The use of the safe harbor indirect cost rate is an option for eligible firms (both prime and subconsultants) on contracts executed within the established test period, unless a firm alternatively opts to propose establishment of a Federal Acquisition Regulation (FAR) compliant indirect cost rate. State DOT Responsibilities: FHWA has approved Caltrans safe harbor indirect cost rate procedures last month. Caltrans has incorporated the safe harbor indirect cost rate work plan process into their written risk-based oversight procedures. The SHR implementation instructions are in the Caltrans Division of Procurement and Contract (DPAC) website for state A&E contracts and Caltrans Division of Local Assistance (DLA) website via bulletin for Local Agencies A&E contracts. DPAC, DLA, and Caltrans Audits and Investigations (A&I) are currently developing their test and evaluation process for the safe harbor indirect cost rate, since during the test period, Caltrans, with input from the sub grantees (Local Agencies) and the A&E firms, will report their test results and evaluations to FHWA. FHWA will monitor Caltrans’s progress and ensure that Caltrans and their sub grantees fulfill the expectations for reporting their test results and evaluations with the safe harbor indirect cost rate. In Summary: The safe harbor indirect cost rate is a pilot project concept Time frame July 1, 2013 through June 30, 2016 Indirect cost rate is set at 110% 10 states are being tested and evaluated for the use of this pilot project concept California is one of the test States Caltrans has incorporated the safe harbor indirect cost rate process into their written risk-based oversight procedures The SHR implementation instructions are in the DPAC and DLA website. Caltrans and their sub grantees (Local Agencies) will conduct a test and evaluation of the safe harbor indirect cost rate. Caltrans and input from sub grantees (Local Agencies) and A&E firms will provide responses to FHWA of their observations, experiences and lessons learned from the test and evaluation FHWA will monitor the progress and ensure that Caltrans and their sub grantees (Local Agencies) fulfill the expectations for reporting their test results and evaluations with the safe harbor indirect cost rate. As mentioned earlier, the underlying purpose is for FHWA to evaluate the merit of the concept for incorporation into future regulation, policy and guidance.
The use of the safe harbor indirect cost rate is an option for eligible firms (both prime and subconsultants) on contracts executed within the established test period, unless a firm alternatively opts to propose establishment of a Federal Acquisition Regulation (FAR) compliant indirect cost rate. State DOT Responsibilities: FHWA has approved Caltrans safe harbor indirect cost rate procedures last month. Caltrans has incorporated the safe harbor indirect cost rate work plan process into their written risk-based oversight procedures. The SHR implementation instructions are in the Caltrans Division of Procurement and Contract (DPAC) website for state A&E contracts and Caltrans Division of Local Assistance (DLA) website via bulletin for Local Agencies A&E contracts. DPAC, DLA, and Caltrans Audits and Investigations (A&I) are currently developing their test and evaluation process for the safe harbor indirect cost rate, since during the test period, Caltrans, with input from the sub grantees (Local Agencies) and the A&E firms, will report their test results and evaluations to FHWA. FHWA will monitor Caltrans’s progress and ensure that Caltrans and their sub grantees fulfill the expectations for reporting their test results and evaluations with the safe harbor indirect cost rate. In Summary: The safe harbor indirect cost rate is a pilot project concept Time frame July 1, 2013 through June 30, 2016 Indirect cost rate is set at 110% 10 states are being tested and evaluated for the use of this pilot project concept California is one of the test States Caltrans has incorporated the safe harbor indirect cost rate process into their written risk-based oversight procedures The SHR implementation instructions are in the DPAC and DLA website. Caltrans and their sub grantees (Local Agencies) will conduct a test and evaluation of the safe harbor indirect cost rate. Caltrans and input from sub grantees (Local Agencies) and A&E firms will provide responses to FHWA of their observations, experiences and lessons learned from the test and evaluation FHWA will monitor the progress and ensure that Caltrans and their sub grantees (Local Agencies) fulfill the expectations for reporting their test results and evaluations with the safe harbor indirect cost rate. As mentioned earlier, the underlying purpose is for FHWA to evaluate the merit of the concept for incorporation into future regulation, policy and guidance.