General Session 2 Procurement Update. #AirportsTechnical

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1 General Session 2 Procurement Update #AirportsTechnical

2 Procurement Update Moderator: Jeff Kirby, Parish & Partners Mike Rottinghaus, FAA, Office of Airport Planning and Programming Jim Harris, Coffman Associates, Inc. J.J. Morton, Kimley-Horn and Associates, Inc ACC Airports Technical Workshop August Washington, DC #AirportsTechnical

3 Consultant Services under the AIP AC 150/ E Presented to: By: Date: ACC Airports Technical Workshop Washington D.C. Mike Rottinghaus FAA Office of Airports August 10, 2016

4 Procuring Professional Services What Changed Why the Change Panel Discussion 24

5 Qualification Based Selection 49 U.S.C (a)(17) (17) each contract and subcontract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping, and related services will be awarded in the same way that a contract for architectural and engineering services is negotiated under chapter 11 of title 40 or an equivalent qualifications-based requirement prescribed for or by the sponsor. 40 U.S.C. chapter 11 For each proposed project, agency shall evaluate current statements of qualifications and performance for proposed project. Agency head shall attempt to negotiate a contract with the most highly qualified firm selected. 25

6 (AC 150/ E) Change 1 What Clarification/Changes were made? 2 CFR part 200 Distinct types of services Section addressing competition Multiple project selections Multiple consultant selections Independent fee estimate Contract types Cost reimbursable agreements 26

7 Uniform Requirements 2 CFR part 200 Grant Reform - Partnership with Sponsor Focus federal resources on improving program performance and outcomes Ensure the financial integrity of taxpayer dollars Ease administrative burdens to grantees Strengthen oversight over federal funds to reduce risks of waste, fraud, and abuse Sponsor Procurements Sections

8 Types of Consultant Services Distinct categories of specialized services Planning services Engineering/Architectural services Other Services Land Acquisition Environmental 28

9 Competition Full and open competition is a fundamental overarching principle Avoid unfair competitive advantage Establish objective and impartiality in procurements Establish transparency Avoid undue exclusion Cost may not be a selection factor 29

10 Selection for Multiple Projects Bundling of Projects Selection to be for specific projects; not generalized projects Projects limited to those that can be reasonably initiated within 5 years Bundling must not unduly exclude a firm from competing for work Limited ability to add similar project work if under the simplified acquisition threshold 30

11 Selection of Multiple Consultants If selecting multiple consultants: The most qualified must be identified for each specific project at time of initial selection Refrain from selecting multiple firms with intention to assign project tasks at a later date 31

12 Fee Negotiation Negotiations Sponsor must develop IFE before receiving cost proposal from selected firm IFE and cost proposal must show profit as a separate element of cost IFE is a negotiation tool to identify areas for negotiation. Sponsor must maintain records that adequately document their procurement actions 32

13 Contract Contract clauses Refer to the AIP Federal provisions matrix Contract types 1. Fixed Fee Scope and effort well defined. 2. Cost-Plus-Fixed-Fee Scope well defined with variance in effort. 3. Hourly Rate Only for short term intermittent tasks with high level of oversight. 4. Cost-Plus-Percentage of Costs Forbidden. 33

14 Cost Reimbursable Contracts Costs Must be: Necessary and reasonable Supported by documentation Subcontractor costs Mark-up commensurate with value added Pass-through Costs Express markup as stipulated value, not percentage Overhead 34

15 Overhead For-profit entities - 48 CFR part 31 Avoid duplicating similar costs as both direct and indirect costs Field rate: appropriate when personnel serve in the field for an extended period of time FAA discourages sponsor practice of capping overhead rates as being unduly restrictive 35

16 Example RFP Language 2016 ACC Airports Technical Workshop August Washington, DC #AirportsTechnical

17 The XXX (Authority) is requesting Statements of Qualifications from interested and qualified Aviation Consultants for engineering, planning, and subcontracted special services. The services may include, but are not limited to, the design and construction phases of runway extensions, runway safety areas, runway overlays, taxiways, aircraft aprons, airfield lighting, NAVAID s, instrument landing systems, fueling systems, hangars, terminal site work, and other projects as determined by the Authority. The services may also include assisting with land acquisition, master planning, feasibility studies, miscellaneous planning, architectural services, and other planning and environmental projects as determined by the Authority. Services may include subcontracted special services such as surveying, geotechnical, environmental, and quality assurance testing ACC Airports Technical Workshop August Washington, DC #AirportsTechnical

18 XX County is requesting statements of qualifications from qualified Engineering Consulting Firms that are registered in the State of xx to provide services including but not limited to: Airside and Landside Planning, Land Surveys, Preparation of Plans, Specifications and Bid Documents, Testing, Construction Contract, Construction Observation, Airport Master Planning, and other services that may be required for the XX Airport ACC Airports Technical Workshop August Washington, DC #AirportsTechnical

19 The XX wishes to retain the professional services of a qualified airport architectural and engineering consulting firm for a five-year period to assist XX in the performance of the following airport projects for XX airport, (a FAR Part 139 commercial airport): Prepare scope, budget and schedule for as-needed projects anticipated to include: Pavement Maintenance Management Plan Runway rehab, overlay, marking and taxiway lighting installation to comply with FAR Part 139 Airport Master Plan Airport Rescue and Firefighting Vehicle (Note this was the extent of the project detail listed in the RFP) 2016 ACC Airports Technical Workshop August Washington, DC #AirportsTechnical

20 Multiplier: The multiplier set forth on Schedule A is inclusive of Overhead, Burden and the Percentage Fee. "Overhead" includes the non-payroll indirect costs of the home and branch offices of Consultant which are allowable and allocable to the Services, and "Burden" includes payroll-related costs (e.g., payroll related taxes, insurance, and fringe benefits). The Overhead and Burden rates applicable to Consultant employees who perform Services in relation to this Agreement shall be the Consultant's audited rates approved by XXXX Department of Transportation ("XDOT"), the United States Department of Transportation ("USDOT") or another governmental authority recognized by the City. The Consultant must provide evidence of approval of the Overhead and Burden rate by XDOT, USDOT or another cognizant authority on a yearly basis. However, the combined Overhead and Burden rate included in the multiplier shall not exceed a maximum of 150% of labor costs ACC Airports Technical Workshop August Washington, DC #AirportsTechnical

21 Questions? Thank you #AirportsTechnical