25A - AGMT COST ALLOCATION PLAN - Laserfiche WebLink

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UNDERSTANDING OF NEED IIII Eel 2 The City of Santa Ana (City) has requested consulting assistance to prepare 1) a Public Works Administrative CAP which allocates costs in 10117601 (includes linking to the citywide CAP), 2) an indirect cost rate proposal (ICRP) for operations within fund 86, and 3) full cost hourly staffing rates for staff members in budget units 08617611 Design and 08617612 Construction. All aspects of the project must also adhere to the requirements of the federal circular 2 CFR Part 200 and state agencies, such as Caltrans. These deliverables are specialties of MGT of America Consulting, LLC (MGT). We have been preparing these analyses for the City of Santa Ana for the past five years. As a consulting group, we have delivered more of these analyses to more governmental jurisdictions than all our current competition combined. We believe we can deliver all requested services to the City's complete satisfaction and achieve the City's overall goals and objectives. In Just the past year, MGT has submitted for approva I by the State Controller's Office and Caltrans over 3001CRPs and 20cost allocation plans for our local government clients. UNDERSTANDING THE PUBLIC WORKS DEPARTMENT RELATED TO 10117601, 08617611 AND 08617612 These three key departments, within Public Works, operate as ISFS. As such, they are charged with recovering their full cost each year. Full cost is defined as an operating budget, department administrative support and citywide administrative support. The PW department is one of the largest operations in the City. With nearly 200 full time and part time staff members, PW consists of a variety of funds, including general fund operations, Internal service funds, enterprise funds and special revenue funds. This project will focus on a subset of these funds. Specifically, 10117601 PW Administration, 08617611 Construction Engineering and 08617612 Design Engineering. Each of these organizations operate as ISFs. In accounting terms, an ISF Is self-funded though charges to customers who use their services. In past years these funds have not always been successful in recovery of their full cost through these charges. This is a very important issue to Public Works and to the City, as a whole. The correction of this funding Issue is the key purpose of this project. The answer does not only lie in arcane cost accounting rules and procedures, but perhaps even more Importantly, it is a communication and planning challenge as well. DESIGN OF CURRENT PROJECT There is no better way of developing the understanding of a project, than doing it. The MGT project team has years of experience preparing this exact scope of services for many California city governments, including many public works departments. Specifically, MGT and Santa Ana Public Works staff designed the current format and methodology of the City's PW cost allocation plan, indirect cost rate proposal and full cost hourly staff rates in 2012. The project was designed to meet all federal and state formatting requirements and details. Our project manager has been working on this project since its conception. Our team has intimate detailed understanding of the needs, challenges, history and requirements for this M GT CITY OF SANTA ANA, CAUFORNIA I MARCH 8, 2018 PAGE ©e®�� o*o** M GROUP RFP NO. 18-0231 1 PROPOSAL FOR COST ALLOCATION PLAN / ISF ALLOCATION STUDYL. CONSUL25A-53