Compensation for individual consultant services should be reasonable and consistent with rates paid for similar services in the market place. Consideration should be given to compensation, including fringe benefits, for those individuals whose employers do not provide the same.

City of Boston policy follows the Federal Standard that the maximum rate for consultants is $450 for an eight hour day, excluding travel and subsistence costs. An eight hour day may include preparation, evaluation and travel time, and food in addition to the service performed. This does not mean that the rate should be $450 for all consultants. Rates should be developed and reviewed on a case-by-case basis and must be reasonable and in accordance with the Federal Office of Budget Management Cost Principles for Non-Profit Organizations, OMB Circular No.A-122. A request for compensation over $450 a day requires prior written approval from your Sponsoring Department as part of the original application.

There may be further limits or requirements based on the type of organization the consultant is associated with:

Consultants Associated with Educational Institutions
The maximum daily rate of compensation for a consultant hired through an educational institution will be the academic year salary, projected over a 12 month period, divided by 260.

Consultants Associated with Government Institutions
Compensation for these consultants will only be allowed when the unit of government will not provide these services without cost. If a state or local government employee is providing services under a federal grant and is representing their agency without pay from their respective unit of government, the rate of compensation is not to exceed the regular daily salary rate. If the state or local government employee is providing services under a federal grant and is not representing their agency, the rate of compensation is based on the necessary and reasonable cost principle.

Consultants Associated with Commercial and Not-For-Profit Organizations
These organizations are subjected to a competitive bidding process. Thus, they are not subject to the $450 per day maximum compensation before requesting prior approval. If the individual has the authority to consult without employer involvement, the rate of compensation should not exceed the individual's salary rate paid by his or her employer subject to the $450 limit.

Independent Consultants
The rate of compensation for these individuals must be reasonable and consistent with that paid for similar services in the market place. Compensation may include fringe benefits. Consultants obtained through competitive bidding do not require approval to exceed the $450 limit.