Contract Administration Process & Procedures Understanding “Why”, “What?”, and “How?” Contracts are Administered and How DBE Goals, Requirements and Documentation is Applied ADOT Engineering Consultants Section (ECS) ­ Michael DenBleyker, P.E. – Manager ­ Sanja Katic­Jauhar – Contract Compliance Unit Manager Contract Administration Process & Procedures Introduction So, why are we here? 1. Improve communication and understanding of the ADOT contract administration process. 2. Strengthen our partnership between ADOT and the Consultant Community. 3. Improve the understanding of how DBE goals, requirements and documentation applies to the process. Consistent with our culture at ADOT, we strive to be deliberate in our: 1. Communication with our Stakeholders. • We communicate in person. • We speak with our groups. • We reach out to our stakeholders. 2. Collaboration with our Stakeholders. • We work together to achieve the successful execution of a contract. 3. Innovation. • We work together to improve our processes, while maintaining our core contractual and regulatory requirements. 4. Resolution. • We work together to respond to questions and resolve problems. Contract Administration Process & Procedures Introduction Who are our partners during Project Oversight the contract lifecycle? Management of Funds Administer & Manage the Contract FHWA ADOT Engineering Consultants Section ADOT Finance Compliance with FAR & CFR Regulations ADOT Audit & Analysis Manage the Scope, Schedule & Budget Contract ADOT Project & Contract Managers Business Engagement & Compliance Office Consultants Execute Contracted Scope Ensure Compliance with Contracted DBE Goals Contract Administration Process & Procedures Introduction So, who are we? ADOT Engineering Consultants Section (ECS) • Prescribe and Administer the procedures to advertise, select, monitor and manage professional services contracts. Contract Stakeholders – Roles & Responsibilities • The successful negotiation and administration of a contract requires active participation by: 1. ADOT (Project Manager & RE, ECS, BECO, Audit) 2. Consultants & Subconsultants 3. FHWA What is required? Consultant ADOT 1. 2. 3. 4. Deliberate Communication Collaboration and Participation Consistency in our Processes Innovation & Resolution What are we doing? FHWA Contract NTP 1. External Partnership Meetings. 2. Early Involvement in Contract Administration. 3. Internal Partnership Meetings. 4. Encumbrance Process Efficiencies. Contract Administration Process & Procedures Introduction What have we been doing? ADOT Engineering Consultants Section (ECS) • • Current Contract Volume: Contract Modifications Processed: • Payment Reports Processed: 333 active contracts FY13 = 1,087 FY14 = 1,150 FY13 = 2,236 FY14 = 2,495 ADOT Business Engagement & Compliance Office (BECO) • DBE Affidavits • DBE Good Faith Efforts (GFE) FY13 FY14 FY13 FY14 = = = = 116 211 42 68 Contract Administration Process & Procedures Introduction Key Terms, Acronyms and Information associated with the contract lifecycle: Brooks Act – Public Law 92­582 (40 USC 1104): • • Selection of firms and individuals to perform architectural, engineering and related services based on demonstrated competence and qualifications for the type of professional services required. The agency shall negotiate a contract with the highest qualified firm at compensation which the agency head determines is fair and reasonable. Prompt Pay Law – ARS 28­411: • • ADOT must issue payments to Prime Consultants within 21 calendar days after receipt and acceptance of the payment report/invoice. Consultants must pay their subconsultants within seven (7) calendar days after receiving payment from ADOT. 49 CFR Part 26 • Regulations for participation by Disadvantaged Business Enterprises in federal DOT financial assistance programs. This also includes all required reporting and documentation. ECS Contract Award and Administration Procedures • Rules and Procedures that govern ADOT’s Engineering Consultants Section’s award and administration of professional services contracts. Contract Administration Process & Procedures Introduction What do we do? How do we do it? Why do we do it? Contract Initiation •Initiation •Selection Contract Administration •Negotiation •Execute Work •Modifications •Payment Reports Contract Lifecycle Map Contract Closeout •Documentation Contract Administration Process & Procedures Introduction Everyone is a Partner in the successful administration of a contract! Contract Initiation •Initiation •Selection ECS Consultant ADOT PM BECO Finance FHWA Contract Administration •Negotiation •Execute Work •Modifications •Payment Reports ECS Consultant ADOT PM BECO Audit Finance FHWA Contract Closeout •Documentation ECS Consultant ADOT PM BECO Audit Finance FHWA Contract Administration Process & Procedures Contract Initiation The contract lifecycle begins….. Contract Initiation •Initiation •Selection Contract Administration Process & Procedures Contract Initiation Initiation of Contract 1. Development of the Project’s Scope of Work and Need 2. Development of the Contract and Project Schedules 3. Establishment of DBE Goals • Each Contract is assessed a DBE Goal – 49 CFR Part 26 • Goal is established based on: a. The anticipated scope of work to be performed under the contract. b. The availability of resources that can perform a commercially useful function. 4. Authorization of Funds for the Project • Five­Year Transportation Facilities Construction Program • FHWA Authorization of Funds Advertisement & Submittals 1. Approval to Advertise 2. Communication 3. Submittals • Electronic Submittals through eCMS. • Requirements and Initial Review. Contract Administration Process & Procedures Contract Initiation Consultant Selection Process 1. Selection Panel Convenes • Review of Project Scope • Review of Evaluation Instructions and Criteria • Confidentiality 2. Selection Panel Evaluates and Scores SOQ’s based on established criteria. • Project Understanding and Approach • Project Team • Firm Capabilities 3. Selection Panel Meets and the “Best Qualified Firm” is agreed upon by consensus. 4. Selected Firm is Notified 5. Debrief Period is Opened. • The Debrief includes: 1. Copy of the selection panel’s evaluation comments and scores of their firm’s SOQ. 2. Score of the Selected Firm’s SOQ. 3. Copy of the SOQ submitted by the Selected Firm is provided for review. ** Copies or reproduction of the Selected Firm’s SOQ and comments/scores (or any other firm’s) are not permitted. Contract Administration Process & Procedures Contract Initiation Preliminary Plan & Schedule • • Contract Initiation 1. Development of the Project’s Scope of Work and Need: 2­4 Weeks 2. Development of the Advertisement and Contract Documentation: 3. Establishment of DBE Goals: 1­2 Weeks 4. Authorization of Funds for the Project: 2­3 Months 3 Weeks Consultant Selection Process 1. Contract Advertisement: 3­6 Weeks 2. SOQ Evaluation & Scoring: 4­6 Weeks 3. Selection Meeting & Ranking : 1­2 Weeks 4. Notification: 1 Week Contract Administration Process & Procedures Contract Initiation What are some “Barriers” to a Smooth and Timely Selection Process? 1. Funding. 2. Scheduling conflicts with panel members. 3. High volume of SOQ’s to review…requires more time. 4. Panel Member conflict of interest issues. • Potential Removal or Re­assignment. 5. Filed Protests or Appeals. • Appeal of SOQ Acceptance • Protest of Selection 6. Poor Communication of: • Schedules • Submittal Requirements • Questions and Responses Contract Administration Process & Procedures Contract Administration Managing your Contract Contract Initiation Initiation Selection Contract Administration • • • • Negotiation Execute Work Modifications Payment Reports Contract Administration Process & Procedures Contract Administration Congratulations on your selection! So now what?? 1. Pre­Negotiation Phase 2. Cost Proposal Negotiations 3. Notice to Proceed 4. Execution of Work Successful negotiation of a contract involves the active participation of the following stakeholders: • • • • ADOT ADOT ADOT ADOT Project Manager & Consultant Audit & Analysis Business Engagement & Compliance Office (BECO) Engineering Consultants Section (ECS) Contract Administration Process & Procedures Contract Administration Preparation & Submittal of Cost Proposal 1. 2. 3. 4. Pre­Negotiation Meetings Submittal of required Financial Reports to ADOT Audit & Analysis Development of the Project’s Scope of Work & Cost Proposal Submittal of Required Documentation through eCMS. • ECS’s Review includes: a. Completeness and accuracy of documentation. b. Standardization of Contractual Terms & Conditions c. Appropriateness of Proposed Labor Classifications (IB 13­02) d. Completeness of Entry in System e. Initial Review and determination of Cost Allowability, Reasonableness, Overhead Rates, Insurance Requirements, DBE documentation Contract Administration Process & Procedures Contract Administration Cost Proposal Negotiations The Negotiation of a Contract is based on: 1. Scope of Work 2. Qualifications of Professional Services 3. Reasonableness and Allowability of Costs (All Costs Are Reviewed) • All costs require supporting documentation. Responsibilities: • Project Manager: Review and Negotiation of Scope and Hours. Assist in Coordinating responses, submittals, etc. through the contract lifecycle. • Audit & Analysis: Review rates and costs to determine fairness, reasonableness and allowability. • Consultant: Complete and timely submittals of required contract documentation. • ECS: Complete and timely reviews and negotiations of contract documentation. ADOT endeavors to negotiate scope, rates and costs that are fair and reasonable in accordance with 40 USC 1104. (consistent with the Brooks Act) Contract Administration Process & Procedures Contract Administration Cost Proposal Review by: ADOT Business Engagement & Compliance Office Consultants are required to: • • Adhere to Sections 4.46­4.49 of the contract documentation regarding DBE and SBC commitments. Execute subcontracts with all Subcontractors which include all required clauses in Section 4.0 of the contract. (including reporting and payment clauses). • • • Provide written documentation of the bidder’s/offeror’s commitment to use a DBE Subcontractor to meet contract goal and also written confirmation from DBE that it is participating (DBE Affidavit) in contract or make Good Faith Effort (GFE) – 49 CFR 26.53. Enter all subconsultant, lower­tier sub and vendor information in the DBE System and upload their subcontract agreements. Record and document payments of subconsultants on appropriate Payment Reports and within ADOT’s DBE System (B2GNow). Contract Administration Process & Procedures Contract Administration Cost Proposal Review by: ADOT Engineering Consultants Section ECS Will Review: 1. 2. 3. 4. 5. 6. Review for Completeness and accuracy of documentation and entry into eCMS. Standardization of Contractual Terms & Conditions Appropriateness of Proposed Labor Classifications (IB 13­02) Review and determination of: • Allowability of Costs • Reasonableness of Costs • Status of Firm(s) audited overhead rates. • Coordination and applying Audit & Analysis recommendations. • Need for Risk Management Review of Firm’s Insurance • Completion of required DBE documentation. Encumbrance of Funds associated with contract. Execution of Contract. Contract Administration Process & Procedures Contract Administration Notice to Proceed • The consultant is issued a “Notice to Proceed” (NTP) once the terms of the contract are agreed upon (negotiations are complete) and upon receipt of FHWA Funding Authorization. ** No verbal or email authorizations are allowed. • An Advanced Notice To Proceed (ANTP) or Advanced Authorizations (AA) may be issued if it is determined and agreed upon that a consultants work must start while the contract negotiations are being finalized. 1. Emergency Situations 2. Time Constraints ** No verbal or email authorizations are allowed. Contract Administration Process & Procedures Contract Administration Execution of Work • The consultant, in close coordination with other project stakeholders, performs the professional services outlined in the contract. • Payment Reports are issued, processed and paid as defined in the Agreement and per Prompt Payment Law. • Contract Modifications are processed as required (this includes any necessary Time Extensions). • Required reporting and documentation of DBE Participation. • Annual Performance Reviews are performed to address the consultant’s performance on an annual basis (through eCMS). Consultants, PMs, Audit and ECS participate in this process. Contract Administration Process & Procedures Contract Administration Plan & Schedule • Preparation and Submittal of Cost Proposal • 1. Preparation and Submittal of Cost Proposal 2. Submittal of all required financial documentation: 2 Weeks Cost Proposal Review and Negotiation 1. Initial Scope and Cost Negotiation: • 4­5 Weeks Subsequent Reviews/Negotiation (2­3Weeks per submittal) 2. BECO Review: 10 Days 3. Audit Review: 45 Days • • 3­4 Weeks Varies depending on completeness of submittals and follow­up documentation Notice to Proceed 1. Finalize Documentation of Signatures: 1 Week 2. Encumbrance of Funds: 1 Week 3. Notice to Proceed: 1 Day Contract Administration Process & Procedures Contract Administration Task Order and/or Modification Initiation Modifications to existing contracts, or issuance of Task Orders on On­Call Contracts are based on the terms of the original contract. 1. 2. 3. 4. 5. Project Needs Identified and Priorities Established Development of the Project’s Scope of Work and Need Development of the Contract and Project Schedules Submittal of Required Documentation Negotiation and Execution of Task Order or Modification. **Contracts, Task Orders, Advanced Authorizations/ANTP’s, or Modifications cannot be executed without FHWA Funding Authorization Contract Administration Process & Procedures Contract Administration Task Order and/or Modification Initiation Key Issues to remember: 1. DBE Goals: DBE Goals are calculated and apply to a contract. • For On­Call Contracts, the contract DBE Goal is applied to each task assigned to a consultant. • For “Non” On­Call Contracts, any modification to the contract must reflect any change the additional work (or reduction) will have on meeting the contract DBE Goal. • The Prime Consultant’s ability to meet the DBE goal is based on actual payments to their DBE partners. Accurate Reporting is very important! 2. For On­Call Contracts: Task Orders are generally assigned as follows: • First Round: Based on the ranking of the Prime Consultant • Subsequent Rounds: Distribution based on equalizing the cumulative dollar value awarded to every contracted Prime Consultant. ** ECS is required to regularly report to the FHWA on the distribution of tasks and cost growth of the tasks/contracts. Contract Administration Process & Procedures Contract Administration Payment Reports • Pursuant to Section 4.04 of the contract, consultants are required to: 1. Submit Payment Reports on a monthly basis reporting its monthly costs. Payment Reports are not required for on­call contracts without any assigned task orders added by executed modification. • If no work has been performed in any month, the Consultant shall still submit a zero ($0.00) PR indicating that no work has been performed for that month. 2. Submit Payment Reports which includes a breakdown of costs incurred by each subconsultant who completed work for the time period requested. 3. Submit Payment Reports which includes appropriate back­up for expenses (receipts, etc.). 4. Primes, Subconsultants (DBE and non­DBE) are required to report payments monthly in the ADOT DBE System (Section 4.47 of the contract). Contract Administration Process & Procedures Contract Administration Task Order Initiation Negotiation: PM & Consultant Negotiation: ECS & Consultant Notice To Proceed Execution of Work Payment Reports • Pursuant to Section 4.03 of the contract, consultants are required to: 1. Submit monthly progress reports with all Payment Reports to the ADOT PM. The report format shall be approved by the ADOT PM and ECS, but must provide information relating to and supporting work performed and expenses incurred (for which are being invoiced for). 2. For Non­Lump Sum Fee Contracts (CPFF, Specific Rates, Supplemental Services), submit required work­hour report and back­up documentation for expenses incurred and being invoiced for). Common Issues which may delay processing of Payment Reports 1. 2. 3. 4. 5. 6. 7. 8. Consultant is not billing on a monthly basis. Payment Report is not signed by the Consultant or ADOT PM. Payment Report Number is incorrect or submitted out of sequence. PO Number or Line No. is not included. Incorrect Format is used. Previous edits or incorrect amounts not carried over properly (math errors). Appropriate Payment Report Backup not included or doesn’t match invoice totals. Funds were not encumbered and are no longer available. Contract Administration Process & Procedures Contract Administration Audit What are some “Barriers” to a Smooth and Timely Execution of Contract Documentation? 1. Incomplete or delayed submittals by Consultant, Subconsultant or Vendors. 2. Incomplete or delayed review by ADOT. 3. Errors in contract documentation. 4. Funding is not authorized or available. 5. Delays in encumbering funds for the contract. 6. Renegotiation of Rates (from the originally approved contracted values). 7. Introduction of new subconsultants (or vendors) 8. Reclassification of consultant’s positions. 9. Review and/or negotiation of allowable or unallowable expenses. 10. Delayed communications between ADOT and Consultant and between Consultant and ADOT. 11. Additional scope and costs may affect the original DBE commitments, requiring review and documentation to be resubmitted. 12. Incomplete or unapproved DBE documentation. Contract Administration Process & Procedures Contract Closeout Managing your Contract Contract Initiation Initiation Selection Contract Administration Negotiation Execute Work Modifications Payment Reports Contract Closeout • Contract Documentation • Records Retention Contract Administration Process & Procedures Contract Closeout Contract Closeout All contracts have a Contract Period, which defines the termination date of the contract. Contract periods can be extended or canceled in accordance with the terms and conditions of the contracts. **Work can not be performed and invoiced if contract time expires. • • • • • • Contract Closeout is initiated by the ADOT PM after services are completed per the contract. Final Payment Report – Prime Consultant and Subconsultants Incurred Cost Audit (Audit & Analysis) – For CPFF Contracts Certification of Payments to DBE Firms Affidavit (Section 4.47 of contract) Final Performance Evaluation is performed to address the consultant’s performance throughout the duration of the contract lifecycle (through eCMS). Consultants, PMs and Audit and ECS participate in this process. Pursuant to Section 4.41 of the contract, consultant and subconsultants shall keep and maintain all books, papers, records, accounting records, files, accounts, expenditure records, reports, cost proposal with backup data and all other such materials related to the Contract and other related project(s). Contract Administration Process & Procedures Key Definitions and Title 49 CFR Part 26 DBE Requirements Key Definitions and Abbreviations CUF – Commercially Useful Function RC – Race Conscious RN – Race Neutral TO – Task Order CM – Contract Modification CP – Cost Proposal ICL – Initial Cost Proposal Applicable CFR Codes • • • • • • • 26.13 – 26.29 – 26.31 – 26.37 – 26.51 – 26.53 – 26.55 – Contractor/Recipient Assurances Prompt Pay Mechanisms DBE Directory Recipient Responsibilities for Monitoring Other Participants Means to Meet Goals Good Faith Efforts (GFEs) & Contract Goals Counting DBE Participation Contract Administration Process & Procedures DBE Program’s Impact on ECS Processes • • • • Setting goals • DBE goal is required for RC Contract solicitation • All contracts with at least $1.00 of federal funds (excluding supplemental) • DBE Goal Worksheet completed by Compliance Specialist and PM and submitted to BECO • BECO reviews and establishes the goal within 10 business days Certifying goal commitments via DBE documentation • DBE Affidavits or • Good Faith Efforts • Failure to submit will render Consultant ineligible for award DBE Participation Monitoring and Enforcement via Reports • Contract Modification – Additional Funds • Contract Modification – Add/Replace/Remove • Certify Final Payment to DBEs via DBE System Dispute Resolution Process Contract Administration Process & Procedures DBE Forms Submission • DBE • • • • • Forms Submission Submission Submission Submission Submission with SOQ – advertisment stage with RC Cost Proposal – negotiation stage with RN Cost Proposal – negotiation stage with Contract Modification – Post Notice To Proceed (NTP) at contract closeout Contract Administration Process & Procedures SOQ for Standard Design Project SOQ for On‐Call Project Stand alone project Issued via task orders Known schedule, scope, budget and complexity Scope, schedule, budget and complexity determined with each TO DBE goal stated in RFQ and any future contract modification must reflect the change and impact on the goal DBE goal stated in RFQ and applied to each task order DBE participation identified prior to contract execution or NTP DBE participation identified prior to task order execution Consultants either document intent to Consultants to identify DBE sub‐consultants in meet DBE goal in SOQ or submit GFE forms SOQ submission Prime and sub DBE affidavits or GFEs provided with CP package DBE documentation submitted with each TO CP & each TO requires prime or sub DBE affidavit or GFE forms Contract Administration Process & Procedures SOQ Submittal Forms and Requirements Pursuant to 49 CFR 26.11(c), ADOT needs to maintain a bidders list via • Proposer’s Soliciation List • • • • — Intent­to capture accurate data about DBE universe (DBE, non­DBE, SBC) Form includes a) All subs which prime solicited to be part of contract b) All subs who contacted Prime expressing interest in this contract c) All subs who Primes ultimately proposed on this contract Failure to submit the Solicitation List shall result in SOQ rejection Primes are required to register while subconsultants are strongly encouraged Pursuant to 49 CFR 26.11(c), ADOT is also required to collect demographic information on all ‘ready, willing and able’ DBE and non­DBE firms via AZ UTRACS vendor registration • Intent­to capture demographic data on ‘ready, willing, and able’ firms • Valid for 3 years then Firms must re­register • Primes are required to register while subconsultants are strongly encouraged Contract Administration Process & Procedures SOQ Proposer’s Solicitation List Contract Administration Process & Procedures DBE Forms DBE Intended Participation Affidavit ‐ Consultant (project specific and on‐call with each TO) DBE Intended Participation Affidavit ‐ Subconsultant (project specific and on‐call with each TO) Good Faith Effort Form (project specific and on‐call with each TO) On‐Call Contract DBE Goal Commitment Form (on‐calls only) Intent – consultant lists all subs and tier subs to be used and identify total DBE commitment ‐ separate affidavit for each sub DBE Intent – all subs and tier subs acknowledge and sign their % participation ‐ separate affidavit for each sub DBE Intent – to identify all efforts made in locating DBEs Intent – consultant commits to meet or exceed the goal on every TO or make GFEs Submitted when the goal is met or exceeded. Submitted with initial CP or CP for additional funding (project‐ specific) or with CP with each TO (including revisions) for on‐calls Submitted when the goal is met or exceeded. Submitted with initial CP or CP for additional funding (project‐ specific) or with CP with each TO (including revisions) for on‐calls Submitted when consultant does not meet the goal or the goal commitment is below the goal. Contract Administration Process & Procedures DBE Forms Continued For add funds CM DBE Intended Participation Affidavit ‐ Consultant (project specific and on‐call with each TO) DBE Intended Participation Affidavit ‐ Subconsultant (project specific and on‐call with each TO) Good Faith Effort Form (project specific and on‐call with each TO) List new contract total amount (project specific) or new TO total amount (on‐call) List new contract total amount (project specific) or new TO total amount (on‐call) DBE Direct Expense vendors need to be included (credit obtained thru non‐DBE firm) Submitted with CP for additional funding (project‐ specific) or with CP with each TO (including revisions) for on‐ calls. Post NTP with CP for add funds With RC CP, during negotiations With RC CP, during negotiations With RC CP, during negotiations With RN CP, only if DBEs utillized With RN CP, only if DBEs utillized On‐Call Contract DBE Goal Commitment Form (on‐calls only) With RC CP, during negotiations Contract Administration Process & Procedures DBE Forms – Consultant DBE Participation Affidavit Contract Administration Process & Procedures DBE Forms – Subconsultant DBE Participation Affidavit Contract Administration Process & Procedures DBE Forms – GFE Contract Administration Process & Procedures DBE Forms – On­Call DBE Goal Commitment Form Contract Administration Process & Procedures Add/Replace/Remove Subconsultant Request Form • According to Contract Boilerplate, Section 4.47 (DBE Commitment, Compliance and Reporting), item 6 (DBE substitution) • The consultant shall not terminate a DBE subconsultant without prior approval of the State • If a subconsultant is terminated, Prime must make GFEs to locate another DBE and NOT perform the work on its own WHY: It impacts the ability to meet the goal commitment on the contract • Submit the DBE add/replace/remove form for any of these sub changes to PM for approval • If replacing a sub with a DBE, you must provide justification and attach firm’s DBE affidavit • Must be signed by ADOT PM, ECS Manager and Consultant Contract Administration Process & Procedures Add/Replace/Remove Sub Form Contract Administration Process & Procedures DBE Participation Monitoring and Tracking 1. At NTP, Compliance Specialist creates contract record (CS sends NTP letter to BECO previously) 2. ADOT is tracking all DBE participation but reporting on federally assisted contracts only 3. Monitoring is for ALL payments (DBE and Non­DBEs) 4. Payment and participation data is gathered in eCMS, then transferred monthly to the DBE System 5. Payments trigger email notifications • Consultant reports payment while subconsultant verifies 6. Must know: online payment reporting is a contractual requirement, and you must ensure that all DBEs and non­DBE subcontract agreements reflect this requirement in their individual contracts 7. Consultants and subconsultants need to make sure to log into the DBE system and ensure that contact information is accurate and up to date and upload all subagreements 8. Consultants need to enter all subconsultants, DBEs and direct expense vendors (including tier­subs) before submitting the first PR to ECS Contract Administration Process & Procedures Subcontract Agreements and 26.29 Prompt Pay Mechanism 1. Sub agreements must include • Thirty day invoicing assurance • Seven day prompt pay payment assurance • Online payment confirmation • Online reporting of lower­tier/vendor activities 2. DBE to initial and date each page or it is not valid 26.29 Promp Pay Mechanism 1. 2. 3. 4. 5. 6. Primes submit payment reports within 30 days of receipt from all sub invoices Submit PRs monthly even if $0.00 Identify all sub (DBEs and non­DBEs) payments made to vendors Pay all subs no later than 7 calendar days (A.R.S. §28­411) Send payment reports directly to PMs (list all sub invoices separately) Respond to DBE audit notifications, messages and prompts from DBE System 7. Verify payments made to all subs, lower­tier subs and direct expense vendors 8. All Subs confirm payment receipt and synchronize with consultant billing timeframe to ensure monthly invoicing Contract Administration Process & Procedures 26.37 DBE Program Monitoring Performance & 26.31 DBE Directory a) WHAT: DBE Program must include monitoring and enforcement mechanism to ensure that work committed to DBEs at contract NTP is actually performed by DBEs b) HOW: Running tally of actual DBE attainments (payments actually made to DBEs) compared to DBE goal commitments in a monthly DBE report sent to FHWA 26.31 DBE Directory • • • Can be found on AZ UTRACS website Updated and maintained with firm’s name, phone, types of services the firm is certified for perform Revised yearly Contract Administration Process & Procedures 26.55 Counting DBE Participation & Contract Closeout DBE Participation a) Counts only if the work is performed by DBE’s own resources, equipment and material except when it is leased or purchased from the Prime b) Counts if the work is performed in area the DBE is certified in c) Counts if bona fide service is provided (professional, technical, consultant or managerial services) d) Counts if DBE subcontracts to another DBE Contract Closeout • • • • • • • You must submit Certification of Payments to DBEs for each DBE Intent is to acknowledge that payments were made to DBEs for work done Must be submitted for each DBE involved on the contract Must be signed by Consultant and Subconsultant Submit final payment report with this form for each DBE to PM Send ICL response to Compliance Specialist Final payment will not be released until all certificates are received Contract Administration Process & Procedures Certificate of Payments to DBEs Form Contract Administration Process & Procedures Dispute Process Dissaproval of DBE affidavits and/or GFEs If disputed, the three (3) options after receipt of disapproval notification are: 1. Make required revisions per BECO 2. Withdraw TO or CM 3. Request dispute escalation in writing within five (5) calendar days from ECS notification • • — Consultant has the burden of proof to provide documentation that they met GFEs — ECS Compliance Specialist coordinates with appropriate meeting attendees at every level of dispute Level ADOT Consultant ECS 1 PM/RE/BECO PM Specialist 2 PM/GM/DE/BECO Project Principal/PM Branch Manager 3 Project Principal/PM Project Principal ECS Asst. Manager 4 Deputy SE/SE/BECO Project Principal ECS Manager Contract Administration Process & Procedures DBE Resource Materials and Contacts Resource Materials DBE System User Manual DBE System Training Video DBE Responsibilites Matrix DBE Process Flowchart ECS DBE Program Website Public Partnerships Contacts Christopher Stafford – ECS Contract Compliance (602) 712­4450 Sanja Katic­Jauhar – ECS Contract Compliance (602) 712­7720 Michael DenBleyker – ECS Manager (602) 712­7808 BECO – (602) 712­7761 Contract Administration Process & Procedures Questions?