Topics covered in this course include understanding contracts, how to negotiate, invoicing, and project delivery. This course will satisfy ERC requirements for one year following completion. Pre-registration for this course is required. To register, please send an e-mail to LPAQuestions@indot.in.gov with the subject line “Road School ERC Recertification.” Please include your name, agency, and telephone number. There will be an LPA Program update prior to the training

Beck, Jennifer

Eaton-McKalip, Kathy

Miller, Jessica

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ERC RecertificationLora LewisVincennes District Local Program Director, INDOTRoad School 2015Welcome! Agenda overview: LPA Program Updates Kathy Eaton-McKalip Federal-Aid Program Contracts & Negotiation Jennifer Beck Invoicing Jessica Miller Project Development Pitfalls Jessica Miller Open Q&A Jessica Miller, Jennifer Beck & Lora LewisLPA Program UpdatesKathy Eaton-McKalipLocal Public Agency Programs Director, INDOTFederal Funds INDOT – Sharing Agreement 25% with locals Past Practices – Allowing the carryover of funding from FY to FY MPO 4-5 year spending plans INDOT agreements with MPO’s Federal-Aid Program ContractsJennifer BeckGreenfield District Local Project Manager, INDOTINDOT-LPA Contract INDOT-LPA Contract This contract states agreement between both parties on: Project description LPA Responsibilities, rights & duties INDOT Responsibilities, rights & duties Project Funds Terms & Schedule General Provisions & complianceLPA-Consultant ContractsINDOT Consultant Selection ProcessRequest DBE GoalPost RFPRFP ExpiresRequest Past Performance DataScore Letters of InterestConfirm DBE Goal Met via E-mailSubmit Selection ChecklistNegotiate ContractSubmit draft for INDOT ReviewExecute ContractSend copy electronically to INDOTINDOT Consultant Selection Please reference the LPA-Consultant Selection Toolkit. http://www.in.gov/indot/2833.htm ALL consultants that work on ANY phase of a federally funded project need to be INDOT prequalified for the services they are performing. The INDOT consultant selection process is mandatory ONLY if federal funds are being used to pay for the consultant’s services. LPA-Consultant Contract Checklisthttp://in.gov/indot/2833.htmhttp://www.in.gov/indot/2833.htm2/5/2015LPA-Consultant Contract Checklist1. Review the contract documenta. Verify that draft contract is consistent with the latest INDOT boilerplate.b. Verify that the contract description, Des number and scope of work is within the parameters described in the RFP advertisement and in SPMS.c. Verify that the maximum compensation amount shown on page one matches the amount shown in Appendix D.d. Verify that Section 23 of the draft contract includes proper addresses for the LPA and for the consultant.e. Verify that the signature page contains the names and titles for either the Board of County Commissioners, City Board of Public Works and Safety or the Town Board, as appropriate.http://www.in.gov/indot/2390.htmLPA-Consultant Contract Checklist2. Verify Appendix “C” of construction inspection contracts indicates the Final Construction Record is to be submitted within 45 days of the contractors last day of work.LPA-Consultant Contract Checklist3. Verify the Appendix “D” compensation method is appropriate for the scope of work.a. Construction inspection services should be paid for on a negotiated hourly billing rate basis.b. Other types of services may be paid for on a lump sum basis, cost plus fixed fee basis, unit price basis or negotiated billing rate basis.c. Cost plus percent of cost compensation is not allowed on any consultant contracts.d. See the INDOT Professional Services Contract Administration Manual for more information on the compensation methods.Contract Compensation Methods Lump Sum Scope of work is well-defined Confident in the level of effort required Appropriate for PE or R/W Negotiated Labor Rate Scope of work is NOT well-defined Consultant is not in control over the level of effort required Mandatory for CEContract Compensation Methods Cost Plus Fixed Fee Scope of work is well-defined Low confidence in the level of effort required Full CPA Audit or Approval to use this method Appropriate for PE or R/W Unit Price Method typically used with repetitive, well-defined units of work Commonly used for R/W and geotechnical services; $xx.xx per parcel or $xx.xx per boringLPA-Consultant Contract Checklist4. Verify the consultant has provided a copy of the lead consultant’s prequalification letter showing their approved overhead rate.Financial Prequalification LetterFinancial Prequalification*INDOT Currently Reimburses $0.44/Mile Overhead Rate Cost of Money Rate Mileage Rate* and other notesLPA-Consultant Contract Checklist5. Verify the consultant has provided a fee proposal and the fee proposal includes the following:a. Itemization of task elements with estimated hours by employee classification.b. Cost calculations show the overhead rate and profit rate has been applied.Contract Fee Proposal All proposed fees should be accompanied with justification, no matter the method of compensation. Cost of Services, Overhead, Profit, Cost of Money, EscalationLPA-Consultant Contract Checklist6. Analyze the Consultant Fee Proposal.a. Confirm the task elements are relevant to the scope of work.b. Confirm the profit rate does not exceed 15%.c. Confirm the proposal does not exceed the Escalation Values for INDOT Consultant Contracts.d. Confirm the overhead rate used in the fee proposal is consistent with or lower than the rate shown in the prequalification letter.e. Confirm, to the extent possible, major task element and overall cost totals are not excessive.Profit Matrixhttp://www.in.gov/indot/2730.htmProfit Matrixhttp://www.in.gov/indot/2730.htmProfit MatrixThis is referencing the cost of the consultant services being contracted.Profit MatrixThis is referencing the duration of the consultant contract.Profit MatrixReference the INDOT Audit letter provided by the Consultant for the approved overhead rate as shown above.Escalation INDOT uses the Bureau of Labor and Statistics Employment Cost Index (ECI) to determine appropriate escalation values. http://www.in.gov/indot/2730.htmEscalation INDOT’s Contract Languagehttp://www.in.gov/indot/2730.htmLPA-Consultant Contract Checklist7. If the contract is for Construction Inspection, is an Engineer’s Assignment letter attached?Signed by the ERCAddressed to the Project Managerhttp://www.in.gov/indot/2833.htmLPA-Consultant Contract Tips Use separate contracts for each phase (PE, R/W & CE) even if you plan on using the same consultant. Avoid using more than one payment method per contract (lump sum, negotiated labor rate, etc.) unless the services & payment are clearly defined. Use past projects to help determine appropriate costs. INDOT only reimburses mileage/lodging per the State Policy. Lodging - $89/night, Mileage - $0.44/mile http://www.in.gov/idoa/2459.htmInvoicingJessica MillerSeymour District Local Project Manager, INDOTInvoicing“LPA Invoice & Claim Voucher Guidelines-2014”http://www.in.gov/indot/files/LPA_InvoiceVoucherInstructions.pdfInvoicing KEY TAKEAWAYS:1. Use the instructions as your #1 resource2. It’s technical learning, but don’t be afraid to ask for help! Once you learn it, you won’t have problems.3. INDOT must return the billing for any adjustments because we are not allowed to change them.Project Development PitfallsJessica MillerSeymour District Local Project Manager, INDOTProject Pitfalls Project Development Timeline INDOT 4 year project development  Typical 1 year for environmental  Typical 1 year for right of way acquisition Project specific Letting Preparation Schedule 2015-2022 schedule – LPA  Final Tracings vs. RFC Stage 3 Submission DateProject Pitfalls Underestimating Fatal Flaws New funding procedure R/W Purchase Orders Consultant Services R/W Acquisition Costs LID letterProject Pitfalls MPO vs. Rural Processes Call for Projects  Review INDOT call posting to determine eligibility Metropolitan Planning Area (MPA) vs Urbanized Area (UA)  Funding Changes TIP vs. STIP Project Development/Delivery Quarterly Reports through MPO Questions?LPAQuestions@indot.in.gov 

ERC Recertification

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