Instructions and guidelines on the following aspects of Non-Personnel Detail:
Establishing Consultant Rates
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Establishing Consultant Rates
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 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 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 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.
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.
Sub-recipients may find it necessary to sub-contract to individual consultants or organizations for work to be done under their own Scope of Services. In those cases, the procurement and contracting processes must follow the Sub-recipients own internal business processes. If the Sub-recipient does not have standard procurement business processes, then it must follow the City of Boston Guidelines.
The sub-recipient must define the nature of the work to be performed by the contractor or consultant. This should include the following:
Scope of services, along with measurable objectives that are clearly in support of the Grant Program
Timeframe, with begin and end dates, and intermediary check-in points
Approximated budget that is consistent with the scope of service and timeframe
The sub-recipient must then determine the method of procurement for the contractor or consultant that will perform the tasks. City policy requires that procurement be conducted in a way that provides, to the maximum extent possible, open and free competition. There is one exception: when work can be done within the organization of the sub-recipient (i.e., a different division or department). There are different standards for open and free competition, depending on the amount of the sub-contract:
For purchases or services up to and including, $4,999.99, use sound business practices.
For purchases or services between $5,000 and $24,999.99, a Written Quotation Contract is the City's requirement. Select a vendor through Invitation for Bid (IFB) or Request For Proposal (RFP) process, or select a sole-source procurement using the following methods:
Three telephone quotes;
Three written quotes; or
Sole-Source Procurement letter to the Program Manager of your Sponsoring Department.
For purchases or services $25,000.00 or greater, a standard contract is the requirement. You must select a vendor through an Invitation for Bid or Request for Proposal contact process.
Sub-recipients must maintain detailed procurement records that include, but are not limited to, the rationale for method of procurement, the method used to select or reject the contractor, and justification of the contractor or consultant's price.
Once a contractor or consultant is chosen, it is the responsibility of the sub-recipient to ensure the sub-contract includes the following elements:
Scope of Services, including objectives, activities and measurable outcomes
Budget & Funding, with detailed outline of costs that are reasonable
Midterm and Final Reporting requirements
Rights to reports/written materials
Rights of the Federal Government, or any of its sub-divisions, or any of their designated agents, to request and inspect records
Loss and Liability of each party
Contract Termination procedures
Sub-recipients may include the terms of their contract with the Sponsoring Department in their sub-contract. Sub-recipients must maintain a copy of the signed contract on file.
Sub-recipients are responsible for programmatic and fiscal monitoring of the contractor or consultant to ensure that the contract is being followed and the scope of services is being met. Sub-recipients are also responsible for communicating to contractors or consultants all invoice procedures listed on this web site, and any subsequent changes.