Item 28 - Agreement Amendment for Cost Allocation Plans

Home Browse Search

Public Works Agency www.santa-ana.org/pw Item # 28 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 21, 2021 TOPIC: Agreement Amendment for Cost Allocation Plans AGENDA TITLE Amend Agreement with MGT of America Consulting, LLC to Increase Compensation by $200,000 for Cost Allocation Plan Preparation (Non -General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the agreement with MGT of America Consulting, LLC for preparation of Code of Federal Regulations Part 200 compliant Cost Allocation Plans necessary for state and federal grant reimbursement, increasing the compensation by $200,000, which includes a $50,000 contingency, for a total agreement amount of $250,000, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency funds its Capital Improvement Program almost exclusively through state and federal grants. Although this strategy reduces the reliance on the General Fund, it the puts the City and the Public Works Agency under scrutiny to ensure that policies, procedures, and internal controls meet the stringent federal guidelines set forth in the Code of Federal Regulations Part 200 (CFR 200), also referred to as "uniform guidance" requirements. In May 2018, at the end of a Request for Proposals process, the City entered into an agreement with MGT of America Consulting, LLC (previously MGT of America, Inc.), in the amount of $167,008, to prepare annual cost allocations compliant with CFR 200 requirements. The agreement term was for three years with an option for two one-year extensions and covered submittals for Fiscal Years 2016-17 through 2018-19. In January 2021, the California Department of Transportation completed an Incurred Cost audit for the City of Santa Ana, which required the Public Works Agency to prepare and submit additional cost plans for Fiscal Years 2013-14 through 2015-16, 2019-20, and 2020-21. Before approved agreement extensions could be exercised, the agreement with MGT expired, suspending the consultant's work and leaving $107,509 unspent. The City Manager recently approved a $50,000 agreement that allows the consultant to prepare the cost plans for Fiscal Years 2017-18 and 2019-20. However, to meet the audit requirements, complete cost plans are needed for Fiscal Years 2013-14, 2015-16, 2016-