Non-federal (state)
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Non-federal (state)

Administrative qualification is not required to compete for solicitations using the non-federal contract process. If selected, for firms not subject to exemption, an indirect cost rate is necessary for rate schedule development. These firms can either be administratively qualified by selection notification or take the option available for providers not administratively qualified.

Providers not administratively qualified

The department may contract with a prime provider or allow the use of a subprovider that is not administratively qualified if:

  • The provider has been in operation, as currently organized, for less than one fiscal year and the provider accepts an indirect cost rate developed by the PEPS Administrative Qualifications Group.


  • The provider does not have an indirect cost rate audit and the provider accepts an indirect cost rate developed by the PEPS Administrative Qualifications Group.

For firms not administratively qualified that may compete for contracts through the non-federal processes, complete the Certification of No Indirect Cost Rate Audit and submit to the PEPS Administrative Qualifications Group according to the instructions on the form.

Firms are requested to do this prior to submitting a response to a solicitation so the information is readily available, if selected. Multiple submittals are not necessary. The PEPS Administrative Qualifications Group will maintain a list of firms accepting the developed rate for reference by a managing office upon provider selection.

Exemptions to administrative qualification

  • A non-engineering firm is exempt from the administrative qualification requirement.
  • A provider performing a service under standard work category 18.2.1, subsurface utilities engineering, or any of the following work groups, as listed on the department's precertification website, is exempted from administrative qualification, to the extent of the service being performed:
    • Group 6, bridge inspection.
    • Group 12, materials inspection and testing.
    • Group 14, geotechnical services.
    • Group 15, surveying and mapping.
    • Group 16, architecture.
    • Group 17, facilities engineering.
  • The PEPS Division Administrative Qualifications Group may exempt services other than those indicated in subparagraph (B) of this paragraph on a case-by-case basis. Any request for an exemption must be received by the closing date of the solicitation.
PEPS AQ Administrator