Professional Service Provider
General
The LG may use a professional services provider for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping or architectural services related to a construction project. Professional services providers are defined, in part, as professional engineers, registered architects or registered professional land surveyors in the
, often referred to as the Professional Services Procurement Act. This law requires a two-step, qualifications-based process in selecting and negotiating costs for contracts with professional providers.
The use of a professional service provider by the LG can be an eligible reimbursable cost in accordance with the local participation rules found in
If the LG is seeking reimbursement for project-related professional services, it must be specifically stated in the advance funding agreement (AFA).
A general overview of the federal requirements for the professional services consultant process is described in the Federal Highway Administration (FHWA) video “Hiring a Consultant Using Competitive Negotiation Procedures” available on the FHWA
. Selection of a professional services provider must conform to applicable sections of both federal and state law if cost reimbursement is desired by the LG or if the LG desires to have the value of the professional services credited to its share of the project or program.
LGs must submit their proposed professional services procurement process to their TxDOT district office for review. TxDOT may only grant approval to proposed processes complying with applicable federal and state rules. For design/build projects, the selection procedure requirements can be found in
. The LG’s use of TxDOT’s selection process or an alternate process must receive prior written approval by TxDOT.
The
(LGPM Guide) provides additional guidance on the required practices used for professional services selection and contracting. The Guide also lists the LG and TxDOT district responsibilities for the professional service provider selection process and agreements.
Professional service providers (contractors and suppliers) are not allowed to participate in federally funded projects if they are suspended or debarred. The professional service provider is required to certify as to its current eligibility status. Certification is also required of all prospective participants in lower-tier transactions. This includes sub-consultants, material suppliers, vendors, etc. The state of Texas has similar requirements prohibiting contracts with debarred providers. The LG is required to verify its professional service providers and lower-tier providers are not debarred by the federal or state government prior to contract award. Additional information on debarment is provided in the
.
Federal Requirements
- – Prescribes policies and procedures for the administration of engineering- and design-related service contracts for which reimbursement with federal funds is requested.
- Qualifications-based competitive negotiation is the primary method for procurement of professional services. Price is not to be used as a factor in the analysis and selection of the most qualified firm. The proposal solicitation process shall assure qualified in-state and out-of-state consultants are given a fair opportunity to be considered for award of the contract. Small purchase or non-competitive negotiation procedures may be used in limited situations with TxDOT approval.
- Basing compensation for professional services on a cost plus a percentage of cost or on a percentage of construction cost is not acceptable.
- The contracting agency must prepare written procedures for each method of procurement it proposes to utilize.
- Recipients of federal funds must approve the written procedures and all revisions for their sub recipients. TxDOT is the recipient of federal funds and the LG is the sub recipient.
State Requirements
- – Establishes TxDOT’s standard procedures for selection and contract management of architectural, professional engineering and land surveying service providers for transportation projects. have application to procurement by LGs when state or federal funds are used on the project.
- – Provides procurement requirements for professional services by all governmental entities. The entity:
- Must procure architectural, engineering or land surveying services through a qualifications-based selection process.
- Must negotiate with the most qualified provider for a fair and reasonable price.
- Must formally terminate negotiations if a satisfactory contract cannot be negotiated. The entity must then select the next highest qualified provider and attempt to negotiate a contract for a fair and reasonable price.