Cost Allocation Plan Questions.pdf

Cost Allocation Plan Q&A – 2026

Q: Could the City please clarify whether it intends to negotiate mutually agreed-upon changes to the resulting contract with the awarded Contractor based on exceptions submitted? Or is the City taking an "all or nothing" approach to each exception submitted by Contractor?

A: The City may negotiate contract terms with the selected vendor, including exceptions submitted with the proposal, if the City determines such negotiations are in its best interest. However, the City strongly prefers that selected vendor accept the contract terms as presented and minimize or avoid exceptions. Submission of exceptions does not guarantee that the City will negotiate or accept any requested changes.

Q: Please identify the City’s current contractor for cost allocation plan services.

A: Maximus, Inc

Q: The RFP requires supplemental indirect cost rate schedules for all City departments and states that departments will use the CAP to develop indirect cost rate proposals.

Please clarify the specific rate products the selected vendor must prepare. For example, is the vendor expected to calculate department-wide rates, program- or grant-specific rates, formal indirect cost rate proposals, or some combination of these?

A: The selected vendor will be responsible for preparing departmental indirect cost rate schedules based on the Cost Allocation Plan methodology and the requirements of 2 CFR Part 200. The required deliverable is a department-level indirect cost rate schedule that identifies allocated allowable costs and provides the basis for departments to develop and submit indirect cost rate proposals, as applicable.

Q: Section 2.1 describes the Department of Public Health cost allocation plan as required, while Section 3.1 states that individual departments may request department-specific plans. Please confirm that the DPH plan is a mandatory deliverable included in the base fixed price. Please also clarify whether the DPH plan is part of the four listed reports or is a separate deliverable, and whether it is subject to the April 1, 2027 delivery deadline.

A: The Department of Public Health (DPH) Cost Allocation Plan is a required deliverable and must be included within the base fixed-price proposal. In addition, proposers should provide a separate price for the DPH Departmental Cost Allocation Plan as a distinct deliverable. The combined cost of the City-wide Cost Allocation Plan and the DPH Departmental Cost Allocation Plan must not exceed the proposed base fixed price.

The Department of Public Health (DPH) Cost Allocation Plan is not one of the four reports identified in the RFP. However, it is a required deliverable and must be prepared using the same methodology, scope, and tangible work products as the City-wide Cost Allocation Plan. The DPH Cost Allocation Plan is due by April 1, 2027. The DPH Cost Allocation Plan is expected to be significantly smaller in scope than the City-wide plan. DPH has a single overhead division (Administrative Support Services) that will be allocated across approximately thirteen (13) operational divisions within the department.

Q: The RFP requires fixed-price pricing but also states that individual departments may request department-specific cost allocation plans whose number, size, and complexity are not defined. Please clarify how proposers should price these additional plans. May proposers provide unit pricing, hourly rates, or another predetermined pricing mechanism for department-specific plans requested beyond the required base scope?

A: The base fixed-price proposal shall include the required deliverables, City-wide and DPH, identified in the RFP. If the City requests additional department-specific Cost Allocation Plans beyond the required scope, proposers should provide a pricing methodology for these optional services. The City will negotiate the scope, schedule, and pricing for any additional work before authorizing the services.

Q: The RFP provides for an initial one-year term and up to four additional one-year option terms. Should the cost proposal include pricing for each potential option term? If so, please specify the preferred pricing format and whether annual escalation is permitted.

Please also confirm whether the $60,000 maximum compensation applies separately to each contract term or collectively across the initial term and all option terms. Finally, please clarify whether each option term is expected to include preparation of a subsequent annual CAP based on the next fiscal year’s actual costs.

A: The $60,000 maximum applies separately to each contract term. Yes, If the City exercises an option term, the selected vendor will be expected to prepare a Cost Allocation Plan for the applicable fiscal year based on the fiscal year's actual costs, consistent with the scope of work outlined in the RFP.

Q: Please confirm that the anticipated six- to eight-week active production period begins when the City provides the selected vendor with the departmental cost and revenue data anticipated in February 2027, rather than on the October 2026 contract commencement date. Please also identify any mobilization, planning, data-definition, or other activities expected of the selected vendor between contract commencement and receipt of the departmental data.

A: The anticipated six to eight week active production period begins when the City provides the selected vendor with the departmental data anticipated in February 2027.

Between contract commencement and receipt of the departmental data, the selected vendor will be expected to participate in project kickoff and planning activities, establish communication protocols and a project schedule, review data requirements and templates, coordinate with City staff regarding data collection and validation, and complete any other preparatory activities necessary to facilitate the timely completion of the Cost Allocation Plan once the required data is received.

Q: The Performance Metrics section states that the Office of the Director of Finance has identified metrics, but no specific metrics are listed. Will the City provide its preliminary metrics before proposals are due, or should proposers recommend performance measures, frequencies, and satisfactory-completion criteria in their proposed scopes of work?

A: The City has identified general performance expectations but has not established final performance metrics. At a minimum, performance will be evaluated based on the timely completion of required deliverables, responsiveness and availability to City departments, the quality and accuracy of work products, and adherence to the project schedule.

Proposers should recommend additional performance measures, reporting frequencies, and satisfactory-completion criteria as part of their proposed scope of work. The selected vendor will work collaboratively with the City to refine and finalize the performance metrics during project initiation.

Q: Will the City make its most recently completed CAP, supporting workpapers, allocation bases, departmental indirect cost rate schedules, and related federal negotiation or approval documentation available to proposers before the proposal deadline or only to the selected vendor at project initiation?

A: The City will make its most recently completed Cost Allocation Plan (CAP) documentation available to the selected vendor at project initiation. These materials will not be distributed to all proposers prior to the proposal submission deadline.