RFP6179SD-SWZ_Exhibit B - Method of Compensation.pdf

DOT-RFP-23-6179SD Exhibit B Method of Compensation Page 1 of 3

State of Florida Department of Transportation

EXHIBIT “B”, METHOD OF COMPENSATION

DOT-RFP-23-6179SD

US 27 / SR 25 / OKEECHOBEE ROAD SMART WORK ZONE

MANAGEMENT CONTRACT

FINANCIAL PROJECT NUMBER: 447645-1-62-01

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1.0 PURPOSE:

This Exhibit “B”, Method of Compensation defines the method of compensation to be made to the Consultant for the services described in Exhibit “A”, Scope of Services and method for which payments will be made.

2.0 COMPENSATION:

This contract has a total maximum budgetary amount of $ 4,800,000.00, that has been approved and encumbered by the Department upon contract execution. It is agreed that this total maximum budgetary amount shall be the full amount of funds available for the term of this contract.

For the satisfactory performance of services detailed in Exhibit “A”, Scope of Services, the Department shall compensate the Consultant the total authorized amount for Smart Work Zone Project of $ _TBA_______ , equal to the Total Price Proposal Amount from Exhibit “C”, Contract Price Proposal.

It is agreed that the Consultant will not be obligated to perform services, nor incur costs which would result in exceeding the authorized amount, nor will the Department be obligated to reimburse the Consultant for costs or make payments in excess of the authorized services.

If and when subsequent services are required, the Department will provide additional written authorization, to increase the services and compensation to a new agreed upon authorization limit without exceeding the maximum budgetary amount.

2.1 Methods of Compensation:

Exhibit “C”, Contract Price Proposal of this Agreement has been formatted to have a combination method of compensation. The combination consists of; “Lump Sum” and “Unit Price” methods of compensation.

2.1.1 Lump Sum Compensation

For these services the Consultant will be provided a Lump Sum payment for the listed activity.

The services listed below are priced as Lump Sum in Exhibit “C”, Contract Price Proposal and compensation shall be provided to the Consultant per the payment criteria outlined in Table 1:

Activity Compensation Compensation Schedule

Mobilization Per the Consultant’s Price

Proposal

Lump sum paid through equal payments on the Consultant’s first four invoices (25% each invoice)

Table 1: Lump Sum Based Payment

2.1.2 Unit Price Compensation

Exhibit “A”, Scope of Services contains well-defined services that are paid monthly based upon a Unit Price for the term of the Agreement. The services listed below are priced as Unit Price in Exhibit “C”, Contract Price Proposal:

SWZ Control Center Services SWZ Deployment SWZ Operations

3.0 PROGRESS PAYMENTS:

The Consultant shall submit monthly invoices (3 copies) in a format acceptable to the Department.

Payments for Lump Sum and Unit Price services shall be made in the following manner:

3.1 Payment for Lump Sum Services

The services priced as a Lump Sum in Exhibit “C”, Contract Price Proposal will be paid as four

(4) equal payments on the first four invoices (25% each invoice).

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3.2 Payment for Unit Price Services

The services priced as Unit Price in Exhibit “C”, Contract Price Proposal were priced as a daily rate for the contract term. Monthly invoices submitted for Unit Price compensation shall at a minimum contain line items for each Smart Work Zone Project Service shown in the Exhibit “C”, Contract Price Proposal. A single payment shall be made monthly and will be calculated using the following equation:

𝑷 = (𝑪𝟏 ∗ 𝑫𝟏) + (𝑪𝟐 ∗𝑫𝟐) + (𝑪𝟑 ∗𝑫𝟑) where, “𝑷” represents the monthly payment to the Consultant on a month by month basis.

𝑷 ≥ $0

“𝑪𝟏,𝑪𝟐,𝑪𝟑” represents the Unit Price for the three services: (1.1, 1.2, & 1.3 daily amounts) “𝑫𝟏,𝑫𝟐,𝑫𝟑” represents the number of days in invoice month that each service was provided.

4.0 FINANCIAL CONSEQUENCES:

It is recognized that this Contract includes "availability-based" criteria that shall be evaluated continually by the Department. For occurrences where the Department determines that the Consultant does not meet or exceed the performance measures established in Exhibit “A”, Scope of Services, the Department reserves the right to assess penalties that shall be deducted from the Consultant’s monthly invoice. These penalties are defined in Exhibit “A”, Scope of Services.