2. ODOT Procurement Office (OPO) Donnell Fowler Procurement Operations Manager

3. OPO Billing Rate Process Current process has resulted in –Generally inconsistent rate schedules for a given firm across their contracts with ODOT. –Significant Consultant and Agency workload to process rate schedule change requests. –Schedules that often dont correlate to Actual Salary Rates (ASRs). We need a better way to –Accommodate salary growth over time, –Standardize realistic rate schedules, –WITHOUT significant time investment.

4. Consultant A BR1 ATA/PA1ATA/PA2 ATA/PA4ATA/PA3 A given consultant might have 10 or more different Billing Rate schedules (BR) across all their ODOT contracts. Each BR is contract unique. Each BR uses different ASRs and Overhead rates. Each contract needs to be amended each year for new rates – huge workload impact. Consultant A BR2 Consultant A BR3 Consultant A BR4 None of these are the same BR = Billing Rate Schedule Current Model

6. Sr Eng Mgr $38.53 Sr Eng Mgr $94.10 Sr Eng Mgr $87.94 Sr Eng Mgr $73.12 Sr Eng Mgr $69.15 Sr Eng Mgr $74.58 Sr Eng Mgr $66.15 Sr Eng Mgr $63.31 SPIN

7. Sr Eng Mgr $38.53 Sr Eng Mgr $94.10 Sr Eng Mgr $87.94 Sr Eng Mgr $73.12 Sr Eng Mgr $69.15 Sr Eng Mgr $74.58 Sr Eng Mgr $66.15 Sr Eng Mgr $63.31 SPIN

8. Sr Eng Mgr $38.53 Sr Eng Mgr $94.10 Sr Eng Mgr $87.94 Sr Eng Mgr $73.12 Sr Eng Mgr $69.15 Sr Eng Mgr $74.58 Sr Eng Mgr $66.15 Sr Eng Mgr $63.31 SPIN

9. Sr Eng Mgr $38.53 Sr Eng Mgr $94.10 Sr Eng Mgr $87.94 Sr Eng Mgr $73.12 Sr Eng Mgr $69.15 Sr Eng Mgr $74.58 Sr Eng Mgr $66.15 Sr Eng Mgr $63.31 SPIN

10. Schedule based on ASRs by classification. Escalation built-in to the Master Schedule. Proposed Model Consultant A Master Multi-year Schedule ATA/ PA1 ATA/ PA2 ATA/ PA4 ATA/ PA3

11. New OPO Billing Rate Strategy Process will standardize to ONE Master Schedule per Consultant (based on ASRs) that most of their ODOT contracts will reference. –NTEs will still apply if new rates are adopted. Master Schedules will build-in annual escalation. Average Rates per Classification will be utilized for budget (SES) preparation. –Some exceptions will be allowed when specific staff are anticipated to work a project. Desired outcomes –Consultant and Agency staff time minimized. –Improved rate consistency. –More realistic rates to support estimating.

12. FAQs On Master Schedules, do I include the whole firm? –NO, just use names, classifications and current ASRs for staff anticipated to be used on ODOT contracts. –We are developing a central data base to store these schedules to be referenced in ATAs, PAs and Contracts. How do I change staff on a project? Is an Amendment required? –Changes to project staff (other than Key Personnel or changes that alter class. averages) require courtesy notification to the Agency. –Staff changes should generally be at or below the Classification Maximum ASR. –Other changes that alter classifications or class. averages will be reviewed annually or as required.

13. FAQs Do I have to estimate with the average classification rate on all projects? –Estimating with the average will be the general practice, however Agency may authorize contract exceptions for use of ASRs for specific staff. Do I invoice the average rate or the actual rate? –For T&M contracts you will always invoice ASRs. The average classification rates will be used to develop the NTE.

14. FAQs What about Overhead Rate updates? –We are further developing this strategy; we are looking to incorporate OH changes as they are approved. –Working w/stakeholders, including FHWA. How do I get started? –We have started this process on a few pilot contracts to get the bugs worked out. –We have a queue of rate change requests that well apply the process to. –We will send out the required forms as we process the actions referenced above.

15. Next Steps Refine approach with input from industry and other stakeholders –ACEC/OPO Procurement & Contract Standing Committee –On select upcoming projects, collaborate with the Consultants involved Contacts –Mike Jenkins michael.l.jenkins@odot.state.or.us, 503-986-2717michael.l.jenkins@odot.state.or.us –Vic Folk victor.folk@odot.state.or.us, 503-986-2709victor.folk@odot.state.or.us