Task Order-Construction Agreement Master Enabling Agreement

Task Order-Construction Agreement—Master Enabling Agreement Use of Percentage Fees vs. Hourly Rate Fees

The CSU Chancellor’s Office-CPDC has made two sets of TO-CA MEA (TO-CA) documents available to campuses. The two TO-CA models are based on either: 1. Hourly Rate Fees or 2. Percentage of Direct Construction Cost Fees. Review the following for the most significant differences in the models and contact CPDC with questions via e-mail to [email protected]. Documents for both TO-CA models are posted on the website at the bottom of this page. 1. Hourly Rate Fees a) The hourly rate TO-CA is the first TO-CA model used in the CSU, and was initially set up as a one-year agreement with an option to extend one year; contract limit was $10,000,000 per year. The hourly rate TO-CA is now a two-year agreement; with a contract limit of $20,000,000. b) The service provider proposes an hourly rate fee schedule. The average of the three staff members’ billable rates from each category of services listed on the fee proposal form with the highest number of proposed hours multiplied by an assumed number of hours is used as the fee portion of the RFP evaluation. c) The procurement phase in this model for the RFP, task orders and construction agreements is more complicated. Through the use of a Task Order Request, CSU and the service provider collaborate to establish the desired level of services and fees for each phase (preconstruction and construction) of each project, and write a task order or construction agreement for that customized level of service and fees. d) CSU is not required to provide detailed project scope descriptions for service provider fee proposals, but must provide enough detail for the service provider to propose on the appropriate consultants necessary to perform the work. e) CSU must identify in the RFP a listing of projects that are likely to be performed in the first year and may include an item ‘Other Projects to be Determined’ for which the value would not exceed 30% of the total value of the projects that are identified. 2. Percentage Fees a) The percentage fee TO-CA is the newer CSU TO-CA model. It is a two-year agreement, with a contract limit of $20,000,000. b) The service provider proposes fees based on a percentage of direct construction cost for each category of project. c) The project delivery method breakdowns represented on the fee proposal form are: CM at Risk and Collaborative Design-Build, and each delivery method is broken down by project size as follows: $1,000,000.00 or less / $1,000,000.01 to $3,000,000.00 / $3,000,000.01 to $7,000,000.00. d) The procurement phase in this model is simplified for the RFP, task orders and construction agreements, as CSU does not utilize the Task Order Request process as described in 1-c above. For each Project under the TO-CA MEA, the task order and construction agreement Contract amounts shall be the lump sum price or GMP, which is the sum of the actual direct construction cost as bid, plus the line items listed in the Fee Proposal Evaluation Worksheets, as proposed by the contractor and agreed upon

TO-CA MEA: http://www.calstate.edu/cpdc/cm/task-order-construction-agreement-for-multiple-projects.shtml February, 2017 TO-CA MEA, Use of Percentage Fee vs. Hourly Rate Page 2 by the Trustees for each Project and included in the TO-CA MEA as Exhibit A, Fee Schedule. e) In this model the CSU is required to provide in the RFP project scope and all special conditions descriptions that are detailed enough for the service provider to competitively propose fees. The descriptions must be more detailed, enough for the service provider to propose on the appropriate consultants necessary to perform the work, and to propose on a percentage fixed fee for all phases of the work. f) CSU must identify in the RFP a listing of projects that are likely to be performed and may include an item ‘Other Projects to be Determined’ for which the value would not exceed 30% of the total value of the projects that are identified.