EXHIBIT B METHOD OF COMPENSATION.docx

Last Revised 11/5/21 Note: Red text should not be used. Contact Central Office for information.

STANDARD LANGUAGE

FOR

METHOD OF COMPENSATION EXHIBITS

Method of compensation exhibits for professional services agreements should provide for compensation based on one or more of the methods of payment described in the following table. Standard language to be used when drafting Exhibit “B” Method of Compensation is also provided.

METHODS OF PAYMENT

Schedule(s)

NOT AVAILABLE FOR CONTRACTS EXECUTED AFTER 7/1/2004

NOT AVAILABLE FOR CONTRACTS EXECUTED AFTER 7/1/2004

NOT AVAILABLE FOR CONTRACTS EXECUTED AFTER 7/1/2004

NOT AVAILABLE FOR CONTRACTS EXECUTED AFTER 7/1/2004

NOT AVAILABLE FOR CONTRACTS EXECUTED AFTER 7/1/2004

NOT RECOMMENDED; PROBLEMS ENCOUNTERED WHEN SUPPLEMENTING

NOT AVAILABLE FOR CONTRACTS EXECUTED AFTER 10/2003

NOT AVAILABLE FOR CONTRACTS EXECUTED AFTER 7/1/2004

CURRENT POLICY IS NOT TO COMPENSATE BASED ON ACTUAL RATES ALLOWING INCREASES

NOT ALLOWABLE FOR CONTRACTS EXECUTED AFTER 10/2003

MUST HAVE TABLE 6 IN CITS IN ORDER TO BILL

E-2/E-3

NOT AVAILABLE FOR CONTRACTS EXECUTED AFTER 10/2003

NO LONGER AVAILABLE. SAME AS LA-4.

LS – Lump Sum LA – Limiting Amount

[*All italicized text is explanatory, and is not part of Exhibit “B”]

[FOR NON-TASK ASSIGNMENT CONTRACTS WITH

ONE SINGLE LUMP SUM COMPENSATION ELEMENT]

EXHIBIT “C”

METHOD OF COMPENSATION

1.0 PURPOSE

This exhibit defines the method and limits of compensation to be made to the Consultant for the services described in Exhibit "A", Scope of Services, and the method by which payments will be made.

2.0 COMPENSATION

[Standard Section 2.0 for One Element Lump Sum Agreements]

For satisfactory completion of all services detailed in Exhibit “A”, Scope of Services, of this Agreement, the Department will pay the Consultant a Total Lump Sum Amount of $______________.

[Use one of the following as a second paragraph for Section 2.0 for single element lump sum agreements. Please include “abbreviation” of payment method in front of paragraph as shown, to facilitate CITS invoicing. ]

[LS-1, At completion of all services]

(LS-1) The Consultant will receive payment upon completion and acceptance by the Department of all services required under this agreement.

[LS-1, At completion of task]

(LS-1) The Consultant will receive payment upon completion and acceptance by the Department of the subject task required under this agreement.

[LS-2, % of completion of all services]

(LS-2) The Consultant will receive progress payments for services based on the percentage of services that have been completed and accepted by the Department during the billing period.

[LS-2, % of completion of task]

(LS-2) The Consultant will receive progress payments for the subject task based on the percentage of task that has been completed and accepted by the Department during the billing period.

[LS-6, Defined unit amount per invoice, balance at end]

(LS-6) The Consultant will receive progress payments for services at the defined unit rate provided in Table 6. Any balance remaining upon completion and approval of services will be due at that time.

[If contract does not contain Tangible Personal Property, include the following statement]

This Agreement does not involve the purchase of Tangible Personal Property, as defined in Section 273.02, Florida Statutes.

[If contract does include the purchase of Tangible Personal Property, please include the following statement and details regarding the Tangible Assets]

This Agreement includes the purchase of Tangible Personal Property, as defined in Section 273.02 Florida Statutes, which will be acquired in accordance with Rule 60A-1.017, Florida Administrative Code. Such property is identified below and will become the property of the Department upon purchase. Upon receipt of the property, the Consultant will provide the Department a copy of the purchase invoice and serial number, will affix Department inventory control labels, will accommodate physical inventories required by the Department and transfer control of the property to the Department upon completion of services.

(List property to be purchased)

[Optional paragraph for Lump Sum CEI contracts – Reference Method of Compensation - Lump Sum CEI]

[To be used for multi-year funding contracts using Contract Funding Term 2 or 7. When Contract Funding Term is 2, also provide schedule for appropriations, as shown in next paragraph.]

The total amount of this agreement is expected to be funded by multiple appropriations. The State of Florida's performance and obligation to pay under this contract is contingent upon appropriation by the Legislature. Currently $_____________ of the total amount has been approved. Therefore, it is agreed that the Consultant 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 Consultant for costs or make fee payments in excess of currently established funding. The Department will provide written authorization if and when subsequent appropriations are approved and encumbered for this contract, or when funding authorization decreases occur.

[For use when future year funding is clearly defined, with Contract Funding Term 2 or 7]

The anticipated schedule for appropriations is defined below:

Please note that funds will not become available until the beginning of each fiscal year. The Department’s fiscal year begins July 1st of each year, and ends June 30th of each succeeding year. Work that requires funding from a future fiscal year cannot begin/continue until the Funds have been approved and encumbered by the Department. The Department will provide written authorization when subsequent appropriations are approved and encumbered, or when funding authorization decreases occur.

[Paragraph establishing $500K limit for subs where applicable] The following firms are each subject to a contract fee limit up to but less than $500,000 for the term of the Agreement: (list applicable subconsultant firms here). This contract fee limitation may be removed at such time as the subconsultant firm submits an FDOT approved overhead audit performed by an independent CPA.

3.0 INVOICING PROCEDURE

[3.0 for non-CEI projects]

[Select one option:

The Consultant will be eligible for progress payments under this agreement at monthly intervals or when individual tasks or mileposts defined in this agreement are completed or reached.

OR

The Consultant will be eligible for progress payments under this agreement at monthly intervals, no later than the ___ of the month following when services were rendered for the invoicing period.]

[Select one option:

Invoices for this agreement will be prepared by the Consultant and submitted through the Department’s web-enabled Consultant Invoice Transmittal System (CITS) Internet application.

OR for Right-of-way “D” contracts:

Invoices for this agreement will be prepared by the Consultant and submitted to the Department on FDOT form 375-030-5E or 375-030-5B.]

The invoices will be supported by such information as may be required by Department procedures to substantiate the charges being invoiced. The Consultant will maintain for this purpose a job cost accounting system that is acceptable to the Department.

If requested by the Department, the final invoice for this agreement will be accompanied by a certified job cost summary report generated by the Consultant’s accounting system. The report will include at a minimum the total number of hours and salary cost actually charged to the project, the total miscellaneous direct expense, and total sub-consultant cost charged to the project.

The Consultant will report sub-consultant payments through the Department’s Equal Opportunity Compliance System (EOC) on the Internet. Failure to submit sub-consultant payment information may be cause for rejection of the invoice. For additional information on how to enter payment information into the Department's EOC system please refer to following link: https://www.fdot.gov/equalopportunity/eoc.shtm Within thirty days after receipt of final payment, the Consultant will report final sub-consultant payments through the Equal Opportunity Compliance System. The Consultant will pay all sub-consultants their proportionate share of payments received from the Department within thirty days of the Consultant’s receipt of payment from the Department.

The Department will render a decision on the acceptability of services within ____ working days of receipt of either the services, invoice, or progress report, whichever is later. The Department reserves the right to withhold payments for work not completed, or work completed unsatisfactorily, or work that is deemed inadequate or untimely by the Department. Any payment withheld will be released and paid to the Consultant promptly when work is subsequently performed.

[3.0 for CEI projects] The Consultant will be eligible for progress payments under this agreement at monthly intervals, no later than the 20th of the month following when services were rendered for the invoicing period. If the monthly invoice cannot be timely submitted, notify the Department prior to the due date stating the reason for the delay and the planned submittal date. Once submitted, the Consultant Project Principal or Senior Project Engineer shall notify the Construction Project Manager via e-mail of the total delay in calendar days and the reason(s) for the delay(s).

Invoices for this agreement will be prepared by the Consultant and submitted through the Department’s web-enabled Consultant Invoice Transmittal System (CITS) Internet application. The invoices will be supported by such information as may be required by District Construction Office and other Department procedures to substantiate the charges being invoiced. The Consultant will maintain for this purpose a job cost accounting system that is acceptable to the Department.

If requested by the Department, the final invoice for this agreement will be accompanied by a certified job cost summary report generated by the Consultant’s accounting system. The report will include at a minimum the total number of hours and salary cost actually charged to the project, the total miscellaneous direct expense, and total sub-consultant cost charged to the project.

The Consultant will report sub-consultant payments through the Department’s Equal Opportunity Compliance System (EOC) on the Internet. Failure to submit sub-consultant payment information may be cause for rejection of the invoice. For additional information on how to enter payment information into the Department's EOC system please refer to following link: https://www.fdot.gov/equalopportunity/eoc.shtm Within thirty days after receipt of final payment, the Consultant will report final sub-consultant payments through the Equal Opportunity Compliance System. The Consultant will pay all sub-consultants their proportionate share of payments received from the Department within thirty days of the Consultant’s receipt of payment from the Department.

The Department will render a decision on the acceptability of services within ____ working days of receipt of either the services, invoice, or progress report, whichever is later. The Department reserves the right to withhold payments for work not completed, or work completed unsatisfactorily, or work that is deemed inadequate or untimely by the Department. Any payment withheld will be released and paid to the Consultant promptly when work is subsequently performed.

All charges to the individual project will end no later than thirty (30) calendar days following final acceptance; or where all items of work are complete and conditional/partial acceptance is issued; unless authorized in writing by the Department.

A Final Invoice will be submitted to the Department no later than the 60th day following Final Acceptance of the individual project or as requested by the Department.

4.0 PROJECT CLOSEOUT

4.1 Final Audit

If requested, the Consultant will permit the Department to perform an audit of the records of the Consultant and any or all sub-consultants to support the compensation paid the Consultant. The audit will be performed as soon as practical after completion and acceptance of the contracted services. In the event funds paid to the Consultant under this Agreement are subsequently properly disallowed by the Department because of accounting errors or charges not in conformity with this Agreement, the Consultant agrees that such disallowed amounts are due to the Department upon demand. Further, the Department will have the right to deduct, from any payment due the Consultant under any other contract, any amount due the Department.

5.0 FINANCIAL CONSEQUENCES

For Planning contracts select the following:

Services must be received and accepted by the Project Manager through the Department’s Consultant Invoice Transmittal System prior to payment. If the Department determines that the performance of the Consultant is unsatisfactory, the Department shall notify the Consultant of the deficiency to be corrected, which correction shall be made within a time-frame to be specified by the Department. The Consultant shall, within five days after notice from the Department, provide the Department with a corrective action plan describing how the Consultant 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 Consultant 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 Consultant resolves the deficiency. If the deficiency is subsequently resolved, the Consultant may bill the Department for the retained amount during the next billing period. If the Consultant is unable to resolve the deficiency, the funds retained will be forfeited at the end of the agreement period.

[*All italicized text is explanatory, and is not part of Exhibit “B”]

[FOR NON-TASK ASSIGNMENT CONTRACTS WITH

MULTIPLE LUMP SUM COMPENSATION ELEMENTS]

EXHIBIT “B”

1.0 PURPOSE

This exhibit defines the method and limits of compensation to be made to the Consultant for the services described in Exhibit "A", Scope of Services, and the method by which payments will be made.

2.0 COMPENSATION

[Standard Section 2.0 for Multiple Lump Sum Compensation Elements]

For satisfactory completion of all services detailed in Exhibit “A”, Scope of Services, of this Agreement, the Department will pay the Consultant a Total Lump Sum Amount of $______________.

2.1 Summary of Compensation

The Total Lump Sum Amount will include the elements defined in the Contract Compensation Summary Table below:

[For each lump sum cost element, identify the assigned firm, provide a compensation element description/name (See following list of typical element description/names), identify the method of lump sum payment, and dollar amount. Use multiple sections to establish separate contractual limits/subtotals for multiple projects.]

Salary Related Costs [Select One:]Operating Margin [OR] Operating Margin plus Contract Duration Adjustment Factor (CDAF)

[Methods of Payment]

Lump Sum

Contract Compensation Summary Table

Financial Project Number 1

Financial Project Number 2

TOTAL LUMP SUM AMOUNT: $55,000.00

[The method of payment for each of the compensation elements included in your Contract Compensation Summary table should now be fully defined, using the applicable lump sum descriptions shown below. A unique description/name should be given to every separate compensation element. Please include “abbreviation” of payment method in front of paragraph as shown, to facilitate CITS invoicing.]

[LS-1, At completion of all services]

Unique Identifier for Compensation Element:

(LS-1) The Consultant will receive payment upon completion and acceptance by the Department of all services required under this agreement.

[LS-1, At completion of task]

Unique Identifier for Compensation Element:

(LS-1) The Consultant will receive payment upon completion and acceptance by the Department of the subject task required under this agreement.

[LS-2, % of completion of all services]

Unique Identifier for Compensation Element:

(LS-2) The Consultant will receive progress payments for services based on the percentage of services that have been completed and accepted by the Department during the billing period.

[LS-2, % of completion of task]

Unique Identifier for Compensation Element:

(LS-2) The Consultant will receive progress payments for the subject task based on the percentage of task that has been completed and accepted by the Department during the billing period.

[LS-6, Defined unit amount per invoice, balance at end]

Unique Identifier for Compensation Element:

(LS-6) The Consultant will receive progress payments for services at the defined unit rate provided in Table 6. Any balance remaining upon completion and approval of services will be due at that time.

[If contract does not contain Tangible Personal Property, include the following statement]

This Agreement does not involve the purchase of Tangible Personal Property, as defined in Section 273.02, Florida Statutes.

[If agreement does include the purchase of Tangible Personal Property, please include the following statement, and details regarding the Tangible Assets]

This Agreement includes the purchase of Tangible Personal Property, as defined in Section 273.02 Florida Statutes, which will be acquired in accordance with Rule 60A-1.017, Florida Administrative Code. Such property is identified below and will become the property of the Department upon purchase. Upon receipt of the property, the Consultant will provide the Department a copy of the purchase invoice and serial number, will affix Department inventory control labels, will accommodate physical inventories required by the Department and transfer control of the property to the Department upon completion of services.

(List property to be purchased)

[Optional paragraph for Lump Sum CEI contracts – Reference Method of Compensation - Lump Sum CEI]

[To be used for multi-year funding contracts, using Contract Funding Term 2 or 7. When Contract Funding Term is 2, also provide schedule for appropriations, as shown in next paragraph.]

The total amount of this agreement is expected to be funded by multiple appropriations. The State of Florida's performance and obligation to pay under this contract is contingent upon appropriation by the Legislature. Currently $_____________ of the total amount has been approved. Therefore, it is agreed that the Consultant 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 Consultant for costs or make fee payments in excess of currently established funding. The Department will provide written authorization if and when subsequent appropriations are approved and encumbered for this contract, or when funding authorization decreases occur.

[For use when future year funding is clearly defined, with Contract Funding Term 2 or 7]

The anticipated schedule for appropriations is defined below:

Please note that funds will not become available until the beginning of each fiscal year. The Department’s fiscal year begins July 1st of each year, and ends June 30th of each succeeding year. Work that requires funding from a future fiscal year cannot begin/continue until the Funds have been approved and encumbered by the Department. The Department will provide written authorization when subsequent appropriations are approved and encumbered, or when funding authorization decreases occur.

The following firms are each subject to a contract fee limit up to but less than $500,000 for the term of the Agreement: (list applicable subconsultant firms here). This contract fee limitation may be removed at such time as the subconsultant firm submits an FDOT approved overhead audit performed by an independent CPA.

3.0 INVOICING PROCEDURE

[3.0 for non-CEI projects]

[Select one option:

The Consultant will be eligible for progress payments under this agreement at monthly intervals or when individual tasks or mileposts defined in this agreement are completed or reached.

OR

The Consultant will be eligible for progress payments under this agreement at monthly intervals, no later than the ___ of the month following when services were rendered for the invoicing period.]

[Select one option:

Invoices for this agreement will be prepared by the Consultant and submitted through the Department’s web-enabled Consultant Invoice Transmittal System (CITS) Internet application.

OR for Right-of-way “D” contracts:

Invoices for this agreement will be prepared by the Consultant and submitted to the Department on FDOT form 375-030-5E or 375-030-5B.]

The invoices will be supported by such information as may be required by Department procedures to substantiate the charges being invoiced. The Consultant will maintain for this purpose a job cost accounting system that is acceptable to the Department.

If requested by the Department, the final invoice for this agreement will be accompanied by a certified job cost summary report generated by the Consultant’s accounting system. The report will include at a minimum the total number of hours and salary cost actually charged to the project, the total miscellaneous direct expense, and total sub-consultant cost charged to the project.

The Consultant will report sub-consultant payments through the Department’s Equal Opportunity Compliance System (EOC) on the Internet. Failure to submit sub-consultant payment information may be cause for rejection of the invoice. For additional information on how to enter payment information into the Department's EOC system please refer to following link: https://www.fdot.gov/equalopportunity/eoc.shtm Within thirty days after receipt of final payment, the Consultant will report final sub-consultant payments through the Equal Opportunity Compliance System. The Consultant will pay all sub-consultants their proportionate share of payments received from the Department within thirty days of the Consultant’s receipt of payment from the Department.

The Department will render a decision on the acceptability of services within ____ working days of receipt of either the services, invoice, or progress report, whichever is later. The Department reserves the right to withhold payments for work not completed, or work completed unsatisfactorily, or work that is deemed inadequate or untimely by the Department. Any payment withheld will be released and paid to the Consultant promptly when work is subsequently performed.

[3.0 for CEI projects] The Consultant will be eligible for progress payments under this agreement at monthly intervals, no later than the 20th of the month following when services were rendered for the invoicing period. If the monthly invoice cannot be timely submitted, notify the Department prior to the due date stating the reason for the delay and the planned submittal date. Once submitted, the Consultant Project Principal or Senior Project Engineer shall notify the Construction Project Manager via e-mail of the total delay in calendar days and the reason(s) for the delay(s).

Invoices for this agreement will be prepared by the Consultant and submitted through the Department’s web-enabled Consultant Invoice Transmittal System (CITS) Internet application. The invoices will be supported by such information as may be required by District Construction Office and other Department procedures to substantiate the charges being invoiced. The Consultant will maintain for this purpose a job cost accounting system that is acceptable to the Department.

If requested by the Department, the final invoice for this agreement will be accompanied by a certified job cost summary report generated by the Consultant’s accounting system. The report will include at a minimum the total number of hours and salary cost actually charged to the project, the total miscellaneous direct expense, and total sub-consultant cost charged to the project.

The Consultant will report sub-consultant payments through the Department’s Equal Opportunity Compliance System (EOC) on the Internet. Failure to submit sub-consultant payment information may be cause for rejection of the invoice. For additional information on how to enter payment information into the Department's EOC system please refer to following link: https://www.fdot.gov/equalopportunity/eoc.shtm Within thirty days after receipt of final payment, the Consultant will report final sub-consultant payments through the Equal Opportunity Compliance System. The Consultant will pay all sub-consultants their proportionate share of payments received from the Department within thirty days of the Consultant’s receipt of payment from the Department.

The Department will render a decision on the acceptability of services within ____ working days of receipt of either the services, invoice, or progress report, whichever is later. The Department reserves the right to withhold payments for work not completed, or work completed unsatisfactorily, or work that is deemed inadequate or untimely by the Department. Any payment withheld will be released and paid to the Consultant promptly when work is subsequently performed.

All charges to the individual project will end no later than thirty (30) calendar days following final acceptance; or where all items of work are complete and conditional/partial acceptance is issued; unless authorized in writing by the Department.

A Final Invoice will be submitted to the Department no later than the 60th day following Final Acceptance of the individual project or as requested by the Department.

4.0 PROJECT CLOSEOUT

4.1 Final Audit

If requested, the Consultant will permit the Department to perform an audit of the records of the Consultant and any or all sub-consultants to support the compensation paid the Consultant. The audit will be performed as soon as practical after completion and acceptance of the contracted services. In the event funds paid to the Consultant under this Agreement are subsequently properly disallowed by the Department because of accounting errors or charges not in conformity with this Agreement, the Consultant agrees that such disallowed amounts are due to the Department upon demand. Further, the Department will have the right to deduct, from any payment due the Consultant under any other contract, any amount due the Department.

5.0 FINANCIAL CONSEQUENCES

Services must be received and accepted by the Project Manager through the Department’s Consultant Invoice Transmittal System prior to payment. If the Department determines that the performance of the Consultant is unsatisfactory, the Department shall notify the Consultant of the deficiency to be corrected, which correction shall be made within a time-frame to be specified by the Department. The Consultant shall, within five days after notice from the Department, provide the Department with a corrective action plan describing how the Consultant 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 Consultant 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 Consultant resolves the deficiency. If the deficiency is subsequently resolved, the Consultant may bill the Department for the retained amount during the next billing period. If the Consultant is unable to resolve the deficiency, the funds retained will be forfeited at the end of the agreement period.

[*All italicized text is explanatory, and is not part of Exhibit “B”]

FOR NON-TASK ASSIGNMENT CONTRACTS WITH

COMBINATION LUMP SUM/LIMITING AMOUNT COMPENSATION ELEMENTS (Using Table 6)

1.0 PURPOSE

This exhibit defines the method and limits of compensation to be made to the Consultant for the services described in Exhibit "A", Scope of Services, and the method by which payments will be made.

2.0 COMPENSATION

[Standard Section 2.0 for limiting amount or combination limiting amount/lump sum agreements]

For satisfactory completion of all services detailed in Exhibit “A”, Scope of Services, of this agreement, the Department will pay the Consultant a Total Maximum Limiting Amount not to exceed $_____________. It is agreed that this amount will be the limit of all compensation due the Consultant for completion of the services detailed in Exhibit “A”.

[Optional paragraph for Lump Sum CEI contracts – Reference Method of Compensation - Lump Sum CEI] [Optional paragraph for CEI contracts]

The cost and method of compensation for this agreement is subject to re-negotiation if the original construction contract time changes + or – 20%. The re-negotiation of the cost shall be limited in case of an increase only to the extent in excess of 120%, and in case of a decrease below 80%. In the event costs are re-negotiated as a result of changes in the original construction contract time, adjustments to the compensation shall be made by contractual amendment.

[Optional paragraph for multi-year funding; Contract Funding Term 2 or 7. When the Contract Funding Term is 2, also provide schedule for appropriations as shown in next paragraph.]

The total amount of this agreement is expected to be funded by multiple appropriations. The State of Florida's performance and obligation to pay under this contract is contingent upon appropriation by the Legislature. Currently $_____________ of the total amount has been approved. Therefore, it is agreed that the Consultant 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 Consultant for costs or make fee payments in excess of currently established funding. The Department will provide written authorization if and when subsequent appropriations are approved and encumbered for this contract, or when funding authorization decreases occur.

[Optional paragraph when future year funding is clearly defined, with Contract Funding Term 2 or 7]

The anticipated schedule for appropriations is defined below:

Please note that funds will not become available until the beginning of each fiscal year. The Department’s fiscal year begins July 1st of each year, and ends June 30th of each succeeding year. Work that requires funding from a future fiscal year cannot begin/continue until the Funds have been approved and encumbered by the Department. The Department will provide written authorization when subsequent appropriations are approved and encumbered, or when funding authorization decreases occur.

2.1 Summary of Compensation

The Total Maximum Limiting Amount will include the elements defined in the Contract Compensation Summary Table below:

[For each cost element, identify the assigned firm, provide a compensation element description/name (See following list of typical element descriptions/names), identify the method of payment, whether the amount is a limit or budget estimate, the dollar amount, and the project number. Use multiple sections to establish separate contractual limits/subtotals for multiple projects.]

Salary Related Costs [Choose One:]Operating Margin [OR] Operating Margin plus Contract Duration Adjustment Factor (CDAF)

[Methods of Payment]

Lump Sum

9. in proportion to salary related costs, balance at end (LS-9) 12.% of direct salary related costs, balance at end (LS-12)

Cost Reimbursable/Limiting Amount

5. actual expenditures (LA-5)

Contract Compensation Summary Table

Financial Project Number 1

Estimate Amount

per each class/person (contract rates) (LA-4)

Financial Project Number 2

Estimate Amount

per each class/person (contract rates) (LA-4)

TOTAL MAXIMUM LIMITING AMOUNT: $350,000.00

[use the following foot note if applicable to any element in Contract Compensation Summary Table:] Estimated, non-binding limits are provided for project management purposes.

Alternate Format for Contract Compensation Summary Table, for outer year funding:

Contract Compensation Summary Table

Financial Project Number 1

Estimate

per each class/person (contract rates) (LA-4)

SUBTOTAL

$200,000.00

Financial Project Number 2

Estimate

per each class/person (contract rates) (LA-4)

SUBTOTAL

$150,000.00

TOTAL MAXIMUM LIMITING AMOUNT: $350,000.00

*The Department will provide written authorization if and when subsequent appropriations are approved and encumbered for this contract, or when funding authorization decreases occur.

use the following additional foot note(s) if applicable to any element in Contract Compensation Summary Table:]

[Use one of the following two paragraphs:]

This Agreement does not involve the purchase of Tangible Personal Property, as defined in Section 273.02 Florida Statutes.

or

This Agreement includes the purchase of Tangible Personal Property, as defined in Section 273.02 Florida Statutes, which will be acquired in accordance with Rule 60A-1.017, Florida Administrative Code. Such property is identified below and will become the property of the Department upon purchase. Upon receipt of the property, the Consultant will provide the Department a copy of the purchase invoice and serial number, will affix Department inventory control labels, will accommodate physical inventories required by the Department and transfer control of the property to the Department upon completion of services.

(List property to be purchased)

2.2 Details of Compensation

Lump Sum Elements

[The method of payment for each of the compensation elements included in your Contract Compensation Summary table should now be fully defined, using the applicable lump sum descriptions shown below. A unique descriptor/name should be given to every separate compensation element. Please include “abbreviation” of payment method in front of paragraph as shown, to facilitate CITS invoicing.]

[LS-1, At completion of all services]

Unique Identifier for Compensation Element:

(LS-1) The Consultant will receive payment upon completion and acceptance by the Department of all services required under this agreement.

[LS-1, At completion of task]

Unique Identifier for Compensation Element:

(LS-1) The Consultant will receive payment upon completion and acceptance by the Department of the subject task required under this agreement.

[LS-2, % of completion of all services]

Unique Identifier for Compensation Element:

(LS-2) The Consultant will receive progress payments for services based on the percentage of services that have been completed and accepted by the Department during the billing period.

[LS-2, % of completion of task]

Unique Identifier for Compensation Element:

(LS-2) The Consultant will receive progress payments for the subject task based on the percentage of task that has been completed and accepted by the Department during the billing period.

[LS-6, Defined unit amount per invoice, balance at end]

Unique Identifier for Compensation Element:

(LS-6) The Consultant will receive progress payments for services at the defined unit rate provided in Table 6. Any balance remaining upon completion and approval of services will be due at that time.

LS-9 Do Not Use Contact Central Office for questions.

[LS-9, In proportion to salary related costs, balance at end. Used for operating margin/operating margin plus CDAF or Direct Expense. Not recommended; may encounter problems when supplemented. LS-12 is preferable, and uses Table 4.]

Unique Identifier for Compensation Element:

(LS-9) The Consultant will receive progress payments based on the proportion of salary related cost incurred during the billing period compared to the contractual limit for salary related cost. Any balance remaining upon completion and approval of project services will be due at that time.

[LS-12, % of direct salary costs, balance at end. Uses new methodology for calculating operating margin/operating margin plus CDAF]

[Choose one of the next two paragraphs for Operating Margin.] Operating Margin:

(LS-12) The Consultant will receive progress payments based on the percentage provided for operating margin in Table 4 of Section 5.0. Payments will be the tabulated percentage applied to approved direct salary costs, exclusive of premium overtime. Any balance remaining upon completion and approval of project services will be due at that time.

Operating Margin plus Contract Duration Adjustment Factor (CDAF):

(LS-12) The Consultant will receive progress payments based on the percentage provided for operating margin plus CDAF in Table 4 of Section 5.0. Payments will be the tabulated percentage applied to approved direct salary costs, exclusive of premium overtime. Any balance remaining upon completion and approval of project services will be due at that time.

Direct Expense Rate:

(LS-12) The Consultant will receive progress payments based on the percentage provided for direct expense rate in Table 4 of Section 5.0. Payments will be the tabulated percentage applied to approved direct salary costs, exclusive of premium overtime. Any balance remaining upon completion and approval of project services will be due at that time.

[Limiting Amount/Cost Reimbursement Elements]

Limiting Amount/Cost Reimbursement Elements

For the following elements which are established as reimbursables, the Department will compensate the Consultant, subject to the total established limiting amount, for all reasonable, allocable and allowable costs incurred in the categories defined below. The reasonableness, allocability and allowability of compensation sought under this agreement is expressly made subject to the terms of this Agreement; Federal Acquisition Regulations; Office of Management and Budget Circulars A21, A87, A102, A110; and any pertinent Federal and State Law.

[Limiting Amount Elements- List each of the limiting amount elements included in the Contract Compensation Summary Table, with the applicable description of Method of Payment. Please include “abbreviation” of payment method. For limiting amount compensation elements established as “Estimates” in Table 1, drop the phrase “Subject to the established limiting amount” at the beginning of the paragraph describing Method of Payment.]

[LA-3, Defined Salary Rates Per Each Class/Person- Contract Rates] Salary Related Costs- (LA-3)

Subject to the established limiting amount, the Consultant will receive progress payments for direct salaries and wages for time/work effort expended by personnel in the performance of authorized work during the billing period, at the contract rates established in Table 5 of Section 5.0.

[Optional, delete the following sentence if it does not apply] All overtime, whether straight time or premium overtime, must be authorized in advance in writing by the Department.

Only the following firms and positions are allowed Straight Overtime:__________

Only the following firms and positions are allowed Premium Overtime:__________

Administrative overhead and fringe benefit costs will be applied to approved salary and wage costs (exclusive of premium overtime) at the combined overhead rates provided in Table 5 of Section 5.0.

The Consultant will receive compensation for allowable Facilities Capital Cost of Money (FCCM) in association with salaries. FCCM will be calculated as a percentage of chargeable direct salary and wages exclusive of premium overtime, at the rates provided in Table 5 of Section 5.0. [This paragraph is to be used only when the Consultant has an audited FCCM rate.]

[Paragraphs authorizing Operating Margin where operating margin/operating margin plus CDAF is not a fixed fee. (choose one of the two statements):]

Operating margin will be applied to approved direct salary costs (exclusive of premium overtime) at the rates provided in Table 5 of Section 5.0.

Operating margin plus Contract Duration Adjustment Factor (CDAF) will be applied to approved direct salary costs (exclusive of premium overtime) at the rates provided in Table 5 of Section 5.0.

The Consultant will be compensated for direct expenses in association with salaries. Direct Expenses will be calculated as a percentage of chargeable direct salaries and wages exclusive of premium overtime, at the rates provided in Table 5 of Section 5.0. [This paragraph is only to be used when direct expense is not a separate compensation element.]

Paragraphs authorizing premium overtime where applicable (choose one or more of the two statements):

When authorized in advance in writing by the Department, premium overtime will also be paid at a rate of one-half that of the rates specified in Table 5 of Section 5.0, for employees paid premium overtime by the Consultant. Only the following firms listed in Table 5 of Section 5.0 are authorized for direct reimbursement of premium overtime: list firms here.

[Optional, delete the following sentence if it does not apply] Only the following firms and positions are allowed Straight Overtime:__________

Only the following firms and positions are allowed Premium Overtime:_____

[LA-4, Defined Loaded Rates for Each Class/Person/Unit of Work] Loaded Labor Rates- (LA-4)

Subject to the established limiting amount, the Consultant will be compensated for these services based on the rates provided in Table 6 of Section 5.0. No additional multipliers will be applied to these rates. For units of work, payment for such services will be based on approved units incurred during the billing period. For labor rates, payment for such services will be based on approved time incurred during the billing period. No additional multipliers will be applied to these rates. The following firms loaded labor rates are inclusive of Contract Duration Adjustment Factor: (Reminder: Leave blank if CDAF does not apply on this contract)

Optional paragraph for premium overtime:

When authorized in advance in writing by the Department, premium overtime will be paid at the rates specified in Table 6 of Section 5.0 for employees paid premium overtime by the Consultant. Only the following firms listed in Table 6 of Section 5.0 are authorized for direct reimbursement of premium overtime: list firms here.

[Optional, delete the following sentence if it does not apply] All overtime, whether straight time or premium overtime, must be authorized in advance in writing by the Department.

Only the following firms and positions are allowed Straight Overtime:__________

Only the following firms and positions are allowed Premium Overtime:_____

[LA-5, Actual Expenditures. This compensation element should only be utilized for subconsultants without an audited direct expense rate,]

Miscellaneous Direct Expenses- LA-5

Subject to the established limiting amount, only the following subconsultant firms are approved to receive compensation for itemized miscellaneous direct expenses when authorized and when properly supported by evidence of costs incurred: list firms here . For travel expenses, state travel vouchers must be submitted [Optional sentence, delete the following sentence if it does not apply:] For authorized direct expenses with rates established in Table 6 of Section 5.0, compensation will be at those rates without further support.

[This optional language may be used in place of the preceding paragraph for miscellaneous direct expenses.]

Subject to the established limiting amount, only the following subconsultant firms are approved to receive compensation for itemized miscellaneous direct expenses, when authorized and when properly supported by evidence of costs incurred. For travel expenses, state travel vouchers may be submitted. [Optional, delete the following sentence if it does not apply:] For authorized direct expenses with rates established in Table 6 of Section 5.0, compensation will be at those rates without further support. List firms here:

Miscellaneous Direct Expenses for Permits – LA-5

Notwithstanding other provisions of the contract, and subject to the established limiting amount only the following firm(s) is/are approved to receive compensation for permit costs (permit application fees), when authorized and when properly supported by evidence of costs incurred: ___

Charges for legal notices, other costs that are ancillary to the permit, or for certification costs (such as LEED fees) are reimbursed through the direct expense percentage and are not compensated as an itemized expense directly on the contract.

[Optional Paragraph for Miscellaneous Direct Expenses for Prime- LA-5 (Approval must be obtained from Central Office Audit Rate Manager for tangible assets)] If authorized by the Department, the Prime Consultant will be compensated for the separate miscellaneous direct expense purchase of the Tangible Personal Property identified under Section 2.1, properly supported by evidence of costs incurred.

[Optional paragraph for CEI firms compensated directly on the contract for actual field office rent and utility costs, based on receipts.] Miscellaneous Direct Expenses for Field Office Rent and Utilities - LA-5

Subject to the established limiting amount, only the following firm(s) is/are approved to receive compensation for itemized direct expenses associated with field office rent, utilities (excluding phone services), field office set-up/mobilization and de-mobilization costs only, when authorized and when properly supported by evidence of costs incurred: list firms here . Utility costs to be reimbursed as a direct project cost are: electricity, water, natural gas, sewer, internet service, trash pick-up, and hook-up fees associated with the aforementioned utilities. Field office set-up/mobilization and de-mobilization charges involved with transporting the trailer to and from the job site may also be reimbursed. Utility costs associated with phone services will not be reimbursed as a direct project charge.