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NEGOTIATION AND EXECUTION
OF AN AGREEMENT
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
SUBJECT: PROFESSIONAL ENGINEERING, LAND SURVEYING, AND
ARCHITECTURE CONSULTANT CONTRACT NEGOTIATION
PROCESS
DATE: October 31, 1997 CODE: 95 - 02 SUPERSEDES:
APPROVED: ______________________________________________________
DIR., CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Mark Moody TELEPHONE: (518) 457-2601
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This procedure incorporates all requirements of Section 136-a of the State Finance Law. It is
currently in use for newly designated firms for all original contracts and will be used for all
supplemental agreements that are in process but are not signed by the Consultant prior to the date
of this Instruction.
Section 136-a stipulates that State agencies select the highest qualified firm for a project, and
then negotiate a fair and reasonable cost for the services. The 1994 amendment to 136-a adds
that negotiations cannot be terminated solely based upon the "ratio of the allowable indirect costs
to direct labor costs of the professional firm or the hourly labor rate in any category of the
professional firm exceeds a limitation generally set by the department in the determination of the
reasonableness of the estimated cost of services to be rendered by the professional firm."
However, the NYSDOT is obligated to "consider the reasonableness of cost based on the total
estimated cost of the service." The NYSDOT may terminate negotiations based upon the
reasonableness of the Department's fair and reasonable total estimated cost figure ("the bottom
line") and the refusal of the selected firm to meet that figure.
The first phase of negotiations involves labor titles, work hours and a listing of appropriate direct
non salary cost (DNSC) items. Departmental Consultant Job Managers (CJMs) should confine
their negotiation with consultants to these scope related items, should not discuss any cost items
(except DNSC) with the firm and should not consider terminating negotiations based upon cost
issues. This is necessary because the State's fair and reasonable total cost estimate is defined as
the fair and reasonable pricing of the titles, hours and DNSC, as well as OH and fee, necessary to
accomplish the project. As indicated in item 3 below, only when agreement has been reached on
the scope of services, hours, complexity rating and DNSC items, and after the CJM has
transmitted approval of these items to the Contract Management Bureau, must the consultant
submit a full proposal containing labor rates, overhead rates and proposed fixed fee to the
Department. It is at this point in the procedure that cost negotiations are to be accomplished by
the Contract Management Bureau in strict conformance with Section 136-a.
The steps in the negotiation process are as follows:
1. PRE-SCOPE MEETING ACTIVITIES
The Program Area prepares the Consultant Scope of Services and an independent
estimate of staffing requirements and DNSC prior to designation. The Consultant Scope
of Services and a summary of the independent estimate are sent to the Contract
Management Bureau (CMB). While they may be subsequently altered in step 2 or 3, they
are the basis for the Departmental estimate of fair and reasonable cost. The scope of
services is transmitted to the designated firm by the CMB.
2. SCOPE OF CONSULTANT SERVICES MEETING
The Department conducts a scope of services meeting with the consultant team. The CJM
presents and discusses with the consultants the scope of services and the advertised
project complexity. The Department and the consultants discuss in detail the tasks,
technical assumptions, deliverables, DNSC, project schedule, and need for premium time.
Measures which help define the work effort are discussed and agreed upon (e.g., number
of test pits and borings; coverage of surveys; quantities of DNSC). This should be done in
as much detail as possible in order to permit the prime consultant's first proposal to
address all aspects of the services required for the project. The prime consultant may
present more efficient and/or cost reduction methods for discussion with the Department.
The CMB Analyst discusses administrative, contractual and processing information. The
Office of Equal Opportunity Development and Compliance discusses
Disadvantaged/Minority/Women's Business Enterprise goals and training requirements.
3. SCOPE NEGOTIATIONS
During the negotiation process, the CJM finalizes the Consultant Scope of Services,
including technical assumptions. Since the CJM is negotiating the scope of services,
estimated work hours by ASCE/NICET grade for each task (staffing table), a work
complexity rating and DNSC, the prime consultant's first proposal should be limited to
these components and not include labor rates, overhead rates or proposed fixed fee
amounts. When agreement has been reached, the prime consultant sends a final version of
the Scope of Services and staffing table to the CJM. The CJM then transmits the
approved staffing table, DNSC, complexity ratings (for each firm on the consultant team)
and scope of services with a standard cover memorandum to the CMB Analyst.
4. CONSULTANT COST PROPOSAL
The prime consultant prepares and sends the complete final proposal (including diskette)
with complexity rating justification statements (for each firm on the consultant team),
scope of services, staffing table with labor rates, fully detailed DNSC, a proposed
overhead rate and fixed fee for each firm to the CMB only. In accordance with
Consultant Instruction 96-08, overhead should correspond to the split rate appropriate for
the type of services to be provided (e.g., office rates for design, field rates for
construction inspection).
5. COST ANALYSIS AND COMPARISON
The CMB Analyst first verifies that the consultant's final proposal includes appropriate
and accurate data. Prevailing wage rates, labor rates correlating to certified salary rosters,
audited overhead rates (either by a pre-award audit performed by the Department or use
of a previously completed audit), and DNSC are checked for reasonableness and
conformance with the State Comptroller's reimbursement guidelines. Based on the final
proposal, the CMB Analyst then establishes a bottom line figure using industry labor and
overhead rate data that represents NYSDOT's determination of the fair and reasonable
value of the project to the Department. The consultant's proposal is then compared with
the Department's bottom line figure. The CMB Analyst regularly keeps the CJM
informed as to progress during this process. If the consultant's final proposal is
acceptable, the contract is prepared. If it is higher, the CMB Analyst commences
preliminary negotiation to reach the Department's bottom line figure. If necessary, the
bottom line figure is presented to the consultant in writing in the final phase of cost
negotiations. The bottom line is the sum of the Department's determination of fair and
reasonable direct labor, overhead (OH), DNSC and fixed fee costs. The bottom line is
calculated as follows:
A. Direct Labor
1. Labor hours agreed to by the consultant and the CJM.
2. Salary rates applied using industry data on file at CMB.
3. Salary for principals, officers and professional staff shall not exceed the salary
of the Chief Engineer of the NYSDOT.
B. OH Rate
1. OH for surveying, civil engineering and multi-discipline firms is based on the
negotiated complexity of services rating and percentiles from the most recent
industry data from the past 2 years on file at CMB for the type of services to
be provided (e.g., office rates for design, field rates for construction
inspection, or other appropriately segregated rate that has been reviewed and
approved by the NYSDOT Contract Audit Bureau). The complexity rating is
either routine, moderately complex or complex (50th, 65th and 75th
percentiles, respectively, of latest industry rate data updated quarterly). OH
may be further modified if it is determined that there is special value to
NYSDOT from certain component costs of the firm's OH rate that are high in
relation to industry norms.
2. OH for specialty firms is determined by reviewing data on file with CMB for
similar specialty firms. In cases where the pool of available data is too small,
OH may be determined by analysis of the audited rate in comparison to
industry norms and the firm's unique methods of doing business, as well as
availability within the firm of specialized equipment, or expert personnel.
C. DNSC
Review of CJM approved detailed item description with verification using the
State Comptroller's rates where applicable.
D. Fixed Fee
Determine a fair and reasonable fixed fee component using current practice (now
incorporating OH rate as determined above as a factor).
6. THE EFFICIENCY INCENTIVE CLAUSE
This clause, included in every contract will, after final audit, permit firms with actual cost
rates in excess of those used to establish the contract's total estimated cost to bill their full
allocable and allowable unrecovered costs for allowable labor and overhead. This may
only be done using remaining funds up to the value of the total estimated cost, if money
remains available after completing all tasks and delivering an acceptable product or
services.
7. FINAL COST NEGOTIATIONS
Cost negotiations are only required if the consultant's approved proposal (as verified by
CMB) is higher than the Department's fair and reasonable total cost estimate. During
negotiations, the consultant may ask the Department to consider special circumstances
that may warrant revision of the Department's total cost estimate. The consultant may
revise its proposed reimbursement rates for overhead, fixed fee, and labor, including
projected salary increases, in order to meet the Department's fair and reasonable estimate
and avoid impasse.
If negotiations should reach impasse, the prime consultant may as a last resort lower the
cost of the proposal by offering revisions to the consultant scope of services, the staffing
table, or the method of payment (if appropriate). As the Department had expected its
consultant to negotiate the scope and staffing table in good faith and to have freely
offered the firm's expertise in finding project efficiencies, it is not expected that a firm
would offer revisions at this point unless significant new information is received or
changed circumstances become evident. If NYSDOT accepts the revisions, the
Department may appropriately revise its total cost estimate based upon the revised
proposal. This must happen because the Department's fair and reasonable total cost
estimate is defined as the fair and reasonable pricing of the CJM approved titles, hours
and DNSC items, as well as OH and fee, necessary to accomplish the project.
The consultant firm is given an opportunity to revise its proposal to meet the
Department's bottom line during negotiations. After one or two proposals and/or after a
reasonable period of time for negotiations (as determined by the Department) have passed
without agreement, the Department will consider that negotiations are at an impasse, and,
after dedesignation of the firm, will officially begin negotiations with the next most
qualified firm.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
SUBJECT: REQUIREMENTS FOR SUBMISSION OF A FAR OVERHEAD AUDIT
AND
CONR-385 AND FAR OVERHEAD AUDIT REPORT REQUIRED PRIOR
TO SELECTION FOR ENGINEERING SERVICES WORK
DATE: June 22, 2011 CODE: 11-04 Revised SUPERCEDES: 06-07, 07-02,
11-04
APPROVED: ______________________________________________
William A. Howe, Director, Office of Contract Management
CONTACT PERSON: Vincent A. Palleschi TELEPHONE: (518) 457-2600
Effective for a firm’s 2007 Fiscal Year (FY), all consultant engineering firms (prime and sub
consultants) participating in engineering services agreements for the Department are required to
have an annual overhead audit performed in accordance with Federal Acquisition Regulations
(FAR). The criteria for submitting a FAR overhead audit are:
1) The FAR overhead audit must be performed in accordance with Generally Accepted
Government Auditing Standards. The audit work papers shall be available for
NYSDOT inspection upon request. The AASHTO Consultant Audit Guide may be
downloaded at
http://audit.transportation.org/Documents/UNIFORM%20AUDIT%20AND%20ACCOUNTI
NG%20GUIDE%202010.pdf. The submission of a FAR overhead audit report must
include a separate financial statement and the certification located on page one (1),
Part V of the CONR 385 Form executed by an officer of the consultant firm available
at the URL in Item 1 above.
2) The cost associated with the performance of a FAR overhead audit is an eligible
overhead cost.
3) Requests for the establishment of overhead rates for years prior to FY 2007 must
include a complete and certified CONR 385 available at the URL in Item 1 above.
4) Firms that reorganize, merge or otherwise change their structure in a manner that
affects their overhead history should contact the Office of Contract Management for
direction on how to comply with the requirement for a FAR overhead audit.
Exception: Firms with a gross income of less than one million dollars annually during two of
the last three fiscal years do not have to submit a FAR audit every year. They are
required to submit a completed and certified CONR 385 Form downloadable at:
https://www.dot.ny.gov.gov/portal/page/portal/main/business-center/audit/conr-385-
388
Effective immediately, all firms or Joint Venture partnerships submitting an Expression of
Interest (EOI) for consultant architectural-engineering services with NYSDOT will not be
designated to provide those services unless its current required Federal Acquisition Regulations
(FAR) Overhead Audit and/or CONR-385 financial information have been appropriately
submitted (see CI 11-05, Use Of An Interim Overhead Rate for Small Firms, or replacement
instructions for submission requirements).
Exceptions to this policy are intended to be very limited and will be at the sole discretion of
NYSDOT. The needs of the project, including maintaining project schedule, and the anticipated
benefits to the State will be the primary criteria considered by NYSDOT when determining
whether an exception to this policy is granted or allowed.
Therefore, it is very important for all firms desiring to participate in architectural-
engineering services consultant contracts with NYSDOT to be prepared to provide
NYSDOT with the required current financial information in advance of or concurrent with
the submission with their EOI. NYSDOT is not willing to delay or postpone the
progression of projects to allow firms to fulfill their responsibilities in meeting these
requirements.
The contact terms and conditions of all current/active consultant agreements require prime
consultant and sub-consultant firms to provide the Office of Contract Management with a FAR
Overhead Audit and/or CONR-385 and related financial information within six months after the
completion of each firm’s fiscal year. A prime consultant firm will be given seven business days
from notification of its pending designation or inclusion on a designated team to submit its
overdue FAR Overhead Audit and/or CONR-385 information.
Requirements for FAR Overhead Audit and CONR-385 submission relative to project
designation are:
1.) The Office of Contract Management will notify prime and joint venture consultants whose
FAR Overhead Audit and/or CONR-385 submissions are overdue of their pending designation
and allow them seven business days to provide a current and acceptable FAR Overhead Audit
and/or CONR-385 information before designating another consultant team. Other team
members with FAR Overhead Audit Report and/or CONR-385 deficiencies will be allowed seven
business days after team designation to provide their current FAR Overhead Audit Report and
CONR-385 or be removed from the designated team
2.) The prime consultant will be asked to propose a replacement firm for any subconsultant
firm on its team that does not submit its required current FAR Overhead Audit and/or CONR-
385 information within seven business days after a consultant team has been designated. Any
proposed replacement firm must have an appropriate FAR Overhead Audit and/or CONR-385
information on file with the Office of Contract Management, meet the M/W/DBE criteria of the
consultant it replaces and be acceptable to the Department.
3.) To be considered current and complete, the FAR Overhead Audit and/or CONR-385
submission, including financial statements, must be for the most recently completed fiscal year,
acceptable in content to both the Office of Contract Management and the Contract Audit
Bureau, and meet all the financial reporting requirements in place at the time of its submission.
Current FAR Overhead Audit and CONR-385 reporting requirements should be reviewed prior
to submitting any EOI. Be sure to note that effective fiscal year 2007, every firm has been
required to submit annual FAR compliant audits. Consultant Instructions regarding FAR
Overhead Audit and CONR-385 requirements are available at:
https://www.dot.ny.gov/main/business-center/consultants/architectural-engineering/consultant-
instructions/overhead
STATE OF NEW YORK
DEPARTMENT OF TRANSPORTATION
CONTRACT SERVICE FIRM ANNUAL FINANCIAL,
OWNERSHIP AND ACCOUNTING PRACTICES REPORT
FIRM NAME;
YEAR ENDED: _____________________ _____________ ________________
Month Day Year
ADDRESS:
CONTACT: _____________________________________ ___________________________________________
Name Title
PHONE: (_______) ____________________________
FAX: (_______) ____________________________
Internet E-Mail Address: ________________________________________________________
For DOT Use Date Received Date Reviewed By
Contracts _______________ _______________________ _______________________
Audit _______________ _______________________ _______________________
CONR 385 (Rev. 1/00)
STATE OF NEW YORK
DEPARTMENT OF TRANSPORTATION
CONTRACT SERVICE FIRM ANNUAL FINANCIAL,
OWNERSHIP AND ACCOUNTING PRACTICES REPORT
PURPOSE: 1. To provide current identification and overhead rate information for contract billing and pre-contract pricing.
2. To provide basic information on the accounting system and organization of contract service firms for pre-award and post
audit purposes.
FILING REQUIREMENTS: For contract service firms and associated subconsultants:
PART I - Required for each filing and when any changes in previously reported Part I information occur.
PART II - Required for each filing of a CONR 385 report.
PART III - Required at the time of designation. Should be submitted for the most recently completed fiscal year.
PART IV - Required for initial filing and each subsequent fiscal year.
PART V - Required Certification for all submissions.
SUBMITTAL: The completed report should be sent to:
Director
Contract Management Bureau
New York State Department of Transportation
Building 5, Room 108
Governor Harriman State Office Campus
Albany, NY 12232
Contact Person : Mark Moody (518) 457-2601
EXEMPTION FROM FREEDOM OF INFORMATION: Information furnished will be held in strict confidence by NYSDOT and may be
protected from public disclosure under the Freedom of Information Law pursuant to ART. 6 Sec. 87(2)(d) as adopted on January 25, 1994.
STATE OF NEW YORK
DEPARTMENT OF TRANSPORTATION
CONTRACT SERVICE FIRM ANNUAL IDENTIFICATION,
FINANCIAL, OWNERSHIP AND ACCOUNTING PRACTICES REPORT
GENERAL INSTRUCTIONS
1. If under normal business practice, the contract service firm requests overhead reimbursements for more than one reporting unit, a
separate report is required for each unit involved in NYSDOT services. Separate worksheets and supporting schedules should be
attached for firms required to submit field and office overhead rates pursuant to Department instructions.
2. Attach continuation sheets for Part III, Sections A & B, as necessary.
3. Fringe benefit amounts are to include the employer's cost only.
4. Certification by a Principal Officer or Partner of the firm is required in Part V for all submissions.
5. Certification by an independent Certified Public Accountant covering Part III is optional (see Part V-Certification). Inclusion of a
CPA Certification will reduce the degree of testing of accounting records by NYSDOT.
6. The firm must attach a copy of its general purpose financial statements for the same fiscal year as Part III of this statement.
7. The firm must disclose all audits by other governmental entities and independent CPA firms when submitting this form. When
available a copy of all such overhead reports by should be submitted with this form.
8. If the firm's financial statements are not reviewed, compiled or audited by an independent CPA, a detailed chart of accounts and
trial balance must be submitted together with adjusting journal entries for the period covered by this report.
9. If you wish to submit Facilities Capital Cost of Money (FCCM), please refer to the "To All Consultants" letter dated October 5,
1990.
IMPORTANT NOTES
THIS DOCUMENT (OR ATTACHMENTS IN THE SAME FORMAT) MUST BE COMPLETE AND MUST BE SIGNED AND
NOTARIZED ON PAGE 23 OR IT WILL BE RETURNED.
PARTIAL YEAR INFORMATION WILL NOT BE ACCEPTED FOR FORWARD PRICING OR BILLING RATE
CHANGES.
STATE OF NEW YORK
DEPARTMENT OF TRANSPORTATION
CONTRACT SERVICE FIRM ANNUAL FINANCIAL,
OWNERSHIP AND ACCOUNTING PRACTICES REPORT
DETAILED INSTRUCTIONS FOR PART III - FINANCIAL SCHEDULES INSTRUCTIONS
1. Complete Section A, Columns a-d. Column d is carried over to column e in total unless base salary is allocable to more than one
reporting unit. Please describe the basis of any allocation made. (Not required if existing agreements with NYSDOT do not have
a bonus limit.)
2. Complete Section B based on the DOT guidelines for maximum salary for the report year. If two or more salary maximums are
identified for a particular year, use the lowest maximum in effect per Department contract terms for all of your active agreements.
If the excess of total compensation over the NYSDOT maximum for each individual is allocable to more than one reporting unit,
describe the basis for allocation - otherwise the total excess amount is to be shown.
(Column c, Bonus Exclusions, are carried forward from Part II-A, Column e.) *
3. For Section D, Columns a and b, see explanation in Item 2 above. Columns c-f should reference amounts allocable to this
reporting unit only. Amounts excluded as unallowable in Column e are to be based on Federal Acquisition Regulations.
4. Any direct cost amounts included in Section D, Columns a and b, are to be identified and eliminated in Column c. If allocable
amounts (Column b) are different from total amounts (Column a), Column c should represent only the allocable portion of direct
costs. If no direct costs are included in an account, Column c should be reported as zero.
5. For Section D, the firm should use its own account classifications within the major groupings of "fringe benefits and payroll
burden", "indirect payroll", "occupancy and other fixed overhead" and "unallowable expenses".
* Use this only if the firm has arrangements predating December 1, 1989.
DEFINITIONS
1. Allocable Cost - Cost which is properly assigned in accordance with Federal Acquisition Regulations, on a
consistent and relevant basis. Allocable costs may include direct costs, indirect costs and
pooled direct cost.
2. Allowable Cost - Costs which are 1) allowable according to Federal Acquisition Regulations and contract
provisions; 2) allocable to the proposed or awarded contract; and 3) reasonable.
3. Contract Service Firm (firm) - Any firm seeking to provide services or actively providing services under approved
contracts with NYSDOT. The "firm" as referred to in this document generally means the
highest level parent entity.
4. Direct Cost - Any cost which can be attributed specifically to a final cost objective, such as products or
projects.
5. Direct Payroll Base - That portion of allocable payroll cost related to projects. Allocable payroll cost excludes
bonus and the premium portion of overtime, but may include properly accrued deferred
compensation plan amounts. Direct payroll cost will be allocated based on the proportion
of work hours associated with projects over total work hours, including paid absence
hours (normal weekends excepted).
6. General Purpose Financial - Balance sheet, statement of operations, statement of cash flow and financial statement
notes
Statements as audited, reviewed or compiled by the firm's Independent Public Accountant or
Certified Public Accountant.
7. Reporting Unit - The lowest level cost center, responsibility center or profit center for which the firm
requests indirect cost reimbursement. Generally, the reporting unit will be the firm.
PART I - IDENTIFYING INFORMATION
The Department of Transportation may require additional information deemed necessary for its review. Whenever more space is needed to answer any
question, or you wish to give further explanation, attach extra pages if necessary. All questions must be answered.
GENERAL INFORMATION
1. NAME OF FIRM
DBA NAME, IF ANY
MAILING ADDRESS FAX NO.
ACTUAL LOCATION PHONE NO.
CITY COUNTY STATE ZIP
Date, City, County and State of Incorporation or Registration:
Date City County State Zip
2. TYPE OF FIRM (check one only) CORPORATION PARTNERSHIP PROPRIETORSHIP JOINT VENTURE
LLP LLC Subchapter [S] 501 (c)(3)
3. HOW MANY YEARS HAS THE FIRM BEEN IN BUSINESS? UNDER THE SAME NAME?
FORMER NAME
4. ARE YOU CERTIFIED AS A DBE MBE WBE IF SO, WITH WHAT AGENCY?
5. FEDERAL EMPLOYER ID NO.
STATE EMPLOYER ID NO.
OWNERSHIP, MANAGEMENT, AFFILIATION Firm Name:________________________
6. Identify each person who is, or has been within the past five years, an owner of 5.0% or more of the firm's shares, a director, an officer, a partner or the
proprietor. Joint ventures: provide information for all firms involved. Fill in name, % owned, office held; indicate by Y or N whether director, officer or
partner.
FIRST NAME MI LAST NAME DOB % OWNED DIRECTOR OFFICER TITLE PARTNER
(Y OR N) (Y OR N) (Y OR N)
7. Does the firm own, or has the firm or any of the firm's principal owners or officers identified in item number 6 above own or owned, 5.0% or more of
any other firm or business?
__Yes, list below __No
FEDERAL ID NO. % OWNED COMPANY NAME ADDRESS
Firm Name:________________________
8. Identify any affiliate not listed in your answers to questions 6 and 7. For purposes of this question your firm and another are affiliates when, either
directly or indirectly, one controls or has a measure of control on the other or a third party or parties has a measure of control on both.
FEDERAL ID NO. COMPANY NAME ADDRESS
9. Identify any and all shareholders, directors, officers, partners, or proprietors in common between your firm and any firm listed in response to questions
6,7 or 8.
FEDERAL ID NO. FIRST NAME, MI & LAST NAME OTHER FIRM
10. Has the firm, or any firm listed in response to questions 6,7 or 8, defaulted or been terminated on any contract awarded within the past five years? If
so, give date(s), agency(ies)/owner(s), project(s), contract numbers, and describe, including the result:
____________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________
________.
11. For all contracts list and describe all liens or claims over $25,000 filed against the firm and remaining undischarged or unsatisfied for more than 90
days.
OTHER INFORMATION Firm Name:________________________
12. Within the past five years has the firm, any affiliate, any predecessor company or entity, or any person identified in question number 6 above been the
subject of any of the following: (respond to each question and describe in detail the circumstances of each affirmative answer: attach additional pages if
necessary)
(a) a judgment of conviction for any business-related conduct constituting a crime under state or federal law? No _____ Yes _____
(b) a criminal investigation or indictment for any business-related conduct constituting a crime under state or federal law? No _____ Yes _____
(c) a grant of immunity for any business-related conduct constituting a crime under state or federal law? No _____ Yes _____
(d) a federal or state suspension or debarment? No _____ Yes _____
(e) any administrative proceeding or civil action seeking specific performance or restitution in connection with any
public works contract except any disputed work proceeding? No _____ Yes _____
(f) an OSHA Citation and Notification of Penalty containing a violation classified as serious? No _____ Yes _____
(g) an OSHA Citation and Notification of Penalty containing a violation classified as willful? No _____ Yes _____
(h) a prevailing wage or supplement payment violation? No _____ Yes _____
(i) a State Labor Law violation deemed willful? No _____ Yes _____
(j) any other federal or state citations, Notices, violation orders, pending administrative hearings or proceedings, or
determinations of a violation of any labor law or regulation? No _____ Yes _____
(k) any criminal investigation, felony indictment or conviction concerning formation of, or any business association with,
an allegedly false or fraudulent women's, minority or disadvantaged business enterprise? No _____ Yes _____
(l) any denial, decertification, revocation or forfeiture of Women's Business Enterprise, Minority Business Enterprise or
Disadvantaged Business Enterprise status? No _____ Yes _____
(m) a consent order with the NYS Department of Environmental Conservation, or a federal, state or local government
enforcement determination involving a violation of federal or state environmental laws? No _____ Yes _____
(n) any bankruptcy proceeding? No _____ Yes _____
(o) any suspension or revocation of any business or professional license? No _____ Yes _____
(p) any citations, Notices, violation orders, pending administrative hearings or proceedings or determinations or
violations of:
* federal, state or local health laws, rules or regulations No _____ Yes _____
* unemployment insurance or workers compensation coverage or claim requirements No _____ Yes _____
* ERISA (Employee Retirement Income Security Act) No _____ Yes _____
* federal, state or local human rights laws No _____ Yes _____
* federal or state security laws? No _____ Yes _____
PART II - GENERAL INFORMATION Firm Name: __________________________
1. Location of accounting records:
2. CPA/Accounting Firm Name and Address:
3. What is the firm's policy for capitalizing fixed assets?
4. Depreciation method used:
5. Does your accounting system and overhead schedules submitted in Part II reflect the accrual Yes No If no, describe accounting
basis? basis used:
6. Type of system (check appropriate boxes):
Outside Inside Inside
Service Manual Computer
6. Type of system (check appropriate boxes):
Outside Inside/ Inside/
Service Manual Computer
a. General Ledger [ ] [ ] [ ]
b. Job Cost [ ] [ ] [ ]
c. Payroll [ ] [ ] [ ]
d. Labor Distribution [ ] [ ] [ ]
7. Does the firm's accounting system (check appropriate categories):
a. [ ] Allocate direct costs to projects/contracts?
b. [ ] Identify unallowable costs according to Federal Acquisition Regulations?
c. [ ] Allocate indirect costs to projects?
d. [ ] Use standard costs to predetermined rates for any type of cost?
8. List the types of direct cost allocated to projects/contracts:
a. [ ] Travel meals and lodging
b. [ ] Reproduction - internal
c. [ ] Reproduction - external
d. [ ] Computer/CADD (if Yes, completed CONR 388 must also be submitted)
e. [ ] Supplies and equipment
f. [ ] Subconsultants
g. [ ] Other (specify) _____________________________________________
Firm Name: __________________________
9. Overhead (indirect cost) is computed and applied based on (check appropriate category):
a. [ ] Actual direct payroll cost
b. [ ] Cost of services (associated fringes and payroll taxes are allocated to the direct labor base)
c. [ ] Modified cost of services (some associated fringes and payroll taxes are allocated to the direct labor base)
d. [ ] Other (specify) ____________________________________________________
If b or c are checked, indicate items that are included in the direct labor base:
[ ] Holidays [ ] Life Insurance
[ ] Vacation [ ] Disability/Workers Comp.
[ ] Sick Leave/Personal Time [ ] Retirement Plans
[ ] Health Insurance [ ] Other (specify) _________________
10. Are standard hours used (check appropriate box(es)):
a. [ ] To compute labor rates? b. [ ] To distribute labor costs?
If either of these items are checked, describe the disposition of variance resulting from the difference between standard and the actual
timesheet hours worked.
____________________________________________________________________________________
11. Non-reimbursed direct costs are (check appropriate box(es) and explain):
a. [ ] Charged to direct cost accounts ______________________________________
b. [ ] Charged to overhead (indirect cost) accounts _________________________
c. [ ] Other (specify) ______________________________________________________
12. Are leases capitalized as required by Financial Accounting Standards? [ ]Yes [ ]No
13. Does the firm have deferred compensation plans? [ ] Yes [ ] No
If yes, is the plan qualified by IRS? [ ] Yes, IRC Section _____ [ ] No
14. Does the firm have a retirement plan? [ ] Yes [ ] No
If yes, is the plan (check appropriate box(es):
[ ] Defined benefit pension?
[ ] Defined contribution pension?
[ ] Profit sharing?
[ ] Qualified by IRS-IRC Section _____?
Attach a copy of the summary plan description and IRS Letter of Determination.
PART III - FINANCIAL SCHEDULES Firm Name: __________________________
A. Schedule of Bonus in excess of 15 percent of salary exclusive of bonus. Complete the following for the current report year only if there are
open contracts dated prior to December 1, 1989.
a. b. c. d. e.
Excess
Total Allocable
Annual Base Bonus Bonus To This
Name/Title Compensation Salary Amount Disallowed* Unit (1)
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
_________________________ ____________ ____________ ____________ ____________ ____________
Total Section A ____________ ____________
____________ ____________
(1) Attach explanation of allocation.
* Excess of bonus (Column c) over 15% of base salary. If base is over maximum, Column c is disallowed amount.
MM / DD / YY
__ / __ / __
Current Report Year End
Firm Name: _________________
B. Schedule of Compensation in excess of the DOT guidelines for maximum salary of $__________. (Enter applicable NYSDOT annual
maximum and complete the following for the fiscal year of this report. NYSDOT annual maximums may be obtained from the accompanying
Audit Expectation letter or from the Contract Management Bureau. Use the lowest maximum in effect per the terms of any existing
Department contracts.
a. b. c. d. e.* f.*
Excess Total Excluded As Balance
Total Allocable To Excess Bonus Column B Direct Indirect
Name/Title Compensation This Unit Per Sect. A Less C Cost Cost
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
____________________ ____________ ____________ ____________ __________ __________ __________
Total Section B __________ __________
__________ __________
* Note: Column d is to be distributed to Column e and f based on actual hours charged as direct/indirect. Any bonus amount in Column d is to be
included in the Column f and the remainder of Column d is to be prorated based on hours.
MM / DD / YY
__ / __ / __
Current Report Year End
C. Computation of Direct Payroll Base Firm Name: ________________________________
Amount
Allocable To
Total This Unit
Direct Payroll (including Premium OT) ____________ ____________
Principal/Partners Direct Time (Total) ____________ ____________
Total Direct Labor (Note) ____________ ____________
Deductions
Direct Portion of Salaries in Excess of DOT
Maximums (Section B, Column E) (__________) (__________)
Premium Portion of Overtime (__________) (__________)
Prevailing Wages or Benefits in excess of (__________) (__________)
normal rates
Other (specify)___________________________ (__________) (__________)
Total Deductions (__________) (__________)
Total Section C ____________ ____________
____________ ____________
Note: Exclusive of Bonus
MM / DD / YY
__ / __ / __
Current Report Year End
Firm Name:________________________________________
D. Computation of Allowable Indirect Cost. Show total cost by category.
A. B. C. D. E. F.
Allowable
Amount Indirect Unallowable Indirect
Allocable Direct Costs Per Federal Cost
Total To Costs This Unit Acquisition This Unit
Amount This Unit This Unit B Less C Regulations D Less E
Account Classification
Fringe Benefits & Payroll Burden
Employers FICA $________ $________ $________ $________ $__________ $________
Federal & State Employment ________ ________ ________ ________ __________ ________
Disability Insurance ________ ________ ________ ________ __________ ________
Workers Compensation ________ ________ ________ ________ __________ ________
Health Insurance ________ ________ ________ ________ __________ ________
Retirement/Profit Sharing ________ ________ ________ ________ __________ ________
Group Life Insurance ________ ________ ________ ________ __________ ________
Union Welfare Fund ________ ________ ________ ________ __________ ________
Other (Specify): ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
TOTAL $________ $________ $________ $________ $__________ $________
NOTE:
Incremental Benefits and
Payroll Burden Applied to Prevailing
Wages and Benefits in excess of normal
In Part III-C if Claimed Directly Net
on Prevailing Wages on Contracts
should be Deducted as a Direct Cost
above.
MM / DD / YY
__ / __ / __
Current Report Year End
Firm Name:_______________________
A. B. C. D. E. F.
Allowable
Amount Indirect Unallowable Indirect
Allocable Direct Costs Per Federal Cost
Total To Costs This Unit Acquisition This Unit
Amount This Unit This Unit B Less C Regulations D Less E
Account Classification (cont’d)
Indirect Payroll
Indirect Technical Time $________ $________ $________ $________ $__________ $________
Indirect Partner/Principal Time ________ ________ ________ ________ __________ ________
Administrative Payroll ________ ________ ________ ________ __________ ________
Vacation ________ ________ ________ ________ __________ ________
Sick Leave ________ ________ ________ ________ __________ ________
Holidays ________ ________ ________ ________ __________ ________
Excused Absences ________ ________ ________ ________ __________ ________
Bonus ________ ________ ________ ________ __________ ________
Other Paid Absence ________ ________ ________ ________ __________ ________
Other (Specify): ________ ________ ________ ________ __________ ________
____________________________ ________ ________ ________ ________ __________ ________
____________________________ ________ ________ ________ ________ __________ ________
____________________________ ________ ________ ________ ________ __________ ________
TOTAL $________ $________ $________ $________ $__________ $________
MM/DD/YY
__/__/__
Current Report Year End
Firm Name:_____________________________
A. B. C. D. E. F.
Amount Indirect Unallowable Indirect
Allocable Direct Costs Per Federal Cost
Total To Costs This Unit Acquisition This Unit
Amount This Unit This Unit B Less C Regulations D Less E
Account Classification (cont’d)
Occupancy & Other Fixed Overhead
Rent $________ $________ $________ $________ $__________ $________
Utilities ________ ________ ________ ________ __________ ________
Depreciation ________ ________ ________ ________ __________ ________
Property Insurance ________ ________ ________ ________ __________ ________
Prof. Liability ________ ________ ________ ________ __________ ________
Maintenance & Repairs ________ ________ ________ ________ __________ ________
Business Taxes (Other than FIT) ________ ________ ________ ________ __________ ________
Other (Specify): ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
TOTAL $________ $________ $________ $________ $__________ $________
MM / DD / YY
__ / __ / __
Current Report Year End
Firm Name:____________________________
A. B. C. D. E. F.
Allowable
Amount Indirect Unallowable Indirect
Allocable Direct Costs Per Federal Cost
Total To Costs This Unit Acquisition This Unit
Amount This Unit This Unit B Less C Regulations D Less E
Account Classification (cont’d)
All Other Allowable Indirect Expenses
Travel & Auto $________ $________ $________ $________ $__________ $________
Dues & Subscriptions ________ ________ ________ ________ __________ ________
Accounting & Auditing ________ ________ ________ ________ __________ ________
Legal ________ ________ ________ ________ __________ ________
Office Supplies ________ ________ ________ ________ __________ ________
Technical Supplies ________ ________ ________ ________ __________ ________
Office Equipment Rental ________ ________ ________ ________ __________ ________
Technical Equipment Rental ________ ________ ________ ________ __________ ________
Printing & Reproduction ________ ________ ________ ________ __________ ________
Computer Expense ________ ________ ________ ________ __________ ________
Business Development ________ ________ ________ ________ __________ ________
Research & Development ________ ________ ________ ________ __________ ________
Other (Specify): ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
_____________________________ ________ ________ ________ ________ __________ ________
TOTAL $________ $________ $________ $________ $__________ $________
MM / DD / YY
__ / __ / __
Current Report Year End
Firm Name: _______________________________________
A. B. C. D. E. F.
Allowable
Amount Indirect Unallowable Indirect
Allocable Direct Costs Per Federal Cost
Total To Costs This Unit Acquisition This Unit
Amount This Unit This Unit B Less C Regulations D Less E
Account Classification (cont’d)
Unallowable Expenses
Interest $________ $________ $________ $________ $__________ $________
Contributions ________ ________ ________ ________ __________ ________
Entertainment ________ ________ ________ ________ __________ ________
Bad Debts ________ ________ ________ ________ __________ ________
Other Losses ________ ________ ________ ________ __________ ________
Federal Income Taxes ________ ________ ________ ________ __________ ________
Other (Specify): ________ ________ ________ ________ __________ ________
_______________________ ________ ________ ________ ________ __________ ________
_______________________ ________ ________ ________ ________ __________ ________
_______________________ ________ ________ ________ ________ __________ ________
TOTAL $________ $________ $________ $________ $__________ $________
TOTAL SECTION D $________ $________ $________ $________ $__________ $________
________ ________ ________ ________ __________ ________
MM / DD / YY
_ _/_ _/_ _
Current Report Year End
Firm Name: _______________________________
E. Reconciliation of Total Expenses With Financial Statements
Total Section D Expenses (Col. A) ___________________
Less: Non-Financial Statement Items (Specify):
______________________________________________ (___________________)
______________________________________________ (___________________)
______________________________________________ (___________________)
Plus: Total Direct Labor Base (Section C) ___________________
Other Adjustments (Specify):
______________________________________________ ___________________
______________________________________________ ___________________
Total Financial Statement Expenses ___________________
**********
F. Indirect Cost Computation
1. Total Section D Allowable (Column F):
Fringe Benefits ___________________
Indirect Payroll ___________________
Occupancy & Other Fixed Overhead ___________________
Other Allowable Expenses ___________________
Total ___________________
Less Excess Bonus (Section A, Column E) (___________________)
Excess Compensation (Section B, Column F (___________________)
Net Allowable Indirect Cost ____________________
____________________
2. Total Section C Allowable Direct Payroll
Base ___________________
___________________
3. Indirect Cost Rate #1/#2 X 100 ___________________
___________________
MM /DD / YR
_ _/_ _/_ _
Current Report Year End
Firm Name:______________________________________
F.1. Distribution of Field and Office Expenses
1. Direct Labor Amount Percent
Office Engineering _______________ _______________
Field Engineering _______________ _______________
Total _______________ _______________
2. Indirect Cost Total Field Office Non-Attributable
Indirect Technical Payroll _________ _________ _________ ___________
Administrative & Executive Payroll _________ _________ _________ ___________
Payroll Taxes, Insurance & Fringes _________ _________ _________ ___________
Occupancy & Other Fixed Assets _________ _________ _________ ___________
Computer/CADD _________ _________ _________ ___________
Blueprinting/Reproduction _________ _________ _________ ___________
Other _________ _________ _________ ___________
Subtotal _________ _________ _________ ___________
Distribution of Non-Attributable _________ _________ _________ (___________)
Total Allowable Indirect Cost _________ _________ _________
3. Overhead Cost Rate (#2/#1 * 100) _________ _________ _________
MM /DD /YR
__ /__ /__
Current Report Year End
Firm Name: _______________________________
PART IV - SCHEDULE OF NEW YORK STATE DEPARTMENT OF TRANSPORTATION ACTIVITY
NYSDOT Labor - To assist in post audit planning, please indicate the amount of direct labor on all NYSDOT projects which were active during the
period covered by the CONR 385. (Notes: Please exclude labor on Specific Hourly Rate and Lump Sum agreements. Amounts may be
rounded/estimated within the nearest thousand or hundred thousand.)
NYSDOT DIRECT LABOR THIS PERIOD
PROJECT TYPE
CONTRACT # C/I DESIGN OTHER TOTAL SCHEDULED PRIME CONSULTANT
SPECIFY COMPLETION
MM /DD / YY
___/___/___
Current Report Year End
Firm Name:
_____________________________________
PART V - CERTIFICATION
Certification by authorized official of the firm
I, ____________________________________ (Name) certify that: The representations in this Annual Financial,
Ownership and Accounting Practices Report are accurate and complete; that financial information is based on official
financial records of _________________________ (Name of Reporting Unit) for the year ended
_____________________; and that the submitted indirect cost schedule (Part II, Section A-F) and related schedules
were prepared in accordance with standard NYS Department of Transportation agreement provisions and Part 31 of
the Federal Acquisition Regulations 48 CFR 31). All known material transactions or events which have occurred, or
are expected to occur in the future, affecting the firm's ownership, organization and indirect cost rates have been
disclosed in the body of this report or in supplementary information provided to the Director, Contract Audit Bureau,
concurrent with this report submission.
The undersigned recognizes that the information is submitted for the express purpose of assisting the Department of
Transportation in the process of awarding and/or administering a contract or a subcontract; acknowledges that the
Department of Transportation may in its discretion, by means which it may choose, determine the truth and accuracy
of all statements made herein; acknowledges that intentional submission of false or misleading information may
constitute a felony under Penal Law §210.40 or a misdemeanor under Penal Law §210.35 or §210.45, and may also
be punishable by a fine of up to $10,000 or imprisonment of up to five years under 18 U.S.C. §1001; and states that
the information submitted in this report and any attached pages is true, accurate and complete.
The Documents requested by Items 5, 6 and 7 on Page 3 of this form are attached.
Signature of Officer Title Date
Sworn to before me this
_______day of ____________________,_______.
Commission Expiration Date
__________________________________________
Notary Public
Firm
Name:________________________________
Certification by firm's Independent Certified Public Accountant (Optional)
I/We, ________________________________ (Name) have reviewed the financial information presented in Part II,
Sections A-F of this Annual FINANCIAL, OWNERSHIP AND ACCOUNTING PRACTICES REPORT for
______________________ (Name of Reporting Unit). This review was performed to determine if the financial
information presented is based on the financial statements of _____________________________ (Name of Firm) for
the year ended _____________ (Date) which were (audited)(compiled)(reviewed) [cross out non-applicable items]
by us and to determine if the financial information is presented in accordance with standard NYS Department of
Transportation agreement provisions and Part 31 of the Federal Acquisition Regulations (48 CFR, Chapter I, Part
31).
In (my/our) opinion, except as otherwise noted, the financial information presented in Part II, Sections A-F, is
consistent with representations made in the financial statements for the same period and is presented in accordance
with the criteria identified in the preceding paragraph.
_______________________________ (Signed) _____________________________ (Title) __________ (Date)
Note: The Independent Certified Public Accountant should describe deviations from Generally Accepted
Accounting Principles and provide an explanation if cost schedules (Section E) are not reconcilable with
financial statements.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
-------------------------------------------------------------------------------------------------------
SUBJECT: USE OF CONR 385 FINANCIAL DISCLOSURE AS BASIS FOR OVERHEAD
BILLING ADJUSTMENT
DATE: DECEMBER 10, 1991 CODE: 91 - 02 SUPERSEDES:
APPROVED: ______________________________________________________
DIR., CONTRACT MANAGEMENT BUREAU
-------------------------------------------------------------------------------------------------------------------
Many consultants have experienced the negative financial impact of large audit exceptions found at the
final audit stage of Agreement close-out. In order to reduce audit adjustments due to the most prevalent
negative factor, namely the variations in overhead rate during the term of an Agreement, we are initiating a
new policy based on your annual submission of form CONR 385, Contract Service Firm Financial,
Ownership and Accounting Practice Report.
Each consulting firm having an active Agreement with the Department, and its associated subconsultants,
are currently required (in accordance with a March 6, 1990 letter to all consultants) to submit the CONR
385 on an annual basis within six months of the end of the firm’s fiscal year. Within thirty days of receipt
of the CONR 385, the Department will notify your firm, all your prime consultants if you are a
subconsultant, and all appropriate State Consultant Managers of the approved provisional overhead billing
rate for the fiscal year submitted. Your subsequent payment estimate must adjust overhead billed on cost
reimbursement contracts (CPFF) to the provisional overhead billing rate approved for the fiscal year that
has been reviewed and for all billing periods in the next year until an approved provisional overhead billing
rate is established for that year.
Failure to submit the CONR 385 within six months after the end of your fiscal year will result in the
suspension of overhead payments in future billings until the form is submitted and a provisional rate
established.
Please note that increases in the provisional overhead billing rate or actual applied overhead based on audit
are not a basis for an increase in the fixed/net fee or in maximum amount payable in any Agreement.
The provisional overhead billing rate is subject to post audit prior to contract settlement and pre-award
review for pricing other agreements. Pre-award rate of post audit rates will be used for adjusting overhead
billing when these rates are available.
So that we may be able to check our current information in implementing this procedure for your firm,
please advise us of your current fiscal year end date at your earliest convenience.
MEMORANDUM
DEPARTMENT OF TRANSPORTATION
TO: Consultants Using CONR 385
FROM: V. D. DiNuzzo, Contract Audit Bureau, 610/7A
SUBJECT: CONR 385 - AUDIT EXPECTATIONS
DATE: April 8, 1992
The auditor and management certifications on CONR 385 request an opinion and
statement, respectively, that the form was prepared in compliance with Federal
Acquisition Regulations (48 CFR Part 31) and Standard NYS Department of
Transportation agreement terms.
It is expected that the information and certifications on the CONR 385 will reflect
substantial and material compliance with these requirements, based on the competent
knowledge and understanding of the persons preparing, reviewing and certifying the
document. For your further guidance, some of the more common types of
deficiencies noted in our overhead audits have includes the following:
- Salaries in excess of NYSDOT guidelines for maximum salaries (see
attachment).
- Allocated costs not adequately supported or unallowable costs included in
allocations.
- Direct and indirect costs not consistently treated based on the nature of the cost.
Direct costs are required to be segregated from indirect cost.
- Personal expenses included in overhead or mixed personal/business costs not
fairly allocated.
- Rent of real property or equipment between related parties stated at amounts in
excess of the “normal costs of ownership”.
- Credits not applied where appropriate for miscellaneous income or gain on sale
of assets.
- Compensation of owner/managers of closely held business not in conformance
with IRS regulations requiring payment of compensation.
- Contract or temporary services improperly mixed with regular labor accounts or
services of “de facto” employees excluded from labor.
This is not intended to be a comprehensive list of all possible deficiencies. The FAR
should be reviewed, thoroughly, prior to completion or certification of the form.
The CONR 385 should be submitted complete and in accordance with instructions on
the form. Parts I, II, and the Firm Certification on Part III are to be submitted along
with financial statements, chart of accounts, trial balance and adjusting journal entries
for the same period of time, as required.
This information should be submitted annually, within six months after the end of the
firm’s fiscal period, for each year the firm has been designated to provide services to
NYSDOT.
Also attached is form CONR 388 and Department guidelines for the submission of
FCCM. CONR 388 is used to propose CADD or computer cost center rates where
such costs are to be filled as a direct cost (after proper exclusion from indirect cost).
The “To All Consultants Letter” dated October 5, 1990 outlines Department
requirements for including FCCM as an allowable cost.
If you have any questions regarding our audit expectations, you should contact us in
writing.
VDD:jmb
Attachments
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
COMPUTER AIDED DESIGN & DRAFTING(CADD)
INFORMATION AND PROCEDURES
Name of Firm: _________________________________________________________
1. Identify your computer system components (attach additional sheet(s) if necessary)
-Basic hardware
description_________________________________________________________________________
__________________________________________________________________________________
-CPU
__________________________________________________________________________________
2. -Terminal Type
__________________________________________________________________________________
-Printer
__________________________________________________________________________________
-Communications
__________________________________________________________________________________
2A. Are Computer/CADD rates based on general cost principles contained in the Federal Acquisition
Regulations (FAR).
[ ] Yes [ ] No
2B. If 2A response is no, what requirements of guidelines are followed?
_________________________________________________________________________________
3. Describe methodology used in developing your Computer/CADD rate:
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________
4. Allocation of costs based on:
Check one: YES NO
A. Real time (i.e. CPU seconds) [ ] []
B. Input/Output time [] []
C. Other: Describe
______________________________________________________________________________
______________________________________________________________________________
Check one: YES NO
D. Expected utilization [] []
E. Full capacity utilization [] []
F. Other:
Describe_______________________________________________________________________
_______________________________________________________________________
4A. Indicate treatment of variance between expected utilization and actual utilization:
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
5A. How is usage
recorded?_____________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
5B. How is indirect (non project) usage (e.g., admin., training, proposal) recorded?
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
6. Does your system allocate costs to all jobs utilizing Computer/CADD services?
[ ]YES [ ] NO
7. Does your accounting system provide for the identification and segregation of Computer/CADD related
costs?
[ ] YES [ ] NO
8. Is your system (check appropriate category)
[ ](A) Owned
[ ](B) Leased/rented: identify vendor ________________________
[ ](C) Leased/rented from affiliated company or related party:
Identify _______________________________________________
8A. If (c)is checked, do rental costs reflect actual ownership costs per FAR 31.205-36(b)(3)?
[ ] YES [ ] NO
9. Indicate depreciation method and useful life(yrs) used for costing each of the system components:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
10. Does your accounting system charge technical operators time for CADD as?
[ ] A. Direct technical labor
[ ] B. Component of CADD costs
11. Are software development costs capitalized in accordance with FASB?
[ ] YES [ ] NO [ ] N/A
12. Are the following costs capitalized and amortized based on their estimated useful life:
(Check appropriate boxes)
YES NO N/A
(A) Start-up Cost? [] [] []
(B) Start-up training? [] [] []
(C) Leasehold/facilities
improvement costs? [] [] []
(D) Purchased software? [] [] []
(E) R&D costs? [] [] []
CONR 388-2 (2/91)
13. Does your rate calculation eliminate: (check appropriate boxes)
YES NO N/A
(A) Interest expense [] [] []
(B) Profit factor [] [] []
(C) Overhead factor? [] [] []
COMPUTATION OF CADD/COMPUTER RATE
Breakdown by Cost Category Computer CADD
Start-Up Costs:
Training (Including Fringes) ________ ______
Software ________ ______
Capital Improvement Costs ________ ______
R&D Costs ________ ______
Labor (other than training) ________ ______
CADD Services ________ ______
Lease/Rental Costs - Computer ________ ______
Lease/Rental - Space ________ ______
Depreciation ________ ______
Supplies ________ ______
Equipment Maintenance ________ ______
Insurance ________ ______
Other (Specify) ________ ______
Total Cost (A) ======== ======
Usage (B) ________ ______
Unit Cost (A divided by B) ======== ======
Costs Based on
( ) Estimated
( ) Actual, For period _______________
Identify: i.e. CPU seconds, minutes, hours, connect time, etc.
Completed By: _____________________________
Date: _____________________________________
Title: _____________________________________
(9/90)
CONR 388-3 (2/91)
STATE OF NEW YORK
DEPARTMENT OF TRANSPORTATION
ALBANY, NEW YORK 12232
JOESPH H. BOARDMAN GEORGE E. PATAKI
COMMISSIONER GOVERNOR
October 5, 1990
RE: FACILITIES CAPITAL COST OF MONEY
To All Consultants:
I am pleased to announce that the Department has adopted a policy, effective October 1, 1990, to allow
Facilities Capital Cost of Money (FCCM) as a cost element on consultant contracts. FCCM is an
allowable cost under the Federal Acquisition Regulation (FAR - see 48 CFR/FR 31.205-10) when certain
conditions are met.
FCCM is considered an imputed cost rather than an actual cost in that it results from a specific
computation rather than from evidence of an actual expenditure. Please be advised that this change in
policy in no way alters this Department’s treatment of interest expense, overhead or fixed fee
computation.
However, it should be noted that pursuant to FAR 15.903 an adjustment is required to total fixed fee in
those cases where Facilities Capital Cost of accordance with procedures described in 48 CFR 215.971 via
a reduction in the overall fixed fee by the lesser of 1 percent of the estimated contract cost or the amount
of FCCM allocated to the contract.
In general, the basic requirements for using FCCM as a cost element are:
* The cost proposal must include an estimate of the FCCM allocated to the contract.
* The consultant must submit a form CASB-CMF “FCCM Factors Computation.”
Departmental guidelines for FCCM policy and CASB-CMF instructions are available from the Contract
Management Bureau upon request by for those consultants wishing to utilize FCCM as a cost element.
Please keep in mind that the use of FCCM may, due to the offset, increase or reduce the negotiated
contract amount depending on a number of factors. You should seek knowledgeable professional advice
before using FCCM.
Please direct requests for materials to (518)-457-2601.
Richard Albertin
Director, Contract Management & Audit Division
===========================================================================
=
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
===========================================================================
=
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
-------------------------------------------------------------------------------------------------------------------------------------------
SUBJECT: OVERHEAD RATES FOR OFFICE AND FIELD ENGINEERING LABOR
DATE: December 3, 1996 CODE: 96-08 AUGMENTS: 95-10
APPROVED: ________________________________________________________
DIRECTOR, CONTRACT MANAGEMENT BUREAU
CONTACT PERSONS: Linda Zinzow Auditing Issues: (518) 457-3180
Contract Issues: (518) 457-2601
-------------------------------------------------------------------------------------------------------------------------------------------
Effective for fiscal years ending on or after December 31, 1995, engineering firms contracting with the
New York State Department of Transportation (NYSDOT) for construction inspection (and any other
activity for which a new, separate office work space is established for the project) were required to propose
separate overhead rates for office and field technical labor. Small business firms which meet the Small
Business Administration's (SBA) definition are exempt from this requirement. Currently engineering,
architecture, and surveying firms with less than $2,500,000 in gross sales per their U.S. Tax Return (see 13
CFR PART 121) meet the SBA definition.
Effective December 2, 1996 the NYSDOT will commence negotiating engineering consultant
contracts using the appropriate “split” of the firm’s field or office overhead rates.
Pursuant to Consultant Instruction 95-10, firms that perform field activities such as construction inspection
and office activities such as design must have at least two overhead rates. Field activities are those that use
a “field office.” A field office is defined as any office or space at or near the project site that the consultant:
1. specifically establishes and for which the consultant directly bills the client, or
2. has furnished to them by the client or contractor,
A field office is to be used exclusively for project purposes. The office may be a trailer, building, room or
series of rooms established for the consultant personnel. A field rate, or variation of the field rate, may also
be appropriate in cases where the work is primarily field activity and the employee does not have an
individually assigned work area in the firm’s office facilities. Examples of this situation include persons
hired solely to perform biennial inspection field activities or survey party members that do not perform
office functions at their own work station when not involved in field activities.
Firms may use various generally accepted methods to conform with FAR 31.203(d)(3). Once established, a
firms’s general methodology must be consistently applied from year to year. Prior to any change in
methodology, the firm must give notice of the proposed change to the Contract Audit and Contract
Management Bureaus. All rates submitted for acceptance by NYSDOT must be supported with schedules
of direct labor classified consistent with the direct labor activities in the contract.
For example, a firm could accumulate the direct technical labor attributable to their field operations for
each calendar year. The labor is project based and a schedule should be prepared identifying the labor
associated with each field project. Office direct labor would be merely the subtraction of the field labor
from the total direct labor when the firm has only one office rate.
Firms that have further subdivided the cost of running their business may have more than one rate applied
to the services provided in a given contract. For example, a firm might have submitted documentation to
support a design office rate, an environmental office rate and a field rate. A contract with that firm for
design services that requires both design and environmental services will be priced using both rates. In this
case, rates will be applied proportionally based upon the negotiated and ultimately final audited direct labor
involved in the related tasks. The methodology and all rates used must have been accepted provisionally by
the NYSDOT Contract Audit Bureau for contract pricing or be based on an audit accepted by NYSDOT for
contract closeout.
Each engineering firm remains responsible for submitting documentation to support all proposed overhead
rates using the Contract Service Firm Annual Financial, Ownership and Accounting Practices Report
(CONR 385). Implementation methodologies applied will be subject to pre-award and post audit for
compliance with contract terms and FAR criteria. Please note that overhead rates will continue to be
applied to ongoing agreements based on the accounting methodology used when the original agreement and
related supplemental agreements were negotiated. Requests for supplemental agreements approved by the
Department’s Consultant Job Manager and received after December 1, 1996 will be processed using the
appropriate “split” overhead rate. However, all remaining funds in the existing contract (including
previously executed supplemental agreements) must first be earned by the firm and billed up to the
Maximum Amount Payable using the combined overhead rate before the funds in the supplemental
agreement may be billed using a split rate.
SOURCES FOR GUIDANCE
* Federal Acquisition Regulations (FAR) (48 CFR Part 31), specifically Subpart 31.203(d)
* Cost accounting standards (CAS) 403-Allocation of Home Office Expense to Segments
* CAS 410-Allocation of Business Unit General and Administrative Expenses to Final Cost
Objectives
* CAS 418-Allocation of Direct and Indirect Costs
* NYSDOT Consultant Instruction Code: 95-10 Overhead Rates for Office and Field Engineering
Labor Questions and Answers
* Contact Persons listed above.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
OFFICE VS FIELD ENGINEERING O/H COMPUTATION
GENERAL: Each overhead account from the CONR 385 is to be allocated as either directly
attributable to the consultant’s field or office operations with the balance that is not directly
attributable accumulated as non-attributable.
The allocation of costs as directly attributable and non-attributable is to be based on the criteria
identified below unless the consultant already performs an allocation on some other reasonable
basis (Note: Guidelines for evaluating the reasonableness of other allocation bases can be found in
Cost Accounting Standards or cost accounting texts).
The total costs accumulated as non-attributable are to be allocated to the office engineering and
field engineering cost pools based on direct technical payroll.
Each firm should have a breakdown of field and office labor for workers’ comp. reporting
purposes. Field labor (which is presumed to be all direct technical labor) can be deducted from
total direct technical labor to estimate direct labor performed in the office.
The separate field and office rates should be applied based on the method used by the consultant to
accumulate field and office labor for workers’ comp. reporting. According to the Classification
Unit of the State Insurance Fund, field engineers are coded as class 8601 and cannot be shown as
office engineers (8810) unless 100% of their time is in the office. If the consultant has developed
a methodology for contract cost accounting purposes, that method should be reviewed for
reasonableness and consistency in application of separate rates.
The following methodology can be used if cost center allocations are not provided by the
consultant.
CATEGORY:
A. Indirect Technical Payroll (including paid absences):
Allocate to Office and Field Engineering based on the % of direct technical payroll.
B. Administrative and Executive Payroll:
Allocate 100% as Non-Attributable
C. Payroll Taxes, Insurance and Fringes:
Allocate to Office and Field Engineering and Non-Attributable based on the % of gross
payroll.
D. Facilities including:
Property Insurance Repairs and Maintenance
Rent Utilities
Property Tax Telephone
Depreciation Leased facilities
Allocate to Office Engineering and Non-Attributable based on the following:
Office Engineering Payroll
Office Eng.= ----------------------------------------------------------------------
Office Engineering Payroll + Non-Attributable Payroll
Non-Attributable Payroll
Non-Attributable= ---------------------------------------------------------------
Office Eng. Payroll + Non-Attributable Payroll
E. Computer/CADD
(Where firm charges indirect technical usage):
Allocate administrative usage 100% to Non-Attributable
(where firm does not direct charge technical usage):
Allocate to Office Engineering and Non-Attributable (use formula for Facilities Cost
(see D. Above) based on payroll)
F. Blueprinting/Technical Reproduction:
Any indirect costs should be allocated to Office Engineering
G. Other: including:
Travel Dues
Bid & Proposal Professional Fees
Liability Insurance All other
Allocate 100% to Non-Attributable
H. Non-Attributable:
Allocate the total balance of Non-Attributable costs to Office and Field Engineering
based on Direct Technical Payroll.
Summary
Engineering
Cost Field Office Non-Attributable Allocation Base
Indirect Tech. PR X X % of DTL
Admin. & Exec. PR X 100%
PR Taxes, Insurances
and Fringes X X X % of Gross Payroll
Facilities X X % of Office Eng. Plus
Non-Attributable PR
Computer/CADD X X 100% of Total
(No Tech.
Usage Charged)
X 100% of
Admin. Usage
(Tech usage
Charged
Direct to Jobs)
Blueprinting/Repro. X 100%
Other X 100%
Non-Attributable X X % of DTL
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
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SUBJECT: USE OF AN INTERIM OVERHEAD RATE FOR SMALL FIRMS
DATE: March 27, 2000 CODE:00-04 SUPERSEDES:
APPROVED: ______________________________________________________
DIRECTOR, CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Stan Harrison Audit Questions TELEPHONE: (518) 457-3180
Contract Questions (518) 457-2601
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This Consultant Instruction provides background information and eligibility guidance for the establishment
of interim overhead rates for small firms. The objectives of this program for small firms are:
a. To reduce the processing time for contracts with small firms, particularly those new to Department
work, and
b. To reduce the frequency of disputes regarding overhead rates between the Department and small
firms.
The Department will annually evaluate the effectiveness of the program in meeting its objectives.
INTRODUCTION
The Department enters into contracts with engineering, survey and environmental firms (consultants) to
provide design, bridge inspection, construction inspection, survey and various other professional
engineering and related services. Pursuant to 23 CFR 172, compensation for services is negotiated to
provide for reimbursement of allowable costs incurred by the consultant plus a fixed/net fee.
A pre-award audit evaluation of a firm's indirect costs and the adequacy of its accounting system is
performed by the Department's Contract Audit Bureau during contract negotiation. Annual billing rate
reviews establish reimbursement rates for overhead for ongoing contracts. Final audits are performed on
submitted rates to close-out contracts based on actual allowable costs. Current procedures require that the
consultant maintain accounting systems and controls that provide for the accumulation of actual allowable
costs in accordance with Federal Acquisition Regulations (FAR). Consultants are required to submit an
annual overhead report (CONR 385) which is subject to review and audit.
Most Department contracts involve a prime consultant and one or more sub-consultants. Sub-consultants
are engaged by prime consultants to provide specialized capabilities and to assist the Department in
meeting Disadvantaged/Minority/Women's Business Enterprise goals (D/M/WBE) goals. Although sub-
consultant contracts can represent a substantial percentage of work, many contracts are with small
consulting firms for lower dollar amounts.
Current procedures subject all consultants and sub-consultants to the same accounting system and
reporting/audit requirements, regardless of the size of the firm, the amount of work to be performed or the
firm's experience with government contracting. For smaller firms, doing business with the Department for
the first time, conformance with the FAR requirements can be burdensome and can affect processing of
initial agreements. In many cases, serious compliance issues arise on pre-award and close-out audit
that can affect:
1. The Department's ability to advance new contract awards in a timely manner,
2. The prime-sub relationship in advancing work under these contracts, and,
3. Cash flows for reimbursement of ongoing work and at close-out.
This Consultant Instruction will enable the Department to negotiate and pay smaller consulting firms a
fixed overhead rate during the eligibility period on their contracts. The fixed rate is not subject to audit. The
consultant and the Department will be certain what the overhead reimbursement rate will be and there will
be no rate adjustments on the final audit. The fixed rate gives the consultant adequate time to develop an
understanding of the Federal Acquisition Regulations (FAR) rules and implement accounting systems and
procedures that are in compliance for future contract work.
With the exception of sole owner/employee firms, all small firms taking advantage of this program are
expected to:
1. Take immediate steps to implement adequate accounting for overhead in accordance with FAR Part 31
(see DOT web site: www.dot.state.ny.us, "Doing Business with DOT", "Consultants' Publications, Forms,
and Instructions"),
2. Submit the CONR-385 Contract Service Firm Annual Financial Ownership and Accounting Practices
Report (see web site) on the normal annual basis, and
3. Notify the Contract Audit Bureau and the Contract Management Bureau when their systems and
procedures are in place.
ELIGIBILITY PERIOD
Only small consulting firms may participate in this program. The period of time in which a firm is eligible
to participate is as follows:
1. For sole owner/employee businesses there is no time limit.
2. For those firms that are not sole owner/employee businesses, eligibility is time-limited once the first
contract with the firm has been executed with a fixed overhead rate set in accordance with Consultant
Instruction. In these cases, additional contracts may be negotiated during the eligibility period and will be
written using the already established fixed overhead rate. The fixed overhead rates set under this procedure
may no longer be used on any newly designated work or supplemental contracts after the eligibility period
has ended. The eligibility period will end:
a. no later than six months after the end of the firm's first full fiscal year subsequent to execution of
the firm's first contract with the fixed overhead rate,
b. in no case more than 30 months after execution of the first contract using the fixed overhead rate.
c. automatically once the status described in #3 (below) are reached.
3. The Department will proceed to negotiate a specific overhead rate with the consultant on both new and
supplemental contracts, regardless of the size of the business, based on audit upon completion of any FAR
based pre-negotiation audit or overhead audit, by the Department or any other governmental agency, that
finds the accounting system adequate for establishing costs in accordance with FAR.
Please see Appendix 1 for detailed eligibility information.
ELIGIBILITY AFFIDAVIT
Any firm that wishes to avail itself of the interim overhead rate for small firms should complete, execute
and submit the attached affidavit to the Contract Management Bureau within 10 days of notification of
designation. The Department will make a determination as to eligibility and then inform the firm (or the
prime and the firm in the case of a subconsultant).
Attachments
APPENDIX 1 - ELIGIBILITY REQUIREMENTS
1. In order to be eligible for participation, small business entities must meet each of the following tests.
The firm must:
a. be qualified as a small business according to the Small Business Administrations Section 8a
criteria;
b. be a business with estimated total annual direct labor of $500,000 or less, or an established business
whose total annual direct labor in their immediately preceding year is $500,000 or less; and,
c. not have been the subject of any audit or pre-negotiation audit, performed by an independent CPA
or government auditor, in accordance with government auditing standards, generally accepted auditing
standards or standards for attestation engagements of the American Institute of CPA's (AICPA), the
purpose of which included qualification for cost reimbursement type contracts or recommending
reimbursement of cost reimburse work under Federal Acquisition Regulations Subpart 31 of Title 48 of
CFR.
2. Firms meeting the criteria in Item 1 that are designated for participation as a consultant or
subconsultant for a Department contract, whose proposed participation is valued at less than the thresholds
established in 23 CFR 172 for pre-award audit waivers (currently $250,000), shall be offered a fixed
overhead rate that shall apply for pricing, billing and final payment on such contracts. For the purpose of
determining the firm's level of participation, the total of estimated direct technical labor costs, overhead,
and estimated fixed/net fee shall be used.
3. A fixed overhead rate that will be offered to firms that are not sole owner/employee firms (also see
Item 5 below) will be ninety percent (90%) of the Department's periodically established overhead rates for
determining bottom line pricing on consultant contracts. Rates shall be based on applicable type of work,
complexity, office/field and geographic location criteria used by the Department.
The data base provides reports of overhead rates in several different categories. First, it divides firm
location into downstate (NYC, Long Island, Westchester, Rockland) and upstate ( all other counties), using
the location of the firm's primary office. The report indicates industry rates for office, field and combined
operations. Finally, it provides industry rates at the 50th percentile for routine projects, 65th percentile for
moderately complex projects, and 75th percentile for complex projects. The complexity of a firm's work on
a project is determined by the consultant job manager based on criteria established by the Department.
4. Sole proprietorships and independent contractors with only a sole owner/employee, which meet the
criteria in Item 1., shall be offered a fixed overhead rate that is 75% of the appropriate category rate from
the overhead rate tables described above.
5. The fixed overhead rates will be applied to the non-premium direct labor of bona fide employees (i.e.
are on the consultant firm's payroll, and meet the current IRS tests as employees).
6. Consulting firms eligible for fixed overhead rates are required to prepare and submit the CONR 385,
Annual Overhead Report, and other reporting forms for each of their fiscal years in which they have active
contracts on Department projects.
7. Small businesses which have been the subject of any audit or pre-negotiation audit that was performed
by an independent CPA or a government agency within the last two years, in accordance with either:
a. government auditing standards, or
b. the AICPA statement of standards for attestation engagements for the purpose of qualifying for cost
reimbursement work or recommending reimbursement of for cost reimburse work under Federal
Acquisition Regulations Subpart 31 of Title 48 CFR,
shall not be eligible for the fixed overhead reimbursement. Such firms shall promptly submit the audit to
the Department for review. If such audit discloses material accounting system weaknesses, the Department
may determine that it is in its best interests to use these procedures until the cited deficiencies are corrected
or the two year eligibility period ends, whichever is earlier.
8. Direct non-salary costs for normal business operation will generally not be allowed for consulting
firms who participate in the fixed rate procedures. Exceptions may be granted by the Director of the
Contract Management Bureau in cases where direct non-salary costs are purchases required by the scope of
the project, or when they represent a substantial percentage of estimated direct labor on the project.
9. Consulting firms will be advised of the requirements to maintain adequate systems, procedures and
documentation to support time charged and payroll rates paid. Guidelines are available from the American
Consulting Engineers Council (ACEC) in a document entitled, Financial Management for Design Firms.
Firms should also access the NYSDOT Web Site at http://www.dot.state.ny.us, Doing Business with DOT,
Consultant Section for Part 31 of the FAR, the AASHTO/FHWA Consultant Overhead Audit Guide and
other information. Time charged and actual hourly rates will continue to be subject to pre-award and post
audit, as are any direct non-salary cost (see above) or sub-contractor costs.
10. This procedure does not apply in cases where an eligible consultant has a current or active blanket
pre-award audit derived overhead rate on file with the Department, or if any other governmental entity,
CPA firm or prime consultant has performed recent pre-award audit work. If there is a Department pre-
award audit available, it will be used regardless of the amount of the contract.
11. If the consultant's actual participation on the contract exceeds the 23 CFR 172 threshold (currently
$250,000), the overhead rates are subject to pre-award review and audit.
12. Participation by consultants who are not sole proprietors or independent contractors with no other
employees is limited to contracts negotiated before a date that is six months after the firm's first full fiscal
year has elapsed (not to exceed 30 months) after execution of the first NYSDOT contract. For contracts
negotiated after the expiration of the eligibility period, pre-award audits of the adequacy of the firm's
accounting system for cost reimbursement work and actual FAR based overhead submitted
rates will be required.
13. The Department will evaluate the effectiveness of the plan in meeting the stated objectives of
reducing processing time for contracts and minimizing disputes within the first and second year after
implementation.
AFFIDAVIT
I,________________________, in my capacity as ________________________ with the firm of
Name Title
_________________________, located at __________________________________________,
______________________________, do hereby affirm that the following responses are true
and accurate:
True False
14. This firm has been in existence for less than one year. ____ ____
15. The annual direct labor base of the firm is less than or equal to $500,000. ____ ____
16. The firm has not been and is not now being subjected to a FAR compliant
audit. ____ ____
17. I am the sole owner/employee of the firm. ____ ____
18. The firm has a time sheet system as part of its accounting system ____ ____
(Please attach a blank copy of the firm's time sheet form to this affidavit)
I recognize that this affirmation is submitted for the express purpose of inducing the
State of New York Department of Transportation to award a contract; acknowledges
that the Department may in its discretion, by means which it may choose, determine
the truth and accuracy of all statements made herein; acknowledges that intentional
submission of false or misleading information may constitute a felony or
misdemeanor as defined in the Penal Law or may be punishable by fine according to
applicable sections of the United States Code; and states that the information
submitted in this affirmation and any attached pages is true, accurate and complete.
Sworn to before me this
_____day of _______________,________. ______________________________
Signature of Principal/Officer
__________________________________ __________________________
Notary Public Title
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
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SUBJECT: BILLING FOR SERVICES IN SUPPLEMENTAL AGREEMENTS WITH OVERHEAD RATES
THAT ARE NOT FIXED BY ORIGINAL CONTRACT RATES
DATE: August 7, 1998 CODE: 98 - 04 SUPERSEDES:
APPROVED: ______________________________________________________
DIR., CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Mark Moody TELEPHONE: (518) 457-2601
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Questions regarding the preparation of billings (form FIN 421 & 422) for engineering-related consultant
supplemental agreements have been engendered by the complexity produced by overhead rates in
supplemental agreements that are not fixed by the terms of the original contract, but may vary based upon
current information and the firm’s having met the Department’s “bottom line” total cost estimate in
negotiations on the supplemental or assignment agreement. This CI is being issued to clarify how services
provided under such supplemental agreements should be billed to the State.
Under the current “bottom line” negotiation procedure, each new supplemental agreement may have a
different overhead rate from the original contract or any previous supplemental. This situation pertains to
most engineering-related consultant contracts executed in the past 3 years. The contract language in such
a supplemental agreement will have stipulated that the new overhead rate in the supplemental agreement
may only be billed once the previous Maximum Amount Payable (MAP) has been reached. The previous
MAP is defined as either the original contract MAP or, the MAP for the original contract plus the previous
supplemental agreements to the contract.
Given that a contract may be in force for more than a few years, using current overhead rates is “fairer and
more reasonable” than holding a firm to the rate in effect when the original contract was negotiated. The
use of a different rate, however, presents difficulties for firms because the current MAP will often be
reached in the middle of a billing period, causing confusion as to whether the old overhead rate or the new
supplemental overhead rate should be used in the billing. In addition, because subconsultants may have
no idea when the current MAP is reached, they do not know which rate to bill the prime consultant.
The rules given below are intended to clarify the Department’s expectations regarding such billing:
Billing by Prime Consultants on Supplemental Agreements with Overhead Rates Not Fixed to
Original Contract Rates
Recognizing that any necessary adjustments will be made in the final audit, any new overhead rate
included in a supplemental agreement should be used on the first bill submitted by the prime after total
payments have exceeded the previous MAP. For example, if the original MAP was reached during
estimate period #12, billing for all of estimate #12 should be at the rate used for the previous estimate and
estimate #13 should be billed at the new rate given in the supplemental agreement.
Contracts for which services are being generally provided on a daily basis have traditionally had either a
four week or a monthly billing period. More frequent billing to deal with a mid-period overhead rate change
by sending in two bills, one with the old overhead rate for the part of the period prior to reaching the MAP
and one for the new overhead rate for the part of the period subsequent to reaching the MAP, would be
appropriate only after coming to such an agreement with the Department’s Consultant Job Manager, the
person responsible for administering your contract.
Billing by Subconsultants on Supplemental Agreements with Overhead Rates Not Fixed to Original
Contract Rates
Prime consultants are responsible for adjusting subconsultants’ invoices as necessary to ensure that the
FIN 421/22 reflects the appropriate billable rate as indicated above. To avoid the need for such adjustments
and related administrative concerns, prime consultants should:
1. Notify each subconsultant when contract billings are approaching the value of the contract MAP,
and
2 Work with subconsultants in a fair manner at that time to ensure that subconsultants’ bills will not
require adjustment by the prime consultant.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
-------------------------------------------------------------------------------------------------------------------------------------------
SUBJECT: BILLING OVERHEAD RATES FOR REGIONAL DESIGN SERVICES
TERM AGREEMENT ASSIGNMENTS
DATE: August 12, 1998 CODE: 98 - 05 SUPERSEDES:
APPROVED: ______________________________________________________
DIRECTOR, CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Mark Moody TELEPHONE: (518) 457-2601
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Effective immediately, two changes are being made regarding the overhead rates used
with Regional Design Services Agreement (RDSA) assignments.
ORIGINAL RDSA ASSIGNMENT OVERHEAD BILLING
For all new RDSAs, and older RDSAs for which firms elected to use the “bottom line”
negotiation process (see Consultant Instruction 95-02), the current practice requires that
the “current” Maximum Amount Payable (MAP - the sum of the values of all prior
assignments) be billed before the “new” rate for a new original assignment can be billed
or paid. “New” overhead rates, in RDSA assignments, are rates that are not fixed by the
terms of the original contract, but may vary based upon current information and the firm’s
having met the Department’s “bottom line” total cost estimate in negotiations on the
assignment agreement.
A possible consequence of the current practice is that it may well be a long period of time
before the new overhead rate could be billed. The Department has concluded that
because original assignments are essentially separate projects, it is unfair to require that
an expenditure “threshold” (see Article 5 of such agreements) be crossed before a new
original assignment overhead rate is billable and payable.
Effective immediately, for existing RDSAs for which “bottom line” negotiations are used,
contract documents for new assignments will not contain a current threshold amount.
This change will permit the billing and paying of the overhead rates which appear in each
new assignment beginning with the first invoice submitted for that assignment.
All new RDSAs have assignments negotiated using the “bottom line” procedure. The
contract documents for these assignments will not have any threshold figure included.
OVERHEAD BILLING FOR SUPPLEMENTS TO RDSA ASSIGNMENTS
Current practice requires “Bottom Line” supplemental assignments to original RDSA
assignments to have a threshold figure based on the total MAP of all prior assignments
(originals & supplementals). That MAP must be exceeded before the new overhead
rates of the supplemental can be billed.
Effective immediately, for all RDSAs for which the “bottom line” negotiating method is
used, the threshold amount set by any original RDSA assignment and any previous
supplement to such an assignment will be the basis for the “current” MAP for the
assignment and that MAP must be exceeded before the new overhead rate may be
applied.
NEW BASE RDSAs CURRENTLY BEING DRAFTED BY THE CONTRACT
MANAGEMENT BUREAU
Thresholds in “bottom line” negotiated original assignments or supplements to
assignments which have not yet been executed will be changed to comply with this new
policy by acknowledgment letter to be transmitted to specific firms by the Contract
Management Bureau. Executed “bottom line” negotiated original and supplemental
assignments which do not comply with this methodology will be amended by
Memorandum of Understanding.
This methodology is intended to treat RDSA original assignments in the same manner as
any individual design agreement and to be as fair as possible to the consultant firm.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
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SUBJECT: ADJUSTMENT OF FEE EARNED DUE TO SUBSTANTIAL CHANGE IN
REQUIRED WORK
DATE: August 7, 1998 CODE: 98 - 07 SUPERSEDES:
APPROVED: DIRECTOR, CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Mark Moody TELEPHONE: (518) 457-2601
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It is the policy of the New York State Department of Transportation to separately adjust the fee
earned by each consultant when there is a substantial change in the scope, complexity or character
of the work assigned to that firm. The term “net fee” is used in construction inspection contracts
and “fixed fee” in design and other similar consultant contracts. Substantial changes, as noted
above, must be formalized in supplemental agreements.
Net Fee Adjustment
Net Fee, as a percentage of the sum of the Audited Direct and Overhead Costs, shall be limited to
the lesser of its original Net Fee or an amount which is 2 percent in excess of the percentage
agreed to in the original contract and all supplemental agreements thereto. Net Fee shall be
recomputed by the Contract Management Bureau as part of the processing of the supplemental
agreement submitted by the State’s Consultant Job Manager that deletes work from the contract to
reflect any of the substantial changes noted above. The net fee may also be recomputed by the
Contract Management Bureau upon the request of the Contract Audit Bureau during the Final
Audit
Fixed Fee
Fixed fee shall be recomputed by the Contract Management Bureau as part of the processing of the
supplemental agreement submitted by the State’s Consultant Job Manager that deletes tasks from
or adds tasks to the contract to reflect any of the substantial changes noted above. The fixed fee
may also be recomputed by the Contract Management Bureau upon the request of the Contract
Audit Bureau during the Final Audit. The method used to recompute fixed fee shall be consistent
with the original fee calculation methodology.
Increases in Fee
Fixed or Net Fee will be increased by the Contract Management Bureau in two ways:
1. Extra Work funded through a supplemental agreement will routinely have additional fee
computed as part of that supplemental agreement.
2. Extra work for a given firm stemming from a transfer of tasks within the contract (e.g.,
work transferred from one firm to another) will have an appropriate shift in fee from one
firm to another approved by Memorandum of Understanding if so requested by the State’s
Consultant Job Manager.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
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SUBJECT: REVISION OF THE EFFICIENCY INCENTIVE PAYMENT IN
CONSULTANT AGREEMENTS
DATE: September 1, 1998 CODE: 98 - 09 SUPERSEDES:
APPROVED: ______________________________________________________
DIR., CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Mark Moody TELEPHONE: (518) 457-2601
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The New York State Department of Transportation (NYSDOT) has recently revised the
requirements for new consultant agreements relative to the Efficiency Incentive Payment.
Provision for this payment is now contained in Article 2B of the standard contract language.
Article 2B (copy attached) clarifies how the Efficiency Incentive Payment is to be calculated. It
contains the definition of the Adjusted Total Estimated Cost used in the calculation, including
clarification of what items are to be specifically included and items that are excluded. The
Adjusted Total Estimated Cost is defined as labor (Items IA and IB), expendable direct non-salary
costs (Item IIA) and overhead (Item III) amounts shown in the Cost Summary Exhibit. The
amount specified for non-expendable direct non-salary costs, subcontractor and subconsultant
costs, contingency and fixed fee shall not be considered in the Adjusted Total Estimated Cost
when calculating the Efficiency Incentive Payment. Non-expendable direct non-salary costs and
subcontractor costs (Item IIB) are generally defined as goods and services rented, leased, or
purchased that are not consumed for project work.
Further, Article 2B explains the method for obtaining the Efficiency Incentive Payment when the
work is completed. In order to claim the Efficiency Incentive Payment, the consultant(s) shall
calculate the amount due using the methodology specified, and submit appropriate documentation
identifying the claimed payment amount (labor and overhead components) as a separate item on
the draft final billing. Upon completion of the final contract audit of the agreement, if the audit
recommends inclusion of the Efficiency Incentive Payment, the consultant may incorporate the
payment amount into the final billing, which will be processed in accordance with State Law.
PLEASE NOTE:
Firms with previously executed agreements containing the Efficiency Incentive Payment (with old
contract language) should carefully follow the procedure for claiming the Efficiency Incentive
Payment stated above.
ARTICLE 2B. EFFICIENCY INCENTIVE PAYMENT.
a) The Efficiency Incentive Payment enables the CONSULTANT or subconsultant(s) to recover all or a
portion of their actual labor and overhead costs which exceed those allowed in the agreement if the
CONSULTANT has completed the work and expended less than the Adjusted Total Estimated Cost
as set forth hereafter. The Adjusted Total Estimated Cost is defined as labor (Items IA and IB),
expendable direct non-salary costs (Item IIA) and overhead (Item III) amounts shown in the COST
SUMMARY EXHIBIT. To calculate the allowable payment, the Adjusted Total Estimated Cost,
including additions or deletions thereto by supplemental agreement, is compared to the
CONSULTANT’s audited costs for these items. If the final contract audit of payments made by the
STATE is less than the Adjusted Total Estimated Cost for such items, then the CONSULTANT’s
unrecovered portion of reimbursable overhead and labor costs, not to exceed the Adjusted Total
Estimated Cost, will be incorporated into the payment due the CONSULTANT (if any) based on the
final contract audit made by the STATE (see Article 6). The amount specified for contingency, fixed
fee, non-expendable direct subcontractor and subconsultant costs shall not be considered in the
Adjusted Total Estimate Cost when calculating the Efficiency Incentive Payment.
b) In order to claim the Efficiency Incentive Payment, the CONSULTANT shall calculate the amount
due using the methodology specified above, and submit appropriate documentation identifying the
Payment amount (labor and overhead components) as a separate item on the draft final billing. Upon
completion of the final contract audit of this Agreement, if the final contract audit includes provision
for the Efficiency Incentive Payment, the CONSULTANT may incorporate this payment into the
final bill, which will be processed in accordance with State Law. The maximum value of such
unrecovered portion of approved costs shall be based upon a calculation comparing the overhead
billing rates set forth in Item III to full recovery overhead rates established by State audit as set forth
in Item III, and/or a calculation of the difference between the total labor cost based on the actual labor
rates paid by the CONSULTANT as established by State audit and the total labor cost based on labor
rates paid to the CONSULTANT by the STATE.
c) The efficiency incentive shall also be made available to subconsultants in the manner described above
for the services identified for each firm in the Agreement and for the total payment made for the
services performed by those individual firms.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
SUBJECT: REVISIONS TO PER DIEM RATES AND MILEAGE ALLOWANCE
RATES
DATE: February 9, 2001 CODE: 01 - 04 SUPERSEDES: 00-02 March 15,
2000
APPROVED: ______________________________________________________
DIR., CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Mark Moody TELEPHONE: (518) 457-2601
______________________________________________________________________________
___
Effective October 1, 2000, the maximum acceptable per diem and meal allowances shown on
Attachments 1 and 2 are in effect as Direct Non-Salary Costs for all Consultant Agreements.
These rates are now established to coincide with a Federal Fiscal Year schedule.
The rates listed in Attachment 2 include new seasonal per diem rates for some counties. These
seasonal rates apply during the periods indicated.
Payment for lodging and meal expenses will continue to be made by two methods: Method I
(unreceipted lodging and meals); Method II (receipted lodging and unreceipted meals).
Reimbursements for meal allowances for those in non-overnight travel, whether with or without
receipts, are also shown on the attachments. There is no reimbursement for lunch.
Employees are eligible for meal expenses when assigned to work beyond 35 miles of both home
and official station.
Employees are eligible for lodging expenses when assigned to work beyond 50 miles of both
home and official station.
There is a time limit on meals which applies to both overnight and non-overnight travel.
a. Reimbursement for meals will be allowed when time of departure from home at beginning of trip necessar
Breakfast............................ 7:00 a.m.
Dinner............................... 6:00 p.m.
b. Reimbursement will also be allowed when time of return to home at the conclusion of a trip necessarily
Breakfast............................ 8:00 a.m.
Dinner............................... 7:00 p.m.
Adjustments to the meal allowance portion of per diem rates, due to these time limits, should be
made in accordance with the meal rates shown on the attachments. Although under Method I,
the State Comptroller does not require receipts to support an overnight stay, it is the
determination of the Department that a fully documented expense account record in accordance
with your company policy, must be submitted to you by each of your employees so that a
reviewable employee expense account record will be available in your company's files at the
time of the final contract audit. Copies of employee expense account receipts are not required to
be attached to progress payments (monthly billings); however, a list of all employee expenses
(Expense Item, Paid To, Date and Amount) should be submitted with each progress payment.
Payment will be limited to auditable actual costs not to exceed the rates shown on the
attachments.
Allowable per diem rates for all locations may now be obtained on the Internet at the following
address: http://www.policyworks.gov/perdiem
Also, effective January 1, 2001, the maximum mileage allowance rate for personal vehicles will
be increased to $0.345 per mile. These mileage rates are based on the standard allowance
established by the Internal Revenue Service (IRS). Mileage will be reimbursed in accordance
with your company policy, but shall not exceed the IRS rate. This policy will remain in effect
through 2001.
None of the above revisions shall be considered a reason for an increase in the Maximum
Amount Payable and/or the Fixed/Net Fee in any negotiated agreement.
Attachment 1
METHOD I
OVERNIGHT NON-OVERNIGHT
Max. Meal Allowances
Max. Per Diem Rates Without Receipts
Location Without Receipt Breakfast Dinner
New York City & $50.00 $5.00 $12.00
Counties of Nassau
Suffolk, Rockland
and Westchester
Cities of Albany, 40.00 5.00 12.00
Binghamton, Buffalo,
Rochester and Syracuse
and their respective
surrounding metropolitan
area (any city, town or
village within 15 miles
of these cities)
All other locations in 35.00 5.00 12.00
New York State
Out of State 50.00 5.00 12.00
Note: Allowances include tax and gratuities.
Attachment 2
Method II
OVERNIGHT
NON-OVERNIGHT
MAXIMUM MAXIMUM MAXIMUM MAX. MEAL
ALLOWANCE
LODGING MEAL PER DIEM WITH RECEIPTS
COUNTY RATE ALLOWANCE RATE BREAKFAST
DINNER
Albany 74 42 116 8 34
Erie 78 42 120 8 34
Warren (6/1-9/30) 74 34 108 7 27
Warren (10/1-5/31) 55 34 89 7 27
Tompkins 57 34 91 7 27
Ulster 79 38 117 8 30
Essex (6/15-10/15) 86 38 124 8 30
Essex (10/16-6/14) 59 38 97 8 30
Brooklyn (Kings), 170 46 216 9 37
Bronx & Queens
Manhattan (New York) 198 46 244 9 37
Staten Is. (Richmond) 120 42 162 8 34
Nassau 190 42 232 8 34
Suffolk 149 38 187 8 30
Niagara (5/1-10/31) 79 34 113 7 27
Niagara (11/1-4/30) 55 34 89 7 27
Tioga 73 30 103 6 24
Rockland (4/1-9/30) 67 38 105 8 30
Rockland (10/1-3/31) 57 38 95 8 30
Dutchess 74 38 112 8 30
Monroe (5/1-10/31) 65 42 107 8 34
Monroe (11/1-4/30) 58 42 100 8 34
Seneca (6/15-9/15) 89 34 123 7 27
Seneca (9/16-6/14) 69 34 103 7 27
Saratoga (7/1-10/31) 95 38 133 8 30
Saratoga (11/1-6/30) 75 38 113 8 30
Onondaga 70 34 104 7 27
Schuyler 59 34 93 7 27
Orange 59 34 93 7 27
West Point (City) 121 34 155 7 27
Westchester 114 42 156 8 34
White Plains (City) 165 42 207 8 34
Any county not listed
above 55 30 85 6 24
Out of State (See Note 5 below or use Internet address on Page 2)
NOTES:
1. Receipts for lodging are mandatory when using Method II.
2. Receipts are not required for meals when the employee is in overnight travel status.
3. If the cost of lodging exceeds the maximum allowance for lodging in the area of
assignment, the employee's meal allowance may be reduced to offset the higher lodging
rate.
4. Allowances include tax and gratuities.
5. Rates for out of State destinations can be obtained by contacting your Consultant Job
Manager or the Contract Management Bureau.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
SUBJECT: INCREASE IN CONSULTANT AGREEMENT SALARY RATE,
EFFECTIVE MARCH 31, 2001
DATE: February 8, 2001 CODE: 01 - 05 SUPERSEDES: 98-10
APPROVED: ______________________________________________________
DIR., CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: MARK MOODY TELEPHONE: (518) 457-2601
______________________________________________________________________________
___
For all ongoing Department cost plus fix/net fee consultant agreements for
Architecture/Engineering /Surveying services, the maximum allowable compensation for work
performed by principals, officers and professional staff on or after March 31, 2000, is increased
to the hourly rate for each firm that corresponds with $123,326 per annum. The limit applies
only to direct charges.
Amounts included in the calculation of overhead are governed by the existing policy at the time
of agreement execution. Agreements approved by the State Comptroller on or after March 31,
2000 have a limit of $123,326.
Prior to March 31, 2000 the maximum allowable compensation was $113,289 per annum
effective October 1, 1998 through March 30, 2000.
This change shall not be reason for any increase in the fixed/net fee or the Maximum Amount
Payable in any agreement.
Thank you for your continued interest in our program.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
-----------------------------------------------------------------------------------------------------------------
SUBJECT: DISCONTINUANCE OF RETAINAGE REQUIREMENT IN DOT
CONSULTANT CONTRACTS
DATE: March 27, 2000 CODE: 00-03 SUPERSEDES:
APPROVED: DIR., CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Mark Moody TELEPHONE: (518) 457-2601
----------------------------------------------------------------------------------------------------------------
Effective on October 1, 1999 New York State Department of Transportation discontinued its
policy of withholding a portion of progress payments ("retainage") on the original engineering-
related consultant contracts executed by the State. The terms of contracts executed before
October 1, 1999 regarding retainage will not be changed at this time.
Many prime consultants currently providing services to DOT are not subject to retainage on
individual existing contracts because they possess a Revolving Retainage Deposit Account
(RRDA) that in effect substitutes for retainage in all their prime consulting contracts. The RRDA
may continue to serve this purpose for the prime consultant. Firms with RRDAs should not use
architecture/engineering/surveying contracts with the State to retain funds from a subconsultant.
Any prime consultant with an RRDA that is using the State contract to retain funds from a
subconsultant (i.e., billing the State for less than the amount of the subconsultant's invoice)
should eliminate this retainage in the next progress payment invoice submitted for payment to
their DOT Consultant Job Manager. All future invoices for subconsultant work should be
processed to NYSDOT by prime
consultants (with RRDA's) for the full value of the worked performed by subconsultant. Should
the prime consultant deem it appropriate to hold retainage from a subconsultant, it should be
applied only after DOT has paid the prime consultant for the full value of the subconsultant's
work. At the time the prime consultant receives full payment from NYSDOT for the
subconsultant's work, it should promptly pay the subconsultant the full value amount received
for the subconsultant's work, less the amount of retainage deemed necessary.
While it should be noted that the value of disallowed billings found during final audits must still
be refunded to the State, the Department believes those prime consultants, having no retainage
withheld on these future contracts, should give strong consideration to implementing a similar
no-retainage policy with respect to their subconsultants.
Prime consultants now have cause to be reasonably confident that it is unnecessary to retain a
percentage of subconsultant billings. Currently, the Department shares all annual revisions in
subconsultant overhead rates with prime firms employing that subconsultant. This, in
conjunction with the close scrutiny we have requested that prime firms give their subconsultant
billings, should largely do away with the main reasons for having subconsultant retainage
policies: erroneous overhead rates and unallowable direct cost billings.
The Department strongly urges all consultants now receiving architecture/engineering/surveying
related DOT consultant contracts to evaluate the safeguards that are now in place and not to
retain monies from their subconsultants.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION
CONSULTANT INSTRUCTION
-------------------------------------------------------------------------------------------------------
SUBJECT: SUBMISSION OF CONSULTANT ENGINEERING CONTRACT
PROPOSALS TO THE NYSDOT
DATE: APRIL 26, 1993 CODE: 93 - 01 SUPERSEDES:
APPROVED: ______________________________________________________
DIR., CONTRACT MANAGEMENT BUREAU
CONTACT PERSON: Mark Moody TELEPHONE: (518) 457-2601
-------------------------------------------------------------------------------------------------------
In many instances, consultant engineering contract proposals are submitted to the State’s Consultant
Manager without being sent to the Office of Equal Opportunity Development & Compliance
(OEODC) or the Contract Management Bureau. While the approval of the scope of services and
level of staffing are the responsibility of the Consultant Manager, there are other components of the
proposal that require approval from the OEODC and this office.
The respective functions of the above mentioned NYSDOT official/unit are as follows:
-The State’s Consultant Manager is responsible for finalizing the scope of services,
schedule, and negotiating staffing, hours, direct non-salary cost quantities and technical
assumptions.
-The OEODC is responsible for ensuring that the level of training and DBE participation is
acceptable as proposed or if it needs to be revised.
-The Contract Management Bureau is responsible for negotiating the financial aspects of the
proposal and will facilitate the procurement of executed agreements by coordinating and
monitoring internal Departmental efforts.
We request that copies of your first and any subsequent proposal for either original or supplemental
agreements be sent to the OEODC and this office when submitting them to the State’s Consultant
Manager. The Department would then be able to conduct a coordinated review of your proposals
and incorporate any changes we may have at an earlier date.
Proposals should be submitted to the OEODC and this office at the following addresses:
N.Y.S. Department of Transportation
Office of Equal Opportunity Development & Compliance
1220 Washington Avenue, Building 4, Room G16
Albany, New York 12232-0444
N.Y.S. Department of Transportation
Contract Management Bureau
1220 Washington Avenue, Building 5, Room 108
Albany, New York 12232-0203
Thank you for your cooperation in expediting the processing of consultant agreements.
