Transportation, Administration

Rule R907-66

Incorporation and Use of Federal Acquisition Regulations on Federal-Aid and State-Financed Transportation Projects

Notice of Proposed Rule

(Amendment)

DAR File No.: 35324
Filed: 10/12/2011 11:40:30 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The reason for the change is to set the Utah Department of Transportation (UDOT) small purchase cap for architecture and engineering services to match the recently changed federal simplified acquisition threshold and to indicate the specific parts of the Federal Acquisition Regulations (FAR) found in 48 CFR that are being incorporated. The federal simplified acquisition threshold was increased to account for inflation using the Consumer Price Index. UDOT believes it is generally most efficient to be consistent in federal-aid projects and state-funded projects and to match the federal small purchase cap for both.

Summary of the rule or change:

The change sets the UDOT small purchase cap for architecture and engineering services to match the recently changed federal simplified acquisition threshold, which is $150,000, and to indicate the specific parts of the Federal Acquisition Regulations (FAR) found in 48 CFR that are being incorporated.

State statutory or constitutional authorization for this rule:

• Section 63G-6-105
• Section 72-1-201

This rule or change incorporates by reference the following material:

• Updates 48 CFR Chapter 1 Parts 1, 2, 30, 31, 32, 36 and 42, published by Government Printing Office, October 1, 2010

Anticipated cost or savings to:

the state budget:

There may be a small cost savings to the state budget due to a small reduction in labor hours of state employees reviewing competitive proposals and administrating consultant selections for architecture and engineering contracts where the contract amount is estimated to be between $100,000 and $150,000.

local governments:

There may be a small cost savings to local government due to a small reduction in labor hours of local government employees reviewing competitive proposals and administrating consultant selections for architecture and engineering contracts where the contract amount is estimated to be between $100,000 and $150,000.

small businesses:

There may be a small cost savings to small businesses due to a small reduction in labor hours in marketing and preparing proposals for architecture and engineering contracts where the contract amount is estimated to be between $100,000 and $150,000.

persons other than small businesses, businesses, or local governmental entities:

There is no anticipated cost or savings to persons other than small businesses, businesses, or local government entities because the change only increases the small purchase cap and clarifies the incorporated material.

Compliance costs for affected persons:

There are no anticipated costs for affected persons because the change only increases the small purchase cap and clarifies the incorporated material.

Comments by the department head on the fiscal impact the rule may have on businesses:

There may be a small cost savings to businesses due to a small reduction in labor hours in marketing and preparing proposals for architecture and engineering contracts where the contract amount is estimated to be between $100,000 and $150,000.

John Njord, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Transportation
Administration
CALVIN L RAMPTON COMPLEX
4501 S 2700 W
SALT LAKE CITY, UT 84119-5998

Direct questions regarding this rule to:

• Linda Barrow at the above address, by phone at 801-965-4026, by FAX at 801-965-4338, or by Internet E-mail at lindabarrow@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/01/2011

This rule may become effective on:

12/08/2011

Authorized by:

John Njord, Executive Director

R907. Transportation, Administration.

R907-66. Incorporation and Use of Federal Acquisition Regulations on Federal-Aid and State-Financed Transportation Projects.

R907-66-1. Reason for Incorporation - Federal-Aid Projects and State Projects.

(1) 23 U.S.C. 112 requires States to use the relevant parts of the Federal Acquisition Regulations (FAR), contained in 48 CFR [Part]Chapter 1 to calculate appropriate contract costs in all Federal-Aid transportation projects. Previously, federal law allowed States to develop their own cost principles and procedures in Federal-Aid projects.

(2) Consequently, the Department adopts and incorporates 48 CFR [Part]Chapter 1 Parts 1, 2, 30, 31, 32, 36 and 42 for use in Federal-Aid transportation projects.

(3) Because many transportation projects that the Department administers receive federal aid, the Department believes it is generally most efficient to also use FAR when calculating contract cost principles and procedures in transportation projects financed solely with state funds. Therefore, the Department[s] also adopts and incorporates 48 CFR [Part]Chapter 1 Parts 1, 2, 30, 31, 32, 36 and 42 for use in most state-financed transportation projects.

 

R907-66-2. Financial Screening.

(1) To verify that the calculated overhead and hourly billing rates comply with FAR, UDOT conducts an initial financial screening and approval of consultants desiring to submit a Statement of Qualification (SOQ) for architecture and engineering service contracts.

(2) Consultants shall update their financial screening information by submitting a new completed financial screening application and related information to the Consultant Services Division. The consultant shall file the updated applications annually, on the anniversary date of the initial filing.

 

R907-66-3. Contract Negotiations.

(1) UDOT negotiates consultant contracts with the firm it considers most qualified to provide such services, using guidelines developed by the Consultant Services Division. UDOT prepares independent estimates of the value of such services for use in negotiations.

(2) Negotiations follow state and federal procurement procedures and are based on compensation that UDOT considers fair and reasonable. Negotiations will end when UDOT decides that it cannot agree on terms with the first most qualified firm. UDOT will then begin negotiations with the next most qualified firm. This process continues until either mutually agreeable terms are negotiated or UDOT chooses to begin the selection process again to identify other firms qualified to provide such services.

(3) The guidelines for both selection and negotiations are public information and can be obtained by contacting the Consultant Services Division.

 

R907-66-4. Award of Contracts.

UDOT awards the contract to the best qualified consultant with which it can negotiate a fair and reasonable cost as required by state rules and FAR and in accordance with UDOT selection procedures and guidelines.

 

R907-66-5 Small Purchase Cap.

To be consistent between federal-aid projects and state-financed projects, UDOT adopts the federal small purchase cap or simplified acquisition threshold established in 48 CFR 2.101, which is currently $150.000.

 

R907-66-[5]6. Execution of Contracts.

UDOT considers no contract effective until funding has been approved and all signature lines have been filled in with the appropriate officer's signature.

 

KEY: transportation, contracts[, reimbursement, bonuses]

Date of Enactment or Last Substantive Amendment: [January 3, 2007]2011

Notice of Continuation: November 29, 2006

Authorizing, and Implemented or Interpreted Law: 63G-6-105; 72-1-201