- Actual or average hourly rates by classification and a copy of payroll register or
similar document to provide documentation.
- Payroll burden and overhead rates audited in accordance with Federal Acquisition
Regulations by an independent Certified Public Accountant or cognizant
government agency. Rates should be for a period not older than one year prior to the
- For firms billing CADD costs directly to projects, audited rates in accordance with
Federal Acquisition Regulations must be submitted prior to billing. The audit must be
performed by an independent Certified Public Accountant or cognizant government
Summary of Procedures for Pre-Award Evaluationof a Consultant Contract
- Determine that the existing accounting system provides for the identification and
accumulation of costs by project. Comment on any significant accounting procedures that might affect costs.
- Verify labor rates utilized in the cost proposal to actual or average hourly rates of
the consultant using payroll records.
- Determine that non-salary direct costs (i.e., travel expenses, reproduction costs, etc.)
proposed are reasonable and necessary for the performance of the contract.
- Determine that the payroll burden and overhead rates utilized in the cost proposal
have been approved by VDOT.
- Determine that the net fee utilized in the cost proposal is within VDOT guidelines.
- Determine that any contingency utilized in the cost proposal is computed properly. The
contingency rate generally ranges between 5 and 10 per cent, and is calculated on the fee
base (Direct Labor + Payroll Burden + Overhead) and non-salary direct cost.
Sub consultant contingency is included in it’s proposal and the prime gets no contingency on the
sub consultant's work.
The consultant agreement should be written to insure the following:
Net Fee - This should be the net
fee of the prime consultant only. No sub-consultant net fees should be included in this
section of the agreement.
Limiting Fee - This is the total of all costs in the fee proposal, including contingencies and net fees.
This summary is not intended to be an all inclusive process by which to perform a pre-award evaluation, but only to serve as a guide in this process.
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