Consultant Services updates
Increase to MnDOT's Overhead Rate Cap Effective October 1
MnDOT understands the cost of doing business has increased over the last several years, therefore, will increase its overhead rate cap from 170% to 175%. This will go into effect for contracts that start the contracting process on or after October 1, 2024. Contracts that are already in process will maintain the current overhead rate cap of 170%. Amendments to existing contracts will continue to use the cap that was in place in the original contract. There will be no adjustments to the fixed fee calculations.
Please see the following letter for additional information: Overhead Rate Increase Letter 09.26.2024
Quality Management Plan (QMP) Updates
Thank you to those that provided feedback on QMP's during the solicitation process. QMP's will no longer be a required scoring item within solicitations. MnDOT has made updates to the QMP sections within the solicitation templates to reflect this change.
MnDOT Project Manager's may elect to request a project specific QMP as part of the contract. If required, this will be detailed in the contract and in most cases, will be due 5 calendar days after contract execution.
Upcoming End of Fiscal Year Invoices
The end of the State's fiscal year is fast approaching (June 30). When we get closer to that billing period, this is a reminder, if your billing period includes costs to and after June 30, provide a “Billed This Invoice” split of cost through June 30, and costs after.
Audit Program | Annual Audits by Consultant
Following a successful Fiscal Year 2024 Audit Pilot Program, effective July 1, 2024, MnDOT Office of Audit will implement an Audit program that conducts annual audits by consultant instead of program and contract-based audits. Reference the Consultant Corner tab for additional information.
MnDOT seeks input on proposed three-year goals for disadvantaged businesses
The Minnesota Department of Transportation invites and welcomes public comments on the proposed statewide goals for Disadvantaged Business Enterprise (DBE) participation in highway and transit contracts for federal fiscal years 2025‐2027.
The DBE program is an affirmative action program intended to level the playing field by providing contracting opportunities for small businesses that are owned and controlled by socially and economically disadvantaged individuals.
Two public hearings were held on June 18 and June 24, 2024 to discuss the goals and methodology and receive public comments. The public comment period is June 18 - July 18, 2024.
The proposed statewide goals, executive summary, Public Hearing Presentation slides and information on submitting public comments can be found here: https://www.dot.state.mn.us/civilrights/dbe-goal.html
Solicitation Page Limit and QMP Updates
Thank you to those that provided feedback on solicitation language related to page limits and the QMP language. MnDOT has made updates to the page limit sections within the solicitation templates. Consideration is still being given to the QMP language. Updates to the QMP language may be incorporated soon.
Work Force and Equal Pay Declaration Page and Resident Vendor Form
In an effort to reduce the redundancy of forms being submitted during the solicitation process, consultants can now submit certain forms to Consultant Services. Consultant Services will save the forms so that they are accessible to all MnDOT contract administrators for review during a solicitation process. The following forms may be submitted to Consultant Services at ProfessionalTechnicalContractForms.dot@state.mn.us:
- Workforce and Equal Pay Declaration Page MnDOT Consultant Services will only store this document if a firm is a Certificate Holder or Exempt. Must identify the certification end date on the document. If at any point there is a status change, you submit an updated declaration page. Please note, if the information on file is not up to date, it may impact payments or contract executions. If you are unsure of your certification end date visit Contractor Status / Minnesota.gov (mn.gov).
- Resident Vendor Form Form must be submitted every 12 months OR if Resident Vendor status changes.
Legislative Changes to Preference Points and Equity Select
The State made two major contracting changes in the 2023 legislative session to help promote certified, small Minnesota-owned businesses that have historically experienced economic challenges. These changes increased preference point percentages and the Equity Select threshold, effective July 1, 2023. The new legislation can be found in Minnesota Statutes 16C.16, subdivisions 6, 6a, and 7, as seen via the links on the Minnesota Revisor’s website to the Laws of Minnesota 2023, Chapter 62, Article 2, Sections 77 – 79.
Click here for additional information: Legislative Changes to Preference Points and Equity Select
Travel (Meal) Reimbursement (July 2023)
Effective July 1, 2023 the travel regulations for Professional Technical contracts will align with the Commissioner’s Plan. With that change, the reimbursable meal rates will increase slightly. The new meal rates will be:
Breakfast $10 | Lunch $13.00 | Dinner $19.00
These updated rates will automatically apply to contracts in place for services rendered after July 1, 2023.
- Effective for services rendered after July 1, 2023 only. For example on an existing contract, if a consultant is compiling their invoice in July, for services that were rendered in June, they should be billing the June travel regulations.
- In order to receive the higher rates for services rendered after July 1, 2023, the consultant must include the updated rates when submitting an invoice. MnDOT will not return invoices that include the previous Travel Regulation amounts. Invoices will be paid according to what is billed on each invoice.
- The total contract amount cannot be exceeded. Please budget accordingly. MnDOT will not process amendments for meal increases only. The rates can be updated if an amendment is being processed for other changes to the contract.
Travel (Mileage) Reimbursement (January 2024)
Starting January 1, 2024, the standard IRS mileage rate for business use of a personal vehicle is increasing to $0.67 (cents) per mile. This new rate should be used for all contracts and consultant billing from January 1, 2024.
MnDOT Safe Harbor Program (June 2022)
In 2019, the Federal Highway Administration (FHWA) approved the use of the Safe Harbor Overhead Rate Program for the consultant overhead rate calculation with a cap of 110%. The purpose of this program is to allow time for engineering consulting firms to satisfy the requirements of Part 31 of the Federal Acquisition Regulation for Overhead Calculations.
In 2022, MnDOT established a Safe Harbor Program for use with consultant contracts. Consulting firms that provide engineering and design-related services on fixed hourly rate contracts may be eligible to enroll in MnDOT’s Safe Harbor Program. This program allows a consulting firm to use MnDOT’s established Safe Harbor Overhead Rate of 110.00% of direct labor for the first two years that it is under contract to work with MnDOT.
To participate in the Safe Harbor Program, consultants must certify their intent and commitment to actively work with an accountant or bookkeeper to establish an accounting system, using QuickBooks or similar software.
- Additional information on how to participate: Safe Harbor Program Quick Look (PDF)
Solicitation Language for Contracting with Community-Based Organizations (February 2022)
MnDOT has developed recommended language that could be used in lieu of (or in addition) to the existing solicitation language when interested in contracting or sub-contracting with Community-Based Organizations (CBOs) for engagement/communications work activities.
- View the language recommendations: Solicitation Language Recommendations for Contracting with Community Based Organizations (Word)