Engineering Contracts Guidance Memo's (EC-000)

MAJOR CHANGE TO ADDING EMPLOYEES TO YOUR MPA. NOTICE: Due to a review by the Office of the State Controller (OSC), Colorado Department of Transportation’s (CDOT) process for adding employees to the Consultants Master Pricing Agreement (MPA) has changed. The MAJOR change will be the approval date of the newly added employee. Currently the approval date is the date that a completed “add” package request is received by CDOT. Since the MPA is a contract, the OSC rightfully identified that it requires an amendment to the MPA in the form of an Option Letter. This process change will delay the approval of requested employees until the Option Letter is signed by the CDOT. With that in mind, the consultant will have to make certain that their requests to add any new employee to their MPA are submitted with sufficient time in anticipation of using that employee on a CDOT project. No less than three weeks’ notice, at a minimum, is recommended but Engineering Contract Services response time will be dependent on workload and other factors. The significant change to EC-001 is the process to add employees and the effective or approval date. EFFECTIVE DATE OF CHANGE: JANUARY 10, 2022
EC-001 Add Employee Process Update

IMPORTANT NOTE: Please keep in mind that a consultant CANNOT be reimbursed for any employee hours worked unless they have: 1) Been listed on Consultant's MPA and 2) Received PRIOR approval from the CDOT PM. Please see EC-001 for details. State Fiscal Rules does not allow for retroactive (approval) payment. Approvals MUST be obtained PRIOR to an employee working on any CDOT project. UPDATED 01/20/21: PLEASE NOTE: Employee rate changes due to the implementation of the Minimum Wage Law should be handled through the promotion procedures with an explanation within your letter.

EC-003 - Facilities Capital Cost of Money (FCCM)

The estimated facilities capital cost of money is specifically identified and proposed in cost proposals relating to the contract under which the cost is to be claimed. The most important concept to remember is that the FCCM should never be added to the indirect cost rate. It is a separate line item.

EC-004 CDOT Standard Job Classifications

Job classification is a system for objectively and accurately defining and evaluating the duties, responsibilities, tasks, and authority level of a job. The job classification, done correctly, is a thorough description of the job responsibilities from which the proper compensation maybe assigned. CDOT must attempt to systematically compare and match the Consultants job specifications, through a position description, with a job classification. With standard job classifications, the Consultant, not CDOT, classifies their employees into proper classifications from which CDOT can review those classifications’ rates for reasonableness.