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Public Works Agency <br />www.santa-ana.org/public-works <br />Item # 30 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />June 4, 2024 <br />TOPIC: Public Works Cost Recovery Analysis <br />AGENDA TITLE <br />Agreement for Public Works Cost Recovery Analysis Services (General Fund and Non - <br />General Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an agreement with Government Consulting <br />Partners, Inc. to provide a comprehensive analysis of Public Works billable rates and <br />indirect cost calculations in an annual amount not to exceed $120,000, which includes <br />an $11,000 contingency, for a one-year term from July 1, 2024 through June 30, 2025, <br />with the option of two, one-year extensions, for a total amount not to exceed $360,000 <br />(Agreement No. A-2024-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />The Public Works Agency provides a wide variety of services to the community that <br />incur operational costs which include labor, materials, and various indirect or overhead <br />charges. Staff recoups as much of these costs as possible through various grants, fees, <br />and cross charges. Developing a methodology of identifying the true costs of service for <br />these activities is vital to the accurate and efficient recovery of these funds and the <br />capture of revenue. This is especially true with requesting reimbursements from other <br />government agencies such as Caltrans, who require indirect cost allocation plans to <br />justify payment amounts to the City. <br />The Public Works Agency recommends performing a comprehensive analysis of its <br />billable rates and indirect cost methodologies to ensure that the City is fully identifying <br />service costs, capturing available revenues from external partners, and reducing costs <br />to the City. To that end, a Request for Proposals (RFP) No. 24-058 was issued on April <br />3, 2024 on the City's online bid management and publication system, Planetbids. A <br />summary of vendor participation and results is as follows: <br />449 Vendors Notified <br />12 Santa Ana Vendors Notified <br />22 Vendors Downloaded the Bid Packet <br />