Chapter 10 Consultant Selection

Local Assistance Procedures ManualChapter 10Consultant SelectionChapter 10 Consultant SelectionContentsSection 10.1: FEDERALLY FUNDED A&E CONTRACTS. vi10.1.1 General .1Introduction .1Definition of an Architectural and Engineering Consultant .1Architectural and Engineering Consultants.1Non-A&E Consultants.2Selecting the Project.2Subcontracted Services.2Organizational and Consultant Conflicts of Interest.2Consultants Performing Work on Multiple Phases of Federal-aid Projects .310.1.2 Identifying & Defining a Need for Consultants .4Appointing the Contract Administrator .4Segmenting Consultant Work .5Figure 10-2: Segmenting Consultant Work.6Specify Products to be Delivered.6Scope of Consultant Work .6Non-Discrimination Clause .6Disadvantaged Business Enterprise (DBE) Participation .7Determine Type of Contract.8Determining the Project Schedule .9Determine Method of Payment .10Cost-Plus-Fixed Fee .10Cost Per Unit of Work .10Specified Rates of Compensation .11Lump Sum .1110.1.3 A&E Consultant Audit and Review Process.12Applicable Standards.12Audit Guidance Available.12Allowable Costs .13Approval or Acceptance of Indirect Cost Rates .14Cognizant Letters of Approval .14Caltrans Acceptance of Indirect Cost Rate .14Financial Review Performed Prior to Contract Execution .15Local Agencies’ Responsibilities.15Consultants’ Responsibilities (Both prime consultants and subconsultants) .16Independent Office of Audits and Investigations’ Responsibilities.17Page i of ixJanuary 2021

Local Assistance Procedures ManualChapter 10Consultant SelectionAudits and Reviews to be Performed .17Indirect Cost Rate Audits .17CPA Workpaper Reviews .18Contract Audits .18Incurred Cost Audits .18Audit Findings and Review Deficiencies.1910.1.4 Consultant Selection Methods .21One-Step RFP .22One-Step RFQ.22Two-Step (RFQ Followed by RFP) .2210.1.5 Consultant Selection Using the One-Step RFP Method .24Appoint Consultant Selection Committee .24Develop Technical Criteria for Evaluation of Proposals.24Develop Schedule for Consultant Selection .24Prepare RFP.25Financial Management and Accounting System Requirements .26Advertise for Consultants.26Issue/Publish RFP .26Conduct Proposer’s Conference or Answer Written Questions .26Receive and Evaluate Technical Proposals .27Develop Final Ranking and Notify Consultants of Results .27Negotiate Contract with Top-Ranked Consultant .2710.1.6 Consultant Selection Using the One-Step RFQ Method .29Appoint Consultant Selection Committee .29Develop Technical Criteria for Evaluation of Qualifications .29Develop Schedule for Consultant Selection .30Prepare RFQ .30Financial Management and Accounting System Requirements .31Advertise for Consultants.31Issue/Publish RFQ.31Receive/Evaluate Statements of Qualifications and Develop Shortlist .31Notify Consultants of Shortlist.32Interview Top-Ranked Consultants.32Develop Final Ranking and Notify Consultants of Results .33Conduct Scoping Meeting.33Request Cost Proposal.33Negotiate Contract with Top-Ranked Consultant .3410.1.7Consultant Selection Using the Two-Step RFQ/RFP Method .35Combined RFQ and RFP.35Categorize work.36Establish Minimum Qualifications .37Page ii of ixJanuary 2021

Local Assistance Procedures ManualChapter 10Consultant SelectionIssue RFQ.37Set-Up Evaluation Process.38Evaluate Qualifications and Add Firm to List .38Maintain List.39Issue RFP to Pre-Qualified Consultants on List .39Conduct Proposer’s Conference or Answer Written Questions .39Receive and Evaluate Technical Proposals .40Develop Final Ranking and Notify Consultants of Results .40Request Cost Proposal and Negotiate Contract with Top-Ranked Consultant. 4010.1.8Completing the Project .42Develop the Final Contract .42Review and Approval of Contracts .42Execute Contract and Issue Notice to Proceed to Consultant .43Administer the Contract .43Substitution of Consultant Personnel and Subconsultants .44Invoicing (or Progress Payments).44Contract Amendments .45Performance Evaluation .46Project Records .46Retention Clauses .47Review of Local Agency Actions.4710.1.9 Miscellaneous Considerations .47Agreements with Other Governmental Agencies.47Small Purchase Contracts .48Noncompetitive Negotiated Contracts (Sole-Source) .48Retaining a Consultant as an Agency Engineer or in Management Support Role .48Construction Engineering Services.5110.1.10 Program Management .5210.1.11 References.5210.2: STATE-ONLY FUNDED A&E CONTRACTS .5410.2.1 General .5510.2.2 Definition of A&E.5610.2.3 Minimum Audit Requirements.56A. Written Procedures.56B. Conflict of Interest .56C. Records.56D. Full & Open competition .57E. Selection Basis.57F. Publication .57G. Solicitation.57H. Cost Analysis .57Page iii of ixJanuary 2021

Local Assistance Procedures ManualChapter 10Consultant SelectionI. Negotiations.5710.3: NON-A&E CONTRACTS .63Scope.63Determining Non-A&E .63Example of Determining Non-A&E .63Intelligent Transportation System (ITS) Projects .64Non-Infrastructure Projects.64Governing Regulations and Codes for Non-A&E.65Procurement of Non-A&E Consultant Contracts.65RFP Basic Requirements .65Additional Requirements and Evaluation Criteria .66Consultant’s Proposal.67Cost Proposal Worksheet .67DBE Consideration .67Administrative Requirements.67Oral Presentations Optional.68Cost-Effective / Public Interest Finding .68Protest / Appeals / Reinstatement Procedures .68Page iv of ixJanuary 2021

Local Assistance Procedures ManualChapter 10Consultant SelectionExhibitsExhibits applicable to this chapter can be found here:Exhibit 10-A: A&E Consultant Financial Document Review RequestExhibit 10-B: Suggested Consultant Evaluation SheetExhibit 10-G: Individual A&E Task Order DBE Tracking SheetExhibit 10-H: Sample Cost Proposal (Example#1 thru #4)Exhibit 10-I: Notice to Proposers DBE InformationExhibit 10-K: Consultant Annual Certification of Indirect Costs and Financial Management SystemExhibit 10-O1: Consultant Proposal DBE CommitmentExhibit 10-O2: Consultant Contracts DBE CommitmentExhibit 10-Q: Disclosure of Lobbying ActivitiesExhibit 10-R: A&E Sample Contract LanguageExhibit 10-S: Consultant Performance EvaluationExhibit 10-T: Conflict of Interest & Confidentiality StatementExhibit 10-U: Consultant in Management Support Role Conflict of interest and Confidentiality StatementPage v of ixJanuary 2021

Local Assistance Procedures ManualChapter 10Consultant SelectionSection 10.1: FEDERALLY FUNDED A&E CONTRACTSProcurement Planning1( Local Agency) *Select Project*Set Project Objectives*Determine Project Schedule*Obtain CTC Allocation/FederalAuthorization to Proceed prior tobeginning reimbursable work*LAPM Exhibit 10-U:Consultant in ManagementSupport Role Conflict ofInterest and ConfidentialityStatement, if applicable:submit Conflict of Interest(COI) and Scope of Work(SOW) to DLA-HQ prior tocontract advertisement.23Local Agency) [ Local Agency*Identify Need for Consultant*Appoint Contract Administrator*Segment Project Work*Define SOW of A&E Consultant*Specify Products to bedelivered) *Estimate Cost of Consultant Work(independent cost estimate)*Determine Type of Contract(Project Specific or On-Call)*Determine Method of Payment:Lump Sum; Cost-Plus- FixedFee; Cost Per Unit of Work; orSpecific Rate of Compensation*Submit Exhibit 9-D to DLAEA&E Architectural and EngineeringIOAI Caltrans Independent Office of Audits andInvestigationsCT CaltransDBE Disadvantaged Business EnterpriseDLA Division of Local AssistanceDLAE District Local Assistance EngineerDLA-HQ Division of Local Assistance-HeadquartersLAPG Local Assistance Program GuidelinesLAPM Local Assistance Procedures ManualMOP Method of PaymentRFP Request for ProposalRFQ Request for QualificationsSOQ Statement of QualificationsSOW Statement/Scope of WorkFigure 10-1: A&E Contract Procurement Process Workflow DiagramPage vi of ixJanuary 2021

Local Assistance Procedures ManualChapter 10Consultant SelectionSolicitation Documents and Advertisement45( Local Agency) *Determine Solicitation Document;RFP or RFQ*Appoint Consultant SelectionCommittee*Collect signed Conflict of Interestforms and ConfidentialityStatements (see Exhibit 10-T:Conflict of Interest &Confidentiality Statement) fromall members involved in process*Determine Procurement Schedule*Develop Technical Criteriawith level of

Local Assistance Procedures Manual Chapter 10 . Consultant Selection . Exhibits Exhibits applicable to this chapter can be found here: Exhibit 10-A: A&E Consultant Financial Document Review Request . Exhibit 10-B: Suggested Consultant Evaluation Sheet Exhibit 10-G: Individual A&E Task Order DBE Tracking Sheet