07/08/1998 AgreementAGREEMENT TO PROVIDE
PROFESSIONAL CONSULTING SERVICES
TO MONROE COUNTY
THIS AGREEMENT, entered into this day of V' , 1998, and effective
immediately by and between David M. Griffith and Associates, Ltd., an Illinois corporation
authorized to do business in the State of Florida, (hereinafter called the "Consultant") and
Monroe County, a county of the State of Florida, (hereinafter called "County"), WITNESSETH
THAT,
WHEREAS, the County provides certain services to outside entities and internal departments;
and,
WHEREAS, the County desires that charges for these services reflect the full cost of services
provided; and, X %0 -q
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WHEREAS, the Consultant is staffed with personnel knowledgeable and expekuen l ffi-the-�'
requirements of developing and negotiating such governmental Qj�, Ullo( Torn
plans; and z - �0
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WHEREAS, the County desires to engage the Consultant to assist in developnigL%n 6MBo
Circular A-87 cost allocation plan. a rn o
NOW, THEREFORE, the parties hereto mutually agree as follows:
(1) Employment of Consultant. The County agrees to engage the Consultant and the
Consultant hereby agrees to perform the following services.
(2) Scope of Services. The Consultant shall do, perform, and carry out in a good and
professional manner the following services.
a. Preparation of indirect cost allocation plan based on actual expenditures for fiscal
year 1997.
b. Preparation of an OMB Circular A-87 cost allocation plan based on actual
expenditures for fiscal year 1997
C. Preparation of indirect cost proposals and indirect cost rates, as necessary.
Exhibit A defines the work plan for the above services
(3) Time of Performance. The services to be performed hereunder by the Consultant shall
be undertaken and completed in such sequence as to assure their expeditious completion
and best carry out the purposes of this agreement. All services required hereunder shall be
completed within ninety days of initiation of the project unless such date is extended in
1998, DMG-MAXIMUS Monroe County Contract for Page ]
Cost Allocation Plan-FY97
writing. Provided, however, that Consultant shall not be liable for delays caused in whole
or in part by County.
(4) Compensation. The County agrees to pay the Consultant fees, License fee and expenses
not to exceed eight thousand five hundred and no/100`h dollars ($8,500). The County
agrees to pay the Consultant within (15) fifteen days of invoice date.
(5) Consultant Fees. The fee compensation described in number four (4) above is estimated
based on the expected level of involvement of Consultant staff.
(6) Method of Payment. The Consultant shall invoice the County sixty percent (60%) of the
contract amount upon completion of draft report, thirty percent (30%) of the contract
amount upon completion of final report, and ten percent (10%) upon approval by the
Monroe County Board of County Commissioners.
(7) Changes. The County may, from time to time, require changes in the scope of services of
the Consultant to be performed hereunder. Such changes, which are mutually agreed upon
by and between the County and the Consultant, shall be incorporated in written
amendment to this agreement.
(8) Services and Materials to be Furnished by the County. The County shall furnish the
Consultant with all available necessary information, data, and material pertinent to the
execution of this agreement. The County shall cooperate with the Consultant in carrying
out the work herein and shall provide adequate staff for liaison with the Consultant and
other agencies of the County.
(9) Termination of Agreement for Cause. If, through any cause, the Consultant shall fail to
fulfill in timely and proper manner his obligation under this agreement, the County shall
thereupon have the right to terminate this agreement by giving written notice to the
Consultant of such termination and specifying the effective date thereof, at least five (5)
days before the effective date of such termination. The County shall pay Consultant for
services rendered and expenses incurred through the effective date of termination.
(10) Information and Reports. The Consultant shall, at such time and in such form as the
County may require, furnish such periodic reports concerning the status of the project,
such statements, certificates, approvals and copies of proposed and executed plans and
claims and other information relative to the project as may be requested by the County.
(11) Records and Inspections. The Consultant shall maintain full and accurate records with
respect to all matters covered under this agreement. The County shall have reasonable
access at all proper times to such records, and the right to examine and audit the same and
to make transcripts therefrom, and to inspect all program data, documents, proceedings,
and activities.
1998, DMG-MAXIMUS Monroe County Contract for Page 2
Cost Allocation Plan-FY97
(12) Copyrighted Materials. The County acknowledges that the reports to be provided by
Consultant are copyrighted. County agrees that copyrights thereto lie with Consultant.
The County will own the final report but will not use or re -use any proprietary software or
processes disclosed to the County during the preparation of the report. County may use
them solely for and on behalf of County's operations. County agrees that it will take
appropriate action by instruction, agreement or otherwise with its employees to satisfy its
obligations with respect to use, copying, protection and security.
(13) Accomplishment of Project. The Consultant shall commence, carry on, and complete
the project with all practicable dispatch, in a sound, economical, and efficient manner in
accordance with the provisions thereof and all applicable laws.
(14) Matters to be Disregarded. The titles of the several sections, subsections, and
paragraphs set forth in this contract are inserted for convenience of reference only and
shall be disregarded in construing or interpreting any of the provisions of this contract.
(15) Completeness of Contract. This contract and any additional or supplementary document
or documents incorporated herein by specific reference contain all the terms and
conditions agreed upon by the parties hereto, and no other agreements, oral or otherwise,
regarding the subject matter of this contract or any part thereof shall have any validity or
bind any of the parties hereto.
(16) County Not Obligated to Third Parties. The County shall not be obligated or liable
hereunder to any party other than the Consultant.
(17) When Rights and Remedies Not Waived. In no event shall the making by the County of
any payment to the Consultant constitute or be construed as a waiver by the County of any
breach of covenant, or any default which may then exist, on the part of the Consultant, and
the making of any such payment by the County while any such breach or default shall
exist in no way impair or prejudice any right or remedy available to the County in respect
to such breach or default.
(18) Personnel. The Consultant represents that it has, or will secure at its own expense, all
personnel required in performing the services under this agreement. All of the services
required hereunder will be performed by the Consultant or under its supervision, and all
personnel engaged in the work shall be qualified to perform such services.
(19) Consultant Liability.
a) If Audited. The Consultant will assume, without incurring any liability therefore, that
all financial and statistical information provided to the Consultant by the County, its
employees or representatives is accurate and complete. The County, its employees or
representatives further assume all responsibility for accurate and timely provision of
relevant information to Consultant. Consultant shall assist County, its employees or
representatives in identifying relevant information. The County hereby agrees to bear
1998, DMG-MAXIMUS Monroe County Contract for Page 3
Cost Allocation Plan-FY97
any and all costs and expenses associated with the denial of funding applications or
any subsequent disallowance of funds paid to the County, due to inaccurate.
incomplete, or untimely information provided by the County, or due to the
Consultant's legitimate efforts to optimize funding assistance.
b) Limitation of Liability. The County agrees that the Consultant's total aggregate limit
of liability hereunder (whether in contract, statutory or otherwise) for damages on one
or more of all claims (regardless of the number of different or other claims or
occurrences) arising out of Consultant's performance under this agreement shall not
exceed the Contract amount. The County further agrees that consultant shall not be
liable to the County for any indirect, incidental, special or consequential damages
arising out of or in connection with the Consultant's performance hereunder.
(20) Assignment. Consultant agrees not to assign, convey or transfer its interest in the
Agreement to any other entity without the prior written consent of Client, which consent
shall not be unreasonably withheld. Provided however, Consultant may assign, convey or
transfer its interest in this Agreement to an entity which succeeds to substantially all of the
business of Consultant, by merger or otherwise.
(21) This contract is governed by the laws of the State of Florida. Venue for any litigation
arising under this contract must be in Monroe County, Florida.
(22) Notices. Any notices, bills, invoices, or reports required by this agreement shall be
sufficient if sent by the parties in the United States mail, postage paid, to the address noted
below:
Mr. John Carter, Director
Office of Management and Budget
County of Monroe
5100 College Road
Key West, Florida 33040
(305) 292-4470
Ms. Betty Armstrong
Vice President
David M. Griffith & Associates, Ltd.
1621 Metropolitan Blvd., Suite 201
Tallahassee, Florida 32308
(850) 386-1101
IN WITNESS WHEREOF, the County and the Consultant have executed this agreement as of
the date first written above.
By: By:
y
Betty O. rmstrong, Vice President
Date: 7 - 8 - 9c6 Date:
Attest: Attest:V:
(sue
ATTES • DANNY L. KOLHAGE CLERK "•,•
D-PU7YCLERK��� f F
1998, DMG-MAXIMUS Monroe County'
Cost Allocation
Page 4
MONROE COUNTY
COST ALLOCATION PLAN (CAP)
Work Plan
Exhibit A
This work plan is concerned with those tasks necessary to develop data needed for the two cost
allocation plans and come to successful completion of each plan. It should be noted that each
task is not necessarily a critical step in the process of completing the project. For example, the
development of allocation base data (Task #9) will be conducted throughout the project as data
reports are received, and interviews with County staff (Task #7) will be held throughout the period
of on -site work, depending on the availability of appropriate County staff.
Task 1. Prepare Schedule of Required Financial/Statistical Data. Due to our
experience in preparing cost plans for counties of similar size and structure, the
DMG project team is familiar with pertinent financial/statistical reports maintained
by the County and the nature of productivity/workload distribution data recorded by
its administrative support units. Before beginning on -site work, a schedule of these
reports will be prepared and presented to the appropriate County personnel to
initiate the collection of data required for the project.
Task 2. Review Data for Changes in Account Code/Organization Structure. Budget
documents, organizational charts and year-end financial reports will be reviewed to
determine what organizational changes may have been implemented during FY
1996-97 and are expected for FY 1997-98. Such changes may indicate changes
in the structure and format of cost centers reflected in cost plan detail. This task
includes preparation of a schedule of all cost center codes under which
expenditures were recorded and careful comparison to previous years' schedules.
During this initial review of expenditure data, certain critical data such as salary
expense per index will also be recorded.
Task 3. Review the County's Inventory of Federal/State Grant Programs. Review of
financial reports and discussions with appropriate County staff will be conducted to
determine the structure of cost centers needed in the A-87 Plan to best suit the
grants management needs of the County.
Task 4. Meet with County Staff to Confirm Organizational Changes and Cost Center
Classifications. Based upon the result of Task 2, the Project Manager will meet
with appropriate County staff to confirm any evident changes, determine their
impact on the plan structure, and discuss any other changes in plan structure that
may better serve the present and future needs of County management.
Exhibit A
MONROE COUNTY
COST ALLOCATION PLAN (CAP)
Page 2
Task 5. Analyze/Record ISF Direct Costs and Direct Billings. An accurate presentation
of residual costs associated with the operations of the County's ISF units is the
single most critical issue in the preparation of the Plan. The level of detail
contained in the County's statistical reports of direct billings per cost center and the
required care in preparing this information make this task critical in preparing the
Full Cost Plan.
Task 6. Establish and Classify Plan Cost Centers. The level of detail within the
County's code structure required for cost centers to be reflected in the plans will be
determined. Each cost center will be classified either as a "central service" (source
of indirect costs) or "receiving" (receiver of indirect costs) department for plan
purposes. From these determinations, the basic structure of the plans will be
developed using the New Griffith Cost System II (NGCSII) software.
Task 7. Interview Central Service Staff. Interviews with managers of appropriate County
staff will be scheduled and held to carefully determine what variety of distinct
administrative functions may exist within a single administrative cost center. The
best rationale for distributing the administrative unit's costs across those internal
functions and the best available statistical indicator to be used for allocating each
functions costs to user cost centers will also be identified.
Task 8. Record Administrative Costs. Actual costs of each administrative cost center for
the year ended September 30, 1997 will be recorded and distributed by functional
activity using NGCSII.
Task 9. Develop Allocation Base Data. This task of the project involves the analysis of a
diverse variety of statistical reports and other information collected as the best
available indicators of relative levels administrative support provided by
administrative units to their respective users. Depending upon the level of cost
center detail reflected in these reports, allocation base data will be summarized or
extrapolated to correlate with the level of detail upon which the plans will be
structured. Follow-up discussions with appropriate County staff may be necessary
to complete this task.
Task 10. Review Administrative Cost Centers for Costs Recovered by Direct Billings,
Budget Transfers, etc. Occurrences of reimbursements to administrative units
directly or to the General Fund which may not be readily apparent from financial
records reviewed will be determined. These costs will be examined and
appropriate adjustments of allocable cost will be made.
Exhibit A
MONROE COUNTY
COST ALLOCATION PLAN (CAP)
Page 3
Task 11. Supervise and Verify Data Entry. The Project Manager will be responsible for
supervising and verifying the accuracy and completeness of data entered into
NGCSII. Advanced data editing and verification capabilities are major
enhancements incorporated into the current DMG software.
Task 12. Review First Drafts of Full -Cost Plan. The Project Manager will carefully review
the summary and detail schedules produced in the Full -Cost Plan for accuracy and
clarity of presentation. This analysis will be presented in worksheet form to
appropriate County staff to assist their review of the first drafts.
Task 13. Present First Drafts and Workpapers to the County. The desired number of
copies of the first drafts of Full -Cost Plan will be presented to the County along
with the comparative analysis described above and a written report explaining any
significant changes reflected in the first draft. Any material weaknesses in the plan
which might be remedied by improved cost or allocation base data will also be
highlighted in this report. This task also includes time devoted to receiving and
responding to questions and comments received from County staff during their
review of the draft plans. During this period of review, all workpapers used in the
preparation of the plan will be available to County staff upon request.
Task 14. Revise Plan to Final Form and Present to County. Following completion of the
County's review of the draft plans and receipt of any requests for changes, plan
data will be revised and four (4) copies of each plan will be presented to the
County.