Agenda - 02-02-1999 - 8f - Laserfiche WebLink

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ORANGE COUNTY BOARD OF CONIlVIISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 2, 1999 Action Agenda Item No. $ -~ SUBJECT: Cost Allocation Plan Contract DEPARTMENT: Finance PUBLIC HEARING: (Y/l~ BUDGET AMENDMENT: (Y/1~ ATTACHMENT(S): Contract INFORMATION CONTACT: Ken Chavious Ext. 2453 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To consider a contract with DMG-MAXIMUS, INC., formerly David M. Griffith and Associates, for the preparation of the County's Indirect Cost Allocation Plan. BACKGROUND: Office of Management and Budget Publication A-87 requires Counties receiving federal funds to develop a Cost Allocation Plan annually. Preparation of this plan qualifies the County to receive reimbwsement for local resources used to administer certain State and Federally funded programs. In addition, the Cost Allocation Plan is tool used by staff in developing the full cost of providing certain services. The plan has been prepared by David M. Griffith and Associates (DMG) for many years. DMG recently merged with another company that provides similar services. The new company, DMG-MAXII1~iUS, INC., is expected. to provide the County with the same level of service as provided by DMG in the past. FISCAL IlViPACT: The cost of the Contract is $9,000, an increase of $500 over the previous years. The County has been paying $8,500 for this service since 1993 and has not experienced gradual inflationary increases as is the case with similar contracts. Reimbursements from Federal and State agencies resulting from the Cost Plan far exceed the cost of its preparation. These reimbwsements have consistently ranged between $200,000 and $250,000 over the years. In addition, the County uses these Cost Plans in updating and developing user fees. RECONII~IENDATION(S): The Manager recommends that the Board approve the contract with DMG-1~I,~NIUS, INC for the preparation of the Indirect Cost Allocation Plan and authorize the Chair to execute the contract documents.