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Aft ! OCAG-09-077 , Adden #6-12 Washington State VAf Department of Transportation Supplemental Agreement Organization and Address p p g BergerABAM Number 6 33301 Ninth Avenue S., Suite 300 Federal Way,WA 98003 Original Agreement Number CAG-09-077 Phone: 206/431-2300 Project Number Execution Date Completion Date 4/17/2009 1 6/30/2014 Project Title New Maximum Amount Payable Strander Boulevard/Southwest 27th Street Ext 3,957,400.00 Description of Work Scope of work is revised to provide construction administration and design construction support services. The Local Agency of City of Renton desires to supplement the agreement entered into with BergerABAM Inc. and executed on 4/17/2009 and identified as Agreement No. CAG-09-077 All provisions in the basic agreement remain in effect except as expressly modified by this supplement. The changes to the agreement are described as follows: I Section 1, SCOPE OF WORK, is hereby changed to read: C nnctniction administration and inspection and design constmetinn comport cervices are added in accordance with Fxhihit A-1,attached I I Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar days for completion of the work to read: project completion date extended to 6/30/?014 III Section V, PAYMENT, shall be amended as follows: Direct-alary cnct multi=lien are ac chnwn nn Fxhihit-F-1 and G-1,attached, effective 1 .Tannni7 2012_ as set forth in the attached Exhibit A, and by this reference made a part of this supplement. If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate spaces below and return to this office for final action. By: BergerABAM Tnc { ' �: 04 of Rentnn X �a s c, f t� j Consultant Signature _, ? . _. . ITen: _s :Law, Mayor DOT Form 140-063EF -, ,... nnie I . Walton, City Clerk Revised 9/2005 EXHIBIT A-1(SUPPLEMENT NO. 6) SCOPE OF WORK- CONSTRUCTION ADMINISTRATION AND INSPECTION PLUS DESIGN CONSTRUCTION SUPPORT SERVICES PROJECT NO. CAG-09-077 INTRODUCTION The City of Renton(CITY)has executed Consultant Agreement CAG-09-077, and subsequent supplements, with BergerABAM Inc. (CONSULTANT) to develop this grade separation project, which includes a bridge structure that will carry the Burlington Northern/Santa Fe(BNSF) railroad tracks over a new Strander Boulevard. Strander Boulevard,which is to be constructed under Phase 1,Segment 2A (this project), is a two-lane roadway that connects Southwest 27th .Street to the east to the future Sounder Tukwila Station parking lot. The two-lane roadway also provides a segment of the future eastbound four-lane Strander Boulevard. The supplement provides for two types of services during construction of this phase of the Strander Boulevard Extension Project • Construction Administration and Inspection(CA&I) Services • Design Construction Support Services (DCSS) Supplement No. 4 provided a budget of$194,786 for DCSS within the total authorization of $2,214,900. However, configuration changes to the project to provide better funding support and to reduce probable construction costs, added Ad,Bid, and Award Services, and the departure of the City's Project Manager have reduced that amount to an estimated amount equal to$50,000. That estimated amount is credited against costs for services provided under this supplement. Supplement 6 is effective as of 1 January 2012. Services prior to 1 January 2012 will be paid for under authorizations through Supplement No.5. SCOPE OF WORK-CONSTRUCTION ADMINSTRATION AND INSPECTION (CA&I)SERVICES General 1. The CONSULTANT shall provide start-up services for the construction administration team to review contract plans and specifications for inspection requirements;develop preliminary inspection assignments;establish a project file system; attend meetings with the City of Renton,BNSF, and others; and establish form/systems for tracking required items. The purpose of these start-up services is to have the construction administration team ready to respond to contract requirements immediately after issuing a notice-to- proceed for the construction contract. 2. Contract administration duties will be provided up to the Contract Completion Date to facilitate close out of the project. 3. The CONSULTANT will assist the City in preparing contract documentation, data, and reports required by Washington State Department of Transportation(WSDOT) for receiving Federal Highway Administration(FHWA)funding. City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 1 I 0 0 4. The construction contract includes the provision of an office facility for the construction administration team with power,heat, air conditioning, suitable furniture(file cabinets, desks, and chairs)for four staff, an alarm, security, and communications,including high- speed internet. Therefore,no costs are included in the fee estimate for these items. 5. The CONSULTANT will provide computers, copiers,fax, and other miscellaneous office equipment and supplies required for both the CONSULTANT and CITY staff. 6. The CONSULTANT shall provide materials testing services and special inspections through Mayes Testing Engineers. 7. The CONSULTANT will provide all environmental services through subconsultant Widener&Associates. 8. The CITY will provide all public notice/involvement services required, including notices regarding the closure of streets and other CITY facilities affected by the project. The CITY will take the lead in informing appropriate public interests on the progress of the project. Therefore,no efforts and/or costs for public involvement services are included in the fee estimate. 9. No efforts and/or costs are included in this proposal to accommodate discovery, testing, and/or disposal of hazardous materials from the site. CA&I Staffing Under these services,the CONSULTANT will provide staff for the following positions at the construction site. More detailed descriptions of the duties of these staff are described in the following section. 1. Resident Engineer-The Resident Engineer will be part time and will be experienced in construction administration and inspection procedures on large federally funded projects to oversee all activities on the project site. The resident engineer will be granted the authority of the project engineer,referenced in the Standard Specifications, Section 1-05.1. 2. Materials Approval Engineer-The CONSULTANT shall provide a part-time materials approval engineer experienced in FHWA/WSDOT requirements to process all materials submittals. This position will also update the Project Record of Materials on a weekly basis. 3. Structures Inspector-The Structures Inspector will inspect sheet pile shoring, ground anchor installations, reinforced concrete retaining walls and the BNSF Bridge foundations, abutments,piers, and superstructure on the project. The structures inspector will coordinate with the resident engineer or assistant resident engineer/office engineer in scheduling subconsultant structural inspections. 4. Document Control Technician/Assistant Inspector-The Document Control Specialist/Assistant Inspector will be experienced in federally funded projects to organize City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 2 • 0 and maintain all project records and materials documentation in accordance with FHWA/WSDOT requirements. This position will also assist with any supplemental inspection needs. 5. Part-Time Field Engineer/Inspector-The Part-Time Field Engineer/Inspector will be available to assist the CONSULTANT field staff in carrying out their duties. Also under these services, the CITY will provide staff for the following positions at the construction site. 1. Assistant Resident Engineer/Office Engineer-The Assistant Resident Engineer/Office Engineer will be a part-time assistant resident engineer/office engineer and will be experienced in the administration of federally funded construction contracts. The assistant resident engineer/office engineer will assist the resident engineer with all project correspondence,route RFIs,evaluate requests for change orders, and review Contractor payments. The assistant will oversee and supervise consultant staff, subconsultant staff, and CITY staff when the resident engineer cannot be present. 2. Earthwork, Roadway, and Utilities Inspector-The Earthwork,Roadway, and Utilities Inspector will be responsible for inspection and documentation of all civil work. Job Descriptions for, Duties of, and Prospective CA&I Staff More detailed job descriptions, duties, and prospective personnel for each of the key positions are described below. Resident Engineer Bob Lee-BergerABAM Position Reports to City of Renton(Bob Hansen)and BergerABAM(Jim Guarre) Job Description: The resident engineer supervises the inspection team,materials approval engineer,assistant resident engineer/office engineer, and document control specialist. The resident engineer is responsible for the daily operations and functions of the field and office staff for the Strander Boulevard/Southwest 27th Street Extension-Phase 1,Segment 2A. The resident engineer will work closely with City of Renton to keep the CITY informed of the progress of the project in regards to scope, schedule, and budget. The resident engineer will be the main contact for CITY. It will be the responsibility of this position to ensure that project staff is trained and aware of elements of construction inspection,project documentation, and materials testing in accordance with the WSDOT Construction Manual,WSDOT Standard Specifications, and Local Agency Guidelines. City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 3 • Duties include • Review and evaluate construction documents • Establish construction administration tasks • Oversee construction contract administration and field inspections • Oversee the materials documentation filing system in conjunction with the document control specialist and materials approval engineer. This will include training and overseeing office engineering staff in updating the ROM, at a minimum, of a weekly basis; processing/distributing and filing QPLs,ensuring also that approval codes are acted upon; using the WSDOT on-line aggregate source approval database;processing RAMS for signature and distribution; and final processing and filing of certs, CMOs,materials inspection reports,field density reports,concrete test reports,HMA gradation test reports, HMA density reports, approved for shipment documentation, and all other information regarding materials • Supervise field staff in practices and procedures of codes, regulations, federal,state, and local contract requirements;oversee contract compliance • Facilitate weekly(or periodic) construction meetings • Supervise construction project inspection • Oversee correspondence,records, and change orders during construction of the project • Supervise staff to ensure adequacy of field project notes and monthly estimates for progress payments • Act as a resource and lead with federal and state auditors ensuring appropriate contract compliance • Supervise subordinate teams of staff • Provide and/or arrange for staff training • Ensure personal protective equipment is available in the job site office • Ensure inspection staff is provided with appropriate inspection equipment and/or tools for job site inspection • Draft or delegate drafting of serial letters to the contractor City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 4 • 0 • If the contractor requests additional compensation for any item, the resident engineer will determine merit. If merit is warranted, then the resident engineer will evaluate any cost and/or schedule impacts, and review response with CITY staff • Oversee the drafting of change orders • Facilitate and/or lead change order negotiations with the Contractor. The negotiations will be done in conjunction with the CITY representative or other CITY officials with signatory authority • Supervise and guide office staff in initial setup of project files, documentation flow, and computer systems • Ensure that design team support staff is notified promptly of potential field design revisions and/or changes. Supervise and oversee office staff personnel in routing RFIs, shop drawings, and other information to design team support staff • Provide coordination for material testing in accordance with WSDOT and FHWA requirements. This will also include coordination with items inspected by WSDOT fabrication inspectors • Other duties as assigned Assistant Resident Engineer/Office Engineer Keith Woolley City of Renton Position Reports to Resident Engineer Job Description: The assistant resident engineer/office engineer has the same job description as the resident engineer and will fill that role as needed when the resident engineer is not present. Materials Approval Engineer Ed Cline - BergerABAM Position Reports to Resident Engineer The materials approval engineer will process RAMS and QPLs for all materials approvals on the Strander Boulevard/Southwest 27th Street Extension-Phase 1,Segment 2A project. The materials approval engineer will work in conjunction with the resident engineer to ensure materials documentation and testing is completed in accordance with WSDOT Standard Specifications and WSDOT Construction Manual. The materials approval engineer will supervise and train,with the input and assistance of the resident engineer,the project staff that will be responsible for establishing,updating, and keeping current the project filing system, including materials documentation system. This position will be responsible for ensuring that all project materials submitted comply with Contract requirements and are documented in City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 5 • accordance with the WSDOT Construction Manual,WSDOT Standard Specifications, and Local Agency Guidelines. Duties include,but are not limited to • Manage the materials documentation filing system in conjunction with the resident engineer and document control specialist. This will include training and overseeing staff in updating the ROM, at a minimum, on a weekly basis;processing, distributing, and filing QPLs ensuring also that approval codes are acted upon;using the WSDOT on-line aggregate source approval database;processing RAMS for signature and distribution; and final processing and filing of certs, CMOs,materials inspection reports,field density reports, concrete test reports, approved for shipment documentation, and other information regarding materials. • Other duties as assigned Structures Inspector Ben Auseth or Bob Kohl! - BergerABAM Position Reports to Resident Engineer This position will assume the day-to-day inspection activities for sheet pile shoring, ground anchors,reinforced concrete retaining walls, and on-site BNSF Bridge construction. He will work with the resident engineer in coordinating all subconsultant inspections assigned to the Strander Boulevard/Southwest 27th Street Extension-Phase 1,Segment 2A project. Duties include • Participate in inspection of structural elements of the project • Complete and/or review field note records for payment. Ensure items for payment have complete documentation prior to payment. This includes materials documentation, such as RAMS, certs, samples, and approved for tags or other. For QPL items, ensure that approval code action is completed • Take preconstruction photographs and/or videos,periodic photo records during construction, and post-construction project photos (digital photos, minimum resolution of 2 mega pixels) • Provide inspection records, including a record of field changes for use in preparing record drawings as described below • Coordinate scheduling of materials testing lab personnel with the resident engineer • Serve as structural inspector and assign duties to assistant inspector(s)if applicable City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 6 • 0 • Coordinate scheduling of geotechnical inspector, as needed, with the resident engineer to document activities such as driven steel piles, sheet pile installation, ground anchor installation,and other elements of work as needed • Be first level to resolve field disputes with contractors • Evaluate issues of concern and develop corrective actions based on the Contract • Other duties as assigned Document Control Specialist/Assistant Inspector Dana Salyer- BergerABAM Position Reports to Resident Engineer The document control specialist will work under the direction of the resident engineer at a construction site field office in the collection,logging, distribution, and processing of all incoming and outgoing office correspondence. This position will assist the resident engineer in updating and keeping current the project filing system,including materials documentation system. The position will compute and/or check field note records for payment and enter into the project ledger. The document control specialist will assist the resident engineer to ensure that all applicable materials documentation for each bid item within a progress payment is received prior to payment for the individual bid items. All EEO documentation, including required forms to be submitted by the Contractor, will be processed and tracked by this position;this will also include checking payrolls for compliance to Contract requirements. As the need arises, document control specialist may be assigned to construction inspection duties as an assistant to construction inspectors. This will involve assisting in the inspection of all project elements,including but not limited to TESC measures,grading operations (shoofly), structural elements of the project,pile driving operations, sheet pile wall and ground anchor installations, drainage,bridge substructure and superstructure, and other miscellaneous construction features. Duties include • Assist the assistant resident engineer and materials documentation engineer with elements of the materials documentation system as requested • Assist the resident engineer in computing and/or checking field note records, collecting/computing and/or checking totals of item quantity tickets,entering pay information into the project ledger or checking information entered into project ledger, and running monthly pay estimates. Check progress estimates for accuracy, completeness, and then submit to the resident engineer for review with the Contractor. After review,make any revisions and submit to the resident engineer for final reviews and processing City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 7 • Assist the resident engineer in filing all field note records submitted for monthly progress payments into the office field note record books. File and reference all item quantity tickets and any backup tickets for neat line items in the office file cabinet or storage boxes. Check to ensure that all items paid by neat line that require cross section and end area information and calculations are submitted with such. File and reference all backup information in the project files or backup boxes • Assist the resident engineer in the processing of force account bid items. This includes contractor and subcontractor personnel weighted wage rates,contractor and subcontractor equipment rates, and all backup information to determine the rates. Complete the calculation portion of the inspector's daily report of force account. This will include entering the weighted wage rates and equipment rates,then totaling and applying applicable markups to determine total compensation in accordance with WSDOT Standard Specification 1-09.6. Maintain.all backup information for payment of force account items • Assist the resident engineer in collecting, compiling,packaging, distributing, and filing all change order backup information,including,but not limited to, serial letters, e-mails, verbal and/or written approvals to proceed,independent estimates, and any other backup to be included in each change order file • Attend meetings as requested by the resident engineer • Assist the resident engineer to ensure that all required contract forms and/or reports are received from the contractor in a timely manner,processed, and filed. These include,but are not limited to,Apprentice Utilization Plan,Statement of Apprentice Journeyman Participation, Quarterly Report of Amounts Paid to DBE,Annual EEO Report,monthly Utilization Report, Request to Sublet, and Notice of Intent to Pay Prevailing Wage • Process training plan, trainee requests, and payment of training if applicable to the project • Check weekly payrolls for prime contractor and all subcontractors to ensure applicable contract prevailing wage rates and benefits are paid. Compare to employee interview reports to ensure contractor field staff is being paid in accordance with the contract • Update and keep the project files, as new correspondence is received, current on a daily basis • Assist the resident engineer in the processing of incoming and outgoing correspondence, such as serial letters, transmittals, submittals,materials information, shop drawings, catalogue cuts, and miscellaneous documentation. This will include date stamping,logging information into an Excel spreadsheet for tracking, distributing copies for routing, and ensuring copies are placed in the project files • Attend preconstruction and weekly construction meetings to record and transcribe meeting minutes and distribute to attendees for comment City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 8 0 • • Assist field inspectors in conducting or conduct Employee Wage Rate interviews and DBE on-site reviews • Arrange meetings and schedule appointments, as necessary;prepare in computer format (PowerPoint) • Distribute office mail, draft and prepare written correspondence, and review routine invoices for payment • Answer and handle telephone calls and route to appropriate individual or take detailed messages • Make copies of project documentation and/or scan information for distribution and electronic filing • Assist project inspectors in as needed • Other duties as assigned Earthwork, Roadway, Utilities Inspector(Civil Work) TBD-City of Renton Position Reports to Bob Lee Resident Engineer This position will assume the day-to-day inspection activities for all nonstructural construction activities. This will include,but not be limited to,inspection of Contractor's TESC operations, clearing and grubbing,preparation activities, grading operations, shoofly and roadway embankment construction,roadway excavation, drainage and pond installation,illumination system construction, surfacing,paving, striping and signing. He will work with the resident engineer in coordinating all subconsultant inspections assigned to the Strander Boulevard/Southwest 27th Street Extension-Phase 1,Segment 2A project. The position requires the ability to work in a team environment,provide solutions to construction field issues, and be able to clearly articulate both orally and in writing. Duties include • Complete and/or review field note records for payment. Ensure items for payment have complete documentation prior to payment. This includes materials documentation such as RAMS,certs, samples, and approved for tags or other. For QPL items, ensure that approval code action is completed • Take preconstruction photographs and/or videos,periodic photo records during construction, and post-construction project photos(digital photos,minimum resolution of 2 mega pixels) City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 9 • Provide inspection records, including a record of field changes for use in preparing record drawings as described below • Coordinate scheduling of materials testing lab personnel with the resident engineer • Serve as civil inspector and assign duties to assistant inspector(s)if applicable • Coordinate scheduling of geotechnical inspector,as needed,with the resident engineer to document activities, such as shoofly embankment inspections, subgrade inspections, dewatering operations monitoring, and other elements of work as needed • Be first level to resolve field disputes with contractors • Evaluate issues of concern and develop corrective actions based on the contract • Other duties as assigned Schedule for CAM Services The accompanying fee estimate is based on an estimated calendar for involvement of the above staff as a fraction of available time in accordance with the current estimated Construction Time Estimate for the project. That calendar is included with Exhibit E-1. It is recognized by both parties that this schedule is estimated and that the Contractor's schedule will become the "real" schedule against which staffing plans must be made. Key assumed milestones in this estimated Construction Time Estimate are as follows. Notice-to-Proceed Date 1 January 2012 Substantial Completion 30 September 2013 Physical Completion 31 December 2013 Contract Completion 31 March 2014 BNSF Shutdown Periods 1 October 2012 through 2 January 2013 1 October 2013 through 2 January 2014 During these BNSF shutdown periods,the Contractor's work operations will be limited to activities outside of the BNSF right-of-way that causes no risk to impede BNSF railway traffic. The estimated calendar for involvement of the above staff accounts for reduced construction activities during these shutdown periods. However, it is recognized that the Contractor may request and gain permission from BNSF within these shutdown periods and that staffing will need to be adjusted accordingly. Budget for CAM Services General It is also recognized that the budget for these services needs to fit within the overall budget for the project,but that the level of services also needs to be sufficient to administer and inspect the project and to provide adequate records to meet WSDOT standards to pass WSDOT audits. City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 10 0 0 However,it is also recognized by both parties that efforts to provide services under this supplemental agreement can vary considerably from estimates utilized to develop the additional amount payable for this supplemental agreement. Some budget items may cost more and other items may cost less. Budgets for some subconsultants may not be expended and may be used by CONSULTANT and/or other subconsultants. BergerABAM will monitor total costs expended under this supplemental agreement and will notify CITY when costs have reached 25,50, and 75 percent of the additional maximum amount payable authorized under this supplemental agreement. At each cost milestone, CONSULTANT will meet with the CITY and will jointly develop an estimated amount to complete the work. If CONSULTANT costs for the remaining work under this agreement are estimated to be higher than the original amount in this supplement,the remaining work above the amount authorized will not be performed without prior written authorization from the CITY. This paragraph will also be included in Section XIV, EXTRA WORK, of the Agreement. Field Office Equipment and Supplies Field office equipment includes computers,printer, faxes, copiers, and phones, including cell phones. Allowances have been established for the purpose of acquiring these items and/or covering monthly expenses associated with their use. The actual monthly expenses will be invoiced. The actual cost to purchase the equipment shall also be invoiced. Vehicles and Mileage CONSULTANT field staff shall be compensated for mileage to and from the permanent duty station(Federal Way Office) to the site. CONSULTANT field staff shall be compensated for mileage for travel at the site. Travel expenses for part-time and temporary inspection services, as well as for project meetings attended by engineer support staff of the CONSULTANT and its Subconsultants, shall be invoiced on the basis of mileage. SCOPE OF SERVICES - DESIGN CONSTRUCTION SUPPORT SERVICES(DCSS) DCSS provides continuity of the design team through the construction process. Services to be provided by the CONSULTANT during construction will include shop drawing review, submittal review, and responses to Contractor requests for information. Services may also include adjustments to the project design to work around unforeseen site conditions. Services will also include site visits, attendance at project meetings, design-team inspections, and preparation of record drawings. Under DCSS,five basic tasks will be provided as follows. DCSS Task 1- Project Administration, Permitting Support, and Meetings The CONSULTANT will attend project site meetings as necessary. The estimated number of meetings for each is shown in the accompanying fee estimate. The CONSULTANT shall also prepare monthly invoices for the CONSULTANT's services that include a brief description of services provided during the month. Invoices will be based on the task descriptions contained in this scope of work. City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 11 Deliverables) • Monthly CONSULTANT invoices and progress reports DCSS Task 2 - Requests for Information (RFIs)and Submittal Review The CONSULTANT will respond to questions and RFIs by the Contractor and shall review Contractor submittals as assigned by the CONSULTANT CA&I staff. Assumed submittal items are as indicated in the accompanying fee estimate. Deliverable(s) • Responses to CONSULTANT CA&I staff to support RFIs, as required DCSS Task 3- Change Orders The CONSULTANT shall provide revised plans and specifications as required to execute change orders. Deliverable(s) • Revised plans and specifications will be provided, as required DCSS Task 4 - Inspections BergerABAM design staff and railroad, geotechnical,pump station electrical, illumination, and environmental subconsultant design staff will provide part-time inspections on an as-needed or as-desired basis. Possible specialized inspection services may include the following. • Geotechnical observation for the installation of driven bridge foundation piles, sheet piles, and tieback anchors. It is assumed that this will be a part-time effort for each operation. • Geotechnical observation and evaluation of shoofly embankment subgrade preparation, shoofly embankment construction, and evaluation of settlement monitoring information • Geotechnical observation and evaluation of the Contractors dewatering system installation and subsequent operation • Geotechnical observation and evaluation of subgrade beneath the Strander Roadway • Geotechnical observation and evaluation of"final' groundwater control system • Structural inspections for BNSF Railroad Bridge components and shoofly embankments • Special inspections of pump station electrical • Special inspections of pump station mechanical • Special inspections for pump station building structural • Provide materials testing and special inspections of structures City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 12 0 r • Assist the project engineer in staking and verifying the wetland boundary on the ground prior to the contractor beginning work on the project • Provide permit modification support as needed during construction. The work includes possible modifications proposed by the contractor, such as work window extensions and design changes. The work will only be performed if changes are needed during construction • Provide biological assessment updates and consultation assistance for Section Seven of the Endangered Species Act • Provide weekly assistance in NPDES inspections with the Contractor to ensure compliance with the NPDES permit and Section 401 water quality certification. Deliverable(s) • CONSULTANT staff will provide daily inspection reports whenever on site to conduct these inspections. DCSS Task 5 - Record Drawings The CONSULTANT shall prepare a record set of drawings for the CITY that reflect field changes(additions, modifications, or deletions) to the bid drawing set during construction. The record drawing set shall include any drawings revised or reissued during construction as a result of change orders and shall include changes resulting from RFI responses. The basis for the record drawings shall be a set of bid drawings redlined with changes by the CITY and supplied to the CONSULTANT. These drawings shall be noted as "record drawings" in the drawing revision block,but shall not require seals or signatures of registered professionals. The intent of the record drawing set is to provide the best information available to capture significant field changes,but not necessarily every minor change that may occur. Deliverable(s) • One set of 11 x 17 final record drawings • One electronic set in AutoCAD format • One set of 22 X 34 final record drawings on mylar. SUBCONSULTANTS These construction support services include services provided by the following subconsultants. • Shannon&Wilson-Geotechnical • Hanson Professional services-Railroad • RH2 Engineering-Pump Station Electrical • BCE Engineers-Illumination • Perteet Engineering-Survey Control/Survey QA • Mayes Testing-Material Testing and Inspection Services • Widener&Associates-Environmental/Permit Services City of Renton,Construction Support,Admin,and Inspection Services BergerABAM,FAPWT-09-175 Strander Boulevard Extension Project December 2011 Renton,Washington Exhibit A-1 Page 13 I Construction Administration/Inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit E-1 BergerABAM Fee Determination EXHIBIT E-1 CA plus DCSS Costs CONSULTANT FEE DETERMINATION 112012012 Construction Administration and Inspection (CA&I) DIRECT SALARY COSTS(DSC)for BergerABAM Personnel Hours Rate Cost 1 Resident Engineer 2,420 X $52.73 = $ 127,615 2 Asst RE/Office Engineer 0 X $47.43 = $ - 3 Asst RE/Office Engineer City 2,964 X $0.00 = $ - 4 Materials Engineer 1,072 X $50.45 = $ 54,079 5 Inspector-Earthwork/Utilities City 4,104 X $0.00 = $ - 6 Inspector-Structures 2,280 $40.19 $ 91,629 7 Document Control/Asst Inpsector 3,120 $24.54 $ 76,572 8 Field Engr/Inspector 864 X $40.94 = $ 35,368 BERGER/ABAM Hours,TOTAL 9,756 Subtotal Direct Salary Costs(DSC)= $ 385,264 Salary Escalation-Estimated Salary Escalation Costs are included in above rates $ - Overhead(OH) 155.00% of(DSC+SE)= $ 597,159 Fixed Fee(FF) 25.00% of(DSC+SE)= 96,316 TOTAL SALARY COSTS(DSC+SE+OH+FF)= $ 1,078,739 DIRECT NONSALARY COSTS(DNSC) Courier 20 packages @ $ 25.00 $ 500 Field Office Computers 0 @ $ 1,500.00 $ - Portable Laptops 2 @ $ 2,000.00 $ 4,000 Printer/copier/fax 1 @ $ 6,000.00 $ 5,000 Mylars 1 @ $ 1,000.00 $ 1,000 Office Phones(by contractor) @ $ - Cell Phones(3) 24 months @ $ 300 $ 7,200 Mileage(3 @ 40 miles/Day=120 mile) 24 months @ $ 1,386.00 $ 33,264 Mileage(private vehicle use,50 miles/day) 8,000 miles @ $ 0.55 $ 4,400 Miscellaneous Expendables(film,etc) 1 estimate @ $ 1,500 $ 1,500 TOTAL REIMBURSABLE EXPENSES(DNSC)= $ 56,864 TOTAL BergerABAM FEE (DSC+SE+OH+FF+DNSC)= $ 1,135,603 BergerABAM CAM services will be paid on a DSC multiplier equal to 2.800 DESIGN CONSTRUCTION SUPPORT SERVICES (DCSS)COSTS BergerABAM $ 170,958 SUBCONSULTANTS Shannon&Wilson $ 116.258 Hanson Professional Services $ 73,178 Perteet $ 33,100 RH2 $ 19,119 BCE $ 7,891 Mayes Testing $ 80,472 Widener&Associates $ 156,000 TOTAL ESTIMATED DESIGN CONSTRUCTION SUPPORT FEES= $ 656,975 TOTAL ESTIMATED AMOUNT FOR CA&I+DCSS SERVICES = $ 1,792,578 CREDIT FOR ESTIMATED AMOUNT REMAINING FROM SUPPLEMENT NO.4 AUTHORIZED AMOUNT= $ (50,000) TOTAL AUTHORIZED AMOUNT REQUESTED FOR SUPPLEMENT NO.6 ROUNDED DOWN= $ 1,742,500 1 of 16 EXHIBIT E-1 BergerABAM CA Rates CONSULTANT FEE DETERMINATION 112012012 Rate(July 1, Estimated Salary 2011 to June 30, Percent(%) Blended Hourly Escalation Classification Name 2012) Participation Wage Rate Factor Resident Engineer Bob Lee $50.48 100% $50.48 1.045 Asst RE/Office Engineer TBD $47.43 100% $47.43 1.000 Materials Engineer Ed Cline $48.08 100% $48.08 1.049 Inspector-Structures Ben Auseth $38.00 100% or Bob Kohli $38.00 1.058 Document Control/Asst Inpsecto Dana Salyer $23.32 100% $23.32 1.052 Field Engr/Inspector Jake Lewing $31.25 40% Ed Cline $48.08 30% Shawna Lawrence $41.59 30% $39.40 1.039 Page 2 of 16 g ��- 0 �R N Z w (n O O co N 0) N 000 O O O O O O O ( m y J Q rn � m cai LL a a m °i w f..1 N O r O w N = N N O V N M CO m h Q Q N m O N m N O (O 04 O o00 N 'cl- r N N V N M U a N O O N N O O O O � r- M QI LO C N } H a m M c0 O N O N O N N co N 0)) M v c^0 u M M } N a m N O O N V O O N CO 00 O CO O N 00 M N N } N a m c0 O O V O O O N O (O O co I� N N N M v } U N G' 7 O M c0 O N (O N O N N _ O LO n co Ln O N O M v c0 (f7 M M z } LL U LL a F N N N o 0 U O N O � 10 n N � 00 O O N N M (n O n M V O O H } J V a z O F- U O O O O O O O O W c N N z r _ U D QM V Z N N FO m m m m m m (j)(1) LL U U mm N o 0 Z Z O N M ~ O N N Z Q o }} z n U)fn w Q d Y m m U _ w m w a i 5 2� (n (0 w N o Q o a U U LL N w w m t U O` C C I- U d m @ 2 o m 0 U U Z w z w W W In V SI 2 D O u1 O O m E c d U) W m m m `m m N 7 'O W UO N d x Q Q � 0 LL W W W y N � Z ° U m� v> > IL m M U y Q� m R O N N O OR N LU Q LL V O O O O O O C7 R O N O N m W > O O N N top N O COO Z a le O CR N O O aOD N (D W h� FOf G O O O O O ~ (OD O COD N O O COD N (00 Z Q O O O O O O V Q J (OD O °N N O O COO N O Z (7 O O O O O O V Q.' NZ � � o o v r (OD O COO N O O COO N (°O O Q O O O O O O V LL fOD O COD N O O -q N (OD Q = Q V O O O O O O V y Z O CO N O O ON N O pa g 0 0 0 0 0 0 0 O Q m (°O O NO N O O COD N V] ~ Q W V O O O O C O W < 2 tOD O Iq V > 0 0 0 a 0 o pv 0 LUjJ O N N t00 O N N <—Z a0 O p O O O O O O O O W W > O N N (OD O N O m J Z O O O O O O O O O F U W (~J O N N C5 O N O C? Q�, O O O O O O O O LLJ d t00 O COD N O O C°O O V Q fn O O O O O O V ' r r Q O Iq O COD N O O COD N (00 LL Q O O O G O O V Q Q V O O W N O O COD N (D F N� O O O O O O V Q Z LL Q 0 O 6 COD O N N O OOD V V 00 (O OD O O O O O O V 0- m O °N O O OOD C (O'1 aV _ Q o 0 0 o c o v 0 0 0 0 0 0 0 0 Q W rn o o V o aD V `r A o 0 0 0 o v m a °o co° t °o Iq °v Cl? W° 0 0 0 0 0 o v Z rn °o -q °v °o -q °v Ci W0 °o Q 0 0 0 0 0 0 0 0 > 0 0 0 0 0 0 0 0 Oo O 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 (°y Z 0 0 0 6 0 0 o c H CD 0 0 0 0 0 0 U o 6 0 0 0 0 0 O c o 0 0 0 0 0 W o 0 W V o 0 N o 0 t7 ui m m U m C j m m m m Q U 0 L L F T O O _Z f 2 U m m J m m = m y y w W `m U `m 3 o v LL O m W W m L ° H Z LL Z C Q W H c `v W U v1 O W O U d Q Q N y LL H • • Exhibit E-1 BergerABAM DCSS Costs CONSULTANT FEE DETERMINATION 1/20/2012 DIRECT SALARY COSTS(DSC) Personnel Hours Rate Cost 1 Project Manager 84 X $82.00 = $ 6,888 2 Project Engineer 504 X $38.00 = $ 19,152 3 Civil Engineer 380 X $32.00 = $ 12,160 4 Structural Engineer 172 X $45.00 = $ 7,740 5 Designer-CADD 310 X $30.00 = $ 9,300 6 X = $ - 7 Admin, Clerical 72 X $25.00 = $ 1,800 Total Hours 1,522 Subtotal Direct Salary Costs(DSC)= $ 57,040 Salary Escalation(SE)= 5% of DSC= $ 2,852 Subtotal (DSC+ SE)= $ 59,892 Overhead(OH) 155.00% of(DSC+ SE)= $ 92,833 Fixed Fee(FF) 25.00% of(DSC+ SE)= $ 14,973 TOTAL SALARY COSTS(DSC+SE+OH+ FF)= $ 167,698 DIRECT NONSALARY COSTS(DNSC) Mileage 3200 miles @ $ 0.550 $ 1,760 Inspection EquipmentEquipment $ 1,000 Copies $ 500 TOTAL REIMBURSABLE EXPENSES(DNSC)= $ 3,260 TOTAL AUTHORIZED AMOUNT = $ 170,958 PAYMENT BergerABAM DCSS will be paid on a DSC multiplier equal to 2.800 Page 5 of 16 E2 C-4 _ / \ co U) ® \ c CL � < f 14 04 0 C\Jo0 co WN0 0 0 0 04 1— mc � W) a o _ � N / m . r- C14 � � . , , . � a � . § 0 2 2 ~ S . . $ I, k � « u . $ o « , , , § , S S co . k § � I] 0 - § B . Rg 2 - � S $ . m r- kLU 20 _ 2 R § 8 / S $ . m 2 uLU 2 _ 77772 7 EU02 8 ~ \ \ \ \ \ ^ # _ # # t # # § 2 . Q 0 0 C) C) L) L) 0 . � LU £ £££££ \A c � „ E . C4 � c M ) - N m V Ln r- w � § � 2 ■ z . Cck 2 7 < § § f ƒ § / .5 k \ V k � % § Et § \ ƒ - 2 ® E ■ ca k f \ \ 2 / c • ` E cc§ § v 2 § >,{ I ƒ \ k \ o= � / = k 2 ? 7 ) 222 2 � R ] � ° / fg o 0g w 0 2 / ; oE © � § E M = .O-o co % J e . m e c , � aga2 6 a ` r Ee4)o : tee � o v - c « Z ' ` ao60 < m3 = - _ IeRI � = ; § E7 S S ■ � � x2222 / � / / % § k \ \ / kkkkk § § / \ U) U) ' ac . t 2pc 0cm0) 33a . . w / _ z _ � � ƒ� _ , ae � o - c , mmmem < IV 2 3e § X22 > 2 £ � 777ac « = 99 � � � a � � = � _ « 2z , w x723 § § 2ER § 23e / I \ { $ 0 :3 :3 } 2Q 2 k o § E m a � a < eo2 � omoccoolewWoaaaa- a Construction Administration/inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit F BergerABAM Overhead *EXHIBIT F � Washington State Tran VI/ Department of Transportation 310 Maple Patrk Avenue S E Paula J. Hammond,P.E. P.O.Box 47300 Secretary of Transportation Olympia,WA 98504-7300 360-705-7000 Jan 8 2010 TTY: 1-800-833-6388 January www.wsdotwa.gov Mr. Dennis Dallara Berger/ABAM Engineers,Inc. 333019'Avenue S, Suite 300 Federal Way,WA 98003-6395 Re: Berger/ABAM Engineers, Inc. Overhead Schedule Fiscal Year End May 31, 2009 Dear Mr.Dallara: On January 8, 2010, as a WSDOT representative,Laura Julius,Audit Specialist, completed a desk review of your proposed FYE May 31, 2009, Overhead Schedule. Laura also reviewed the documentation provided by Berger/ABAM Engineers,Inc. during this review process. The reviewed data included,but was not limited to;the schedule of the indirect cost rate, a description of the company,basis of accounting and description of Berger/ABAM Engineers,Inc. accounting system and the basis of indirect costs. Based on out desk review,we are issuing this letter of concurrence establishing Berger/ABAM Engineers, Inc. overhead rate for the fiscal year ending May 31,2009. The Company Wide Rate(Composite Rate)is 146.85%of direct labor. Included within this rate are the Home Rate of 147.07%of direct labor,and the Field Rate of 119.12%of direct labor. Costs billed to actual agreements will still be subject to audit of actual costs. If you or any representative of Berger/ABAM Engineers,Inc.have any questions,please contact Martha Roach,Agreement Compliance Audit Manager at(360)705-7006. Sincerely, Martha S. Roach Agreement Compliance Audit Manager MR:ds Enclosures cc: Steve McKerney Pasco Bakotich, MS 47329 Tharmalingam"Brew"Bremjit,MS: TB-32 Rick Griffith,MS 47323 File Meg Blau,MS NB82-112 N %C C1 M .--� Ot: W1 •--� M %0 N M C� M 00 W) C1 N � 00* N C1 O G1 t` h N t` 00 C1 w N y-� M C1 OC to to M N O I%G C1 Cr� v� r- C O %C C, �O 00 M M N N l0 NO N t [ N C ... 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O CN a% M G% '4- � D`• [� [� N N G� O �D v� O� •-� 00 � : C tC tp t- O �e = 0 t- to "e %0 to N CN M v C� N N N C` V t- M kn G\ to \ M to N 6R U U y U d O q oar •w 9 En W W u, ►� � C�a ,c �va W � y'' a �3 E� a � � a�i � o 0 0 'o >' y •� `' O a` c. ,d > eta H E� O c � o ax o' � L , � � 7 0 � C n lee, �r � y v A ZZ \O M N to _ co U ci w .� to b o `r �r C5 3 p �i N er "V _ p V1 M •= R to �. M N U C y .�: b E.r oo N 'D ° My o c Via,°� a Q eel C14 .0 o a¢i 3e w F ° xv .-9k�' CA »r V 3 C V t�C 00 00�•, Lz; ¢ �>'N Q �O moo > � �, � �i � � N � � u �, o �••- � o Ci C cq 0 B u '" M r, N Z � S. 601 rn S's N .-- V �. w •� k. M ~.` W y�g .--� M ; V 0 3 'Lim �i [d ° r°] � 00 O o. ` oo O V a L c ° + M w F v°, '• 3 a ¢ -; Ems. °,404 02 an i.M U oo r+- LL c� ec r-et O r. v' ^, v .� ai o o N c�000 00 v 04 PC .. _ CC 0 C PC ou �A ? a, o O°4 c � �v ,G te H w CiC4Gtii ¢ V � w3OE- ¢ � � Q � aAa� C7 .� M LN a41 ¢ aa vAw �. � x � 3tiaz oaa a B �( � �J/� /(B 11701 Fifth Avenue,Suite 1200,Seatde,Washington 98101 2677 C� ��'�/1 206/3557-5600 2065/357-51601 Fax wnan cabam.rom 26 March 2010 Mr.Erik jonson,Contract Specialist Washington State Department of Transportation Consultant Services Office, Environmental &Engineering Programs Division 310 Maple Park Avenue SE Olympia,WA 98501 RE: On-Call Structural Design Services Dear Mr.jonson: Attached is an Actual Not to Exceed Table with current rates for BergerABA_ti1 and our proposed subconsultants, ABKJ,Lin&Associates,and SC Solutions. BergerABA-N, i's rates utilize an overhead rate of 155.09%,which has recently been accepted by the Washington State Department of Transportation(WSDOT)for use on another WSDOT contract. As shown in the attached table and supporting documents, this rate is based upon an average of our firm's overhead over the past four years and is higher than the rate determined by the WSDOT's desk review of our 31 May 2009 Overhead Schedule completed on 8 January 2010. This rate is also very close to our DCAA audit result of 155.8°/x. Copies of our DCAA audit can be provided if necessary. We are not in agreement with WSDOT's findings from 8 January 2010 and are attempting to resolve the issue. Attached is a letter from BergerABANI to WSDOT's Director of Internal Audit,summarizing the main points of our disagreement with the desk review. We trust the proposed overhead rate will be acceptable until we have an opportunity to resolve these issues or until our 31 May 2010 Overhead Schedule is completed and available for review. Sincerely, Robert L.Fernandes,PE,SE Vice President RLF:grl Attachments Dallara, Dennis From: Griffith, Rick jgriffitri @wsdotwa.govj Sent: Wednesday, March 24,2010 8:18 AM To: Ozofrn, Eimer Cc: Jonson�Erik;Dallaca,Dennis Subject: RE: Berger ABAM Audlt-FYE 5131/09 I further reviewed your proposed negotiated 2009 overhead rate and noted that the average'for Fy2006—FY2009 are(167.93%+156.92%+148.669.+146.85%)/4=155.09%. Accordingly I am willing to negotiate 155%to be used for negotiating WSDOT rates until your FY2010 is available. I assume you will prepare a ANTE. Thanx, Rick WSDOT OVERHEAD HISTORY BERGER/ABAM ENGINEERS FISCAL YEARS 2006 TO 2009 j Fiscal Year Start bate End bate [All inclusive Comments OH Rate l 2006 June 1,2005 May 31,2006 167.93% Per WSDOT September 27,2006 Letter 2007 June 1,2006 May 31, 2007 156.92% Per WSDOT January 17,2008 letter _ 2008 June 1,2007 May 31,2008 148.66% Per BERGER/ABAM OH Schedule 2009 June 1, 2008 May 31,2008 ! 146.85% Per WSDOT January 8, 2010 Desk Audit 2006-2009 Average I I 155.09% I Construction Administration/Inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit G BCE Engineers, Inc. Scope of Work Fee Determination Overhead I BCE ENGINEERS - ILLUMINATION SCOPE OF SERVICES - DESIGN CONSTRUCTION SUPPORT SERVICES(DCSS) PROJECT NO. CAG-09-077 DCSS provides continuity of the design team through the construction process. Services to be provided by the Subconsultant during construction will include shop drawing review, submittal review,and responses to Contractor requests for information. Services may also include adjustments to the project design to work around unforeseen site conditions, site visits, attendance at project meetings, design team inspections, and preparation of record drawings. Under DCSS,five basic tasks will be provided as follows. DCSS Task 1- Project Administration, Permitting Support, and Meetings • Attendance at weekly site meetings(two meetings) • Site visits(two site visits) • Prepare monthly invoices and progress reports DCSS Task 2 - Requests for Information (RFIs)and Submittal Review • Review all submittals required by Special Provision 8-20 • Review RFIs-Assume five DCSS Task 3- Change Orders • Provide input as needed and requested for change order regarding illumination system • Provide revised plans and specifications for change order items of work on BCE stamped plan sheets DCSS Task 4- Inspections • N/A DCSS Task 5 - Record Drawings The subconsultant shall prepare a record set of drawings for the CITY that reflect field changes (additions,modifications, or deletions) to the pertinent Subconsultant sheets of the bid drawing set during construction. The record drawing set shall include any drawings revised or reissued during construction as a result of change orders and shall include changes resulting from RFI responses. The basis for the record drawings shall be a set of bid drawings redlined with changes by the CITY and supplied to the CONSULTANT. These drawings shall be noted as "record drawings" in the drawing revision block,but shall not require seals or signatures of registered professionals. The intent of the record drawing set is to provide the best information available to capture significant field changes,but not necessarily every minor change that may occur. EXHIBIT G-1 BCE Costs SUBCONSULTANT FEE DETERMINATION 1/20/2012 Allowance for Design Construction Support Services BCE COSTS DIRECT SALARY COSTS(DSC) Personnel Hours Rate Cost 1 Project Manager 24 X $46.00 = $ 1,104 2 Engineer/CADD 40 X $35.00 = $ 1,400 3 Office Administration 0 X $24.00 = $ - Total Hours 64 Subtotal Direct Salary Costs(DSC)= $ 2,504 Salary Escalation(SE)= 0% of DSC= $ - Subtotal(DSC+SE)= $ 2,504 Overhead(OH) 182.63% of(DSC+SE)= $ 4,573 Fixed Fee(FF) 25.00% of(DSC+SE)= $ 626 TOTAL SALARY COSTS(DSC+SE+OH+FF)= $ 7,703 DIRECT NONSALARY COSTS(DNSC) Mileage 160 miles @ $ 0.550 $ 88 Miscellaneous Expendables(photographs,equip rental,etc) $ 50 Copies $ 50 TOTAL REIMBURSABLE EXPENSES(DNSC)= $ 188 TOTAL AUTHORIZED AMOUNT = $ 7,891 PAYMENT Services will be paid on a DSC multiplier equal to 3.076 Page 13 of 16 Date: 1/13/2012 BCE ENGINEERS,INC. Time:2:44 PM Overhead Analysis Worksheet December 31,2010 1 Direct Labor 50.79% $ 2,095,780.71 Overhead on Direct labor 2 Vacation,Holidays,Sick Leave $ 177,425.41 3 Other Fringe Benefits $ 73,630.80 a)Incentives $ - b)Retirement/Pension Plan(401K) $ 73,630.80 c)Profit Plan $ 4 Health Insurance $ 115,317.98 5 Payroll Taxes $ 175,093.99 a)FICA $ 145,939.56 b)FUTA $ 1,631.60 c)SUTA $ 16,161.12 d)Other(Wrkmn's Comp) $ 11,361.71 6 Subtotal-Overhead on Direct Labor $ 541,468.18 7 Overhead Rate on Direct Labor(6/ 1) 25.84% 8 Total Cost(1+6) $ 2,637,248.89 General and Administrative Overhead 10 Indirect Labor 49.21% $ 2,030,262.91 Overhead on Indirect labor $ 524,540.93 a)Vacation,Holidays,Sick Leave $ 171,878.77 b)Other Fringe Benefits $ - c)Health Insurance $ 111,712.94 d)Payroll Taxes $ 169,620.24 e)Retirement/Pension Plan(401K) $ 71,328.98 11 Telephone and Telegraph $ 25,201.54 12 Utilities(Gas,Electric,etc) $ 10,614.18 13 Accounting by Services $ 21,089.00 14 Legal Services $ 6,118.33 15 Professional Memberships/Dues $ 8,038.00 16 Rent and Lease Expense $ 216,599.39 a)Office Equipment $ 496.60 b)Computers $ - c)Automobiles _ $ - d)Building $ 214,383.50 e)Word Processors $ - f)Other(Records Storage) $ 1,719.29 17 Office Supplies-General $ 39,082.20 18 Professional Subscriptions/Periodicals $ 3,642.84 19 Depreciation Expense $ 39,676.00 a)Office Equipment(F&F) $ 7,914.44 b)Automobiles $ 3,433.00 C)Computers/Word Processors $ 20,609.10 d)Other(LHI) $ 7,719.46 20 Insurance Expense $ 87,403.76 a)Professional Liability $ 65,694.28 b)Comprehensive&Fire $ 1,564.48 Date: 1/13/2012 . BCE ENGINEERS INC. • Time:2:44 PM Overhead Analysis Worksheet December 31,2010 c)Automobiles $ 3,275.04 d)Disability Insurance $ 16,724.60 e)ERISA Bond-401k Ins $ 145.36 21 Reproduction(Blueprints,Maps,Photos) $ 13,222.32 22 Auto Expense(Gas,Oil,Repairs,Maint) $ 6,352.05 23 Postage&Express $ 3,196.72 24 Education Expense $ 4,436.36 25 State and Local Taxes $ 167,225.76 26 Travel $ 4,025.45 a)Employees $ 4,025.45 b)Executives $ - c)Conference/Seminars $ - 27 Employee Relocation $ - 28 Computer&Administrative Services $ 52,825.68 29 Repairs&Maint $ 2,460.09 30 Miscellaneous $ 20,147.05 a)Technical Supplies $ - b)Business Licenses Fees $ 10,097.05 c)Project Development Costs $ - d)Temp Services $ - e)Janitorial $ 10,050.00 31 Subtotal:G&A Overhead(10 through 30) $ 3,286,160.56 32 Grand Total Expenses(8+31) $ 5,923,409.45 33 G&A Overhead Rate(31 /1) 156.80% 34 Combined Overhead Rate(7+33) 182.63% 0 r Construction Administration/Inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit G Hanson Professional Services Scope of Work Fee Determination Overhead 0 • HANSON PROFESSIONAL SERVICES - RAILROAD SCOPE OF SERVICES - DESIGN CONSTRUCTION SUPPORT SERVICES(DCSS) PROJECT NO.CAG-09-077 DCSS provides continuity of the design team through the construction process. Services to be provided by the Subconsultant during construction will include shop drawing review, submittal review, and responses to Contractor requests for information. Services may also include adjustments to the project design to work around unforeseen site conditions, site visits, attendance at project meetings, design team inspections, and preparation of record drawings. Under DCSS,five basic tasks will be provided as follows. DCSS Task 1- Project Administration, Permitting Support, and Meetings • Attend project preconstruction meeting • Attendance at weekly site meetings (40 meetings) • Site visits (20 site visits) • Prepare monthly invoices and progress reports DCSS Task 2 - Requests for Information (RFIs)and Submittal Review • Review any submittals required by Special Provision 1-07.18(6) through 1-07.18(8) • Review all submittals required by Special Provision 2-09.3(3)D • Review all submittals required by Special Provision 4-03.2 • Review all submittals required by Special Provision 6-02 • Review all submittals required by Special Provision 6-03 • Review all submittals required by Special Provision 6-06 • Review all submittals required by Special Provision 6-08 • Review all submittals required by Special Provision 6-17 • Review all submittals required by Special Provision 6-19 • Review all submittals required by Special Provision 6-17 • Review RFIs-Assume 20 DCSS Task 3- Change Orders • Provide input as needed and requested for change order work within BNSF right-of-way • Provide revised plans and specifications for change order items of work on Hanson Professional Services stamped plans DCSS Task 4- Inspections • Provide coordination with BNSF on site or off site representatives for work within the BNSF right-of-way • Provide special inspections of BNSF facilities • Provide written reports for items of work inspected on site 0 DCSS Task 5 - Record Drawings The subconsultant shall prepare a 'record set of drawings for the CITY that reflect field changes (additions,modifications, or deletions) to the pertinent Subconsultant sheets of the bid drawing set during construction. The record drawing set shall include any drawings revised or reissued during construction as a result of change orders and shall include changes resulting from RFI responses. The basis for the record drawings shall be a set of bid drawings redlined with changes by the CITY and supplied to the CONSULTANT. These drawings shall be noted as "record drawings" in the drawing revision block,but shall not require seals or signatures of registered professionals. The intent of the record drawing set is to provide the best information available to capture significant field changes,but not necessarily every minor change that may occur. EXHIBIT G-1 Hanson Costs SUBCONSULTANT FEE DETERMINATION 1120/2012 DIRECT SALARY COSTS(DSC) Personnel Hours Rate Cost 1 Principal 24 X $76.00 = $ 1,824 2 Project Manager 148 X $54.00 = $ 7,992 3 Bridge Engineer 128 X $48.00 = $ 6,144 4 Shoofly Engineer 90 X $38.00 = $ 3,420 5 CADD-Admin 124 X $30.00 = $ 3,720 Total Hours 514 Subtotal Direct Salary Costs(DSC)= $ 23,100 Salary Escalation(SE)= 5% of DSC= $ 1,155 Subtotal(DSC+SE)= $ 24,255 Overhead(OH) 174.59% of(DSC+SE)= $ 42,347 Fixed Fee(FF) 25.00% of(DSC+SE)= $ 6,064 TOTAL SALARY COSTS(DSC+SE+OH+FF)= $ 72,666 DIRECT NONSALARY COSTS(DNSC) Mileage 750 miles @ $ 0.550 $ 413 Miscellaneous Expendables(photographs,equip rental,etc) $ 100 TOTAL REIMBURSABLE EXPENSES(DNSC)= $ 513 TOTAL AUTHORIZED AMOUNT = $ 73,178 PAYMENT Services will be paid on a DSC multiplier equal to 2.996 Page 9 of 16 EXHIBIT G-1 Hanson Hours SUBCONSULTANT FEE DETERMINATION 1/20/2012 Project Bridge Shoofly CADD Hanson Task Principal Manager Engineer Engineer Admin Prof Svcs TASK DESCRIPTION No. Totals CONSTRUCTION CONTRACT 4 TASK 1 -Project Admin&Meetings 1 24 98 24 - 24 170 Precon Meeting 4 4 4 12 Project Meetings(10 each) 30 30 Site Visits(10 each-2 persons) 20 40 20 80 Processing Monthly Construction Billings 24 24 48 TASK 2-RFI's&Submittal Review 2 - 40 84 80 40 244 Shoring and Ground Anchors 4 16 20 Bridge Piling 4 4 8 Bridge Foundation slab Rebar 4 8 12 Bridge Abutments and Center Pier Rebar 4 8 12 Bridge Structural Steel 4 24 28 Shoofly Track Geometry 4 40 20 64 RFIs(assume 20 each) 20 40 40 20 120 TASK 3-Change Orders 3 TASK 4-Inspections 4 - - - - - Included in Site Visits above TASK 5-Record Drawings 5 10 20 10 60 100 Task 7-Subconsult Ad,Bid,and Award Support 7 - TOTAL ESTIMATED HOURS 24 148 128 90 1241 514 Page 10 of 16 HAN*ROFESSIONAL SERVICES, INC. AND*IATES Springfield,Illinois STATEMENT OF DIRECT LABOR, FRINGE BENEFITS AND GENERAL OVERHEAD For the Year Ended December 31,2010 Financial Unallowable Total Statement Expenses Expense Reference Proposed Percent Direct Labor $15,756,275 $ $15,756,275 Payroll Burden and Fringe Benefits: FICA taxes 2,059,960 2,059,960 13.07% Unemployment taxes 115,059 115,059 .73 Workers'Compensation Insurance 124,881 124,881 .79 Paid time off 3,266,749 3 266 749 20.73 Severance pay 184,306 22,547 O 161,759 1.03 Incentive compensation 697,439 5,333 C 692,106 4.39 Pension and retirement benefits 1,315,149 1,315,149 8.35 Discount on stock purchases 33,805 33,805 .21 Employee group insurance _2,654,147 2,654,147 16.85 Total fringe benefits 10,451,495 27,880 10,423,615 66.15 General Overhead: Indirect salaries 10,505,387 667,175 A,B,D,E,I 9,838,212 62.44 Occupancy costs 2,109,357 46,527 T 2,062,830 13.09 Business insurance 467,938 18,403 G 449,535 2.85 Depreciation 431,011 431,011 2.74 Reproduction and printing 39,466 39,466 .25 Office supplies and postage 271,138 158 F 270,980 1.72 Telephone 184,533 B 184,533 1.17 Computer /CARD expense 2,093,228 6,709 D,H 2,086,519 13.24 Legal and accounting 146,999 40,960 I,J,K 106,039 .67 Employee travel 198,200 3,822 F,R 194,378 1.23 Services and consulting fees 264,618 264,618 1.68 Professional development 423,051 6,716 FR 416,335 2.64 Fees, licenses, dues and publications 220,103 220,103 1.40 Equipment rental 132,778 624 T 132,154 .84 Business and state income taxes 725,069 438,649 L 286,420 1.82 Business development and marketing expenses 726,113 618,158 D,E,F,M,R 107,955 .69 Employee recruiting and relocation 151,635 9,749 F'S 141,886 .90 Vehicle and boat costs 50,640 25,032 B,D 25,608 .16 Surveying, material testing and engineering supplies 11,072 11,072 .07 Other indirect expenses 108,751 88,449 D,E,M,N,U,V 20,302 .13 Gain/loss on disposition of assets ( 373,205) ( 169,791) V { 203,414) { 1.29) Bad debt expense ( 21,689) ( 21,689) K .00 Charitable donations &scholarships 61,412 61,412 P .00 Company events and gifts 80,116 80,116 M,R .00 Interest expense 61,837 _ 61,837 Q .00 Total general overhead 19,069,558 1,983,016 17,086,542 108.44 LFacilities al Indirect Costs $ 9.521,053 $2,010.896 $27.510.15_7 rect Cost Overhead Rate 17- 4.59% Capital Cost of Money $ 170,426 cent of Direct Labor 1.08% 7 notes to the Statement of Direct Labor, Fringe Benefits and General Overhead. 4 0 • Construction Administration/Inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit G Mayes Testing Engineers, Inc. Scope of Work Fee Determination Overhead MAYES TESTING - MATERIAL TESTING AND INSPECTION SERVICES SCOPE OF SERVICES - DESIGN CONSTRUCTION SUPPORT SERVICES(DCSS) PROJECT NO. CAG-09-077 Under DCSS, five basic tasks will be provided as follows. DCSS Task 1- Project Administration, Permitting Support, and Meetings • Attend project preconstruction meeting • Attendance at weekly site meetings (16 meetings) • Site visits (20 site visits) • Prepare monthly invoices and progress reports DCSS Task 2 - Requests for Information(RFIs)and Submittal Review • Review concrete or HMA mix designs as requested • Review welding procedures as requested • Review materials related RFIs as requested-Assume four DCSS Task 3- Change Orders • N/A DCSS Task 4 - Inspections The following inspections or testing will be provided for this project: • Structural steel/welding inspection-if requested • Magnetic particle testing-if requested • Ultrasonic testing=if requested • Bolted connections-if requested • Concrete placement inspection-air, slump, and cylinder preparation • Grout placement inspection-including fabrication of grout cubes • Compressive strength cylinder test • Gradation testing of concrete aggregates, gravel borrow, CSBC,ballast, pervious backfill, gravel backfill, and other materials • Compaction testing of embankments,subgrades,surfacing, and backfill • Soil moisture density relationship test-Proctor • HMA compaction testing • HMA core density test • HMA ignition and gradation test • HMA oil content test • HMA rice density test • HMA or concrete coring-if needed • Other miscellaneous testing as requested • Provide written reports for items of work inspected on site i i i DCSS Task 5 - Record Drawings • N/A 0 0 Exhibit G-1 Mayes Testing Costs SUBCONSULTANT FEE DETERMINATION 1/20/2012 DIRECT SALARY COSTS(DSC) Personnel Hours Rate Cost 1 Project Manager 40 X $38.35 = $ 1,534 2 Inspections 400 X $32.75 = $ 13,100 3 Concrete Inspection 200 X $27.80 = $ 5,560 3 HMA Density Testing 24 X $27.80 = $ 667 4 Steel Fab Inspection 80 X $33.00 = $ 2,640 Total Hours 744 Subtotal Direct Salary Costs(DSC)= $ 23,501 Salary Escalation(SE)= 5% of DSC= $ 1,175 Subtotal(DSC+SE)= $ 24,676 Overhead(OH) 161.80% of(DSC+SE)= $ 39,926 Fixed Fee(FF) 25.00% of(DSC+SE)= $ 6,169 TOTAL SALARY COSTS(DSC+SE+OH +FF)= $ 70,772 DIRECT NONSALARY COSTS(DNSC) Mileage 6000 miles @ $0.55 $3,300 Soil Moisture Density 32 $200 $6,400 Concrete Compressive Test 200 $22 $4,400 LA Abrasion Test 4 $135 $540 Degregation Test 4 $135 $540 Seive Analysis 20 $200 $4,000 HMA Rice Density 2 $100 $200 HMA Ignition Gradation 2 $200 $400 HMA Superpave Test Set 2 $550 $1,100 HMA Core Density 10 $35 $350 HMA Core Bit Charge 20 $4 $80 TOTAL REIMBURSABLE EXPENSES(DNSC)= $ 9,700 TOTAL AUTHORIZED AMOUNT = $ 80,472 PAYMENT Services will be paid on a DSC multiplier equal to 2.868 Page 14 of 16 MEMORANDUM State ®f Alaska Department of Transportation&Public Facilities Office of Internal Review To: Sharon R. Frascati Date: September 29, 2011 PSA Unit Supervisor Central Region File No: 010-1361 Telephone No: 269-0715 I From: Robert W. Janes, CPA Subject: Pre-Award Desk Review of Chief of Internal Review Mayes Testing Engineers, Inc. Audit Number 11-PA-44 We have conducted a Pre-Award Desk Review of Mayes Testing Engineers, Inc. As a result of our review, we have verified that the Company has an adequate project cost accounting system, which can identify, segregate and accumulate project specific costs. Their project accounting system has remained consistent from the prior year. The Company has submitted a Schedule of Overhead Expenses reflecting an Indirect Cost Rate (IDCR)of 164.73%, based on their calendar year ended December 31, 2010 financial data. Internal Review's adjustments have decreased the IDCR to 161.8% (see Appendix). The audited IDCR of 161.8%, as a percentage of direct labor dollars, can be utilized as a fixed IDCR for DOT&PF contract pricing purposes, Statewide, effective from July 1,2011 through June 30,2012. Effective July 1,2012,this rate would become a provisional rate until a new Desk Review is performed. Mayes Testing Engineers, Inc. has an acceptable methodology to recover mileage reimbursement costs and therefore may charge separately for them, as negotiated in particular contracts. All remaining in-house charges are recovered through the IDCR; therefore,no separate reimbursable rates should be negotiated for those items. Any other direct non-salary costs (if allowed) should be reimbursed at cost;no indirect mark- up is allowable per 48 CFR, Federal Acquisition Regulations. A schedule of the Company's actual wage rates by employee, as of July 1,2011,has been provided to the Central Region PSA Unit Supervisor, and is available upon request by the Project Managers for use in negotiating and evaluating contracts with the Company. We wish to thank Mayes Testing Engineers, Inc. and DOT&PF employees for their cooperation and assistance. Should you have any questions, or require additional information,please contact us;otherwise no response on your part is necessary to this memorandum. RWJ/KLC:maz i Attachment cc: Marc Luiken' m Comissionerx � '" E l b��y �� - a } "Get Alaska Moving through service and infrastructure." 11-PA-44 Appendix Mayes Testing Engineers,Inc. Schedule of Indirect Costs For Year Ended December 31,2010 Amount Company Audit FAR Allowable Description Per G/L Adjustments Adjustments Cites Costs Direct Labor $ 3,366,692 $ (298,573) $ 3,068,119 Payroll Burden: Holiday/Vacation $ 478,884 $ 478,884 Bonus/Profit Sharing 52,663 52,663 Payroll Taxes 545,352 545,352 Employee Benefits 725,553 725,553 Total Payroll Burden 1,802,452 - - 1,802,452 Other Indirect Costs: Indirect Labor 1,038,987 $ 298,573 1,337,560 Advertising 19,352 (17,490) 1,862 Business Insurance 59,956 59,956 Business Tares&Licenses 176,535 176,535 Computer Service 51,506 51,506 Depreciation&Amortization 269,142 269,142 Dues&Subscriptions 17,173 17,173 Equipment Repair&Maintenance 54,615 54,615 Exam,License and Education 66,104 66,104 Gain on Sale of Assets - (4,125) $ 523 (1) (3,602) Lab Supplies 49,600 49,600 Miscellaneous Expense 12,374 (4,435) 7,939 Office Supplies&Maintenance 66,403 66,403 Postage&Shipping 12,845 12,845 Professional Fees 58,228 (250) (2) 57,978 Rent 331,906 (81,607) (3) 250,299 Safety 5,756 5,756 Telephone&Utilities 145,335 145,335 Travel 134,745 66,934 (7,885) (4)(5) 193,794 Vehicle Expenses 348,913 (7,253) 341,660 Total Other Indirect Costs 2,919,475 332,204 (89,219) 3,162,460 Total Indirect Costs $ 4,721,927 $ 332,204 $ (89,219) $ 4,964,912 Allowable IDCR Indirect Cost Rate 161.8% FAR Cites: (1)31.205-16 Gain on disposition of depreciable property;adjusted amount as Company used last years gain (2)31.205-3 Bad debts-other claims;collection/litigation legal costs (3)31.205-36(2)Rental costs-related party rents (4)31.205-14 Entertainment costs (5)31.205-5 Credits,adjustment to per diem fringe benefit in the amount of$2,700 had not been included f� r �1 0 i • Construction Administration/Inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit G Perteet Inc. Scope of Work Fee Determination Overhead 0 • PERTEET ENGINEERING -SURVEY CONTROL/SURVEY QA SCOPE OF SERVICES - DESIGN CONSTRUCTION SUPPORT SERVICES(DCSS) PROJECT NO.CAG-09-077 DCSS provides continuity of the design team through the construction process. Under DCSS,five basic tasks will be provided as follows. DCSS Task 1- Project Administration,Permitting Support, and Meetings • Attendance at weekly site meetings (two meetings) • Site visits(four site visits) • Prepare monthly invoices and progress reports DCSS Task 2- Requests for Information (RFIs)and Submittal Review • Review RFIs-Assume four DCSS Task 3- Change Orders • N/A DCSS Task 4- Inspections • Provide survey verification as needed for earthwork, drainage,pump station elements, structures, subgrade, surfacing or paving DCSS Task 5- Record Drawings • N/A i EXHIBIT G-1 Perteet Costs SUBCONSULTANT FEE DETERMINATION 1/20/2012 DIRECT SALARY COSTS(DSC) Personnel Hours Rate Cost 1 Senior Surveyor 16 X $57.00 = $ 912 2 Project Surveyor 40 X $40.00 = $ 1,600 3 Party Chief 120 X $30.00 = $ 3,600 3 Field Crew Member 120 X $25.00 = $ 3,000 4 Survey Technician 48 X $35.00 = $ 1,680 Total Hours 344 Subtotal Direct Salary Costs(DSC)= $ 10,792 Salary Escalation(SE)= 5% of DSC= $ 540 Subtotal(DSC+SE)= $ 11,332 Overhead(OH) 162.58% of(DSC+SE)= $ 18,423 Fixed Fee(FF) 25.00% of(DSC+SE)= $ 2,833 TOTAL SALARY COSTS(DSC+SE+OH+FF)= $ 32,587 DIRECT NONSALARY COSTS(DNSC) Mileage 750 miles @ $ 0.550 $ 413 Miscellaneous Expendables(photographs,equip rental,etc) $ 100 TOTAL REIMBURSABLE EXPENSES(DNSC)= $ 513 TOTAL AUTHORIZED AMOUNT = $ 33,100 PAYMENT Services will be paid on a DSC multiplier equal to 2.876 Page 11 of 16 Washington State Transportation Building Department of Transportation 310 Maple Park Avenue S.E. Paula J. Hammond,P.E. P.O.Box 47300 Secretary of Transportation Olympia,WA 98504-7300 360-705-7000 November 30, 2010 TTY: 1-800-833-6388 www.wsdotwa.gov George Schmidt, CFO Perteet Inc. 2707 Colby Avenue, Suite 900 Everett WA 98201-3565 Re: Perteet Inc. Overhead Schedule Fiscal Year End December 31, 2009 Dear Mr. Schmidt: On November 30, 2010, as a WSDOT representative, Michelle Swanson, Audit Specialist, completed a desk review of your proposed FYE December 31, 2009, Overhead Schedule. Michelle also reviewed the documentation provided by Perteet Inc. during this review process. The reviewed data included, but was not limited to; the schedule of the indirect cost rate, a description of the company, basis of accounting and description of Perteet Inc. accounting system and the basis of indirect costs. Based on our work, we are issuing this letter of review establishing Perteet Inc. overhead rate for the fiscal year ending December 31, 2009, at 162.58% of direct labor. Costs billed to actual agreements will still be subject to audit of actual costs. Please check with the WSDOT Consultant Services Office (HQ) and/or the WSDOT Area Consultant Liaison to determine when this reviewed rate will be applicable to your WSDOT agreement(s). If you or any representatives of Perteet Inc. have any questions, please contact Martha Roach, Jeri Sivertson, or Steve McKemey at (360)705-7003. Sincerely, ECEIVED Martha S. Roach Agreement Compliance Audit Manager DEC 0 g 20 MR:ds °,�rteet, Inc. Enclosures cc: Steve McKerney, Director of Internal Audit Jeri Sivertson, Assistant Director of Internal Audit Kyle McKeon, MS 47329 Larry Schofield, MS 47323 File 0 Perteet Overhead Schedule For the Year Ended December 31, 2009 Trial Adj. WSDOT Accepted Description Balance Amount Adj. Ref. Amount % Direct Labor Base 4,399,770 4,399,770 Design Build 20%Bid&Proposal (39,869) P (39,869) Uncompensated Overtime 61,391 Q 61,391 Overtime Premium (63,237) N (63,237) Total Direct Labor Base 4,399,770 (41,715) 0 4,358,055 100.00% Fringe Benefits Payroll Taxes $660,504 $660,504 15.16% Insurance-Medical/Dental $617,505 $617,505 14.17% Vacation/Holiday/Sick Leave $802,953 $802,953 18.42% 401 k Employer Contribution $218,097 $218,097 5.00% ESOP Contribution $215,000 $215,000 4.93% Bonuses $88,850 ($88,850) S $0 0.00% Total Fringe Benefits $2,602,909 $0 ($88,850) $2,514,059 57.69% General Overhead: G&A Wages $2,383,477 ($2,049) ($28,243) N,U $2,353,185 54.00% Variance-Uncompensated Overtime ($61,391) Q ($61,391) -1.41% Design Build 20%Bid&Proposal $39,869 P $39,869 0.91% Auto Expense $106,811 ($10,813) ($36,232) K,R,T $59,766 1.37% Bank&Service Fees $20,850 $20,850 0.48% Communications $167,719 $167,719 3.85% Computer Expenses $178,028 $178,028 .4.09% Conferences&Meetings $28,807 $28,807 0.66% Copier Expense $81,629 $81,629 1.87% Depreciation-Book Basis , $357,587 ($50,000) V $307,587 7.06% Dues&Memberships $33,257 ($5,001) A $28,256 0.65% Entertainment $9,817 ($9,817) D $0 0.00% Golf tournament $1,322 ($1,322) D $0 0.00% Insurance $118,466 $118,466 2.72% Life insurance ($5,986) $5,986 C $0 0.00% Licenses&Fees $2,890 $2,890 0.07% Meals $26,234 ($22,140) E $4,094 0.09% Miscellaneous $109 $109 0.00% Outside Services $34 134 34 134 0.78% Postage&Delivery Services $9,652 $$9,652 0.22% Professional Services $99,774 ($6,836) B4O $92,938 2.13% Recruiting $1,270 $1,270 0.03% Rent $742,974 $742,974 17.05% Repairs&Maintenance $604 $604 0.01% Reproduction $11,201 ($619) L $10,582 0.24% Seminars&Training $74,475 $74,475 1.71% Staff Functions $3,804 ($1,000) ($2,804) D,W,X,Y $0 0.00% Subscriptions&Publications $6,337 $6,337 0.15% Supplies $67,777 ($1,825) W,X,Y $65,952 1.51% Travel&Lodging $46,686 $46,686 1.07% Advertising $8,142 ($8,142) F $0 0.00% Bad Debt Expense $64,143 ($64,143) G $0 0.00% Claims $39,785 ($39,785) M $0 0.00% Contributions $10,425 ($10,425) H $0 0.00% Gifts $320 ($320) J $0 0.00% Interest $33,535 ($33,535) I $0 0.00% Sponsorships $9,485 ($9,485) F $0 0.00% Taxes-Business&Property $307,854 . $307,854 7.06% Page 1 • Perteet Overhead Schedule For the Year Ended December 31, 2009 Trial Adj. WSDOT Accepted Description Balance Amount Adj. Ref. Amount % Book basis of assets deleted from depr sch $11,371 $11,371 0.26% Less:Offsets for Direct Costs ($201,801) ($201,801) 4.63% Total General Overhead $4,892,964 ($240,968) ($119,104) $4,532,892 104.00% Total Overhead Costs $7,495,873 ($240,968) ($207,954) $7,046,951 161.70% Overhead Rate(Less FCC) 170.37% 166.47% 161.70% Facilities Cost of Capital $38,393 $38,393 0.88% $7,085,344 Overhead Rate(Less FCC) 162.58% Perteet-Reviewed and Accepted on 1113012010 MYS "Overhead Rate still subject to WSDOT Audit" References Perteet Adjustments: A Lobbying costs unallowable per 48 CFR 31.205-22. B Federal income tax preparation fees in excess($500)of$250 unallowable per 31.205-41(b)(2),48 CFR 31.201-6(d),and WSDOT Overhead Policy. C Key-Person Life Insurance unallowable per 48 CFR 31.205-19(a)(2)(vi). D Entertainment costs unallowable per 48 CFR 31.205-14. Picnic costs over$10 per employee unallowable per WSDOT Overhead Policy and 48 CFR 31.201-3. E Local meals unallowable per 48 CFR 31.205-46(a)(2)(i)and WSDOT Accounting Manual.M13-82,Chapter 10 Travel F Advertising&Promotional costs unallowable per 48 CFR 31.205-1(f). G Bad Debt unallowable per 48 CFR 31.205-3. H Contributions unallowable per 48 CFR 31.205-8. 1 Interest unallowable per 48 CFR 31.205-20. J Gifts unallowable per 48 CFR 31.205-13(b). K Personal commute unallowable per 48 CFR 31.205-6(m)(2). L Printing and mailing costs related to Valentines unallowable per 48 CFR 31.205-14. M Direct project costs unallowable per 48 CFR 31.202(a). N Overtime Premium unallowable per 48 CFR 22.103-1,22.103-4(g)and WSDOT OH Policy. O Attorney costs unallowable per 48 CFR 31.205-47,31.201-6 P 20%Bid&Proposal for design build efforts-In 2009,Perteet participated in design build efforts for which the firm was not selected.The projects required that 20%of labor be part of bid and proposal,or direct selling,effort to win the projects.No adjustment has been made in the GL so an adjustment has been made to the overhead schedule as Perteet has not been reimbursed for this amount. Q Uncompensated Overtime WSDOT Adjustments: R Auto allowances in the amount of$285 unallowable per 48 CFR 31.201-4-a total of$16,700 was paid for auto allowances during the year.$10,813 was previously removed by Perteet for the personal commute portion.The remaining$5,602 was for business usage. S Bonus unallowable per 48 CFR 31.205-6(f)-Annual bonuses in the amount of$88,850 unallowable because they are based upon company profits.Per firm policy,the firm distributes 10%of the profits each year and payout amounts to employees are based upon salary,not performance. T Parking in the amount of$35,947 unallowable per 48 CFR 31.201-4 and 48 CFR 31.205-6(m)-parking is removed because it is only paid for top exectives and clients U Severance pay in the amount of$28,243 unallowable per 48 CFR-per Perteet,the firm does not have a written severance policy.Severance payments are made based on the circumstances at the time of termination. Page 2 0 Perteet Overhead Schedule For the Year Ended December 31, 2009 Trial Adj. WSDOT Accepted Description Balance Amount Adj. Ref. . Amount % V Depreciation removed in the amount of$50,000 per 48 CFR 31.205-11 -During 2008,Perteet recorded depreciation on the tax basis of accounting,and took an additional$250,000 in S179 depreciation. During 2009,the firm switched to book basis of accounting with a majority of the assets depreciated on the straight line method over a period of 5 years.In order to avoid the firm receiving depreciation on the items that were accelerated during 2008,we will remove the$250,000 over 5 years on the straight line method. W Gifts unallowable per 48 CFR 31.205-13(b)-$152 removed from'Staff Functions'for awards and prizes to employees;$705 removed from'Supplies'for gifts and awards; X Entertainment costs unallowable per 48 CFR 31.205-14.-$458 removed from'Staff Functions'for excess holiday party and company picnic costs;$878 removed from'Staff Functions'for a company ski day;$188 removed from'Supplies'for excess company picnic costs;$500 removed from'Supplies'for a retirement celebration. Y Treats and cake celebrations unallowabler per 48 CFR 31.201-3-Perteet has a cake celebration each month and payday treats listed several times each month.Total amount removed from'Staff Functions was$1,316; Removed$432 from'Supplies'. Page 3 0 Construction Administration/Inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit G RH2 Engineering, Inc. Scope of Work Fee Determination Overhead RI-12 ENGINEERING - PUMP STATION ELECTRICAL SCOPE OF SERVICES - DESIGN CONSTRUCTION SUPPORT SERVICES(DCSS) PROJECT NO. CAG-09-077 DCSS provides continuity of the design team through the construction process. Services to be provided by the Subconsultant during construction will include shop drawing review, submittal review,and responses to Contractor requests for information. Services may also include adjustments to the project design to work around unforeseen site conditions, site visits, attendance at project meetings, design team inspections, and preparation of record drawings. Under DCSS, five basic tasks will be provided as follows. DCSS Task 1- Project Administration, Permitting Support, and Meetings • Attendance at weekly site meetings (two meetings) • Site visits (four site visits) • Prepare monthly invoices and progress reports DCSS Task 2 - Requests for Information (RFIs)and Submittal Review • Review all submittals required by Special Provision 7-16.1 • Review all submittals required by Special Provision 7-16.19 • Review all submittals required by Special Provision 7-16.30 • Review all submittals required by Special Provision 7-16.31 • Review RFIs-Assume 15 DCSS Task 3- Change Orders • Provide input as needed and requested for change order regarding pump station electrical • Provide revised plans and specifications for change order items of work on RH2 stamped plan sheets DCSS Task 4 - Inspections • Provide special inspections as needed for pump station electrical items of work • Provide written reports for items of work inspected on site. DCSS Task 5 - Record Drawings The subconsultant shall prepare a record set of drawings for the CITY that reflect field changes (additions,modifications, or deletions) to the pertinent Subconsultant sheets of the bid drawing set during construction. The record drawing set shall include any drawings revised or reissued during construction as a result of change orders and shall include changes resulting from RFI responses. The basis for the record drawings shall be a set of bid drawings redlined with changes by the CITY and supplied to the CONSULTANT. These drawings shall be noted as "record drawings' in the drawing revision block,but shall not require seals or signatures of registered professionals. The intent of the record drawing set is to provide the best information 0 • available to capture significant field changes,but not necessarily every minor change that may occur. EXHIBIT G-1 RH2 Costs SUBCONSULTANT FEE DETERMINATION 1/20/2012 Allowance for Design Construction Support Services RH2 COSTS DIRECT SALARY COSTS(DSCI Personnel Hours Rate Cost 1 Project Manager 50 X $65.00 = $ 3,250 2 Engineer/CADD 50 X $40.00 = $ 2,000 3 Office Administration 15 X $30.00 = $ 450 Total Hours 115 Subtotal Direct Salary Costs(DSC)= $ 5,700 Salary Escalation(SE)= 5% of DSC= $ 285 Subtotal(DSC+ SE)= $ 5,985 Overhead (OH) 186.16% of(DSC+SE)= $ 11,142 Fixed Fee(FF) 25.00% of(DSC+ SE)= $ 1,496 TOTAL SALARY COSTS(DSC+SE+OH+ FF)= $ 18,623 DIRECT NONSALARY COSTS(DNSCI Mileage 720 miles @ $ 0.550 $ 396 Miscellaneous Expendables(photographs, equip rental, etc) $ 100 TOTAL REIMBURSABLE EXPENSES DNSC = $ 496 TOTAL AUTHORIZED AMOUNT = $ 19,119 PAYMENT Services will be paid on a DSC multiplier equal to 3.112 Page 12 of 16 0 • 2011 RH2 Engineering, Inc. Overhead Schedule Year End December 31,2010 Direct Labor Base 3,486,493 100% FICA& Medicare 415,362 11.91% Unemployment 36,433 1.04% Industrial Insurance 16,684 0.48% Vacation, Holidays&Sick Leave 741,411 21.27% Health &Accident Insurance 410,809 11.78% Retirement Plan 226,444 6.49% Total Direct Labor Overhead 1,847,144 52.98% G&A Overhead Indirect Labor 2,336,608 67.02% Bonus 676,762 19.41% Office Rent 827,619 23.74% Equipment Support 422,770 12.13% B&O Taxes 222,336 6.38% General Insurance 135,740 3.89% Legal/Acctg/Computer Consult 27,983 0.80% Travel 112,738 3.23% Postage&Miscellaneous 34,972 1.00% Telephone 87,811 2.52% Supplies and Printing 135,257 3.88% Professional Development 24,511 0.70% Dues&Subscriptions 26,805 0.77% Business Planning and Recruiting 95,530 2.74% In-House Cost Reimbursed (524,017) -15.03% Total G&A Overhead 4,643,425 133.18% Total Overhead Costs 6,490,569 186.16% Overhead Rate 186.16% All expenses not allowed have been removed. Construction Administration/Inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit G Shannon & Wilson, Inc. Scope of Work Fee Determination Overhead 0 SHANNON &WILSON - GEOTECHNICAL SCOPE OF SERVICES - DESIGN CONSTRUCTION SUPPORT SERVICES(DCSS) PROJECT NO. CAG-09-077 DCSS provides continuity of the design team through the construction process. Services to be provided by the Subconsultant during construction will include shop drawing review, submittal review, and responses to Contractor requests for information. Services may also include adjustments to the project design to work around unforeseen site conditions, site visits, attendance at project meetings, design team inspections, and preparation of record drawings. Under DCSS, five basic tasks will be provided as follows. DCSS Task 1- Project Administration, Permitting Support,and Meetings • Attend project preconstruction meeting • Attendance at weekly site meetings (10 meetings) • Site visits (20 site visits) • Prepare monthly invoices and progress reports DCSS Task 2 - Requests for Information (RFIs)and Submittal Review • Review all dewatering submittals as listed in Special Provision Section 7-06.3(3) • Review shoofly embankment submittals associated with Special Provision 2-03.3(19) • Review Contractor's survey monitoring data of shoofly embankment settlement • Review Contractor's pile driving equipment submittals in accordance with Special Provision 6-05 • Review other geotechnical or dewatering submittals as required • Review RFIs-Assume 10 DCSS Task 3- Change Orders • Provide input as needed and requested for geotechnical or dewatering issues DCSS Task 4 - Inspections • Geotechnical observation for the installation of driven bridge foundation piles, sheet piles, and tieback anchors. It is assumed that this will be a part-time effort for each operation • Geotechnical observation and evaluation of shoofly embankment subgrade preparation and shoofly embankment construction • Geotechnical observation and evaluation of the Contractor's dewatering system installation and subsequent operation • Geotechnical observation and evaluation of subgrade beneath the Strander Boulevard • Geotechnical observation and evaluation of"final" groundwater control system • Dewatering inspections/monitoring • Provide written reports for items of work inspected on site DCSS Task 5 - Record Drawings • N/A • 0 Exhibit G-1 Shannon Wilson Costs SUBCONSULTANT FEE DETERMINATION 1/20/2012 DIRECT SALARY COSTS (DSC) Personnel Hours Rate Cost 1 Principal 34 X $61.20 = $ 2,081 2 Associate 140 X $57.69 = $ 8,077 3 Senior Engineer 2 298 X $43.27 = $ 12,894 4 Project Eng/Env Sci 1 40 X $34.24 = $ 1,370 5 Staff 3 Eng/Env Sci 66 X $30.93 = $ 2,041 6 Staff 1-2 Eng/Env Sci 158 X $26.50 = $ 4,187 7 Technician, Admin, Clerical 42 X $22.14 = $ 930 Total Hours 778 Subtotal Direct Salary Costs(DSC)= $ 31,580 Salary Escalation (SE) = 5% of DSC= $ 1,579 Subtotal (DSC +SE)= $ 33,159 Overhead (OH) 215.78% of(DSC +SE)= $ 71,550 Fixed Fee(FF) 25.00% of(DSC + SE)= $ 8,290 TOTAL SALARY COSTS (DSC+SE+OH + FF)= $ 112,998 DIRECT NONSALARY COSTS (DNSC) Mileage 3200 miles @ $ 0.550 $ 1,760 Inspection EquipmentEquipment $ 1,000 Copies $ 500 TOTAL REIMBURSABLE EXPENSES(DNSC)= $ 3,260 TOTAL AUTHORIZED AMOUNT = $ 116,258 PAYMENT Services will be paid on a DSC multiplier equal to 3.408 7 of 16 U) N (0 p p 00 N O N O 00 CO 00 It N co Co N 00 O 00 r r 00 O M O co (O t� M CO 1� = N p � H N ' ' O � � � i ti O O 0) 01 r 00 C r W F rn N co a N N N , 'T It O O N , C = C E 'r- R m t m Q U N F v O O 00 (O 00 I-t O O OD Of U) M M N Nett r > � C U) m U) C W I; co 00 00 O CO 00 w w M ) N r i O C W w m C W ` O CO It O ; 4> N C O'pf CL C W eF 't OO O qq It 0000 00 0) MqT N ONqt N 'It 00 O `O m N ' N •E c N w w qT O N M � LO N N 00 ' O� 20 r O H Q 00 N00 � qt � 'It N 'IT er f6 r r M 2. i C IL HZ N M le LO ti tT U) ` Z _O O 0 c 'o O O R Q H � r � 3 O C �) m 0) a) Q :. > E c wa H d °) a) m 3 m U) o R w (,) ca w N O U) a) C1 m D N w ''' C - O` (0 � t w C Z E Caw d . m 'a H � m -- a) � 3 Q U.H H m > o ai � ° a) D H Q z 2 m m cu m E ai V c a m m m °0 D D cc U J C U U Co N O IL a fl E t N N .0 C t� Z C a c y U c m w N = r C H r a N 0) >+ N .LO Q co) A d •` O ti J U C N Y aa) c > w `l cm m ° Y Y o 0 (a Y Y Q s m t O Q o°; � C U) to (n -0 O m m 3 cn U) H wai cn U HaQcn 2 HC) U) of H Hi SHANNON&WILSON,INC. .Statement of Direct Labor,Fringe Benefits,and General Overhead and Report on Internal Control and Compliance Year Ended December 31, 2010 kOLDAL L'VARTELLE&CO,P.S. Certified Public Accountants INDEPENDENT AUDITORS' REPORT ON THE STATEMENT OF DIRECT LABOR,FRINGE BENEFITS,AND GENERAL OVERHEAD Board of Directors Shannon & Wilson,Inc. We have audited the accompanying Statement of Direct Labor, Fringe Benefits, and General Overhead (the "Statement") of Shannon & Wilson, Inc. (the "Company") for the year ended December 31, 2010. The Statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Statement based on our audit. We.conducted our audit in.accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Statement. We believe that our audit provides a reasonable basis for our opinion. The accompanying Statement was prepared on a basis of accounting practices prescribed by Part 31 of the Federal Acquisition Regulations ("FAR") and certain other Federal and State regulations as discussed in Note 1, and is not intended to be a presentation in conformity with generally accepted accounting principles. In our opinion,the Statement referred to above presents fairly, in all material respects,the direct labor, fringe benefits, and general overhead of the Company for the year ended December 31,2010 on the basis of accounting described in Note 1. In accordance with the Government Auditing Standards, we have also issued our report dated April 19, 2011 on our consideration of the Company's internal control over financial reporting as it relates to the Statement and on our tests of its compliance with certain provisions of laws, regulations and contracts, including provisions of the applicable sections of Part 31 of the FAR. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. April 19,2011 , 10590 N£ NORTHUP IWAY,SUITE 300 KIRKLAND,t'VA 98033 ./` PHONE: 4255-250-0051 / WW C. 0 0 0\0 0 co 06 Ln ° ro aQ •-- %.D 00 N t` d N M N ti0 O 0 mot NO O V1 00 to N 'd• �0 V) +n \UM (-- - t- NItr- ONMOO .-. N - O) M to ,O O Mt^- Mkn0 %.o 4Dtn ON 'It wk mCISr- �D�ONM01 WnIlOcr4.14r0 t-rzN�+�N Nt- " i- to O N r- to co) r- CA CA M 'P 00 CT ON t-- �t It W) N r en 0 -0 M M — CT N 00 .-+ 00 Wn N %�C M It, m wl %lO 110 00 v� O A O2^ NN�tN MN M 0 � �-.� �O h- �0 •-., lo F� C) kn to to !n 'c-n" -1 wn to to U) W) Wn +n `WQJ U O O <D C) 000 © O O 00 N N N tai NN M M Cl) M M M M M M M M M tn C14 W N 1.0 r- Pro O to V) t- d 01 "t O 00 � CN 0r0 00 O QW ~ 4] p .fir '�-+ V 1� �D CT ct Q� 4 7 I I \p M M W x. A c"OC O Cn N M 00.-+to N cr � tr cp a) a 3 v) N r kn 00 .� M rn %�o 5'+ Cd Cv U 0 r A � Q w C PC ai = s. 1000 CI- 0 wC> "tt 0d- o0 � No0N�n pW 4) %�oxnv. aao t W) r- � v, t-- t- ot- MOOMNMOC, Cw, vs M r- 'M r- r'`, r-+ cl cl cl to O ll0 �' of *-+ M Cl 94 O d �D �GN*64 NCT4CA W)'d- Nt�r-cq W)Nrh�t-Nv) t- �d Q ►� U OONC ) en mNCTOMC+) 000T.CTr- 00 -tkn r- t- (SA r�M •-� N ":t N O ,-y v) b M M �O •-+ vl �n NNd MM t~ 1( fA b4 GR A O Q W o -E .� 0 > F¢' 43 a a Q.i Q 4) y y y Vl y 0 r rte+ O O tY3 y S1 'b C; .�. � tL m 4 O 0 &n t3: GOJ id to �' -t7 cOCS 0 O s.. U y� 0 v,. Ri U td id 0 "4 (�•�" ttt O 'O •R, 4) f3 m C3. 4-+ w• s. yUX� tt) tom. w O O v O M t� e>i Q C � Od> a� Qa� WC� E-� w � vzouH- uQ A W U' ! ! SHANNON&WILSON,INC. STATEMENT OF DIRECT LABOR,FRINGE BENEFITS, AND GENERAL OVERHEAD,continued Year Ended December 31,2010 FAR References: (1) Labor costs related to collection of bad debts (2) Advertising and public relations labor (3) Taxes related to unallowable promotion labor (4) Unallowable meals and employee gifts (5) Accrued bonuses not paid in current year (b) Excess per diem and travel expenses (7) Unallowable contribution costs (8) Unallowable entertainment costs (9) Interest expense (10) Federal income taxes (11) Bad debts (12) Rent charged as direct costs to projects (13) Unallowable legal expenses See accompanying notes. -3 - I SHANNON&WILSON,INC. NOTES TO STATEMENT OF DIRECT LABOR,FRINGE BENEFITS, AND GENERAL OVERHEAD Year Ended December 31,2010 1. DESCRIPTION OF BUSINESS AND BASIS OF ACCOUNTING Description of business - Shannon & Wilson, Inc. (the "Company") provides geotechnical engineering and environmental consulting services, primarily throughout the United States of America. Basis of accounting - The Company maintains its accounting records on the accrual basis for financial reporting, while using the cash method of accounting for federal income tax purposes. The Company's policy is to prepare its overhead schedules, which support the Statement of Direct Labor, Fringe Benefits, and General Overhead (the "Statement"), on the basis of accounting practices prescribed by Part 31 of the Federal Acquisition Regulations ("FAR'). Accordingly, the above-mentioned Statement is not intended to present the results of operations of the Company in conformity with accounting principles generally accepted in the United States of America. 2. DESCRIPTION OF ACCOUNTING SYSTEM Description of accounting - The Company maintains a job-order cost accounting system for the recording and accumulation of costs incurred under its contracts. Each project is assigned a job number so that costs may be segregated and accumulated in the Company's job-order cost accounting system. The audited overhead rate is a unitary rate for all disciplines. Direct project costs and allocated indirect costs are included in the project cost record. The allocation basis for indirect costs is direct labor. Direct labor of salaried employees is calculated using a standard hourly rate, annual salary/2,0$0 hours. Direct costs incurred in providing services billed to clients at unit rates or on the basis of a published fee schedule are charged by functional accounts and accumulated as a single project or grouping to allow segregation of such costs from other direct costs. The Company's method of estimating costs for pricing purposes during the proposal process is consistent with the accumulation and reporting of costs under its job-order cost accounting system. Direct labor costs - The Company distributes labor costs directly to projects for all employee classifications at standard cost. Certain officers and associates are not paid for the time worked in excess of 40 hours per week (uncompensated overtime). The uncompensated overtime in excess of 40 hours, is credited to administrative salaries. Overtime premium costs have been excluded from direct labor and are included in general overhead, as part of administrative salaries. Overhead rate - The calculated overhead rate is a unitary rate for all offices (eleven)and includes both disciplines. -4 - 0 0 SHANNON&WILSON,INC. NOTES TO STATEMENT OF DIRECT LABOR,FRINGE BENEFITS, AND GENERAL OVERHEAD,continued Year Ended December 31,2014 2. DESCRIPTION OF ACCOUNTING SYSTEM,continued ,Depreciation - Depreciation has been provided on the straight-line method over the estimated useful lives of buildings, equipment and leasehold improvements. The depreciation included in General Overhead does not exceed the amount used in the financial statements and is allowable under FAR 31.205-11(e). Sick leave - Sick leave costs are neither accrued annually nor paid to an employee upon termination. Applicable sick leave costs are expensed if paid and then included in the overhead rate. Compensation - The Company paid no compensation in excess of the FAR 31.205-6(p) limit of$684,181 per person. Senior executive compensation was reasonable in comparison with salary survey data in accordance with FAR 31.205-6(a). 3. FACILITIES CAPITAL COST OF MONEY(FCCM) The Facilities Capital Cost of Money rate has been calculated in accordance with FAR Section 31.205-10, using average net book values of equipment and facilities multiplied by the average Treasury rates for the applicable period,as shown: Beginning net capital assets,January 1,2010 $ 1,363,034 Net capital assets,December 31,2010 1,480,454 Average Net Capital Assets 1,421,744 Average Treasury Rate 3.190% Facilities Capital Cost of Money $ _ 45,354 Direct Labor Base S 12 064,771 FCCM Rate .376% 4. BENEFIT PLANS The Company has two qualified retirement plans which cover employees who meet eligibility requirements. The Company made cash contributions of$2,306,756 to the plans during the year ended December 31, 2010.. 5. AUDITOR CONTACT The person to contact relative to this engagement is: Kristine L.Tryon Voldal Wartelle&Co.,P.S. Phone (425)250-0051 - 5 - VOLDAL VVARTELLE&M,P.S. Cerfifred Public Arcountants INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION Board of Directors Shannon &Wilson,Inc. We have audited the statement of direct labor, fringe benefits, and general overhead(the "Statement) of Shannon & Wilson, Inc. (the "Company") for the year ended December 31, 2010, and our report thereon dated April 19, 2011, which expressed an unqualified opinion on that Statement, appears on.page 1. Our audit was conducted for the purpose of forming an opinion on the Statement as a whole. The supplemental schedule of Direct Expense Rate, which is the responsibility of management, is presented for additional analysis and is not a required part of the Statement. Such information has not been subjected to the auditing procedures applied in the audit of the Statement, and,accordingly, we express no opinion or provide any assurance on it. April 19, 2011 10510 NE NORTHUP WAY,SUITE 30€3 tJ KIR LAND,WA 98033 j' PHONE: 425-250-#3£3:51 1` W",�W.V1VC-CPA.COM SHANNON&WILSON,INC. SUPPLEMENTAL SCHEDULE DIRECT EXPENSE RATE Year Ended December 31,2010 The Company's direct expense rate is based upon direct costs accumulated in the job cost records and recorded in the general ledger. Travel and subsistence $ 1,483,981 Supplies and disposal 267,680 Equipment/equipment rentals 160,096 Copy and printing 151,905 Other costs 128,463 Utilities and permits 61,995 Freight and shipping 46,006 Telephone 41,285 Traffic control, non labor 24,640 Materials,testing and miscellaneous service 11,100 2,377,151 Unallowable costs, see below (131,705) Allowable expenses $ 2,245,446 Direct labor $ 12,064,771 Direct expense rate 18.61% The unallowable costs were costs in excess of the per diem and travel expenses allowed in Florida Statute 112.061. The direct costs above do not include direct labor or subcontracts reimbursed as pass through costs on the basis of specific invoices. -7- REPORT ON INTERNAL CONTROL AND COMPLIANCE VOLDAL WARTELLE&Ct3:,P.S. Certified Public-Accountants REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Shannon &Wilson,Inc. We have audited the Statement of Direct Labor, Fringe Benefits, and General Overhead (the"Statement") of Shannon & Wilson, Inc. (the "Company") for the year ended December 31, 2010, and have issued our report thereon dated April 19, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.. Internal Control Over Financial Reporting In planning and performing our audit,we considered the Company's internal control over financial reporting as it relates to the Statement as a basis for designing our auditing procedures for the purpose of expressing our opinion on the Statement, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Company's Statement. will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses,as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Company's Statement is free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, including provisions of the applicable sections of Part 31 of the Federal Acquisition Regulations, noncompliance with which could have a direct and material effect on the determination of the amounts reported on the Statement. However, 10510 NE NORTHUP VVAY, SUITE 300 / [IRKLAND,WA 98033 / PHONE: 425-250-00,31 1 Vu'l't1V6'.V WC-C:PA.f'.L7M Board of Directors Shannon & Wilson,Inc. Page Two providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the _Company and government agencies or other customers related to contracts employing the cost principles of the Federal Acquisition Regulations and is not intended to be and should not be used by anyone other than these specified parties. '14w } April 19,2011 0 0 Construction Administration/Inspection and Design Construction Support Strander Boulevard Extension Project - Phase 1 - Segment 2A City of Renton, Washington Exhibit G Widener & Associates, Inc. Scope of Work Fee Determination Overhead • • WIDENER &ASSOCIATES - ENVIRONMENTAL/PERMIT SERVICES SCOPE OF SERVICES - DESIGN CONSTRUCTION SUPPORT SERVICES(DCSS) PROJECT NO. CAG-09-077 Under DCSS, five basic tasks will be provided as follows. DCSS Task 1- Project Administration, Permitting Support,and Meetings • Attend project preconstruction meeting • Attendance at weekly site meetings (20 meetings) • Site visits (50 site visits) • Prepare monthly invoices and progress reports DCSS Task 2 - Requests for Information(RFIs)and Submittal Review • Review of Contractor's SWPPP • Review of Contractor's SPCC • Review environmental related RFIs as requested-Assume six DCSS Task 3- Change Orders • N/A DCSS Task 4 - Inspections • Assist the project engineer in staking and verifying the wetland boundary on the ground prior to the Contractor beginning work on the project • Provide permit modification support as needed during construction. The work includes possible modifications proposed by the Contractor, such as work window extensions and design changes. The work will only be performed if changes are needed during construction • Provide biological assessment updates and consultation assistance for Section Seven of the Endangered Species Act • Provide weekly site assistance in NPDES inspections with the Contractor to ensure compliance with the NPDES permit and Section 401 water quality certification • Responding to Contractor questions and seeking permit modifications if needed • Provide written reports for items of work inspected on site. DCSS Task 5 - Record Drawings • N/A 1 EXHIBIT G-1 • Widener Costs SUBCONSULTANT FEE DARMINATION 1/20/2012 DIRECT SALARY COSTS (DSC) Personnel Hours Rate Cost 1 Project Manager 1,016 X $50.00 = $ 50,800 2 Project Biologist 190 X $31.00 = $ 5,890 3 $ - Total Hours 1,206 Subtotal Direct Salary Costs (DSC) = $ 56,690 Salary Escalation (SE)= 0% of DSC = $ - Subtotal (DSC +SE) = $ 56,690 Overhead (OH) 150.18% of(DSC+SE) = $ 85,137 Fixed Fee(FF) 25.00% of(DSC +SE)= $ 14,173 TOTAL SALARY COSTS (DSC +SE+OH + FF)= $156,000 DIRECT NONSALARY COSTS(DNSC) TOTAL REIMBURSABLE EXPENSES (DNSC)= $ - TOTAL AUTHORIZED AMOUNT = $156,000 PAYMENT Services will be paid on a DSC multiplier equal to 2.752 15 of 16 Project Project Manager Biologist Wetland Verification and Staking Field Work 12 40 Permit Verification 12 10 NPDES permit coordination and inspections 832 40 Construction Support 120 40 Dewater/Injection well permits 40 60 16 of 16 Exhibit A Breakdown of Overhead Costs Account Title $ Beginning Total % of Direct Labor Direct Labor 274,899 Overhead Expenses: FICA 21,305 7.75% Unemployment 6,013 2.19% Health/Accident Insurance 17,752 6.46% Medical Aid & Industrial Insurance 20,554 7.48% HolidayNacation/Sick Leave 12,665 4.61% Commission/Bonus/Pension 46,914 17.07% Total Fringe Benefits 125,203 45.55% General Overhead: State B&O Taxes 27,035 9.83% Insurance 20,684 7.52% Administration &Time Not Assignable 70,363 25.60% Printing, Stationary&Supplies 9,644 3.51% Professional Services 33,211 12.08% Travel Not Assignable 24,808 9.02% Telephone&Telegraph Not Assignable 10,350 3.77% Fees, Dues& Professional Meetings 1,175 0.43% Utilities&Maintenance 14,952 5.44% Professional Development 8,581 3.12% Rent 24,425 8.89% Equipment Support 34,968 12.72% Office, Miscellaneous& Postage 7,446 2.71% Total General Overhead 287,642 104.64% Total Overhead(General + Fringe) 412,845 Overhead Rate(Total Overhead/Direct Labor) 150.18% DOT form 140-089 EF Exhibit F Revised 8/07