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General Content

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Profit

Frequently Asked Questions

Q. Can profit be a fixed percent for construction contracts?

A. As an internal policy a transit agency may determine that for certain categories of construction projects fixed percentages of profit are appropriate. However, when writing the contract, profit...

Professional Services

Frequently Asked QuestionsIs the grantee administrator of a DOT grant allowed to pay himself or herself professional fees without first soliciting bids or proposals for those services? Does the grantee have to enter into a signed contract with the terms and conditions for professional services? Our...

Procurement System Reviews

The FTA has a vested interest in assisting recipients to maintain efficient and effective procurement systems as well as a responsibility to ensure that its recipients expend their funds in accordance with FTA regulations, the Uniform Administrative Requirements, Cost Principles, Audit...

Pre-Qualification of Bidders

Frequently Asked QuestionsDo owners normally prequalify bidders prior to issuance of bid documentation or is this process conducted once the bid documentation is issued after a call/invitation for bids but before closing date for evaluation of proposals? What are the best practices in this regard?...

Pre-Bid Conferences

Frequently Asked QuestionsCommunicating with potential contractors through pre-bid conferences is a good way to control costs and minimize claims. However, a number of grantees around the country have taken the position that attendance at pre-bid conferences cannot be made mandatory. We have been...

Piggybacking

Frequently Asked QuestionsWhat are the FTA’s “piggybacking” regulations?

FTA encourages grantees to enter into State and local agreements for the procurement of common goods and services in order to foster greater economy and efficiency. The Best Practices Procurement Manual (BPPM), Section 3.3.2...

Personnel Agency Fees

Frequently Asked QuestionsAre there any formal guidelines out there for the procurement of temporary employees that are not necessarily an emergency hire? We would like to use the services of a temp agency to fill positions that we feel will expire in about a year.

There is a critical difference...

Payment of Subgrantees

Frequently Asked QuestionsWhere do I find the FTA definition of "Incurred cost"?  The Texas Department of Transportation believes Incurred Cost to be " a transit agency must pay all costs for goods or services to be eligible for reimbursement."

The payment of grantees and subgrantees is not...

Overhead Rates

Frequently Asked QuestionsWe are planning on issuing a time and materials type of contract. We are required to request cost data as part of our negotiations with the highest ranked firm; however, the reimbursements will be based on a fixed hourly rate. Does the contractor have to submit a federally...

Organizational Structure for Procurement Office

Frequently Asked QuestionsIs there a preferable organizational structure for the procurement function from an independence or authority standpoint?

The FTA policy relating to how grantees are organized is contained in FTA Circular 4220.1F, Chapter 1, paragraph 5, “FTA’S ROLE”: “FTA does not...