Kentucky Administrative Regulations › Title 600 - TRANSPORTATION CABINET › Chapter 6 - Professional Engineering and Related Services › Section 600 KAR 6:010 - Definitions for 600 KAR Chapter 6

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS 45A.030, 45A.085, 45A.095, 45A.800-45A.835,
				45A.838,  23 C.F.R. 172, 23 U.S.C. 112, 121
NECESSITY, FUNCTION, AND CONFORMITY: KRS 45A.838(1), (4), and (5) require the Transportation Cabinet to promulgate administrative regulations
				relating to the establishment and operation of professional service firm pools.
				This administrative regulation establishes the definitions for terms used in
				600 KAR Chapter 6.
Section 1.
			 Definitions.
(1) "Award" means the
			 presentation of an agreement or contract to a professional.
(2) "Cabinet" means the Kentucky
			 Transportation Cabinet.
(3) "Change
			 order" is defined in KRS 45A.030(2).
(4) "Competitive negotiation" means
			 negotiations that meet the requirements established in KRS 45A.085.
(5) "Consultant" means a firm which has been
			 selected to perform engineering or engineering-related services for the cabinet
			 as the prime or top-ranked firm in accordance with  600 KAR 6:060.
(6) "Continuous professional liability
			 policy" means professional liability insurance coverage which is maintained
			 without a gap in coverage in order to become and to remain prequalified with
			 the Transportation Cabinet.
(7)
			 "Contract" is defined in KRS 45A.030(7).
(8) "Contract modification" is defined in KRS 45A.030(8).
(9) "Cost per unit of
			 work" means a price based on a unit if the extent of work cannot be defined but
			 a cost of the work per unit can be determined in advance with reasonable
			 accuracy.
(10) "Cost plus a fixed
			 fee" means a price based on the actual allowable cost of the work plus any
			 preestablished fixed amount for operating margin.
(11) "DBE" means a disadvantaged business
			 enterprise as defined and certified in accordance with the provisions of  600 KAR 4:010.
(12) "Direct salary"
			 means the salary of a person directly involved with and chargeable to a
			 specific project, e.g., engineering or draftsperson time spent on a
			 project.
(13) "Discipline" means an
			 engineering or related service area with responsibility falling to a specific
			 user division.
(14) "Engineer" is
			 defined by KRS 45A.800(2).
(15)
			 "Engineering-related services" is defined by KRS 45A.800(7).
(16) "Firm" is defined by KRS 45A.800(8).
(17) "FHWA" means the
			 Federal Highway Administration.
(18) "Lump sum" means a fixed price,
			 including cost and operating margin, agreed upon between a consultant and
			 cabinet for a group of tasks without a breakdown of individual values, i.e., a
			 lot price.
(19) "Modification"
			 means a formal revision to the terms of a contract.
(20) "Noncompetitive negotiation" means
			 negotiations that meet the requirements established in KRS 45A.095.
(21) "Overhead costs" means an indirect cost
			 that:
(a) Is not chargeable to a specific
			 project; and
(b) Supports:
1. Personnel salaries;
2. Accounting;
3. General maintenance and repair;
4. Building rent;
5. Utilities;
6. Furniture; and
7. A similar cost related to conducting
			 business.
(22) "Overhead submission packet" means a
			 package of information containing a summary of the:
(a) Firm's overhead expense
			 accounts;
(b) Direct and indirect
			 labor; and
(c) Direct costs of
			 items outlined in  600 KAR 6:080, Section 1(5).
(23) "Pool" means a group of firms selected
			 to provide engineering or engineering-related services.
(24) "Prequalification" means the evaluation
			 of a professional:
(a) To determine if he or
			 she is qualified to contract with the cabinet for engineering or
			 engineering-related services; and
(b) By consideration of:
1. Financial capability;
2. Technical expertise;
3. Experience;
4. Past performance;
5. Management; and
6. Similar business factors.
(25) "Prequalification
			 category" means a type of project for which engineering or engineering-related
			 services are contracted.
(26)
			 "Prime" or "top-ranked" means a consultant:
(a) Awarded a contract under  600 KAR 6:070;
			 and
(b) Performing at least fifty
			 (50) percent of the dollar value of the work for a project.
(27) "Principal" means an
			 individual who:
(a) Owns directly or
			 indirectly more than ten (10) percent of the voting interest in a consulting
			 firm; or
(b) Serves as:
1. President;
2. Vice president;
3. Secretary;
4. Director; or
5. Another firm officer.
(28) "Project-specific
			 professional liability insurance" means separate professional liability
			 coverage which provides noncancelable coverage for the duration of a specific
			 project and continuing through a discovery period after construction is
			 complete.
(29) "Professional
			 liability policy" means claims-made insurance coverage for engineering or
			 engineering-related services which indemnifies a firm, a past or present
			 partner, an officer, a director, a stockholder, or an employee while acting
			 within the scope of firm duties, against the following:
(a) A negligent act;
(b) An error or omission in performing a
			 professional service; or
(c)
			 Failure to provide a service in accordance with standard of care.
(30) "Professional services" means
			 specialized services performed by an individual or consultant of recognized
			 technical competence.
(31)
			 "Project" means an undertaking by the Transportation Cabinet as defined in KRS 45A.800(4).
(32) "Project manager"
			 means the director of the user division or person designated by the user
			 division director to oversee the performance of a consultant to perform
			 contracted services on a project.
(33) "Proof of necessity" means the
			 justification to employ an:
(a)
			 Engineer;
(b) Architect;
(c) Appraiser;
(d) Attorney; or
(e) Other professional.
(34) "Proposal" means an offer made by a firm
			 to the cabinet as a basis for negotiations for entering into a
			 contract.
(35) "Salary additives"
			 means an employer-paid fringe benefit, including:
(a) The employer portion of FICA;
(b) Health insurance;
(c) Group life insurance;
(d) A state unemployment contribution;
			 or
(e) A similar employee
			 benefit.
(36) "Scope of
			 work" means all services and actions required of the consultant by the
			 contract.
(37) "Services" is
			 defined in KRS 45A.030(24).
(38)
			 "Six (6) year plan" means the document prepared by the Transportation Cabinet
			 in accordance with the provisions of KRS 176.419 through 176.440.
(39) "Standard of care" means the ordinary
			 and reasonable care required and established by expert testimony of what a
			 reasonable and prudent professional would have done under the same or similar
			 circumstances.
(40) "Subconsultant"
			 means a second consultant contracted to a prime consultant for the performance
			 of work contracted by the cabinet to the prime consultant.
(41) "Termination clause" means a contract
			 clause which allows the cabinet to terminate, at its own discretion, the
			 performance of work and to make settlement of the consultant's
			 claims.
(42) "User division" is
			 defined in KRS 45A.800(6).
(43)
			 "Work unit" means an item on a list of tasks which are required to be
			 accomplished by the consultant in order to satisfactorily complete the scope of
			 work.