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MEMORANDUM <br />Kevin O'Rourke <br />To: Interim City Manager <br />Edwin "William" Galvez, P.E. <br />From: Interim Executive Director, Public Works Agency <br />Subject: <br />7, 2013 <br />The identified solution to the Fund 86 issue was to have a Cost Allocation Plan developed and <br />approved that calculates a fully burdened indirect cost rate that will recover the Engineering Services <br />costs. From an original list of four potential consultants experienced in this type of work, Public <br />Works requested quotes from three firms and only one responded - MGT of America, Inc. A copy of <br />the Request for Quotation and the results are attached for your reference. <br />The attached agreement covers preparation of an auditable Cost Allocation Plan for FY 12/13 that is <br />in accordance with the guidelines and requirements of Office of Management and Budget (OMB), <br />Code of Federal Regulations, Title 2, Subtitle A, Chapter II, part 225 (formerly OMB Circular A-87). <br />Upon completion, the plan will be submitted to the Orange County Transit Authority (OCTA) for <br />their review and approval. The approved indirect rate will be used to process outstanding FY 12/13 <br />grant reimbursements and OCTA has agreed to allow the same rate to be used for FY 13/14 <br />reimbursements, as well.