Texas Register, Volume 38, Number 32, Pages 4957-5134, August 9, 2013 Page: 5,020
4957-5134 p. ; 28 cm.View a full description of this periodical.
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(1) Administrative qualification is a process used by the de-
partment to verify that a provider has an indirect cost rate that meets
department requirements. Except as provided by paragraph (8) of this
subsection, to compete for a contract under this section a provider ei-
ther must be administratively qualified or must accept an indirect cost
rate under paragraph (7) of this subsection.
(2) Factors in determining administrative qualification.
(A) A provider may demonstrate administrative quali-
fication by an audit or by self-certification [of its incorporated entity
Indirect est rates must be based on the entire incorporated entity and
may not be based on the entitys units or divisions].
(i) An audit may be performed by an independent
certified public accountant (CPA), an agency of the federal government,
another state transportation agency, or a local transit agency. An audit
performed by an independent CPA must be conducted in accordance
with the current versions of 48 C.F.R. Part 31, the Generally Accepted
Government Auditing Standards (GAGAS), and the American Associ-
ation of State Highway Transportation Officials (AASHTO) Uniform
Audit and Accounting Guide. The provider must provide the depart-
ment with unrestricted access to the audit work papers, records, and
other information as requested by the Audit Office.
(ii) Self-certification may be conducted by the
provider and must include a cost report and an internal controls report.
The self-certified cost report must comply with the current versions of
48 C.F.R. Part 31, the GAGAS, and the AASHTO Uniform Audit and
Accounting Guide. The self-certified internal control report must cer-
tify the provider has internal controls in place within its organization.
Both the cost report and the internal control report must be signed by
a company officer and notarized.
(B) The audit or self-certification shall be based on the
provider's fiscal year. The indirect cost rate, as approved by the Audit
Office, shall become effective six months after the end of the provider's
fiscal year, or immediately if filed more than six months after the end
of the provider's fiscal year. It shall be effective no more than twelve
months and shall expire eighteen months after the end of the fiscal year
upon which it is based.
(C) A provider must submit on an annual basis a com-
pensation analysis for all executives in accordance with the AASHTO
Uniform Audit and Accounting Guide.
(D) The department may audit the indirect cost rate of a
provider under contract with, or seeking to do business with, the depart-
ment. These audits will be conducted in accordance with the criteria
outlined in this subsection.
(E) A provider must submit a signed Certification of Fi-
nal Indirect Costs with the audit report or self-certification. The certi-
fication must follow the requirements of the Federal Highway Admin-
istration.
(3) Submittal and review process for administrative quali-
fication.
(A) A provider must submit its administrative qualifica-
tion information to the Audit Office in accordance with the instructions
on the department's website. [Administrativ qualMifiation submittals
(B) Upon review of an audit report or self-certification
received from a provider, the Audit Office may request additional infor-
mation from the provider. If the submittal is not complete and accurate,
the Audit Office will return it to the provider for correction. Upon re-
quest for additional information by the Audit Office, the provider shall
submit the information within 15 days after the day that it receives theAudit Office's request. If the information is not provided within the
15-day period, the submittal will be placed on pending status for an
additional 15 days. If the information is not received within the addi-
tional 15-day period, the submittal will not be processed for adminis-
trative qualification.
(4) Administrative qualification is applicable only to the in-
corporated business entity upon which the indirect cost rate is based
and does not extend to a subsidiary, affiliate, or parent of the incorpo-
rated entity, except as provided by this paragraph. A corporation may
administratively qualify a division of the corporation if the division is
not limited to a geographical area that is less than the entire state of
Texas and if the corporation is able to demonstrate and justify the allo-
cation of costs between the division and other corporate operations. If
a corporate division is administratively qualified, all employees work-
ing under a resulting contract must be employees of the division.
(5) The Audit Office will provide a selected firm's indirect
cost rate information to the managing office [on notification from the
Design Division,] for use in negotiations under 9.40 [9.38] of this
subchapter (relating to Negotiations).
(6) The Audit Office will not provide a firm's administra-
tive qualification information to the managing office or the consultant
selection team before the selection of that firm.
(7) Providers not administratively qualified. The depart-
ment may contract with a prime provider or allow the use of a sub-
provider that is not administratively qualified if:
(A) the provider has been in operation, as currently or-
ganized, for less than one fiscal year and the provider accepts an indi-
rect cost rate developed by the Audit Office; or
(B) on request by the department during the selection
process, the prime provider provides written certification that the prime
provider or subprovider, as applicable, does not have an indirect cost
rate audit and will accept an indirect cost rate developed by the Audit
Office.
(8) Exemptions to administrative qualification.
(A) A non-engineering firm is exempt from the admin-
istrative qualification requirement of this section.
(B) A provider performing a service under standard
work category 18.2.1, subsurface utilities engineering, or any of the
following work groups, as listed on the department's precertification
website, is exempted from administrative qualification, to the extent
of the service being performed:
(i) Group 6, bridge inspection;
(ii) Group 12, materials inspection and testing;
(iii) Group 14, geotechnical services;
(iv) Group 15, surveying and mapping; and
(v) Group 16, architecture.
(C) The Audit Office [and Design Division] may ex-
empt services other than those indicated in subparagraph (B) of this
paragraph on a case-by-case basis. Any request for an exemption must
be received by the Audit Office by the closing date of the solicitation.
(c) Consultant selection team (CST).
(1) The department shall use a CST in selecting providers
under this section.
(2) The CST shall be composed of at least three department
employees [the department employee designated as the GST chai the38 TexReg 5020 August 9, 2013 Texas Register
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Texas. Secretary of State. Texas Register, Volume 38, Number 32, Pages 4957-5134, August 9, 2013, periodical, August 9, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth342085/m1/64/: accessed April 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.