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

ODOT Procurement Office (OPO)Donnell FowlerProcurement Operations Manager

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 don’t 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.

Consultant ABR1

ATA/PA1 ATA/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 ABR2

Consultant ABR3

Consultant ABR4

None of these are the same

BR = Billing Rate Schedule

Current Model

SrEngMgr

$38.53

SrEngMgr

$94.10

SrEngMgr

$87.94

SrEng Mgr

$73.12

SrEng Mgr

$69.15

SrEngMgr

$74.58

SrEngMgr

$66.15

SrEngMgr

$63.31

SPIN

SrEngMgr

$38.53

SrEngMgr

$94.10

SrEngMgr

$87.94

SrEng Mgr

$73.12

SrEng Mgr

$69.15

SrEngMgr

$74.58

SrEngMgr

$66.15

SrEngMgr

$63.31

SPIN

SrEngMgr

$38.53

SrEngMgr

$94.10

SrEngMgr

$87.94

SrEng Mgr

$73.12

SrEng Mgr

$69.15

SrEngMgr

$74.58

SrEngMgr

$66.15

SrEngMgr

$63.31

SPIN

SrEngMgr

$38.53

SrEngMgr

$94.10

SrEngMgr

$87.94

SrEng Mgr

$73.12

SrEng Mgr

$69.15

SrEngMgr

$74.58

SrEngMgr

$66.15

SrEngMgr

$63.31

SPIN

• 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

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.

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.

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.

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 we’ll

apply the process to.– We will send out the required forms as we process the

actions referenced above.

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

• [email protected], 503-986-2717

– Vic Folk• [email protected], 503-986-2709