Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 360 - GENERAL CONDITIONS OF STATE OF ILLINOIS GRANTS FOR SEWAGE TREATMENT WORKS UNDER THE ANTI-POLLUTION BOND ACT OF 1970 › Subpart C - REQUIREMENTS APPLICABLE TO APPLICATIONS FOR GRANTS › Section 360.303 - Contracts for Personal and Professional Services - Consulting Engineering Agreements

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Except as is otherwise provided in Section (d) below, the provisions of Section
				360.303(a) through (n) apply to all subagreements of grantees for architectural
				or engineering services where the aggregate amount of services involved is
				expected to exceed $10,000. The provisions of Section 360.303(d), (e), and (f)
				are not required, but may be allowed where the population of the grantee
				municipality is 25,000 or less according to the most recent U.S. census. When
				$10,000 or less of services (e.g., for consultant or consultant subcontract
				services) is required, the provisions of General Condition Section
				360.301(n)
				 (Small Purchases) shall apply.
b) Type of Contract (Subagreement)
1) General
Cost reimbursement, fixed price or per diem types of
				  contracts or combinations thereof may be negotiated for architectural or
				  engineering services. A fixed price contract is generally used only when the
				  scope and extent of work to be performed is clearly defined. In most other
				  cases, a cost reimbursement type of contract is more appropriate. A per diem
				  contract may be used if no other type of contract is appropriate. An incentive
				  fee may be utilized if the grantee submits an adequate independent cost
				  estimate and price comparison pursuant to Section 360.303(h).
2) Contracts prohibited
The cost-plus-percentage-of-cost and the
				  percentage-of-construction-cost types of contract are prohibited.
3) Fixed price contracts
An acceptable fixed price contract is one which establishes a
				  guaranteed maximum price which may not be increased except to the extent that a
				  contract amendment increases the scope of work.
4) Cost reimbursement contracts
Each cost reimbursement contract must clearly establish a
				  cost ceiling which the engineer may not exceed without formally amending the
				  contract and a fixed dollar profit which may not be increased except in case of
				  a contract amendment which increases the scope of the work.
5) Per diem contracts
A per diem agreement expected to exceed $10,000 may be
				  utilized only after a determination that a fixed price or cost reimbursement
				  type contract is not appropriate. Per diem agreements should be used only to a
				  limited extent such as where the first task under Step 1 grant involves
				  establishing the scope and cost of succeeding Step 1 tasks, or for incidental
				  services such as expert testimony or intermittent or professional testing
				  services. (Resident engineer and resident inspection services should generally
				  be compensated under paragraph (b)(3) or (4) of this Section 360.303.) Cost and
				  profit included in the per diem rate must be specifically negotiated and
				  displayed separately in the engineer's proposal. The contract must clearly
				  establish a price ceiling which may not be exceeded without formally amending
				  the contract.
6)
				Compensation procedures
If, under either a cost reimbursement of fixed price
				  contract, the grantee desires to utilize a multiplier type of compensation, all
				  of the following must apply:
A) The
				multiplier and the portions of the multiplier allocable to overhead and
				allocable to profit have been specifically negotiated;
B) The portion of the multiplier allocable to
				overhead includes only allowable items of cost under the cost principles
				approved by the Agency;
C) The
				portions of the multiplier allocable to profit and allocable to overhead have
				been separately identified in the contract; and
D) The fixed price contract includes a
				guaranteed maximum price for completion of the specifically defined scope of
				work; the cost reimbursement contract includes a fixed dollar profit which may
				not be increased except in a case of a contract amendment which increases the
				scope of work.