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

DOT-RFP-26-4001-CO

EXHIBIT B – METHOD OF COMPENSATION

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State of Florida Department of Transportation

EXHIBIT B – METHOD OF COMPENSATION

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FOR

DISTRICT WIDE CONTAMINATION ASSESSMENT

AND REMEDIATION (CAR) SERVICES FOR

FLORIDA DEPARTMENT OF TRANSPORTATION,

DISTRICT FOUR OFFICE

FINANCIAL PROJECT NUMBER: 440021-3-C2-10

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1.0 PURPOSE:

This Exhibit defines the limits and method of compensation to be made to the Vendor for services set forth in the Scope of Services (Exhibit – A) and the Agreement period described in Section 2.0 of this Agreement and the method by which payment will be made.

2.0 ASSIGNMENT OF WORK:

The Department shall request Vendor services on an as-needed basis. All contract Vendors will be provided with a Scope of Services for each project assignment and asked to submit a price proposal within the timeframe specified by the Department. Award of each project will be based on a best value determination for the proposals received that will take into consideration such factors as price, workload, availability of budget, specific qualifications and/or expertise, availability of key personnel, conflict of interest, or other factors as deemed appropriate by the Department.

A Letter of Authorization (LOA) will be issued to authorize each project assigned and the services to be provided will be completed as directed by the Department's Project Manager or Designee. Each LOA shall serve as a formal Notice to Proceed. No work shall begin prior to the issuance of the LOA. No LOA shall authorize work beyond the term of this Agreement.

3.0 COMPENSATION:

The total compensation authorizations shall not exceed a Budgetary Ceiling of $4,980,000.00. Funds will be encumbered for each Letter of Authorization.

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

The contract shall not exceed the estimated budgetary ceiling amount without an executed Supplemental Agreement. A Supplemental Agreement to increase the estimated Budgetary Ceiling amount may be entered into based upon Department needs and availability.

The Department, based on need and availability of budget, may increase or decrease the Budgetary Amount by Amendment. Execution of this Agreement does not guarantee that the work will be authorized.

Work that requires funding from a future fiscal year cannot begin/continue until the Funds have been approved. The Department will provide written authorization when subsequent appropriations are available.

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4.0 ESTABLISHMENT OF LETTER OF AUTHORIZATION AMOUNT:

For each "Letter of Authorization" (LOA) the Vendor, following the Scope of Services as set forth in Exhibit "A", shall prepare an estimate of work and price based on the rates established in Exhibit "C2"— Price Proposal. Once an acceptable Maximum Amount has been agreed upon by the Vendor and the Department's Project Manager or Designee, a "Letter of Authorization" shall be issued by the Department's Project Manager or Designee.

The Project Manager or Designee shall obtain fund approval for each authorization by an approved encumbrance prior to issuing the “Letter of Authorization” (LOA).

Each LOA issued by the Department's Project Manager or Designee shall serve as a formal Notice to Proceed and will include an effective time period for that particular LOA. The costs associated with each assignment/project may not exceed the agreed upon and authorized amount without approval of the Department’s Project Manager or Designee.

5.0 PROGRESS PAYMENTS:

The Vendor shall submit monthly invoices (1 copy) in a format acceptable to the Department. For the satisfactory performance of the services detailed in each "Letter of Authorization" (LOA), the Vendor shall be paid up to the Maximum Amount of each Authorization. Payment for services shall be made at the contract billing rates in Exhibit "C2"— Price Proposal, as approved by the Department. The contract hourly billing rates shall include the costs of salaries, overhead, fringe benefits and operating margin.

Payment for expenses shall be made based on actual allowable cost incurred as authorized and approved by the Project Manager or Designee. Payment for expenses shall be made on the basis of actual allowable cost incurred as authorized and approved by the Department. Allowable costs should be task related and not include items normally associated with overhead which is part of the billable rates. Invoices shall include documentation of hours provided and itemization of costs incurred (including receipts) and proof of payment to all sub-consultants. Bills for travel expenses authorized by the terms of this Agreement and the Department’s Project Manager and shall be submitted in accordance with Section 112.061, Florida Statutes.

The Vendor shall submit Monthly Progress Reports in a Department approved format to the Department Project Manager detailing the progress and activity on each LOA specific task and deliverable.

Progress payments shall be due and payable monthly for work approved and the associated deliverables as accepted by the Department. Progress payments shall be made in an amount to over the labor, rate sheet items, and agreed costs (including receipts).

Final payment shall be due and payable upon satisfactory completion of the LOA-specific services and approval and acceptance of the LOA-specific contract deliverables by the Department. Payment shall be made only after receipt and Department approval of invoices.

Invoices shall be submitted to the address below or hand delivered.

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Florida Department of Transportation Palm Beach Operations ATTN: John Cibotti, District 4 Safety & Health Manager Occupational Safety and Health Unit 7900 Forest Hill Boulevard West Palm Beach, Florida 33413

The Vendor has certified that __0__% 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.

6.0 DETAILS OF UNIT RATES:

Details of Unit Rates for the performance of the Vendor's services set forth in Exhibit "A"

— Scope of Services are contained in Exhibit "C2" — Price Proposal, attached hereto and made a part hereof.

The Department agrees to compensate the Vendor for services performed under this agreement in the following manner:

1. The Department and the Vendor will agree as to the services to be performed, the labor effort required for performance of service, and the compensation to be paid.

The Vendor shall be compensated for each assignment or project authorization under this agreement based on a Maximum Limiting fee. The schedule of rates listed in the Exhibit "C2" - Price Proposal shall be used for establishing compensation.

2. A detailed budget will be established for each project as part of the Work Plan and Cost Estimate (WPCE) which will define expected cost to complete the project. The detailed WPCE will include, but is not limited to, the anticipated staff-hours needed for each wage category, the number, type and cost of laboratory samples, the type of equipment, etc.

3. Contract items listed in Exhibit "C2" — Price Proposal which are later found to be needed which were not on the original project WPCE may be used as long as the maximum limiting fee is not exceeded, and the Project Manager or Designee gives prior verbal approval; followed by a written approval. A LOA amendment is not required.

4. If required, compensation for Sub-Contractor services for non-rate sheet items necessary for work not listed in Exhibit "C2" — Price Proposal Service Rates shall https://www3.dot.state.fl.us/EqualOpportunityOffice/bizweb/ mailto:FDOT.ServiceDesk@dot.state.fl.us

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be reimbursed at cost (no mark-up). The Sub-Contractor(s) performing the services and all non-rate sheet items must receive written approval by the Project Manager or Designee prior to the expenditure.

5. If possible, and as requested by the Project Manager, the Vendor must obtain three (3) quotes for the non-rate sheet item(s) and use the lowest quote when items or services. The Vendor must submit to the Project Manager or Designee for approval a justification in writing if no quotes were requested and submitted for the non-rate items. Vendor may be asked to present quotes in writing for Department records.

6. Three (3) quotes should be waived if the non-rate sheet item(s) or service(s) are from a Sub-Contractor(s) listed under the Vendors response for proposal package.

7. All costs for "tools of the trade" are overhead and not billable. All costs for "tools of the trade" should include, but are not limited to: Basic Personal Protective Equipment (i.e. gloves, goggles, basic respirators and cartridges, basic Tyvek and/or other chemical resistant suits, rubber boots etc.) cell phones, locks, well caps, digital camera, computer, sampling jars/vials, decontamination equipment (i.e. hoses, buckets, D.I. water, soap, steam cleaner etc.) hand tools (i.e. brooms, shovels, wrenches, screwdrivers etc.). The use of any portable radio will be considered part of the Vendor's overhead expense.

8. All work authorized in Florida Department of Transportation (FDOT) District Four (D4), which includes the five counties (Broward, Palm Beach, Martin, St. Lucie, and Indian River counties), the Miami-Dade Rail Corridor, and D4 lead project limits will be paid as local travel, unless travel is in excess of fifty (50) miles one-way outside of District Four, when authorized, shall be reimbursed in accordance with Department of Transportation published procedures and Section 112.061 F.S.

9. Any assignment that requires work outside of FDOT D4 will require preapproval for travel expenses. There will be no payment for personnel or equipment mobilized to a site within the district. Payment will only be authorized by the Department Project Manager or Designee on a task specific case-by-case basis for time to mobilize specialized personnel or equipment to work sites outside of D4.

10. For any equipment, which requires delivery to, or removal from a site, the cost of that mobilization or demobilization shall be included in the cost of the equipment (within D4). Price of equipment shall include all cost to operate, fuel and maintain (operator not included). All mileage and fuel shall be included in the price of the equipment. All charges for fuel on small equipment are to be included in the price of equipment.

11. All Exhibit -C2” Price Proposal Environmental Service Rates shall be invoiced at the Daily, Weekly or Monthly Rate, whichever is the most economical to the Department. Daily costs or prices shall reflect a ten (10) hour day. Equipment and facilities used for less than ten (10) hours a day will be paid for on a prorated basis by the quarter day. The rates submitted shall be for the duration of the contract.

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Four full days of usage shall be billed at the Weekly rate; three full weeks of usage should be considered a Monthly rate.

12. The rates submitted shall be for the entire contract.

7.0 FINANCIAL CONCEQUENCES:

The Department will continually monitor and evaluate the Vendor’s quality of services performed under this Agreement and will impose financial consequences when the Vendor fails to comply with the requirements of this Agreement, as further provided below. The Department and the Vendor agree that the financial consequences for non-performance described herein are an estimate of damages which are difficult to ascertain and are not penalties.

1. Failure to respond to third-party roadway emergency spill situation any other emergency situation on State Roads, Right-of-Ways or other scenes as directed via verbal or written notice by the Department within the timeframes listed in Exhibit – A Scope of Services, shall be result in a financial consequence of 5% of the invoice will be deducted from the Vendor’s compensation, specific to the corresponding Notice to Proceed (NTP) for every 15 minutes the vendor is not on scene after the response timeframe has lapsed.

2. Failure to commence work within 10 calendar days of written approval of proposals or failure to complete assignments/projects within the mutually agreed upon timeframe shall result in financial consequence of $100.00 per day will be deducted from the Vendor’s compensation.

3. Payment shall be made only after receipt and approval of goods and services unless advance payments are authorized by the Chief Financial Officer of the State of Florida under Chapters 215 and 216, Florida Statutes (FS). Deliverable(s) must be received and accepted in writing by the Contract Manager on the Department’s invoice transmittal forms prior to payment. If the Department determines that the performance of the Vendor is unsatisfactory, the Department shall notify the Vendor of the deficiency to be corrected, which correction shall be made within a timeframe to be specified by the Department. The Vendor shall, within five days after notice from the Department, provide the Department with a corrective action plan describing how the Vendor will address all issues of contract non-performance, unacceptable performance, failure to meet the minimum performance levels, deliverable deficiencies, or contract non-compliance. If the corrective action plan is unacceptable to the Department, the Vendor shall be assessed a non-performance retainage equivalent to 10% of the total invoice amount. The retainage shall be applied to the invoice for the then-current billing period. The retainage shall be withheld until the vendor resolves the deficiency. If the deficiency is subsequently resolved, the Vendor will bill the Department for the retained amount during the next billing period. If the Vendor is unable to resolve the deficiency, the funds retained will be forfeited at the end of the agreement period.

4. Vendors providing goods and services to the Department should be aware of the following time frames. Upon receipt, the Department has five (5) working days to

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inspect and approve the goods and services, unless otherwise specified herein. The Department has twenty (20) days to deliver a request for payment (voucher) to the Department of Financial Services. The twenty (20) days are measured from the latter of the date the invoice is received or the goods or services are received, inspected and approved.

5. If a payment is not available within forty (40) days, a separate interest penalty as established pursuant to Section 215.422, FS, shall be due and payable, in addition to the invoice amount, to the Vendor. Interest penalties of less than one (1) dollar shall not be enforced unless the Vendor requests payment. Invoices which have to be returned to a Vendor because of Vendor preparation errors shall result in a delay in the payment. The invoice payment requirements do not start until a properly completed invoice is provided to the Department.

6. The State of Florida, through the Department of Management Services, has instituted MyFloridaMarketPlace, a statewide eProcurement system. Pursuant to Section 287.057(22), FS, all payments shall be assessed a transaction fee of one percent (1%), which the Vendor shall pay to the State. For payments within the State Accounting System (FLAIR or its successor), the transaction fee shall, when possible, be automatically deducted from payments to the Vendor. If automatic deduction is not possible, the Vendor shall pay the transaction fee pursuant to Rule 60A-1.031 (2), Florida Administrative Code. By submission of these reports and corresponding payments, Vendor certifies their correctness. All such reports and payments shall be subject to audit by the State or its designee. The Vendor shall receive credit for any transaction fee paid by the Vendor for the purchase of any item(s) if such item(s) are returned to the Vendor through no fault, act, or omission of the Vendor. Notwithstanding the foregoing, a transaction fee is non-refundable when an item is rejected or returned, or declined, due to the Vendor's failure to perform or comply with specifications or requirements of the Agreement. Failure to comply with these requirements shall constitute grounds for declaring the Vendor in default and recovering eProcurement costs from the Vendor in addition to all outstanding fees.

VENDORS DELINQUENT IN PAYING TRANSACTION FEES MAY BE EXCLUDED

FROM CONDUCTING FUTURE BUSINESS WITH THE STATE.

7. Upon completion of the Agreement, transfer, at no cost, to the Department, all public records in possession of the Vendor or keep and maintain public records required by the Department to perform the service. If the Vendor transfers all public records to the Department upon completion of the Agreement, the Vendor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Vendor keeps and maintains public records upon completion of the Agreement, the Vendor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the Department, upon request from the Department's custodian of public records, in a format that is compatible with the information technology systems of the Department.

Failure by the Vendor to comply with Chapter 119, FS, shall be grounds for immediate unilateral cancellation of this Agreement by the Department

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IF THE VENDOR HAS QUESTIONS REGARDING THE APPLICATION OFCHAPTER 119,

FLORIDA STATUTES, TO THE VENDOR'S DUTY TO PROVIDE PUBLIC RECORDS

RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS

AT:

Florida Department of Transportation, District 4

Office of General Counsel, 3400 West Commercial Blvd., Ft. Lauderdale, FL 33309 Phone: (954) 777-4529

Email: D4prcustodian@dot.state.fl.us

8.0 DETAILS OF UNIT RATES:

Details of Unit Rates for the performance of the Vendor’s services set forth in Exhibit “A”, Scope of Services are attached as Exhibit “C2”, Price Proposal.

9.0 TANGIBLE PERSONAL PROPERTY:

This contract does not involve the purchase of Tangible Personal property, as defined in FS Chapter 273.

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

mailto:D4prcustodian@dot.state.fl.us