1. Delegated Contract Process for Federal Construction Contracts

2. Delegated Contract Process
State Aid for Local Transportation (SALT) prepares the DCP Agreement, which is required for agencies administering a Federal Construction Contract.
The DCP Agreement
covers all Federally funded Construction Contracts with State Aid while the agreement is active.
Is valid until there is either a change or one party cancels the contract.
Approval of each construction project is required first
Prior approval must be received before expenses are incurred or they will not be reimbursed.
Federal Funds are released after the expense is incurred.
Sponsoring agencies must be financially able to make the contract payments.
11/18/2018

3. DCP- SAF Web Site and Payment Requests
The State Aid Finance web site
DCP Processing
SAAS Reports
Delegated Contract Process (DCP) Payment Request
Many DCP Payment Requests and State Aid Payment Requests need to be revised
Federal Funds must be maximized on a project.
If Federal funds are not maximized, this delays your payment
11/18/2018

4. DCP - FCRB Federal County Road and Bridge (FCRB) is the system
System where the DCP Payment Requests are processed.
FCRB has a “Bid Cap”.
Not a true cap, but it is where the system stops paying.
The “Project Cap” is the total Federal Funds available if you have sufficient construction costs.
11/18/2018

5. Optional Tagline Goes Here | mn.gov/websiteurl
DCP - FCRB
FEDERAL FUND CAP
BID CAP
11/18/2018
Optional Tagline Goes Here | mn.gov/websiteurl

6. DCP – Bid Cap Review the Participation Distribution
If the Bid Cap is less than the Federal Fund Cap
Check the actual eligible costs of the project at the time you final the project
If the actual eligible costs are greater than the bid cap in FCRB
An encumbrance increase must be submitted
Example
On the Participation Distribution the Federal Cap is $800, – but the Federal Amount at Bid (or Bid Cap) is $718,063.20
The system stops paying at this amount unless an encumbrance increase is submitted
11/18/2018

7. DCP – Encumbrance Increase for Bid Cap
If the eligible costs are more than the Bid Cap
Enough in extra costs need to be submitted to encumber the additional federal funds
Example
If the total eligible costs are $998, * 80% = $798,400.00
Bid Cap is $718,063.20
Then $80, more needs to be encumbered
Documents needed for an encumbrance increase submittal
Supplemental Agreements
Change Orders
Work Orders
Overrun
When completing supporting documentation, indicate the category on each document.
11/18/2018

8. DCP – Encumbrance Increase for Bid Cap (Continued)
If the costs are split between categories
It must be documented clearly for each category in either
Dollars OR
Percentage
All documents must be signed off by the DSAE
The encumbrance increase can be sent in before the final or with the final
If the encumbrance increase is sent in with the final payment
Do not use the numbers on the DCP Final to complete your State Aid Payment Request
Use the actual costs to complete your State Aid Payment Request
11/18/2018

9. DCP – Payment Requests and Categories
The numbers on the DCP Payment Request can be used to complete the State Aid Payment Request
If all of the available federal funds were set–up at the beginning of the project OR
If all of the federal funds have been paid
All projects with multiple categories
Must attach a breakdown of costs by category
Must be in the format of the original bid estimate for both partial and final payments
No payment request will be processed without this documentation
11/18/2018

10. DCP – Partial and Final Payment Requests
DCP Partial Payment Requests
to Amie Wunderlich
And
Check with your DSAE if they want a copy
DCP Final Payment Requests
Must be sent to the DSAE with required documentation
11/18/2018