Utility owners utilizing consulting engineers for design or construction engineering services shall comply with the following requirements:

1. (1) Overhead rates.

   1. (A) Overhead rates must be computed in accordance with Federal Acquisition Regulations, 48 C.F.R. pt. 31, and AASHTO Uniform Audit and Accounting Guide for Audits of Architectural and Engineering (A/E) Consulting Firms.
   2. (B) 23 C.F.R. § 645.117(d) states in part, "Overhead and indirect construction costs not charged directly to work order or construction accounts may be allocated to the relocation provided the allocation is made on an equitable basis. All costs included in the allocation shall be eligible for Federal reimbursement, reasonable, actually incurred by the utility, and consistent with the provisions of 48 CFR Part 31.";
2. (2) Profit. Total profit to be reimbursed for consultant engineering services cannot exceed twelve percent (12%) of the total contract engineering expenditures;

3. (3) Direct job expense.

   1. (A) These types of expenses must be itemized, i.e., mileage, copies, postage, meals, lodging, etc.
   2. (B) Mileage – Rate per mile must not exceed current reimbursement rate for private vehicle use authorized in the Arkansas Department of Transportation Accounting Manual.
   3. (C) Meals and lodging – Daily rates must not exceed current reimbursement rates authorized in the Arkansas Department of Transportation Accounting Manual;

4. (4) Invoices. Invoices must include:

   1. (A) Department job number;
   2. (B) Project location/description;
   3. (C) Time period for the work included in the invoice;
   4. (D) Name, telephone number, and email address of a contact person;
   5. (E) Signature of a consultant's representative and signature date;
   6. (F) Summary comparison of actual project preliminary engineering costs to the estimated costs for each category from beginning of work to date;
   7. (G) Detail of costs incurred;
   8. (H) Total previous payments;
   9. (I) Supporting documentation for overhead and indirect expense rates (initial invoice); and

   10. (J) Explanation for any:

       1. (i) Overrun of hours, rates, direct costs, additional items of work; or
       2. (ii) Changes in scope of work; and
5. (5) Final certification of indirect cost rate. The following Certificate of Final Indirect Costs must be signed by the consultant’s chief financial officer or vice president and submitted with the final invoice: Certificate of Final Indirect Costs AHTD Job No.:____________________________ Utility Name:____________________________ This is to certify that I have reviewed this proposal to establish final indirect cost rates and to the best of my knowledge and belief: All costs included in this proposal dated ________________ to establish final indirect cost rates for (identify period covered by rate) are allowable in accordance with the cost principles of the Federal Acquisition Regulation (FAR) and its supplements applicable to the contracts to which the final indirect cost rates will apply; andThis proposal does not include any costs which are expressly unallowable under applicable cost principles of the FAR or its supplements. Firm: ______________________________________________________________ Signature: __________________________________________________________ Name of Certifying Official: ____________________________________________ Title: ______________________________________________________________ Date of Execution: ___________________________________________________

Codification Notes: “AASHTO” means the American Association of State Highway and Transportation Officials.