4-Exhibit B - Method of Compensation (Sample).pdf

DOT-RFP-25-4005-CO

EXHIBIT B – METHOD OF COMPENSATION

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B - 1 OF 4

State of Florida Department of Transportation

EXHIBIT B – METHOD OF COMPENSATION

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DISTRICTWIDE TITLE SEARCH AND EXAMINATION

SERVICES FOR

FLORIDA DEPARTMENT OF TRANSPORTATION –

DISTRICT FOUR

FINANCIAL PROJECT NUMBER: 432676-5-3B-01 & Various http://www.fdot.gov/

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B - 2 OF 4

1.0 PURPOSE:

This Exhibit defines the limits and method of compensation to be made to the Vendor for the services set forth in Exhibit A - Scope of Services, and the method by which payments shall be made.

2.0 ASSIGNMENT OF WORK:

The Department shall request Vendor services on an as-needed basis. Services to be provided on each project or assignment will be initiated and completed as directed by the Department’s Project Manager or Designee. A Letter of Authorization (LOA) will be issued for each project/assignment scheduled.

3.0 COMPENSATION:

For the satisfactory performance of services detailed in Exhibit “A”, the Vendor shall be paid up to a Maximum Limiting Amount of $1,050,000.00 It is agreed that this amount will be the limit of all compensation due the Vendor for performance of the services described in Exhibit “A”. The Vendor shall not provide services that exceed the maximum limiting amount without an approved Amendment from the Department.

This is a Term Contract for an Indefinite Quantity whereby the Vendor agrees to furnish services during a prescribed period of time. The specific period of time completes such a contract. The Department, based on need and availability of budget, may increase or decrease the Budgetary Ceiling by Amendment. Execution of this Agreement does not guarantee that the work will be authorized.

The total amount of this agreement is expected to be funded by multiple appropriations and the State of Florida’s performance and obligation to pay under this contract is contingent upon annual appropriation by the Legislature.

Currently, $210,000.00 of the total amount has been approved and encumbered for this contract. Therefore, it is agreed that the Vendor will not be obligated to perform services nor incur costs which would result in exceeding the funding currently approved, nor will the Department be obligated to reimburse the Vendor for costs or make payments in excess of currently established funding. The Department will provide written authorization if and when subsequent funding is approved and encumbered for this contract.

4.0 ESTABLISHMENT OF LETTER OF AUTHORIZATION AMOUNT:

Each "Letter of Authorization" (LOA) issued by the Department’s Project Manager or designee will serve as a formal notice to proceed to provide services, as set forth in Exhibit "A", and will include an effective time period for that particular LOA being issued, and the amount authorized based on the rates established in Exhibit “C”.

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The Department’s Project Manager will confirm funds availability prior to issuing a task work order to the Vendor.

No work shall be undertaken by the Vendor unless it has been authorized in writing from the Department.

All work authorizations shall be completed within the term of this Agreement. No LOA shall authorize work beyond the term of the Agreement.

5.0 PROGRESS PAYMENTS:

The Vendor shall submit the original invoice in a format acceptable to the Department.

For the satisfactory performance of the services detailed in each LOA, the Vendor shall be paid up to the maximum amount for each authorization.

Invoices for this Agreement will be prepared by the Vendor and submitted to the Department as required by Department procedures to substantiate the charges being invoiced.

The Department shall review reports made and services performed and notify the Vendor of any deficiencies within ten (10) working days of the receipt thereof.

Changes/corrections shall be submitted within five (5) working days of notification of request. If no deficiencies exist, the Department will notify Vendor to submit the invoice for payment.

The Vendor shall submit invoices as established in Exhibit “A”. Payment will be made to the Vendor for work satisfactorily completed on the services as approved by the Department.

Invoices shall be submitted to:

Florida Department of Transportation – District Four Survey and Mapping Office

Attn: District Title Examiner, Project Manager 3400 West Commercial Boulevard, Fort Lauderdale, FL 33309

The Vendor has certified that ____% MBE/DBE utilization would be achieved for this contract. If MBE utilization was certified by the Vendor, an MBE payment certification form shall be submitted with each invoice to verify the MBE utilization.

If DBE utilization was certified, DBE payments are to be input each month at the following link: https://www3.dot.state.fl.us/EqualOpportunityOffice/bizweb/

New users reporting DBE payments will need to contact the FDOT Service Desk at FDOT.ServiceDesk@dot.state.fl.us to get a BizWeb user ID and password to access the application.

https://www3.dot.state.fl.us/EqualOpportunityOffice/bizweb/ mailto:FDOT.ServiceDesk@dot.state.fl.us

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6.0 PENALTIES:

TIME IS OF THE ESSENCE for the required services provided under this agreement.

The Vendor will be assessed a penalty for late delivery of all work products, which may include cancellation of services with no payment due to vendor. In addition, the Vendor will be assessed a penalty for failure to provide or late delivery of requested corrections to all work products. Such penalties will be calculated, and adjustments made to approved invoice payments, when applicable, based on the following:

a) Late delivery of title reports or any other title services – IF received more than 24 business day hours (grace period) late, a 25% penalty (reduction in fee due) shall apply; each additional business day late, an additional 10% daily fee shall apply up until 3 additional business days late— (total of 25% plus 3 days at 10% additional each day equals a total penalty reduction in fee of 55%). After the 3 additional days have expired the entire service fee shall be forfeited, and no service shall be deemed provided to the Department for which vendor is due payment. At this point, the Department may seek to enter into an alternate written agreement for this service timeline with the vendor or may cancel it at no cost to the Department.

b) Failure to complete requested correction(s) or provide adequate explanation (in writing) as to why no correction(s) is/are necessary, within 5 business days of request in writing, shall result in a 10% penalty of the service fee, per calendar day, up to 3 calendar days past due. Once penalty reaches 30% of total fee and 8 calendar days have passed since the Department’s original written request to correct the report, the Department may cancel its entire request for services and no payment shall be due to the vendor. An alternate timeline may be agreed to between the Department and the vendor, in writing.

7.0 DETAILS OF BILLING RATES:

Details of billing rates for the performance of the Vendor’s services set forth in Exhibit “A” are shown in Exhibit “C”, attached hereto and made a part hereof.

8.0 TANGIBLE PERSONAL PROPERTY:

This contract does not involve the purchase of Tangible Personal Property, as defined in Chapter 273, F.S.

**END OF EXHIBIT B – METHOD OF COMPENSATION**

FINANCIAL PROJECT NUMBER: 432676-5-3B-01 & Various