DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: All
SUBJECT:
City-wide Cost Allocation Plans
SUMMARY:
An ordinance authorizing the execution of a professional services agreement with MGT of America Consulting, LLC ("MGT") in amount not to exceed $183,250.00 for the preparation of two (2) City-wide cost allocation plans. The contract will be for an initial three (3) year term for fiscal years ending September 30, 2019, 2020, and 2021. The City has the option to renew the contract for two (2) additional one (1) year terms for fiscal years 2022 and 2023 upon approval from the Deputy Chief Financial Officer.
BACKGROUND INFORMATION:
The City contracts with qualified service providers in providing cost allocation plans described herein. The City incurs both direct and indirect costs in the performance of its responsibilities. Direct costs are costs that can be specifically or readily identified with a specific cost objective or program. Indirect costs are costs necessary for the effective and efficient operation of City programs, but which cannot be directly assigned to one service. Indirect costs can include citywide central services and departmental administration and support.
The City contracts to have two central services cost allocation plans, a full-cost indirect cost rate proposal for Capital Management Services (CMS) capital projects, and indirect cost rates for specific departments under Uniform Guidance. The Central Services Cost Allocation Plans are: Full-Cost Central Services Cost Allocation Plan and Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Central Services Cost Allocation Plan (Uniform Guidance). Each Cost Allocation Plan has unique characteristics and uses. The Full-Cost Central Services Cost Allocation Plan is utilized to identify and recover central services costs from non-general fund sources other than grant funded programs. The Uniform Guidance C...
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