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HomeMy WebLinkAboutAgenda - 05-03-2007-4cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 3, 2007 Action Agenda Item No. ~{- -G SUBJECT: Cost Allocation Plan Contract DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Contract Ken Chavious, 245-2450 PURPOSE: To consider a contract for the preparation of the County's 2006 Cost Allocation Plan. BACKGROUND: Office of Management and Budget Publication A-87 requires Counties receiving federal funds to develop a Cost Allocation Plan annually. Preparation of this plan qualifies the County to receive reimbursement for local resources used to administer certain State and Federally funded programs. In addition, the Cost Allocation Plan is a tool used by staff in. developing the full cost of providing certain services. For the past decade or more, the County has used MAXIMUS, INC to prepare the cost plan. Since the County has used the same firm for over 10 years, staff pursued a request for proposal (RFP) process for the 2006 plan preparation. Proposals were received from three firms highly recognized for cost plan preparation, including the MAXIMUS firm. Staff is recommending that the County contract with Tim McKinnie & Associates, Inc. to prepare the cost plan for 2006. This firm's experience with counties in the state of North Carolina is very extensive. Tim McKinnie & Associates currently prepares cost plans for 20 counties in the state of North Carolina. In addition, the principal to be assigned to the County has vast knowledge and experience in cost plan preparation. All reference inquiries were very positive. Also, the costs proposed for the engagement are comparable to the County's experience over the past several years. In fact, the fee quoted by Tim Mcknnie & Associates is $8,000, which is $1,200 less than the County paid for the 2005 cost plan. FINANCIAL IMPACT: As mentioned above, the cost of the contract for the 2006 Cost Allocation Plan is $8,000, which is $1,200 less that last year's cost. Funds to pay for the current year contract are budgeted in Central Services. General fund revenues from the State and Federal governments and internal charge backs resulting from the Cost Allocation Plan have been in excess of $700,000 annually over the past several years. RECOMMENDATION(S): The Manager recommends that the Board approve the contract with Tim McKinnie & Associates, Inc. and authorize the Chair to sign. ...1~ ~.. .._ FY 2006 Agreement to Provide Professional Cost Accounting Services to Orange County, North Carolina This Contract, entered into this day of , 2007 and effective immediately by and between THM & Associates, Inc. (hereinafter referenced to as the "Consultant") and Orange County, State of North Carolina (hereinafter referred to as the "County"), Witnessth That: WHEREAS, County has programs which it operates with federal and/or state funding, and AREAS, County supports these programs with support services paid from County appropriated funds, and WHEREAS, federal and state funding require that these programs be supported by an approved cost allocation plan, and WHEREAS, the Consultant is staffed with personnel 1~nowledgeable and experienced in preparing and negotiating such cost allocation plans with appropriate federal and state cost negotiators, and WHEREAS, the County desires to contract with Consultant to develop a cost allocation plan which meets the Federal and State requirements governing the preparation of such plans. NOW THEREFORE, based upon the terms and conditions herein contained, the parties agree as follows: 1. Scope of Services. The Consultant shall perform and carry out in a timely and professional manner the following services (hereinafter "Services"): a. Preparation (and negotiation with appropriate federal or state officials, if applicable) of a central services cost allocation plan that identifies and documents the various costs incurred by the County to support and administer federal and state programs and contracts. This plan will contain a determination of the allowable costs of providing each supporting service such as accounts payable, facility costs, personnel, purchasing, etc. 3 b. Prepare indirect cost rate proposals (ICRPs) for Federal grants as necessary. a Identify and document other indirect cost allowable for the recovery of eligible federal and state reimbursements. (e.g. EMS Services, Jail Costs) d. Conduct on-site visit(s) to gather and compile information and one follow up visit, to discuss findings and/or proposed changes to the plan. Z. Time of Performance. Services to be provided hereunder by the Consultant shall be undertaken and completed in such sequence as to assure their expeditious completion and best catty out the purposes of the agreement. The cost allocation plan, based upon the previous year's audited expenditures will be available by July 31 of this year, for the County's review and our negotiation with federal and state officials. 3. Compensation. The County agrees to pay the Consultant a sum not to exceed eight thousand dollars ($8,000), for Services, which shall include reimbursements for all expenses incurred. Consultant agrees to complete Services provided herein, for said sum. County shall pay Consultant's fee in one lump sum payment upon receipt of an invoice upon completion of Consultant's Services for the year. 4. Term. The term of this Agreement shall be one year, commencing May 1, 2007. The Agreement shall automatically terminate on April 30, 2008, unless extended pursuant to written agreement, or terminated earlier pursuant to the terms hereof. 5. Services and Materials to be Provided by the County. County shall fiuni.sh Consultant with all necessary information and material pertinent to the execution of this Contract. County shall cooperate with the Consultant in carrying out the work herein and shall provide adequate staff for liaison with the Consultant. 6. Information and Reports. Consultant shall, at such time and in such form as the County may require, furnish such periodic reports concerning the status of the project, such statements, certificates, approvals and copies of proposed and executed plans and claims and other information relative to the project. 7. Termination of Agreement for Cause. If Consultant fails to fulfill its obligations hereunder, County shall have the right to terminate this contract 4 by given written notice to Consultant at least ten (10) days before the effective date of such termination. 8. Changes. County may, from time to time, require changes in the scope of Services. Such changes shall be incorporated in written amendment to this agreement. 9. Notices. Any notices, bills, invoices, or reports required by this contract shall be sufficient if sent by the parties in the United States mail, postage paid, to the address below: Orange County Finance 208 S. Cameron Street Hillsborough, NC 27278 THM & Associates, Inc. 8001 Glenbrittle Way Raleigh, NC 27615 10. Assignment. Consultant agrees not to assign, convey or transfer its interest in this contract to any other entity without the prior written consent of the County, which consent shall not be unreasonably held. Provided however, Consultant may assign, convey or transfer its interest in. this contract to an entity which succeeds to substantially all of the business of Consultant, by merger or otherwise. 11. Consnltarit Liability if Audited. Consultant will assume all financial and statistical information provided to the Consultant by County employees or representatives is accurate and complete. Any subsequent disallowance of funds paid to the County under the claim for whatever reason is the sole responsibility of the County. YN WIB'N~SS WHERE®F, the parties hereto have set their hands on the day and year above first written. County of Orange By: (County Official) T.HM & Associates, Inc. Y~ imoth ~ ~ McKinnie Preside