HomeMy WebLinkAbout09-169 - FCS Group - Indirect Cost Allocation PlanContract No.09 -169
CONTRACT FOR SERVICES Council Approval N/A
This Agreement is entered into by and between the City of Tukwila, Washington, a noncharter
optional municipal code city hereinafter referred to as "the City and FCS Group, hereinafter referred
to as "the Contractor whose principal office is located at Redmond Town Center, 7525 166th Avenue
NE, Suite D -215, Redmond, WA 98052.
WHEREAS, the City has determined the need to have certain services performed for its citizens
but does not have the manpower or expertise to perform such services; and
WHEREAS, the City desires to have the Contractor perform such services pursuant to certain
terms and conditions; now, therefore,
IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties
hereto agree as follows:
1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall
perform those services described on Exhibit A attached hereto and incorporated herein by this
reference as if fully set forth. In performing such services, the Contractor shall at all times comply with
all Federal, State, and local statutes, rules and ordinances applicable to the performance of such
services and the handling of any funds used in connection therewith. The Contractor shall request and
obtain prior written approval from the City if the scope or schedule is to be modified in any way.
2. Compensation and Method of Payment. The City shall pay the Contractor for services
rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated
herein by this reference. The total amount to be paid shall not exceed $15,935.
3. Contractor Budget. The Contractor shall apply the funds received under this Agreement
within the maximum limits set forth in this Agreement. The Contractor shall request prior approval
from the City whenever the Contractor desires to amend its budget in any way.
4. Duration of Agreement. This Agreement shall be in full force and effect for a period
commencing October 7, 2009 and ending January 31, 2010 unless sooner terminated under the
provisions hereinafter specified.
5. Independent Contractor. Contractor and City agree that Contractor is an independent
contractor with respect to the services provided pursuant to this Agreement. Nothing in this
Agreement shall be considered to create the relationship of employer and employee between the parties
hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded
City employees by virtue of the services provided under this Agreement. The City shall not be
responsible for withholding or otherwise deducting federal income tax or social security or contributing
to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect
to the Contractor, or any employee of the Contractor.
6. Indemnification. The Contractor shall indemnify, defend and hold harmless the City, its
officers, agents and employees, from and against any and all claims, losses or liability, including
attorney's fees, arising from injury or death to persons or damage to property occasioned by any act,
omission or failure of the Contractor, its officers, agents and employees, in performing the work
required by this Agreement. With respect to the performance of this Agreement and as to claims
against the City, its officers, agents and employees, the Contractor expressly waives its immunity under
Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees,
and agrees that the obligation to indemnify, defend and hold harmless provided for in this paragraph
extends to any claim brought by or on behalf of any employee of the Contractor. This waiver is
mutually negotiated by the parties. This paragraph shall not apply to any damage resulting from the
sole negligence of the City, its agents and employees. To•the extent any of the damages referenced by
this paragraph were caused by or resulted from the concurrent negligence of the City, its agents or
employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the
extent of the negligence of the Contractor, its officers, agents, and employees.
7. Record Keeping and Reporting.
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A. The Contractor shall maintain accounts and records, including personnel, property,
financial and programmatic records which sufficiently and properly reflect all direct and indirect costs
of any nature expended and services performed in the performance of this Agreement and other such
records as may be deemed necessary by the City to ensure the performance of this Agreement.
B. These records shall be maintained for a period of seven (7) years after termination hereof
unless permission to destroy them is granted by the office of the archivist in accordance with RCW
Chapter 40.14 and by the City.
8. Audits and Inspections. The records and documents with respect to all matters covered by
this Agreement shall be subject at all times to inspection, review or audit by law during the
performance of this Agreement.
9. Termination. This Agreement may at any time be terminated by the City giving to the
Contractor thirty (30) days written notice of the City's intention to terminate the same. Failure to
provide products on schedule may result in contract termination. If the Contractor's insurance coverage
is canceled for any reason, the City shall have the right to terminate this Agreement immediately.
10. Discrimination Prohibited. The Contractor shall not discriminate against any employee,
applicant for employment, or any person seeking the services of the Contractor to be provided under
this Agreement on the basis of race, color, religion, creed, sex, age, national origin, marital status or
presence of any sensory, mental or physical handicap.
11. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of
the services contemplated by this Agreement without the written consent of the City.
12. Entire Agreement. This Agreement contains the entire Agreement between the parties
hereto and no other Agreements, oral or otherwise, regarding the subject matter of this Agreement,
shall be deemed to exist or bind any of the parties hereto. Either party may request changes in the
agreement. Proposed changes which are mutually agreed upon shall be incorporated by written
amendments to this Agreement.
13. Notices. Notices to the City of Tukwila shall be sent to the following address:
City Clerk, City of Tukwila
6200 Southcenter Blvd.
Tukwila, Washington 98188
Notices to the Contractor shall be sent to the address provided by the Contractor upon the
signature line below.
14. Applicable Law;_ Venue: Attorney's Fees. This Agreement shall be governed by and
construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or
other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand
and agree that venue shall be properly laid in King County, Washington. The prevailing party in any
such action shall be entitled to its attorney's fees and costs of suit.
DATED this EJ day of I D hoc-- 20 6?
CITY F TUKWILj& CONTRACT R: FCS GROUP. Inc.
Title: Principal
Printed Name: Peter Mov
Address: 7525 166 Ave NE Suite D -215
Redmond. WA 98052
Date approved by City Council:
(Applicable if contract amount is over $40,000)
By
Title /JJm Haggert 9 Iayor
A•1`Tl✓ T/A THENTICATED:
By:
Christy O'Flaherty, CMC, City C -rk
APPROVED AS TO FORM:
Office of the City Attorney
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Indirect Cost Allocation Plan
City of Tukwila
ATTACHMENT A
SCOPE OF WORK
TASK 1: WORK AND MEET WITH SELECTED CITY STAFF TO DEFINE THE
PURPOSE, USES, AND GOALS FOR THE INDIRECT COST ALLOCATION PLAN
1.A Prepare Data Requests: We will compile and issue a comprehensive request for needed
information, such as departmental budgets, any documentation describing the existing cost
allocation /interfund charge /cost recovery methods, and the current allocation measures.
1.B Conduct Project Kick Off Meeting: We will meet with the City's project manager and
selected City staff in one meeting to initiate the study. We will discuss roles and responsibilities,
project goals and requirements, City policies and practices, uses of the plan, project execution,
schedule and key milestones, readily available data, and subsequent data collection tasks.
1.0 Review Organizational Structure and Interview Staff. We will conduct a series of
interviews to fully understand the organizational structure of the organization. These will be with
those responsible for indirect services, and the interviews are designed so that we can be fully aware
of the functional roles each department and /or division plays in the delivery of the services.
TASK 2: WORK WITH CITY STAFF TO DEVELOP AND IDENTIFY INDIRECT
SERVICES, COST CATEGORIES, AND ALLOCATION CRITERIA
We will meet with City staff members from the different indirect departments or divisions either
individually and /or in small groups (based on staff availability) to obtain an understanding about the
issues concerning the current indirect cost allocations, to define the indirect services and cost pools,
and to identify appropriate allocation criteria. In addition, we will conduct a group interview with
the direct service department staff to obtain their perspectives on indirect cost allocation issues. The
key steps in this task will be the following:
Identify indirect and direct services,
Establish cost pools,
Identify allocation factors,
Collect financial and statistical data for the cost pools and allocation factors,
Review any time distribution system for accuracy and compliance, and
Review any special City accounting practices related to indirect cost allocation.
TASK 3: DEVELOP A FULL COST ALLOCATION MODEL
3A. Develop Model: Develop a full cost allocation model in a spreadsheet format in Microsoft
Indirect Cost Allocation Plan
City of Tukwila
Excel. Include clear data entry areas for costs, allocation data sets, and departments and funds.
Construct primary and secondary allocation calculations.
3B. Calculate Current Allocations: Using current costs and allocation measures calculate cost
allocations to the different departments, divisions, or funds. Compare results to past allocations
prepared by the City to identify the amount and cause for any shifts in cost allocation amounts.
3C. Review Preliminary Allocations with City Staff Prepare for and facilitate one meeting with
participating City staff members (e.g., a management group) to review preliminary conclusions from
the indirect cost allocation plan. We anticipate that staff from the direct service departments will
also participate and provide their comments on the results of the indirect cost allocations.
TASK 4: PREPARE THE INDIRECT COST ALLOCATION PLAN
Based on the comments from the presentation of the draft plan, we will revise the draft to address
comments and issues raised by City staff. We will then provide the City a full plan.
4.A. Prepare Draft Plan: Develop a draft report and submit it to City staff in electronic form for
review and feedback. The draft report will describe the methodology, present recommended
allocation, and identify the fiscal impacts on the City.
4.B. Review Draft Plan with City Staff Review and discuss the previously delivered draft report
with City staff and identify changes where appropriate.
4.C. Prepare Final Plan: Based on the City staff's review, finalize the study report. We will
publish copies of the final report document, including four bound originals, one unbound copy, and
one electronic copy. The final report will include a technical appendix containing the any requested
cost allocation analyses.
4.D. Make Presentations: After completing the final plan, we will make one presentation to the
City Council on the methodologies used and the impacts of the cost allocation plan.
TASK 5: FINALIZE THE MODEL FOR DELIVERY (OPTIONAL)
Once all the reports are completed, we will prepare the cost allocation model for delivery to the City
on a compact disc.
TASK 6: TRAIN SELECTED STAFF (OPTIONAL)
Conduct a two hour training session for City staff on model inputs, the framework, the modeling
techniques, and updating the model.
TASK 7: PROVIDE MODEL DOCUMENTATION (OPTIONAL)
Prepare a "Desk Manual" that provides an overview of the model and provides helpful hints and
information on the use of the model.
Indirect Cost Allocation Plan
City of Tukwila
BUDGET
Consultant Hours I Estimated Budget
Principal Project
Study Manager Consultant Admin. Total Labor
Tasks Moy Reese Support Hours Budget
Effective Hourly Billing Rates: $190 $140 $65
Task 1. Work Meet with City Staff 4 8 2 14 $2,010
Task 2: Develop Identify Indirect Services, Cost Categories, Allocation Criteria 4 16 20 $3,000
Task 3: Develop a Full Cost Allocation Model 4 24 28 $4,120
Task 4: Prepare the Indirect Cost Allocation Plan 8 12 2 22 $3,330
Total Estimated Labor Budget 20 60 4 84 $12,460
Optional Tasks
Effective Hourly Billing Rates:
Task 5: Finalize the Model for Delivery
Task 6: Train Selecgted Staff
Task 7 Provide Model Documentation
Total Estimated Labor Budget
ATTACHMENT B
Total Base Project Budget
$12,460
Consultant Hours I Estimated Budget
Principal Project
Study Manager Consultant Admin. Total Labor
Moy Reese Support Hours Budget
$190 $140 $65
1 4 1 6 $815
1 6 7 $1,030
2 8 2 12 $1,630
I 4 18 3 25 $3,475
Total Optional Add -On Budget $3,475
Total Budget with Add -Ons $15,935