Auditor’s Checklist

  1. Actual or average hourly rates by classification and a copy of payroll register or similar document to provide documentation.

  2. 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 most recent
    fiscal year.

  3. 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
    agency.

Summary of Procedures for Pre-Award Evaluationof a Consultant Contract

  1. 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.

  2. Verify labor rates utilized in the cost proposal to actual or average hourly rates of the consultant using payroll records.

  3. Determine that non-salary direct costs (i.e., travel expenses, reproduction costs, etc.) proposed are reasonable and necessary for the performance of the contract.

  4. Determine that the payroll burden and overhead rates utilized in the cost proposal have been approved by VDOT.

  5. Determine that the net fee utilized in the cost proposal is within VDOT guidelines.

  6. 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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Page last modified: Oct. 14, 2012