Consultant Services Flexibilities

Consultant Services Initiative: Highlight existing flexibilities for contracting and using consultants to: Assist STAs & LPAs in development & delivery of local projects Assist STAs in management & administration of local programs 2

Why Use Consultants? Supplement agency staff Balance workload fluctuations Provide independent or specialized expertise Perform all aspects of project development & delivery Provide management & oversight services 3

Benefits of Implementing Consultant Flexibilities: Shortened time & reduced cost to: – Procure consultants – Develop & deliver projects Improved quality & performance of services Enhanced oversight of local programs & projects Compliance with Federal & State requirements 4

Consultant Usage: Use of consultants to extent necessary or desirable if agency has: Adequate contract authority Adequate staffing Adequate project delivery systems Sufficient accounting controls (23 U.S.C. 302(a) & 23 U.S.C. 106(g)(4)) 5

Federal Interests: Compliance with Federal and State laws, regulations, policies & procedures for procurement, management & administration of consultant services STA providing sufficient oversight and monitoring of LPA use of consultant services 6

Federal Interests: Federal Interests: (Cont.) Written procurement policies & procedures: – Solicitation, evaluation, ranking & selection – Negotiation of consultant reimbursement – Monitoring a consultant’s work Approval of policies, procedures & revisions: – FHWA must approve STA procedures – STA must approve LPA procedures (Engineering & design related services - 23 CFR 172.9(a)) 7

Understanding the Flexibilities: Procurement policies & procedures: Specify the policies & procedures for LPA utilization of consultants Prequalify consultants to provide services for LPAs 8

Understanding the Flexibilities: Understanding the Flexibilities: (Continued) Contracting options: Procure, manage & administer consultants on behalf of LPAs Procure & contract with consultants to be managed by LPAs 9

Understanding the Flexibilities: Understanding the Flexibilities: (Continued) Consultant contracts may be: Project, phase or service specific On-call or Indefinite Delivery-Indefinite Quantity (IDIQ) – Services on as-needed basis & on multiple projects – Task orders used to award specific scope of work 10

Understanding the Flexibilities: Understanding the Flexibilities: (Continued) Local program management: Contract with consultants to assist STA in managing, monitoring & administering the local program & projects Flexibilities described may be: Used in combination Adjusted based on LPA size, resources, etc. 11

Current “State-of-Use”: Procurement policies & procedures: Approx. 1/2 of STAs specify procedures for LPAs or require LPAs to utilize STA procedures Approx. 2/3 of STAs have a consultant pre- qualification process which LPAs could utilize Contracting options: Approx. 1/3 of STAs procure, manage and administer consultants on behalf of LPAs Approx. 1/3 of STAs procure and contract with consultants to be managed by LPAs 12

Current “State-of-Use”: Current “State-of-Use”: (Cont.) Local program management: Only a few STAs contract with consultants to assist in managing, monitoring & administering the local program Practice varies among STAs and based on LPA size, resources, capabilities, etc. 13

Consultant Services Initiative - Barriers & Challenges: Organizational culture & policies Constrained resources Administration, management & oversight concerns State law & regulation Local program size 14

Consultant Services Initiative - Barriers & Challenges: Consultant Services Initiative - Barriers & Challenges: (Cont.) Are there any other barriers or challenges that you envision in working with your STA and LPAs to implement one of the flexibilities discussed? 15

Successful Practices - Policies & Procedures: Iowa DOT: Specifies 2 procedures for use by LPAs: – Qualifications based selection procedures – Small purchase procedures Requires use of DOT prequalified firms Requires DOT approval at various milestones 16

Successful Practices Procedures & Contracting: Successful Practices (Cont.) - Procedures & Contracting: Oregon DOT (ODOT): Performs a two-tier selection process whereby ODOT initially assesses qualifications Maintains price agreement (on-call) contracts for consultant services for use by LPAs 17

Successful Practices Procedures & Contracting: Successful Practices (Cont.) - Procedures & Contracting: Kentucky Transportation Cabinet (KYTC): Specifies 3 procedures for use by LPAs: – Qualifications based selection procedures – Small purchase procedures – Use of KYTC statewide (on-call) contracts LPA may administer task orders for services Requires use of KYTC prequalified firms Requires KYTC approval at various milestones 18

Successful Practices Contracting & Program Mgmt.: Successful Practices (Cont.) - Contracting & Program Mgmt.: Arizona DOT (ADOT): Approve LPA procedures under a certification process or project-by-project Maintains on-call contracts for consultant services for use by LPAs Procures, manages & administers contracts on behalf of smaller LPAs Utilized regional consultants to assist LPAs in delivery of ARRA projects 19

Successful Practices Procedures & Program Mgmt.: Successful Practices (Cont.) - Procedures & Program Mgmt.: Wisconsin DOT (WisDOT): LPAs only administer non-traditional projects Specifies procedures for use by LPAs Maintains roster of “eligible consultants” Utilizes a “three-party” contract for design services – WisDOT - LPA - consultant Contracts w/ consultants for local program management, administration & oversight in each Region 20

Successful Practices: Successful Practices: (Cont.) Are there any other successful practices where your STA has used consultants to: Assist LPAs in development & delivery of local projects? Assist in management & administration of local programs? 21

Consultant Services Initiative - EDC Implementation Goal: By 2014, X number of STAs will have implemented at least one new identified consultant flexibility for local programs & projects: Specify procurement procedures Prequalification of consultants STA procured & managed consultants STA procured & LPA managed consultants STA local program management consultant 22

Consultant Services Initiative - Resources: FHWA Consultant Services web page FHWA Federal-aid Essentials for LPAs FHWA EDC web page AASHTO resources: – AASHTO Guide for Consultant Contracting – AASHTO Uniform Audit & Accounting Guide 23

Consultant Services Initiative: Questions and Comments 24