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ODOT Procurement Office (OPO)

ODOT Procurement Office (OPO). Donnell Fowler Procurement Operations Manager. OPO Billing Rate Process. Current process has resulted in Generally inconsistent rate schedules for a given firm across their contracts with ODOT.

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ODOT Procurement Office (OPO)

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  1. ODOT Procurement Office (OPO) Donnell Fowler Procurement Operations Manager

  2. OPO Billing Rate Process • Current process has resulted in • Generally inconsistent rate schedules for a given firm across their contracts with ODOT. • Significant Consultant and Agency workload to process rate schedule change requests. • Schedules that often don’t correlate to Actual Salary Rates (ASRs). • We need a better way to • Accommodate salary growth over time, • Standardize realistic rate schedules, • WITHOUT significant time investment.

  3. Current Model BR = Billing Rate Schedule ATA/PA1 ATA/PA2 Consultant A BR1 Consultant A BR2 None of these are the same ATA/PA3 ATA/PA4 Consultant A BR3 Consultant A BR4 • A given consultant might have 10 or more different Billing Rate schedules (BR) across all their ODOT contracts. • Each BR is contract unique. • Each BR uses different ASRs and Overhead rates. • Each contract needs to be amended each year for new rates – huge workload impact .

  4. ODOT

  5. Sr Eng Mgr $38.53 Sr Eng Mgr $94.10 Sr Eng Mgr $63.31 Sr Eng Mgr $87.94 Sr Eng Mgr $66.15 Sr Eng Mgr $73.12 Sr Eng Mgr $74.58 Sr Eng Mgr $69.15 SPIN

  6. Sr Eng Mgr $38.53 Sr Eng Mgr $94.10 Sr Eng Mgr $63.31 Sr Eng Mgr $87.94 Sr Eng Mgr $66.15 Sr Eng Mgr $73.12 Sr Eng Mgr $74.58 Sr Eng Mgr $69.15 SPIN

  7. Sr Eng Mgr $38.53 Sr Eng Mgr $94.10 Sr Eng Mgr $63.31 Sr Eng Mgr $87.94 Sr Eng Mgr $66.15 Sr Eng Mgr $73.12 Sr Eng Mgr $74.58 Sr Eng Mgr $69.15 SPIN

  8. Sr Eng Mgr $38.53 Sr Eng Mgr $94.10 Sr Eng Mgr $63.31 Sr Eng Mgr $87.94 Sr Eng Mgr $66.15 Sr Eng Mgr $73.12 Sr Eng Mgr $74.58 Sr Eng Mgr $69.15 SPIN

  9. Proposed Model ATA/PA1 Consultant A Master Multi-year Schedule ATA/PA2 ATA/PA3 ATA/PA4 • Schedule based on ASRs by classification. • Escalation built-in to the Master Schedule.

  10. New OPO Billing Rate Strategy • Process will standardize to ONE Master Schedule per Consultant (based on ASRs) that most of their ODOT contracts will reference. • NTEs will still apply if new rates are adopted. • Master Schedules will build-in annual escalation. • Average Rates per Classification will be utilized for budget (SES) preparation. • Some exceptions will be allowed when specific staff are anticipated to work a project. • Desired outcomes • Consultant and Agency staff time minimized. • Improved rate consistency. • More realistic rates to support estimating.

  11. FAQs • On Master Schedules, do I include the whole firm? • NO, just use names, classifications and current ASRs for staff anticipated to be used on ODOT contracts. • We are developing a central data base to store these schedules to be referenced in ATAs, PAs and Contracts. • How do I change staff on a project? Is an Amendment required? • Changes to project staff (other than Key Personnel or changes that alter class. averages) require courtesy notification to the Agency. • Staff changes should generally be at or below the Classification Maximum ASR. • Other changes that alter classifications or class. averages will be reviewed annually or as required.

  12. FAQs • Do I have to estimate with the average classification rate on all projects? • Estimating with the average will be the general practice, however Agency may authorize contract exceptions for use of ASRs for specific staff. • Do I invoice the average rate or the actual rate? • For T&M contracts you will always invoice ASRs. The average classification rates will be used to develop the NTE.

  13. FAQs • What about Overhead Rate updates? • We are further developing this strategy; we are looking to incorporate OH changes as they are approved. • Working w/stakeholders, including FHWA. • How do I get started? • We have started this process on a few pilot contracts to get the bugs worked out. • We have a queue of rate change requests that we’ll apply the process to. • We will send out the required forms as we process the actions referenced above.

  14. Next Steps • Refine approach with input from industry and other stakeholders • ACEC/OPO Procurement & Contract Standing Committee • On select upcoming projects, collaborate with the Consultants involved • Contacts • Mike Jenkins • michael.l.jenkins@odot.state.or.us, 503-986-2717 • Vic Folk • victor.folk@odot.state.or.us, 503-986-2709

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