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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 3, 2007 <br />Action Agenda <br />Item No. ~{- -G <br />SUBJECT: Cost Allocation Plan Contract <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Contract Ken Chavious, 245-2450 <br />PURPOSE: To consider a contract for the preparation of the County's 2006 Cost Allocation <br />Plan. <br />BACKGROUND: Office of Management and Budget Publication A-87 requires Counties <br />receiving federal funds to develop a Cost Allocation Plan annually. Preparation of this plan <br />qualifies the County to receive reimbursement for local resources used to administer certain <br />State and Federally funded programs. In addition, the Cost Allocation Plan is a tool used by <br />staff in. developing the full cost of providing certain services. For the past decade or more, the <br />County has used MAXIMUS, INC to prepare the cost plan. <br />Since the County has used the same firm for over 10 years, staff pursued a request for proposal <br />(RFP) process for the 2006 plan preparation. Proposals were received from three firms highly <br />recognized for cost plan preparation, including the MAXIMUS firm. Staff is recommending that <br />the County contract with Tim McKinnie & Associates, Inc. to prepare the cost plan for 2006. This <br />firm's experience with counties in the state of North Carolina is very extensive. Tim McKinnie & <br />Associates currently prepares cost plans for 20 counties in the state of North Carolina. In <br />addition, the principal to be assigned to the County has vast knowledge and experience in cost <br />plan preparation. All reference inquiries were very positive. Also, the costs proposed for the <br />engagement are comparable to the County's experience over the past several years. In fact, <br />the fee quoted by Tim Mcknnie & Associates is $8,000, which is $1,200 less than the County <br />paid for the 2005 cost plan. <br />FINANCIAL IMPACT: As mentioned above, the cost of the contract for the 2006 Cost <br />Allocation Plan is $8,000, which is $1,200 less that last year's cost. Funds to pay for the current <br />year contract are budgeted in Central Services. General fund revenues from the State and <br />Federal governments and internal charge backs resulting from the Cost Allocation Plan have <br />been in excess of $700,000 annually over the past several years. <br />RECOMMENDATION(S): The Manager recommends that the Board approve the contract with <br />Tim McKinnie & Associates, Inc. and authorize the Chair to sign. <br />