analysis (ECA) to support reasonableness of claimed compensation costs in accordance with FAR 31.205-6. Refer to AASHTO, Chapter 7-Compensation and the AASHTO website for the National Compensation Matrix (NCM). If the NCM was used, provide schedule; if salary surveys were used, provide schedule and details of surveys.

If the ECA is not provided or unsupported, the ICR is deemed non-FAR compliant and the entire executive compensation amount or indirect labor cost of the ICR will be removed from the ICR calculation.

Should exclude fee from the loaded hourly billing retender.

Labor Summary Report

Conditional upon request, must be available at the time of review by A&I. Report should be for the 12-month period consistent with FYE ICR proposed.

Report should detail: All Employees, annual salary or hourly rate, total hours worked for the year, total hours paid, direct hours, indirect hours, PTO, holiday hours, & uncompensated hours. See "Example #9" tab.

Labor Summary Report must summarize ALL labor costs and agree to direct labor and indirect labor included in the ICR schedule proposed on the contract. Uncompensated overtime must be presented for salaried/exempt employees that are not compensated for hours worked in excess of 8 hours a day/40 hours per week/2080 hours per year.

Post Closing Trial Balance

Post-Closing Trial Balance for the ICR FYE proposed and reconciled to the ICR schedule.

Overhead cost items that do not reconcile to the financial statement will result in adjustment recommendation to the ICR.

Income Statement

Income Statement for the ICR FYE proposed.

Chart of Accounts

At a minimum, Chart of Accounts should include direct, indirect and unallowable accounts that are tied to the ICR schedule.

Other Review/Audit if Applicable

Enter CT ID#; or if financial documents for the FYE ICR proposed have been submitted to any other agency for review/audit, provide the letter or report issued.

Direct Labor Cost Proposal

  • For the direct labor Cost Proposal, the templates are included in this folder. One is for prevailing wage contracts and the other is for non-prevailing wage contracts. Consulting firm is to utilize the corresponding Cost Proposal template based on the scope of work to be performed.
  • All Employee Payroll and Offer Letters are to be grouped by firm and listed in the same order as shown in the Statement of Qualification (SOQ).
  • The Prime Consultant is responsible for submitting a combined Cost Proposal that includes all subconsultants identified in the SOQ.
  • The Cost Proposals should be complete and accurate. All pay rates shown must be supported with certified Payroll as of the Payroll period prior to the Request for Qualification (RFQ) date.
  • All personnel should be properly identified by name (no vacancies) under column A (Name/Classification). Consultants must provide the following information for each employee on the Cost Proposal, in this order:
    • Line 1. Employee Name (legal name per Payroll), Required License(s) and/or certifications, as specified in the RFQ.
    • Line 2. Classification per RFQ
    • Line 3. Prevailing Wage task if applicable: Role per the Department of Industrial Relations’ Group Number (i.e., Construction Inspector, Group 2). 
      If Non-Prevailing Wage tasks: indicate, the company title.
    • Line 4. Exempt/Non-Exempt and one of the following:
      Full Time: Receives full time employee benefits
      Part Time: Receives part time employee benefits 
      Contract Employee (temporary, as needed, on call, etc.): Does not received employee benefits per company policy (1099-Misc)

Consultant Contract employees (e.g. temporary, as needed, on call, etc.) are those employees who do not receive a W-2. Contract employees should be clearly identified on the Cost Proposal. Caltrans reserves the right during the Financial Document Review or any time after execution to request additional supporting documentation to verify employment status (e.g. W-2, DE-9, 1099-Misc, etc.)

  • Do not attempt to edit formulas in the cells that are shaded in gray. If any edits are required, you must consult in writing with the DPAC Facilitator.
  • (For Clarification) Under the following conditions a field rate must be included in the Cost Proposal:
    • Any contract requiring prevailing wage work unless the company has one business segment for the work covered in the contract scope of work.
    • Certain contracts that require working out of field locations, for example, project trailers located at projects sites, and/or offices or other facilities provided by Caltrans or others for task orders of any duration.

In cases where an engineering consultant does not have an established field rate, the consultant may propose a supported project specific rate. The project specific rate must be developed in accordance to the methodology identified in Chapter 5 of the AASHTO Audit and Accounting guide section 5.6.

  • Only classifications advertised in the RFQ are to be included on the Cost Proposal. The following are examples of classifications that will not be included on the cost proposal:
    • Attorneys,
    • Executive staff (staff higher than the contract manager who are not generally billable), and
    • administrative/accounting staff.
  • As Cost Proposal is revised during the negotiation phase, the revision date must be identified for each submittal.

Completed Cost Proposal (Prime only)

  • The prime consultant is to combine all the cost proposals received from all sub-consultant including all the ODC sheets.
  • The Cost Proposal is to be submitted in excel format. The Cost Proposal (ADM 2033) consists of one excel workbook with multiple excel sheets (tabs). The first excel sheet(s) with formulas are for Direct Labor (DL).
    • Each subconsultant must be on a separate sheet within the workbook excel file.
    • The last excel sheet should be the schedule of Other Direct Cost (ODC) items for all subconsultants combined.

Cost Proposal

  • For the direct labor Cost Proposal, the templates are included in this folder. One is for prevailing wage contracts and the other is for non-prevailing wage contracts. Consulting firm is to utilize the corresponding Cost Proposal template based on the scope of work to be performed.
  • All Employee Payroll and Offer Letters are to be grouped by firm and listed in the same order as shown in the Statement of Qualification (SOQ).
  • The Prime Consultant is responsible for submitting a combined Cost Proposal that includes all subconsultants identified in the SOQ.
  • The Cost Proposals should be complete and accurate. All pay rates shown must be supported with certified Payroll as of the Payroll period prior to the Request for Qualification (RFQ) date.
  • All personnel should be properly identified by name (no vacancies) under column A (Name/Classification). Consultants must provide the following information for each employee on the Cost Proposal, in this order:
    • Line 1. Employee Name (legal name per Payroll), Required License(s) and/or certifications, as specified in the RFQ.
    • Line 2. Classification per RFQ
    • Line 3. Prevailing Wage task if applicable: Role per the Department of Industrial Relations' Group Number (i.e., Construction Inspector, Group 2).
      If Non-Prevailing Wage tasks: indicate, the company title.
    • Line 4. Exempt/Non-Exempt and one of the following:
      Full Time: Receives full time employee benefits
      Part Time: Receives part time employee benefits
      Contract Employee (temporary, as needed, on call, etc.): Does not received employee benefits per company policy (1099-Misc)

Consultant Contract employees (e.g. temporary, as needed, on call, etc.) are those employees who do not receive a W-2. Contract employees should be clearly identified on the Cost Proposal. Caltrans reserves the right during the Financial Document Review or any time after execution to request additional supporting documentation to verify employment status (e.g. W-2, DE-9, 1099-Misc, etc.)

  • Do not attempt to edit formulas in the cells that are shaded in gray. If any edits are required, you must consult in writing with the DPAC Facilitator.
  • (For Clarification) Under the following conditions a field rate must be included in the Cost Proposal:
    • Any contract requiring prevailing wage work unless the company has one business segment for the work covered in the contract scope of work.
    • Certain contracts that require working out of field locations, for example, project trailers located at projects sites, and/or offices or other facilities provided by Caltrans or others for task orders of any duration.

    In cases where an engineering consultant does not have an established field rate, the consultant may propose a supported project specific rate. The project specific rate must be developed in accordance to the methodology identified in Chapter 5 of the AASHTO Audit and Accounting guide section 5.6.

  • Only classifications advertised in the RFQ are to be included on the Cost Proposal. The following are examples of classifications that will not be included on the cost proposal:
    • Attorneys,
    • Executive staff (staff higher than the contract manager who are not generally billable), and
    • administrative/accounting staff.
  • As Cost Proposal is revised during the negotiation phase, the revision date must be identified for each submittal.

Executive Compensation

If the Executive Compensation Analysis (ECA) is not provided or is deemed to be unsupported, the Indirect Cost Rate (ICR) is considered non-FAR compliant, and the entire executive compensation amount or indirect labor cost included in the ICR calculation will be removed.

  • Consulting firms are responsible for preparing a compensation analysis to demonstrate that claimed compensation costs are reasonable, and otherwise allowable, in compliance with FAR 31.205-6, as interpreted and clarified by the ASBC in Techplan and Information Systems.
  • An ECA is required to support the reasonableness of claimed compensation costs in accordance with FAR 31.205-6.  Refer to the Uniform Audit & Accounting Guide (AASHTO Guide), Chapter 7-Compensation, and the AASHTO website for the National Compensation Matrix (NCM).
  • If the NCM was used, provide the schedule. For example, if the NCM was used, plug the 2018 executive compensation to the NCM Tool available at '2019 National Compensation Matrix'. Replace the gross revenue on the NCM Tool with Consultant's actual 2018 gross revenue. This is your '(Step 4) NCM Amount' in the NCM Compliance Schedule. The NCM Compliance Schedule should be certified by a Company officer/executive.
  • If salary surveys were used, provide the schedule and details of all surveys used to support the allowable executive compensation amounts.
  • The AASHTO Guide recommends that Consultants use three nationally-published compensation salary surveys. The surveys should match the engineering consultant in terms of revenue, industry, and geographic location. The surveys should identify median compensations for the various executive positions. The schedule should include survey median compensation amounts for each comparable position from the salary surveys, compared to proposed compensations and must identify any excess (disallowed) amount.
  • Consultants are responsible for supporting the compensation amounts proposed as allowable- AASHTO Guide, Chapter 7.7- State DOT Oversight: Review of Executive Compensation.

Labor Summary Report

The Labor Summary Report document must be submitted and signed under the penalty of perjury. The Labor Summary Report should be for the 12-month period consistent with the Fiscal Year End (FYE) Indirect Cost Rate (ICR) proposed.*

The Labor Summary Report should detail: All Employees, annual salary or Standard hourly rate, total hours worked for the year (direct and indirect hours), total hours paid, Paid Time Off, holiday hours, and uncompensated hours (see sample labor summary report). The Labor Summary Report must summarize all labor costs and agree to the Direct Labor and Indirect Labor amounts included in the ICR Schedule submitted for this contract.

Uncompensated overtime must be presented for salaried/exempt employees that are not compensated for hours worked in excess of 8 hours per day / 40 hours per week / 2080 hours per year. For more information on Uncompensated Overtime, refer to the Uncompensated Overtime Interpretive Guidance Document.

*If the consultant does not have 1 report that includes all the required information, the consultant can submit 2 or 3 reports, if necessary, so that all requested information is provided.

Post-Closing Trial Balance

Every consulting firm is expected to submit the Post-Closing Trial Balance supporting the fiscal year end Indirect Cost Rate proposed on the contract.

The Post-Closing Trial Balance must have been reconciled with the Indirect Cost Rate Schedule. Indirect (Overhead) cost items that do not reconcile to the financial statement will result in a recommendation to adjust the ICR.

For example, if the 2018 ICR is proposed, then the Post Closing Trial Balance for the consultant's 2018 FYE should be submitted.

What is a Post-Closing Trial Balance?

The post-closing trial balance is prepared after closing entries are made. Its purpose is to test the equality between debits and credits after closing entries are prepared and posted.

The post-closing trial balance contains real accounts only since all nominal accounts have already been closed at this stage. In other words, the post-closing trial balance is a list of permanent accounts that still have balances after the closing entries have been made.

Closing Entries and Post Closing Trial Balance

Income Statement

The Income Statement must be for the same fiscal year end as the Indirect Cost Rate proposed.

What is an Income Statement?

Also known as the Profit and Loss Statement or the Statement of Revenue and Expense, the Income Statement primarily focuses on a company's Revenues and Expenses for a specific period (accounting period).

The Income Statement measures a company's financial performance (Profit or Loss) over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its Revenues and Expenses through both operating and non-operating activities.

Chart of Accounts

The complete Chart of Accounts should be submitted.

What is standard chart of accounts?

A standard Chart of Accounts is a numbered list of the Accounts that comprise a company's General Ledger. The chart is used by the accounting software to aggregate information into an entity's financial statements. The chart is usually sorted in order by account number, to ease the task of locating specific accounts.

There are typically five major categories in which Accounts are divided:

  1. Assets
  2. Liabilities
  3. Net assets
  4. Revenue
  5. Expenditure

These accounts are generally further divided into groups and sub-groups within each class.

Other Review-Audit Documents

  • Provide a copy of the e-mail containing the Caltrans Acceptance ID.
  • If financial documents for the Fiscal Year End Indirect Cost Rate proposed has been submitted to any other agency for review/audit, provide the letter and report issued.

Complete Cost Proposal (Prime only)

  • The prime consultant is to combine all the cost proposals received from all sub-consultant including all the ODC sheets.
  • The Cost Proposal is to be submitted in excel format. The Cost Proposal (ADM 2033) consists of one excel workbook with multiple excel sheets (tabs). The first excel sheet(s) with formulas are for Direct Labor (DL).
    • Each subconsultant must be on a separate sheet within the workbook excel file.
    • The last excel sheet should be the schedule of Other Direct Cost (ODC) items for all subconsultants combined. Requests for the ODC can be made by contacting AE Customer Service.

Cost Proposal

  • For the direct labor Cost Proposal, the templates are included in this folder. One is for prevailing wage contracts and the other is for non-prevailing wage contracts. Consulting firm is to utilize the corresponding Cost Proposal template based on the scope of work to be performed.
  • All Employee Payroll and Offer Letters are to be grouped by firm and listed in the same order as shown in the Statement of Qualification (SOQ).
  • The Prime Consultant is responsible for submitting a combined Cost Proposal that includes all subconsultants identified in the SOQ.
  • The Cost Proposals should be complete and accurate. All pay rates shown must be supported with certified Payroll as of the Payroll period prior to the Request for Qualification (RFQ) date.
  • All personnel should be properly identified by name (no vacancies) under column A (Name/Classification). Consultants must provide the following information for each employee on the Cost Proposal, in this order:
    • Line 1. Employee Name (legal name per Payroll), Required License(s) and/or certifications, as specified in the RFQ.
    • Line 2. Classification per RFQ
    • Line 3. Prevailing Wage task if applicable: Role per the Department of Industrial Relations' Group Number (i.e., Construction Inspector, Group 2).
      If Non-Prevailing Wage tasks: indicate, the company title.
    • Line 4. Exempt/Non-Exempt and one of the following:
      Full Time: Receives full time employee benefits
      Part Time: Receives part time employee benefits
      Contract Employee (temporary, as needed, on call, etc.): Does not received employee benefits per company policy (1099-Misc)

Consultant Contract employees (e.g. temporary, as needed, on call, etc.) are those employees who do not receive a W-2. Contract employees should be clearly identified on the Cost Proposal. Caltrans reserves the right during the Financial Document Review or any time after execution to request additional supporting documentation to verify employment status (e.g. W-2, DE-9, 1099-Misc, etc.)

  • Do not attempt to edit formulas in the cells that are shaded in gray. If any edits are required, you must consult in writing with the DPAC Facilitator.
  • (For Clarification) Under the following conditions a field rate must be included in the Cost Proposal:
    • Any contract requiring prevailing wage work unless the company has one business segment for the work covered in the contract scope of work.
    • Certain contracts that require working out of field locations, for example, project trailers located at projects sites, and/or offices or other facilities provided by Caltrans or others for task orders of any duration.
    In cases where an engineering consultant does not have an established field rate, the consultant may propose a supported project specific rate. The project specific rate must be developed in accordance to the methodology identified in Chapter 5 of the AASHTO Audit and Accounting guide section 5.6.
  • Only classifications advertised in the RFQ are to be included on the Cost Proposal. The following are examples of classifications that will not be included on the cost proposal:
    • attorneys,
    • executive staff (staff higher than the contract manager who are not generally billable), and
    • administrative/accounting staff.
  • As Cost Proposal is revised during the negotiation phase, the revision date must be identified for each submittal.