HomeMy WebLinkAbout72-96 RESOLUTION•
RESOLUTION NO. 79-96
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A RESOLUTION APPROVING A CONTRACT IN THE
AMOUNT OF $147,123, PLUS A 10% CONTINGENCY OF
$14,712, TO THE MEHLBURGER FIRM FOR A
BIKE/PEDESTRIAN TRAIL DESIGN.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council hereby approves a contract, in the amount of
$147,123, plus a 10% contingency of $14,712, to Mehlburger Firm for a bike/pedestrian trail
design, and authorizes the Mayor and City Clerk to execute same. A copy of the contract is
attached hereto marked Exhibit "A" and made a part hereof.
Q '•-�314SSED AND APPROVED this 4th day of June , 1996.
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Traci Paul, City Clerk
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AGREEMENT FOR ENGINEERING SERVICES
STATE OF ARKANSAS)
COUNTY OF PULASKI)
THIS AGREEMENT, entered into and executed this 171.4 day of,T,,,hist , /996 by and
between the City of Fayetteville acting by and through its City Council hereinafter called the
i "Owner" and The Mehlburger Firm, a corporation existing under the laws of the State of
Arkansas, with principal offices at 201 South Izard, Little Rock, Arkansas, hereinafter called the
"Engineer".
WITNESSETH:
WHEREAS, the Owner, the City of Fayetteville; and WHEREAS, the Owner's forces are fully
employed on other urgent work that prevents their early assignment to the aforementioned work;
WHEREAS, the Engineer's staff is adequate and well -qua Ii iced and it has been determined that its
current workload will permit completion of the plans for the project on schedule; NOW,
THEREFORE, it is considered to be in the best public interest for the Owner to obtain the
• assistance of the Engineer's organization in the connection with said engineering services. In
consideration of the faithful performance of each Party of the mutual covenants and agreements set
• forth hereinafter, it is mutually agreed as follows:
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SECTION I — EMPLOYMENT OF ENGINEER
The Owner agrees to employ the Engineer to perform, and the Engineer agrees to perform,
professional engineering services in connection with the Project as set forth in the Sections to
follow; and the Owner agrees to pay and the Engineer agrees to accept, cost incurred plus fixed fee,
as specified in the Sections to follow, as full and final compensation for work accomplished in the
specified time.
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SECTION H — DESCRIPTION OF THE PROJECT
This project is to prepare plans and specifications of the construction of a multi -use trail
system and bicycle lanes for the City of Fayetteville. (See Appendix A)
The project sc pe includes the surveying of particular properties for the purpose of
acquisition by the City of Fayetteville for the multi -use trail system and for the entry way signs on
Highway 45 and 71, provide plans and construction documents for the construction of the multi -use
trail system, develop cost estimates of the work described on the plans and in the specifications, and
provide an estimate of time in working days for each project element.
The Engineer shall be available to attend any public meetings`or with any local interest
groups as deemed necessary or pertinent to the project by the Owner.
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SECTION HI — SERVICES TO BE FURNISHED BY THE ENGINEER
(TITLE ONE SERVICES)
1. The survey and written descriptions of particular properties for the purpose of acquisition
by the City of Fayetteville to become part of the multi -use trail system.
2. The survey of sites on Highway 45 and 71 for entry signs.
3. Construction documents for the construction of a multi -use trail system and bicycle lanes to
include roadbed design and alignment, intersection design, signage, landscaping, fencing,
and bridging.
4. Cost Estimates By Element.
SECTION IV — COORDINATION WITH OWNER
The Engineer shall hold bi-monthly conferences throughout the design of the Project with
representatives of the Owner to the end that the design, as perfected, shall have full benefit of the
Owner's knowledge of existing needs and facilities, and be consistent with the current policies and
construction practices of the Owner. The Engineer shall take minutes, submit to the Owner
Coordinator for approval, make corrections if needed, and distribute to attendees. The Owner
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reserves the right to accept or reject any or all plans, but this stipulation will not relieve the Engineer
of responsibility for the design of the project.
SECTION V — PRELIMINARY SUBMISSIONS
The Engineer shall submit eight (8) sets of preliminary plans for preliminary field inspection
and eight (8) sets of final plans for field inspection on each construction project.
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SECTION VI — FINAL SUBMISSION
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The final submission for each Construction Contract shall consist of the following:
a. . One (1) copy of all design calculations.
b. Originals of all drawings and the originals of all job special provisions indexed and
typed on bond paper and electronic files of all drawings on 3 1\2 disk.
c. The consultants estimate of quantities and costs for each construction contract, and
a detailed estimate of time in working days required for completion of the work.
d. 50 copies, in booklet form showing all project elements and support data.
SECTION VII — ENGINEER'S RESPONSIBILITY DURING CONSTRUCTION
(TITLE U SERVICES)
As the Construction Contracts are awarded and notice to proceed is issued, the Engineer
shall:
a. Check shop drawings as appropriate.
SECTION VIII — CONSULTATION SERVICES DURING CONSTRUCTION
If, during the course of construction, consultation between the Owner and the Engineer is
required, the Owner agrees to compensate the Engineer in accordance with the TTTLE II Schedule
of Rates as found in SECTION XI — FEES AND PAYMENTS and APPENDIX C.
Payment will be made monthly upon presentation of invoices prepared in the required form
and number, subject to the approval of the Owner.
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SECTION IX — SUBCONTRACTING
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Subcontracting by the Engineer of any of the services provided herein, require prior approval
by the Owner.
SECTION X — TIME OF BEGINNING AND COMPLETION
The Engineer shall begin work under this Agreement within ten (10) days of notice to
proceed and shall complete all services within 276 days (contract signing to submittal of final
report.). (See Appendix B)
The above completion time is predicted upon the fact that the Owner will process approvals
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of interim work in an expeditious manner.
SECTION XI — FEES AND PAYMENTS
For and in consideration of the services to be rendered by the Engineer, the Owder shall pay
and the Engineer shall receive reimbursement of all salary costs, overhead, and fees at rates paid by
the Engineer during the Contract Period, consisting of TITLE I SERVICES, including the Fixed
Fee Amount of$19,305.57 Dollars, not to exceed an Upper Limit Contract amount of $144,623.07
Dollars and TITLE II SERVICES, not to exceed an Upper Limit Contract amount of $2,500.00
(See Appendix—C).
The basis of this upper limit and justification for the fee is attached hereto. Adjustment of
the upper limit may be made, should the Engineer establish and the Owner agree, that there has
been or is to be a significant change in the: (1) Scope, complexity, or character of the services to be
performed; (2) condition under which the work is required to be performed; (3) duration of work
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if the change from the time penod specified in the Agreement for completion of work, warrants
adjustment
The following schedule comers the classification of personnel and the salary range for all personnel
anticipated to be assigned to this project for TITLE I SERVICES and TITLE H SERVICES by
the Engineer:
SCHEDULE OF SALARY RANGES
(Hourly)
Landscape Architect $16.97 - $20.53
Project Manager 16.97 - 20.53
Engineer 14.90 - 23.65
Draftsman 9.68 - 12.83
Clerical 7.48 9.72
Registered Land Surveyor 15.00 - 25.00
Party Chief 13.00 - 20.00
Instrument Person 8.00 - 12700
Rodman 6.00 - 9.00
In the event salary ranges prove inadequate due to unforeseen circumstances, they maybe
renegotiated. Overtime, when authorized by the Owner, shall be at rate of time and one-half for all
subprofessional employees.
Overhead rates were derived from financial data during the period of July 1, 1994 to June
30, 1995, and were approved by the Defense Contract Audit Agency. Overhead rates were
negotiated based on the enclosed financial audits. An overhead rate of 118.6% was established and
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executed. Subsequent audits may be conducted at the convenience of the Owner to adjust the
overhead rates applicable to the Contract and to evaluate the Engineer's charges against the fob.
Overhead rates established by the 1995 audit are: Overhead on Salaries 38% and General
Office Overhead 80.6% Adjustments in the overhead rates shall be applied to salary costs
incurred subsequent to the conduct of the audit by which they were established and shall apply
until adjustment by a later audit.
TITLE I SERVICES and TITLE H SERVICES shall be billed on a mark-up salary
based on the established SCHEDULE OF SALARY RANGES. The mark-up shall be 2.568
which includes fees and the overhead rates established in the 1995 audit This mark-up will
remain in effect unless adjusted by a later audit and incorporated into a Supplemental
Agreement.
All miscellaneous expendable supplies normally required by the Engineer in the
performance of these services will be purchased by the Engineer, who will be reimbursed by the
Owner. As such expenditures will be substantiated by the paid invoices or by accounting
procedures which are approved by the Owner. Proper and adequate accounting records shall be
maintained by the Engineer and be readily available for inspection and/or audit by the Owner.
Payments on incurred cost and ninety percent (90%) of the fixed fee earned will be made
periodically based upon statements submitted by the Engineer to the Owner. These statements
shall be substantiated by a progress report prepared by the Engineer to the Owner. These
statements shall be substantiated by a progress report prepared by the Engineer and submitted
with each statement (see Appendix B.) This report shall include a breakdown of the cost and
progress for each contract, as well as the project total. Statements and progress reports will be
submitted in the form and number required by the Owner.
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Final payment for TITLE I SERVICES shall be made upon the Owner's approval and
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acceptance of construction plans, estimates of quantities, and the satisfactory completion of any
related services required by the Owner.
Final payment for TITLE II SERVICES shall be made upon Owner's approval, and upon
the Engineers satisfactory completion of all TITLE II SERVICES.
SECTION XII — CHANGES
The Owner at any time, by written order, may make changes within the general scope of the
contract in the work and service to be performed. If any such change causes an increase or decrease
in the cost of , or the time required for, performance of this contract, an equitable increase or
decrease shall be made in the Upper Limit Contract amount, and that amount shall be modified in
writing accordingly.
Any claim by the Engineer for adjustment under this clause must be asserted within thirty
(30) days from the date of receipt by the Engineer of the notification of change; provided, however,
that the Owner, if it decides that the facts justify such action, may review and act upon such claim
asserted at any time prior to the date of final payment under this contract as changed.
SECTION XIII — OWNERSHIP OF DOCUMENTS
All documents, including original drawings, disks of CADD drawings and cross sections,
estimates, specifications, field notes and data, are and remain the property of the Owner. The
Engineer may retain reproduced copies of drawings and copies of other documents.
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• SECTION XIV — POSTPONEMENT OR CANCELLATION OF 1'HE CONTRACT
It is understood that the Owner, acting through the Mayor, will have the right to suspend
or cancel the work at any time
a. Postponement -- Should the Owner, for any reason whatsoever, decide to postpone
the work at any time, the Owner will through its Mayor, notify the Engineer who
will immediately suspend work. Should the Owner decide during such suspension
not to resume the work, or should such suspension not be terminated within a year,
the work shall be canceled as herinafter provided.
13. Cancellation -- Should the Owner for any reason whatsoever, decide to cancel or
terminate the use of the Engineer's services, the Owner will, through its Mayor, give
thirty (30) days written notice thereof to the Engineer who will immediately
terminate the work. If the owner so elects, the Engineer may be instructed to bring
to a reasonable state of completion those items whose value would otherwise be lost
without such necessary further work as may be directed by the Owner, and turn over
to the Owner all data, charts, survey notes, figures, drawings, and other records of
information collected or produced hereunder whether partial or complete. Upon
such termination of the Engineer's services under this section, the Engineer shall be
paid in an equitable basis for all services rendered hereunder a proportional amount
of the total fee; less prior partial payments, based on the ratio of work done to the
total amount of work to be performed.
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SECTION XV — ACCESS TO RECORDS
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The Engineer and any Subcontractors are to maintain all books, documents, papers,
accounting records and other evidence pertaining to cost incurred and to make such materials
available at their respective offices at all reasonable times during the contract period and for three
(3) years from the date of final payment under this contract, for inspection by the Owner.
SECTION XVI — MISCELLANEOUS PROVISIONS
1. Dispute resolution
Any dispute concerning a question of fact in connection with the work shall be referred for
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determination to the Mayor, whose decisions in the matter shall be final and conclusive.
2. Responsibility for Claims and Liability
The Engineer shall save harmless the Owner from all claim and liabilities due to its
activities, or those of its subcontractors, its agents, or its employees, dung the planning
stage of this project.
General Compliance with Laws
The Engineer shall comply with all Federal, State and Local Laws and ordinances'applicable
to the work. It shall be a Professional Engineer, licensed in the State of Arkansas.
Engineer's Endorsement
The Engineer shall seal and endorse and recommend all plans, specifications, estimates and
engineering data furnished by it. All designs shall be checked in accordance with accepted
engineering practice. All plan quantities shall be checked and verified.
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SECTION XVII — SUCCESSORS AND ASSIGNS
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The Owner and the Engineer each binds itself and its partners, successors, executors,
administrators and assigns to the other Party of this Agreement; except as above, neither the Owner
nor the Engineer shall assign, sublet or transfer its interest in this agreement without written consent
of the other. Nothing herein shall be construed as creating any personal liability on the part of any
officer or agent of any public body which may be a Party hereto.
SECTION XVIII — COVENANT AGAINST CONTINGENT FEES
The Engineer warrants that it has not employed or retained by company or person, other than
a bonafide employee working solely for the Engineer, to solicit or secure this contract, and that it
has not paid or agreed to pay any company or person, other than a bona fide employee working
solely for the Engineer, any fee, commission, percentage, brokerage fee, gifts, or any other
consideration, contingent upon or resulting from the award or making of this contract.
For breach or violation of this warranty, the Owner shall have the right to annul this contract
without liability.
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SECTION XIX — TITLE VI ASSURANCES (NON-DISCRINIINATION)
During the performance of this contract, the Engineer, for itself, its assignees and successors
in interest (hereinafter referred to as the "Engineer") agrees as follows:
a. Compliance with Regulations -- The Engineer shall comply with the Regulations
relative to non-discrimination in Federal assisted programs of the Department of
Transportation, Title 49, Code of Federal Regulations, Part 21 and FHPM Volume
1, Chapter 7, Section 2, as they may be amended from time to time, (hereinafter
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referred to as the Regulations), which are herein incorporated by reference and made
a part of this contract.
b. Non-discrimination — The Engineer, with regard to the work performed by it during
the contract, shall not discriminate on the grounds of race, color, sex, or national
origin in the. selection and retention of subcontractors, including procurement of
material and leases of equipment. The Engineer shall not participate either directly
or indirectly in the discrimination prohibited by Section 21.5 of the Regulations,
including employment practices when the contract covers a program set forth in
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Appendix "B" of the Regulations.
c. Solicitations for Subcontracts. Including Procurement of Materials and Equipment --
In all solicitations either by competitive bidding or negotiation made by the Engineer
for work to be performed under a subcontract, including procurement of materials
or leases of equipment, each potential subcontractor or supplier shall be notified by
the Engineer of the Engineer's obligations under this contract and the Regulations
relative to non-discrimination on the grounds of race, color, sex, or national origin.
d. Information and -Reports -- The Engineer shall provide all information and reports
required by the Regulations, or directives issued pursuant thereto, and shall permit
access to its books, records, accounts, other sources of information, and its facilities
as may be determined by the City of Fayetteville to be pertinent to ascertain
compliance with such regulations and directives. Where any information required
of the Engineer is in the exclusive possession of another who fail or refuses to
furnish this information, the Engineer shall so certify to the City of Fayetteville as
appropriate, and shall set forth what efforts it has made to obtain the information.
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e. Sanctions for Non -Compliance -- In the event of the Engineer's non-compliance
with the non-discrimination provisions of this contract, the City of Fayetteville shall
impose such under contract sanctions as it may determine to be appropriate,
including, but not limited to:
(1.) Withholding of payments to the Engineer under the contract until the
Engineer complies, and or
(2.) Cancellation, termination or suspension of the contract, in whole or in part.
f. Incorporation of Provisions -- The Engineer shall include the provisions of
paragraphs (a) through (0 in every subcontract, including procurement of materials
and leases of equipment, unless exempt by regulations, or directives issued pursuant
thereto. The Engineer shall take such action with respect to any subcontract or
procurement as the City of Fayetteville may direct as a means of enforcing such
provisions including sanctions for non-compliance: Provided, however, that in event
the Engineer becomes involved in, or is threatened with, litigation with a
subcontractor or supplier as a result of such direction, the Engineer may request the
City of Fayetteville to enter into such litigation to protect the interest of the Owner,
and in addition, the Engineer may request the United States to enter into such
litigation t5 protect the interest of the United States.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as
of the date and year first herein written.
By:
G I TY of PAYE TrE VIL.LE
By: lJAZ1,0,L, 1/471:2_4/
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ATTEST
THE MEHLBURGER FIRM, INC.
BY
President
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By /—
Division Manager - Development
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CERTIFICATE OF CITY OF FAYETTEVILLE
I hereby certify that I am the Mayor of the City of Fayetteville and the above consulting firm or
its representative has not been required, directly or indirectly, as an express or implied condition
in connection with obtaining or carrying out this contract to:
(a) employ or retain, or agree to employ or retain, any firm or person, or
(b) pay, or agree to pay, to any firm, person, or organization, any fee contributions,
donation, or consideration of any kind:
except as here expressly stated (if any):
I acknowledge that this certificate is to be furnished to the Arkansas State Highway and
Transportation Department and the Federal Highway Administration, U.S. Department of
Transportation, in connection with this contract involving participation of Federal -Aid Highway
Funds, and is subject to applicable State and Federal laws, both criminal and civil.
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(Date) (Mayor of Fayetteville)
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State Contract No. R9936
Federal -Aid Project
CERTIFICATE OF CONSULTANT
I, hereby, certify that I am the President and duly authorized representative of the Firm, The
Mehlburger Firm, whose address is P.O. Box 3837, Little Rock, Arkansas 72203, and that neither
I, nor the above Finn mentioned here represent, have:
(A) employed or retained for a commission, brokerage, contingent fee, or other
consideration, any firm or person (other than a bona fide employee working soley
for me or the above consultant) to solicit or secure this contract.
(B) agree, as an express or implied condition for obtaining this contract, to employ or
retain the services of any firm or person in connection with carrying out the
contract, or
O paid, or agreed to pay, to any firm, organization or person (other than a bona fide
employee working solely for me or the above consultant) any fee contribution, donation, or
consideration of any kind for, or in connection with, procuring or carrying out the contract;
except as here expressly stated (if any):
I acknowledge that this certificate is to be furnished to the Arkansas State Highway and
Transportation Department and the Federal Highway Administration, U.S. Departmetn of
Commerce, in connection with this contract involving participation of Federal -Aid Highway
funds, and is subject to applicable State and Federal laws, both criminal and civil.
/d -/a -9C'.
(Date)
resident)
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APPENDIX A
MULTI -USE TRAIL ELEMENTS:
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• Crossover Road - running North-South on East side of Fayetteville.
• Old Missouri Road - North-South between Old Wire and Zion.
• Gregg Avenue - running North-South middle of Fayetteville, terminating at campus
edge.
• Appleby Road - East-West between Gregg and College Avenue.
• Township Street - East-West between Old Wire and Crossover.
• Hall Avenue - North-South on West side of Fayetteville, connects or becomes Garland.
• Mission Boulevard - Runs North -Northeast, connects to Old Wire and Crossover.
• Garland Avenue - North-South on West side of Fayetteville, enters U of A campus.
• Razorback - North-South on West side of Fayetteville, Razorback connects with Maple
and 15 st.
• Block Avenue - North-South off of Sixth Street (Southeast of campus).
• 13th Street - East-West off of Block (Southeast of campus)
• Wedington - East-West on West side of Fayetteville, becomes North Street.
• Deane - East-West North of Wedington, South of Experimental Farm.
• Mud Creek Tributary connecting Sweetbriar and Gulley Parks.
• Errol Street between Old Missouri and Crossover.
• Hidden Lake Subdivision park land.
• Walker Park to Town Branch Creek to St. Paul Rail -Tail.
• Town Branch Creek from St. Paul Rail -Trail to Greathouse Park.
• West fork of White River connecting RR path to Combs Park to Crossover at Highway
16E.
• St. Paul Spur Trail
• Center Prairie Trail
• Futrall to 18th to ball park
• Lewis Avenue - North South from Wedington to Deane
• Path along Razorback Road extension
BICYCLE LANES
• Rolling Hills Drive - East West between College and Old Missouri
• Old Wire Road - North South parallel to College and Crossover
• Huntsville Road - East West between Crossover and Block Avenue
• 15th Street - East West, South of campus between Razorback and Happy Hollow
• Cato Springs Road Eat V3,s,.t ef 1 i, connects to School Avenue, and Cato Springs
Road (running North South)
• Futrall Drive - West of Cato Springs Road, connects of U.S. 62
• 18th Street - runs East West, connects to 15th Street and Futrall Drive
• Porter Road - North South on West side of Fayetteville, connects Deane and
Wedington
• North Street - East West between Garland and College Avenue
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TITLE I SERVICES
SURVEYS
CLASSIFICATION
Project Manager
Professional Land Surveyor
Party Chief
Instrument Person
Rod Person
Draftsman
Clerical
PRELIMINARY DESIGN
CLASSIFICATION
Project Manager
Landscape Architect
Engineer
Draftsman
FINAL DESIGN
CLASSIFICATION
Project Manager
Landscape Architect
Engineer
Draftsman
Clerical
CONFERENCES
CLASSIFICATION
Project Manager
Landscape Architect
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APPENDIX C
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AVERAGE RATE/HOUR MAN HOURS
18.75
20.00
16.50
10.00
7.50
11.26
8.60
SUB -TOTAL
32
200
440
440
440
280
30
1862
AVERAGE RATE/HOUR MAN HOURS
18.75
18.75
19.28
11.26
SUB -TOTAL
80
160
60
200
580
AVERAGE RA 1'6/HOUR MAN HOURS
18.75
18.75
19.28
11.26
8.60
SUB -TOTAL
200
450
80
400
60
1200
AVERAGE RATE/HOUR MAN HOURS
18.75
18.75
SUB -TOTAL
20
20
40
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TOTAL COST
$ 600.00
$ 4,000.00
$ 7,260.00
$ 4,400.00
$ 3,300.00
$ 3,152.80
$ 344.00
$ 23,056.80
TOTAL COST
$ 1,500.00
$ 3,000.00
$ 1,156.80
$ 2.252.00
$ 7,908.80
TOTAL COST
$ 3,750.00
$ 8,437.50
$ 1,542.40
$ 4,504.00
$ 516.00
$ 18,749.90
TOTAL COST
375.00
375.00
750.00
TOTAL DIRECT LABOR
OVERHEAD (1.186% of Total Direct Labor)
SUBTOTAL (Total Direct Labor + Overhead)
FIXED FEE (17.5% of Total Direct Labor + Overhead)
SUB -TOTAL (Total Direct Labor + Overhead + Fixed Fee)
DIRECT COSTS
TOTAL (Total Direct Labor + Overhead + Fixed Fee + Direct Costs)
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$
50,465.50
$
59,852.00
$
110,317.50
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19,305.57
$
129,623.07
$
15,000.00
$144,623.07
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DEFENSE CONTRACT AUDIT AGENCY
AUDIT REPORT
28 August 1995,
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�:IJ J`::� I l�l\Il I •J
PREPARED FOR: Procuring Contracting Officer (Moore)
Department of the Army -
Little Rock District
• Carps of Engineers
Post Office Box 867
Little Rock, Arkansas 72203-0867
PREPARED BY: Richardson Branch Office
801 East Caitobell Road, Suite 230
Richardson, Texas 75081-1817 -
Telephone No. (214) 655-3750
Fax No. (214) 655-3820
SUBJECT: T: Report on Audit of Individual Price• Proposal
Sol. DALW03-95-R-0015
REFERENCES: POD: RFP No. D-AC03-95-R-0015
ECAA: Audit Report No. 95V21000012
Chron No. 264
C CN'IRACIOR: Wynn/1MF (Mehlburger Finn)
201 S. Izard
P st Office Box 2837
Little Rock, Arkansas 72203-3837
REPORT RELEASE RESIRICi.L S: See Page 7
CS37iE L'S : Subject of Audit - 1
Executive Summary 1
Scope of Audit = 2
Results of Audit 3
Contractor's Organization and Systems 5
ECAA Personnel and Report Authorization 6
Audit Repert Distribution and
Restrictions 7
FOR OFFICIAL, USE CNLY
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Audit Report No. 3531-95V21000012 `
SUBJECT OF AUDIT
As requested by your letter dated 3 August 1995, we have audited the
Wynn/mw (merger Firm)' proposed labor, labor overhead and general and
administrative (G&A) expense rates contained in its 31 July 1995 proposal for
$250,000 to determine if the proposed costs are acceptable as a basis to
negotiate a fair and reasonable contract price. We have also calculated the
annual wage increase for its employees. This indefinite delivery contract
provides surveying services for various civil and military projects in Arkansas
and Missouri and was submitted in response to Solicitation Number
DACN03-95-R-00]5. The contractor is proposing a 1 year contract plus a 1 year
option.
The prcpDsal and related cost or pricing data are the responsibility of
the contractor. Our responsibility is to express an opinion at the proposal
based on our audit.
Except for the significant issues described below, the proposal is
'acceptable for negotiation of a fair and reasonable price.
Category Proposed Questioned
Overhead 120% 1.4
Material
Field Supervisor $15.00 $15.00
Party Chief $10.00 $ 4.32
Instnrcent Man $ 5.00 $ 5.00
Rod Man $ 5.00 $ 5.00
SIC34mI Rr ISSUES:
1. The contractor has not prepared budgetary forecasts for the entire
period of contract performance_ Ccaprehensive budgetary data are required to
facilitate the preparation of reliable cost estimates and as a basis for.
.financial control over costs during contract performance.
2. The contractor has not separated general and administrative costs
from the direct labor pool. We were unable to determine the possible impact of
not separating general and acani ni strative costs _
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FOR OFFICIAL USE CM,Y
Audit Report No. 3531-95V21000012
SCOPE OF AUDIT
Except for the qualifications noted below, we conducted our audit in
accordance with generally accepted government auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the data and records reviewed are free of material
misstatement. An audit includes:
a. reviewing the contractor's internal controls, assessing control
risk, and determining the extent of audit testing needed based on
an assessment of control risk;
b. examining, an a test basis, eiridence supporting the amounts and
disclosures in the proposal;
c. assessing the accounting principles used and significant estimates
made by the contractor; and
d. evaluating the overall data and records presentation.
We evaluated the proposed costs using the applicable requirements
contained in the
a.
Federal
Acquisition
Regulations (FAR),
b.
DoD FAR
Supplement
(DF'ARS) `
The contractor claims exemotion under 48 C≥RR 9903.201(b) (3) from the
practices required by the Cost Accounting Board rules and regulations because
it considers itself a small business concern.
The contractor is a small business with limited resources to be applied
to carpliance procedures and testing. As a result, we have assessed control
risk to be high and our audit scope reflects this assessment. _
During discussions with the contractor, we determined that the
contractor has not prepared budgetary forecasts for the entire proposed per-iod
of contract performance. In our opinion, azrprebensive budgetary data are
required to facilitate the preparation of reliable cost estimates and as a
basis for financial control over costs during contract performance. We were
unable to determine, by other audit procedures, the possible impact that
budgetary data would have on the proposed direct cost, indirect expense rates,
and related allocation bases.
During our audit we found that the contractor has included all allowable
indirect costs including G&A in one overhead pool. Upon discussion concerning
this matter, Mr. Mike Watson advised that this is the way Mehlburger calculates
its rates. We were unable to determine, by other audit procedures, the
possible -impact of including all costs in the overhead pool. Cur opinion
regarding these costs is therefore qualified.
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Audit Report No. 3531-95V21000012
RESULTS OF AUDTT
Auditor's Opinion:
In our opinion, the cost or pricing data submitted by the offeror are
inadequate in part (see qualifications on page 2). However, the inadequacies
described are considered to be relatively insignificant. The proposal was not
prepared in all respects in accordance. with appropriate provisions of FAR and
DtD FAR Supplecrent . Hcz ever, the nonccmpliances described in the
qualifications section of this report are considered relatively insignificant.
Because the noncocrpliances and inadequacies are considered insignificant, we
believe that the proposal is an acceptable basis for negotiation of a fair and
reasonable price. _
Audit Evaluation.
Questioned costs are as follows:
We judgtrentally selected a sample of transactions from three indirect
e pense accounts. We reviewed dosrentation provided by the contractor to,
support the transactions and evaluated the doclrcentation for adequacy and the
costs for allo rability in accordance with the provisions of FAR. 31.205. Based
on our review, we questioned the following costs:
Title Clailred Questioned Notes
Errors/Cmissions $ 2,034 $ 2,034 a
Facilities CUM $ 13,628 $13,628 b -
Total Overhead 1200 1.4o c
a. Furors/Omissions are questioned because this account accumulates
cost of errors. This cosy not result in an equitable allocation of costs. We
have questioned these costs accordingly. -
b. FAR 31.205.10 states that Facilities Cost of Money mist be submitted
on Form CASB-Qg' and show the calculation of the proposed amount. Profit is
not allowed on Cost of Money. With the Cost of Money in the overhead pool,
profit is applied. -
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Audit Report No. 3531-95V21000012
c. If questioned costs are taken out of the pool, the total overhead
will be $873,091. If this is then divide by total labor ($736,321), the
recamended overhead percentage would be 118.570.
2. Material
Title Claimed Questioned
Field Supervisor $15.00 $15.00
Party Chief $10.00 $ 4.32
Instrument Man $ 5.00 $ 5.00
Rod Man $ 5.00 $ 5.00
The contractor estimated the cost of material as "rate per hour" for the
four (4) categories of labor identified above. Historical caparison supports
an average "rate per hour" of $5.68 per day for the labor category of "Party
Chief." Based on the history of $5.68 limited to the "Party Chief', we have
questioned the "rate per hour" applied to all other labor groupings.
As requested by your letter dated 3 August 1995, we have calculated the
annual wage increase for Wynn/TMF (MehJb rger's) employees_ Using the corps
personnel salary history the annual increase for 1993 to 1994 was 7.4; and the
annual increase for 1994 to 1995 was 9.70.
Factual matters concerning the audit were discussed with contractor
representatives, Mr. Mike Watson, Vice President, and Ms. Judy Jeffrey,
Treasurer, airing the audit and at an exit conference on 16 August 1995. We
did not provide the contractor with the dollar impact of our conclusions and
recommendations. During the conference, the contractor representative
concurred with the adjustment of material proposed. The contractor
representative did not agree that costs should be broken out for General and
Administrative cost.
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Audit Report No.. 3531-95V21000012
COriiRP.CTDR CRW'NIZATICW AMID SYSTEMS
Oruanization
Wyrin/'IIMT (the Mehlfurger Firm) is a closely held corporation
incorporated in Arkansas in 1965 with an annual sales volute of $2,000,000.
They provide architecture, engineering and surveying services.
Acc xnting System
The contractor maintains a job order cost system_ This office has not
reviewed the accounting system.
Estimatinc System
We have not reviewed the amtractor's estimating system.
Billing System
We have not reviewed the contractor's billing system.
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. F L
Audit Report No. 3531-95V21000012
Primary aitact regarding ng this audit:
Richard L. Olt, Auditor
Other individuals having involvement with
the audit and having access to proprietary
or source selecticn information regarding
this audit report:
Peter C. Van Des Veen, Branch Manager
Kenneth A. Finley, &petvisory Auditor
Class of persons having access to this report:
Office Administrative Personnel
ECAA Office Fax No.:
Richardson Branch Office
•_P V �.•iD •� • •' ACID C
•
6
FOR OFFICSAL USE ONLY
i
Telephone No.
(214) 655-3750
(214) 655-3750
(214) 655-3750
(214) 655-3820
.VEEN
Branch Office
Audit Report No. 3531-95V21000012
DISTRSBLIT7
Departtent of the Army
Little Rock District
Corps of Engineers
ATIN: Virginia A. More
Post Office Sox 867
Little Rock, Arkansas 72203-0867
RFSTRICTIONS
1. Contractor information contained in this report nay be proprietary. The
restrictions of 18 U.S.C. 1905 should be considered before this info rnation is
released to the public.
2. Under the provisions, of Title 32, Code of Federal Regulations, Part
290.26 (b)(2), any Freedan of Information Act requests for reports received by
DCAA will be referred to the ccxgntzant contracting agency for determination as
to releasability and a direct response to the requester_
3- The Defense Contract Audit Pgency has no objection to release'of this
report, at the discretion of the contracting agency, to authorized
representatives of Wynn/'III'.
a The information contained in this report should not be used for purposes
other than action on the subject of this review without first discussing its
applicability with the auditor.
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FOR OFFICIAL USE ONLY
_•'_. - 1.
0,000
AU-OWnQE AtLOWA&LE
f1 ,ua.cnn.:
TfXL4I5 LABOR r
drstl la6of 3735.1.21 5735,321
16T"tt 4.004
Pay-oa ttzc 401k t d6. 3364086
0540 08.902
C4Moda pin 0,4100
0 0
T•arel 13,313
td 0,710 39.505
1d�afa 4,WA EaiPK tftta �� 3,416 106
`iWV Y6tdec 10.861 14.551
P�04no T.236 304ta
7256
P�o.wfo= R416 v 173,181 12853 18Q1820
A par 6.676
cxv n 4t t5.O4d e`er
15,045
AaW ctoto q'SS 34264 8.371
1,150 1150
6,147 7830 417
1<Zat
. f°g4a6pa-WoC'P Wa1y 13.621 691sa3
= 11,624
.. TaY•CS{GYM1sa &510 ZO 4
6407 ASta
Maki. 7= 0�0'7
rsst2i• 9,663 7,300
ERA# makes 9,795 366
14797 14,7D7
CThSSDns 57.= 57.877
TLZU 10,403 15.911 X492
15,644 154044
hYbM•a Td\76 SbK 1605 7583 7.022
1.575 13,67D
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