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RFP NO 50-11/12, COST
ALLOCATION STUDIES
CITY OF MIAMI BEACH
' Prepared For
Ms. Martha L. Torres
Procurement Coordinator
Department of Procurement
,; Management
1700 Convention Center Drive
- ..r_ Miami Beach, Florida 33139
” �.-... . RFP 50-11/12
December 5. 2014
ORIGINAL
TALE OF CONTENTS
AR-
MAXIMUS
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12
COST ALLOCATION STUDIES
TAB Table of Contents Page
1 TRANSMITTAL LETTER 1-1
2 FIRM INFORMATION 2-1
Company Legal/Registered Name 2-4
Company Mailing and Physical Address 2-4
Company Website (URL) 2-4
Firm Principals 2-4
Primary Point of Contact 2-5
Client List (Proprietary) 2-7
3 FIRM EXPERIENCE 3-1
4 COST PROPOSAL 4-1
Table of Contents Page 1 of 1
TAB TAE31
Transmittal Letter
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HELPING GOVERNMENT SERVE THE PEOPLE'
December 5t", 2014
Martha L. Torres
Procurement Coordinator
Department of Procurement Management
1700 Convention Center Drive
Miami Beach, FL 33139
RE: Proposal — Cost Allocation Studies (RFP 50-11/12)
Dear Ms. Torres:
The City of Miami Beach desires to engage a qualified independent firm to
prepare the City's Fiscal Year 2014 OMB Circular A-87 and Full Cost Allocation
Plans. MAXIMUS Consulting Services, Inc., a wholly owned subsidiary of
MAXIMUS, Inc., (MAXIMUS) is pleased to provide our proposal and quote for the
requested scope of services. This letter and the accompanying proposal will
serve to identify the price for the study, the services that will be provided, and the
framework for developing a timeline for completion.
Cost Allocation Plans
The City of Miami Beach incurs costs to provide central services such as
accounting, budget, purchasing, human resources, information systems, facilities
management, etc. to other City departments. A City-wide Central Services Cost
Allocation Plan prepared in accordance with full costing principles will provide
many beneficial uses to the City. A Full Cost Allocation Plan may be used:
• as supporting documentation for inter-fund transfers between Enterprise
and Special Revenue Funds and the General Fund;
• for indirect cost analyses, which when combined with direct costs, is
useful in determining fully-absorbed fees-for-service;
• as a management tool to provide City managers with relevant cost data
as to how much it actually costs to provide specific services;
• in the budgeting process by identifying which departments are being
served and the level of service provided; and
• for identifying costs shared between agencies, such as buildings or
services.
3689 COOLIDGE COURT,SUITE 7 i TALLAHASSEE,FLORIDA 32311 I 850.386.1101 i 850.386.3599 FAX ;$ WWW.MAXIMUS.COM
Ms. Martha L. Torres
December 5th, 2014
Page 2
The Full Cost Allocation Plan will clearly document the administrative and
support costs incurred by the General Fund in support of operating departments.
In addition to identifying the costs borne by the General Fund in support of.
proprietary and special revenue funds, a City-wide central services cost plan will
provide for a consistent approach to identifying indirect costs to benefiting funds
and departments.
MAXIMUS will develop a cost allocation plan based on full costing principles to
document central services costs provided in support of non-federal programs and
funds. These funds should pay their full cost of operations because they benefit
from general funded services such as payroll, accounting, purchasing, human
resources, etc.
Additionally, under OMB Circular A-87 guidelines, local governments are allowed
to be reimbursed for these administrative costs if the costs are documented by a
cost allocation plan (11C.3.d. Appendix A to 2 CFR Part 225). If other departments
administer federal grants and contracts, and these programs benefit from the
central services provided to the department, then the federal government will pay
its fair share of the City's cost of providing these central services.
Accordingly, MAXIMUS will also develop a cost allocation plan in accordance
with the costing principles contained in OMB Circular A-87 (as codified in 2 Code
of Federal Regulations Part 225). This cost plan will identify the central services
costs for all federal and non-federal grants and contracts that require costing to
be based on OMB Circular A-87 costing principles.
MAXIMUS Qualifications
For more than 35 years, MAXIMUS has been committed to the mission of
"Helping Government Serve the People." Unlike many other firms and
competitors, cost allocation plans and cost of service studies are our core service
offerings; we have assisted thousands of local governments recover millions of
dollars to its General Funds.
MAXIMUS is an international consulting firm that provides the City of Miami
Beach with a financially stable partner upon that it may rely upon. MAXIMUS is a
profitable company with revenues in excess of $1.7 billion, over 11,000
employees, traded on the New York Stock Exchange (NYSE: MMS), and has
been previously selected to both Business Week and Forbes magazines' best
small company ratings.
As many of your peer local governments will affirm, MAXIMUS is the preeminent
firm in the nation specializing in cost allocation studies for state and local
governments. Nationally, we prepare over 1,000 cost allocation studies on an
annual basis. It is this national expertise, along with our staff's local government
MAXIMUS
Ms. Martha L. Torres
December 5t", 2014
Page 3
experience in the State of Florida that will ensure the City of a successful
engagement.
Please refer to TAB 2 FIRM INFORMATION of our proposal and visit our
corporate website at www.MAXIMUS.com for more information on our firm.
Experienced and Qualified Staff
MAXIMUS also offers the City a well qualified staff with extensive years of cost
allocation study experience. Our staff has significant experience working
collaboratively with local government management and staff to develop quality
deliverables that both parties are proud and confident to present to the Mayor
and Commissioners.
The Project Director for this engagement would be Troy Tangen. Mr. Tangen is
a Vice President in our Financial Services Practice, a Certified Public
Accountant, a Certified Government Financial Manager, and a Chartered Global
Management Accountant. Mr. Tangen has over 23 years of experience
preparing cost allocation studies for state and local governments and has
prepared hundreds of cost allocation plans. Mr. Tangen prepares the Florida
Statewide Cost Allocation Plan, and has prepared the cost allocation plans for a
number of Florida cities and counties, including Brevard County, Charlotte
County, Citrus County, Hillsborough County, Miami-Dade County, Okaloosa
County, Sarasota County, and the cities of Dania Beach, Fort Walton Beach,
Gainesville, High Springs, Miramar, Tampa, Titusville, Venice, and a number of
other cities and counties. Mr. Tangen will provide direction throughout the project
and be responsible to the City's Project Manager for this engagement.
Keith Frazier will be the Project Manager for the cost allocation studies. Mr.
Frazier is a Principal Consultant in our Financial Services Practice, has over 16
years of experience working in government, and has prepared numerous cost
allocation studies for state agencies and local governments. Mr. Frazier
prepares the cost allocation plans for a number of Florida cities and counties,
including Charlotte County, Duval County, Marion County, Okaloosa County, and
Orange County, in addition to the plans for the cities of Boca Raton, Jacksonville,
and Venice among several others. Mr. Frazier will have on-site responsibilities
and be available to City management and staff to respond to questions and
address issues that may arise throughout the cost plan development process.
Mr. Frazier will be responsible for staff interviews, data collection efforts, data
compilation and tabulation, and the preparation of supporting schedules, and
workpaper documentation.
As/if necessary, the MAXIMUS project team may include additional staff to
ensure that the engagement proceeds on schedule and meets required timelines.
All staff assigned to this project will be MAXIMUS employees who are thoroughly
MAXIMUS
Ms. Martha L. Torres
December 5t", 2014
Page 4
versed in OMB Circular A-87 and full costing principles, and have personally
prepared numerous cost allocation studies.
Please refer to TAB 3 FIRM EXPERIENCE of our proposal for more information
on our proposed project team.
industry Leading Cost Allocation Tools
MAXIMUS is uniquely qualified to assist the City with the development of its cost
allocation studies. Our approach and techniques have been refined over the last
three decades to assure that our cost allocation studies are comprehensive,
defensible and auditable, provide for equitable allocations to departments, and
maximize recoveries to the City's General Fund.
We will utilize our proprietary cost allocation system, MAXCARSTM to develop
and prepare the cost allocation plans. It should be noted that MAXIMUS
developed the first computerized cost allocation system specifically for
governmental agencies. MAXCARSTM is the result of over 25 years of
continuous development and refinement. Unlike other spreadsheet cost
allocation applications, our system has been designed specifically for the
preparation of indirect cost allocation plans and indirect cost rates. MAXCARSTM
allows us to evaluate alternative allocation bases and to quickly assess the
impact of changes during the negotiation process.
MAXCARSTM provides for reports that clearly document the cost pools
established for allocation, the object level expenditures comprising the cost
pools, the allocation bases developed to distribute indirect cost pools, and
summary and detail reports that clearly identify the apportionment of costs to
benefiting direct and indirect activities. Further, the MAXCARSTM standard
reports allow for comparisons to be made across fiscal years for numerous cost
plan components, including allocated costs, pre-allocated costs, detail allocated
costs, and allocation bases. These comparison reports provide significant value
to the cost allocation plans and are extremely useful management tools for
identifying and assessing trends and variances.
The MAXIMUS methodology and computerized double step down cost allocation
system ensures the equitable allocation of costs to all benefiting departments.
Most importantly, our approach and cost allocation plans have been reviewed
and accepted by all federal cognizant agencies to which our plans have been
submitted.
Please refer to TAB 3 FIRM EXPERIENCE of our proposal for more information
on our cost allocation plan approach and methodology, as well as our proprietary
cost allocation system, MAXCARSTM
MAXIMUS".
Ms. Martha L. Torres
December 5th, 2014
Page 5
Understanding Local Government's Needs
We believe we are uniquely qualified in understanding local governments' needs.
Florida cities and counties have been required to enact significant budget cuts as
a result of state legislation and the worst economic conditions since the Great
Depression. MAXIMUS continues to help many clients identify alternative non ad
valorem revenue sources to help defray the magnitude of these budget
reductions.
Further, as alternative revenue sources are identified through cost allocation
plans and user fee studies, it is imperative that the local government have
confidence in the selected consultant to provide a deliverable that is credible,
supportable, and defensible. Cost allocation plans and user fee studies are
subject to considerable scrutiny from fund and department managers, the public,
and regulatory parties. Through our engagements with other cities and counties,
MAXIMUS staff is experienced and adept at addressing and presenting cost
allocation issues and methodologies to affected parties.
Moreover, if the cost allocation study is prepared appropriately, allocation
methodologies utilized will be truly reflective of the "benefits received" principles
that should guide the approach to cost allocation. This approach ensures the
acceptance and approval of cost allocation plans by federal and state cognizant
agencies. MAXIMUS excels at developing cost allocation studies that are
predicated on activity based costing precepts, which significantly enhances the
credibility of the resulting study.
Fixed Fee Quote
Due to the efficiencies that we have developed over the last thirty-nine years, the
experience of our staff, and assisting thousands of local governments of
comparable size and complexity to the City of Miami Beach, we are able to offer
our services at competitive and economical fees — an absolute imperative for our
clients as budget reductions continue to be enacted.
•
Please refer to TAB 4 COST PROPOSAL for our proposed fee.
Through a competitive procurement, MAXIMUS has been selected by the Florida
Department of Management Services as a pre-qualified vendor to provide
management consulting services to Florida state agencies and local
governments. Accordingly, MAXIMUS is available to ail local governments via
purchase order by reference to the State of Florida Contract Number 973-000-
14-01 for Management Consulting Services. The text of this contract is available
online at the following web site:
MAXIMUS
Ms. Martha L. Torres
December 5t", 2014
Page 6
http://www.dms.myflorida.com/business operations/state purchasing/vendor inf
ormation/state contracts and agreements/state term contracts/management c
onsulting services2
* * * •
We would sincerely appreciate the opportunity to assist the City of Miami Beach
on this important project. Should you have any questions, need additional
information, or if the scope of services requires modification; please contact me
at 850.386.1101 ext. 404 or via email at troytangen @maximus:com.
Sincerely,
MAXIMUS Consulting Services, Inc.
j/toLiQ),: a/tAq/eA,___
Troy Tangen
Vice President
MAXIMUS
TAB 2
Firm Information
Wit
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
TAB 2. FIRM INFORMATION
SECTION The City of Miami Beach wants to contract with a financially stable company that
ORGANIZATION has the resources and liquidity to meet the demands of this project. MAXIMUS has
A.Firm Profile $158 million of cash, very little debt, and is profitable and growing. Therefore, we
certainly have the financial resources to meet the City's needs.
A. FIRM PROFILE
MAXIMUS is the largest The City of Miami Beach may be assured
management consulting firm in the that MAXIMUS is a financially sound firm
Q capable of meeting all requirements of this
nation serving the needs of non- project.
MAXIMUS has the depth defense, public sector clients. The
of professional resources company has annual revenues in ✓ MAXIMUS is a large publicly owned
necessary to support the company traded on the New York Stock
consulting,service,and excess of $1.7 billion during the Exchange(MMS).
product needs of a fiscal year ended September 30, ✓ MAXIMUS is included in the Russell 2000
myriad of public sector 2014 and is poised for continued Index, the Standard & Poor's Small Cap
entities. growth. Along with our steady 600 Index, and the Standard & Poor's
revenue growth has come a Composite 1500 Index.
commensurate increase in ✓ MAXIMUS has been selected as a
professional consultants. Forbes' Magazine Best 200 Small
Numbering today more than Companies in America and Business
13,000 staff, MAXIMUS has the Week Magazine's 100 Best Hot Growth
depth of professional resources Small Companies.
necessary to support the MAXIMUS has revenues of more than
consulting, service, and product $1.7 billion, over $900 million in assets,
strong recurring cash flows, and no long-
needs of a myriad of public sector term debt.
entities. ✓ MAXIMUS has a high financial rating(5A1
"Strong")from Dun &Bradstreet.
MAXIMUS became publicly ✓ MAXIMUS is a financially sound partner
owned in 1997 (symbol "MMS" that the City can depend upon to fulfill
on the NYSE) and since that time obligations and provide exceptional
has expanded its staff. This services.
growth allows us to run successful
projects by applying the experience and knowledge of seasoned professionals.
Our business model is defined by market areas, which allows us to recruit and
hire individuals with expertise specific to a given market niche, and to
customarily attract consultants with national reputations in a particular market
segment.
Service Offerings
MAXIMUS provides a diverse set of products and services: ranging from human
service program evaluations and quality assurance,to investigations and program
compliance, to systems development and implementation, to maintenance and
operations of human service programs and systems, to change management and
performance analytics, to government program financial consulting for cost
allocation plan development, user fees, and rate setting. To support this diversity,
Firm Information TAB 2-1
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
RFP 50-11/12
MAXIMUS is organized as shown below in Exhibit 2.1 - MAXIMUS Corporate
Organization. Within all of our major segments, senior professionals provide the
administrative, operational, systems, and programmatic expertise to implement
and operate each project. The MAXIMUS organization aligns with service
offerings under our two major business lines — Human Services and Health
Services. The services under this project will be delivered by the Financial
Services Practice within the Human Services segment. The Financial Services
P ractice provides financial, management, and operations analysis to state and
local governments.
MAXIMUS
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CITY OF MIAMI BEACH, FLORIDA 11�AXIMLiS
RFP 50-11/12
MAXIMUS Financial Stability
MAXIMUS recognizes the City's need to work with a financially capable,
responsible provider and shares the belief that a strong financial base is essential
to ensuring contract success. MAXIMUS is a large, public corporation with
stock trading on the New York Stock Exchange(MMS). We have grown in both
size and revenue every year since our founding in 1975. Our revenues have
grown from $100 million in FY 1996 to more than $1.7 billion in FY 2014.
Exhibit 2.2 -MAXIMUS Revenue Growth FY 2006-FY 2013, shows the growth
of our fiscal capacity over the past 8 years. We have no long-term debt and
financial resources readily available, if needed. This is in stark contrast to some
of our competitors who are small firms with very limited resources.
Revenue FY2006 - FY2013
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Exhibit 2.2-MAXIMUS Revenue Growth FY 2006—2013. This graph illustrates our
strong financial growth over the past 8 years.
We have a strong MAXIMMUS is a financially stable corporation. We have never filed (or had filed
balance sheet,excellent against us) any bankruptcy or insolvency proceeding or undergone the
capital structure,and appointment of a receiver, trustee, or assignee for the benefit of creditors.
more than adequate Presently, MAXIMUS commands a high financial rating (5A1) from Dun &
I credit facilities to support
our operations and to Bradstreet, reflecting its assessment of both our financial statements and our
invest in growth. credit worthiness as "strong." Our Dun & Bradstreet number is 08-234-7477.
Our bank of record is SunTrust Bank, 8245 Boone Boulevard - Third Floor,
Vienna, Virginia 22182.
I also want to point out that we have maintained a strong capital position that,
in this market, serves us well. Clients are seeking partners with strong
balance sheets and financial wherewithal during this economic environment.
--Richard A. Montoni, Chief Executive Officer, President, and Director
Firm Information TAB 2-3
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
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RFP 50-11/12
During these harsh economic times, governments need to seek out companies
that have the ability to weather economic uncertainties. Especially now, during
the current financial crisis, government agencies must partner with quality
vendors who have solid credit ratings and a strong indication of financial
solvency. With the credit crunch at such heights, government agencies cannot
afford to test an unproven and financially unstable partner.
MAXIMUS brings the financial strength to help our government partners feel
confident they met their fiduciary responsibility of awarding contracts to a
company that has the financial wherewithal to succeed with such an important
project. The importance of financial strength and strategic liquidity in today's
market cannot be overstated.
Our strong financial position affords us the viability required to ensure that the
objectives of this project are not threatened by the economic risks that could
befall less stable contractors, who may depend on lines of equity or venture
capital investments. Our corporate leadership is well aware of the importance of
maintaining financial stability, especially in light of recent economic
fluctuations.
• As a publicly traded company, we have full public transparency of our finances;
as we file all reports required by the Securities and Exchange Commission
(SEC). In the current economic environment, MAXIMUS is in the fortunate
position of having significant cash in hand and minimal debt. Our 10-K and 10-Q
reports are publicly filed with the SEC and are available to provide detailed
information on the financials strength of MAXIMUS, and we trust are more than
enough to document our financial strengths.
Company Legal/Registered Name
This project will be led by the experienced consultants of MAXIMUS Consulting
Services, Inc. (MAXIMUS), a wholly-owned subsidiary of MAXIMUS, Inc.
MAXIMUS Consulting Services, Inc. is registered with the Florida Secretary of
State, Division of Corporations.
Company Mailing and Physical Address
Our Corporate Headquarters is located at 1891 Metro Center Drive, Reston,
Virginia 20190. The staff that will perform the services under this scope of work
are located in our Florida office at 3689 Coolidge Court, Suite 7, Tallahassee,
Florida 32311.
Company Website URL
Our company website may be accessed at www.MAXIMUS.com.
Firm Principals
The officers of MAXIMUS Consulting Services, Inc. are as follows:
• President and Director: Kathleen L. Kerr
Firm Information TAB 2-4
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
V i j��jj] •.
RFP 50-11/12 �1/ US
• Vice President: Richard R. Sankey
• Vice President: Bruce P.Perkins
• Treasurer: Kevin M.Reilly
• Secretary: David R. Francis
• Vice President, Contracts/Assistant Secretary: Adam Polatnick
Name and Contact Information of Company Representative that will
be the Primary Point of Contact for the Engagement
• The Primary Point of Contact for this engagement will be:
Troy Tangen
Vice President
MAXIMUS Consulting Services
3689 Coolidge Court, Suite 7
Tallahassee,Florida 32311
Email: troytangen@maximus.com
Telephone: (850)386-1101
Client List
Nationally, MAXIMUS assists more state and local governments develop and
prepare cost allocation plans than all other firms combined. We have been
assisting government agencies with their cost allocation needs for thirty-nine
years. We are extremely proud of our long standing relationships with these
government agencies. We are very conscious of the fact that local governments
continue to select MAXIMUS as a trusted partner due to our commitment to our
clients, the knowledge and expertise of our staffs, our industry leading cost
allocation system, and our capabilities to produce quality deliverables within
required timeframes.
. MAXIMUS is the nation's leader in cost allocation services to state and local
governments. Each year, we work with nearly 1,000 clients to assist them in
developing and negotiating their cost allocation plans. Our approach to
supporting our clients throughout the entire cost allocation process has been
continuously refined over the past 39 years as we worked with state and local
government agencies across the country preparing cost allocation plans, as
illustrated in Exhibit 2.3-MAXIMUS Cost Allocation Projects.
•
Firm Information TAB 2-5
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
IOW `,
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
50-11/12
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Exhibit 2.3-MAXIMUS Cost Allocation Projects.As the leading provider of cost
accounting services to government organizations, MAXIMUS has led the
development of CAPs for numerous state and local government agencies in 41
states and the District of Columbia.
The following table, Recent Florida Project Experience of Project Staff,
identifies government clients served by members of our proposed project team
during the past three years. Many of our clients are of similar nature and
complexity to the City of Miami Beach, some larger and others smaller.
However, each government client provides similar central services to the
operating departments of the government. All of these projects included the
development of cost allocation plans, either full cost, OMB Circular A-87 or
both.
Firm Information TAB 2-6
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
COMPANY PROPRIETARY
Contact Phone Negotiator for Description
Client Name Name Number E-mail Address Consultant Plans of Services
FLORIDA CLIENTS
COUNTIES
Brevard Asheley (321)633-2153 ashelev.hepburn(a br Troy Tangen& See Note 1 Cost Allocation
County Hepburn, evardcountv.us Keith Frazier Plans and
Assistant Department
Budget Fee Studies for
Director, Facilities,Fleet,
Budget and IT
Department
Charlotte Linda Carr, (941)743-1323 Linda.Carr(c�charlotte Troy Tangen& See Note 1 Cost Allocation
County Assistant fl.com Keith Frazier Plans
Budget Officer,
Budget
Department
Duval County Rashad (904)630-4713 rashadi(a7coi.net Troy Tangen& See Note 1 Cost Allocation
Jackson, Keith Frazier Plans
Budget and
Management
Analyst
Hernando George (352)754-4004 GeorgeZCa co.hernan Troy Tangen& See Note 1 Cost Allocation
County Zoettlein, do.fl.us Keith Frazier Plans
Director,
Office of
Management
and Budget
Hillsborough Richard (813)272-6572 rubensteinra.hillsbor Troy Tangen& See Note 1 Cost Allocation
County Rubenstein, oughcountv.orq Keith Frazier Plans
Manager,
Department of
Business and
Support
Services
Manatee Gregory G. (941)745-3787 areq.wright(c�mvmanat Troy Tangen& See Note 1 Cost Allocation
County Wright,Budget ee.orq Keith Frazier Plans
Manager
Marion Michael (352)620-3980 michaelt marioncou Troy Tangen& See Note 1 Cost Allocation
County Tomich, ntvclerk.orq Keith Frazier Plans
Budget
Director,Clerk
of the Circuit
Court
• Miami-Dade Maria Rivero, (305)375-2169 mcrrmiamidade.gov Troy Tangen& See Note 1 Cost Allocation
County Assistant Keith Frazier Plans
Controller
Orange Jamille (407)836-5708 Iamille.clemensCa�occ Troy Tangen& See Note 1 Cost Allocation
County Clemens, ompt.com Keith Frazier Plans
Office of the
Comptroller
Sarasota Christy (941)479-0062 chackmanscqov.net Troy Tangen& See Note 1 Cost Allocation
County Hackman, Keith Frazier Plans
Office of
Financial
Management
St.Johns Doug Timms, (904)209-0566 dtimms(a�sicfl.us Troy Tangen& See Note 1 Cost Allocation
County Director,Office Keith Frazier Plans
of Management
and Budget
CITIES
Firm Information TAB 2-7
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA �Yj�/ i �c
RFP 50-11/12 �1I1!VII!�►1�,1.7
COMPANY PROPRIETARY
Contact Phone Negotiator for Description
Client Name Name Number E-mail Address Consultant Plans of Services
Boca Raton Patricia White, (561)393-7853 PWhite(a�ci.boca.rato Troy Tangen& See Note 1 Cost Allocation
(City of) Senior n.fl.us Keith Frazier Plans
Accountant
Dania Beach Mark Bates, (954)924-6800 mbates@ci.dania- Troy Tangen& See Note 1 Cost Allocation
(City of) Finance beach.fl.us Keith Frazier Plans
Director
Gainesville Daniel (352)334-5034 smierciadiCa�ci.oaines Troy Tangen& See Note 1 Cost Allocation
(City of) Smierciak, ville.fl.us Keith Frazier Plans
Account
Manager,
Finance
Department
Hallandale Jeffrey Lowe, (954)457-1371 iloweahallandalebea Troy Tangen& See Note 1 Cost Allocation
Beach(City Finance chfl.gov Keith Frazier Plans
of) Director,
Finance
Department
Jacksonville Rashad (904)630-4713 rashadi(a coj.net Troy Tangen& See Note 1 Cost Allocation
(City of) Jackson, Keith Frazier Plans
Budget and
Management
Analyst
Miramar(City Celeste Lucia (954)602-3049 cdlucia @_ci.miramar.fl Troy Tangen& See Note 1 Cost Allocation
of) Finance .us Keith Frazier Plans
Director
Tampa(City Susan Gobble, (813)274-3173 Susan.Gobble(c�Tam Troy Tangen& See Note 1 Cost Allocation
of) Sr.Fiscal paoov.net Keith Frazier Plans
Analyst,
Budget Office
Titusville(City Bridgette (321)567-3712 Bridgette.Clements Troy Tangen& See Note 1 Cost Allocation
of) Clements, Titusville.com Keith Frazier Plans
Finance
Director
Venice(City Jeff Snyder, (941)486-2442 jsnyder @ci.venice.fl. Troy Tangen& See Note 1 Cost Allocation
of) Finance us Keith Frazier Plans
Director
STATE AGENCIES
Department Kimberly (850)717-4733 Kimberly McMurray Troy Tangen US A-87 Cost
of Children McMurray, a,dcf.state.fl.us Department of Allocation Plan
and Families Revenue Health and
Management Human
Services
Department Lewuel Toro, (850)717-3826 toro.lemuel@mail.dc. Troy Tangen& US A-87 Cost
of Corrections Finance and state.fl.us Keith Frazier Department of Allocation Plan
Accounting Justice
Department Steve Wilson, (850)413-5643 Steve.WilsonCct�,fldfs.c Troy Tangen& US A-87 Cost
of Financial Chief,Bureau om Keith Frazier Department of Allocation Plan
Services of Accounting Health and (Statewide
Human Cost Allocation
Services Plan)
Department Kenol Saint- (850)245-4534 Kenol SaintFort ado Troy Tangen& US A-87 Cost
of Health Fort,Health h.state.fl.us Keith Frazier Department of Allocation Plan
Financial Health and
Manager, Human
Services
Department Vickie Harris, (850)921-6412 Vickie.Harrisadii.stat Troy Tangen& US A-87 Cost
of Juvenile Bureau Chief, e.fl.us Keith Frazier Department of Allocation Plan
Justice Bureau of Justice
Budget
Department Nona McCall, (850)410-7504 nonamccall(a fdle.stat Troy Tangen& US A-87 Cost
of Law Finance/ e.fl.us Keith Frazier Department of Allocation Plan
Enforcement Accounting Justice
Firm Information TAB 2-8
Certain parts of this proposal may contain proprietary ry information. Please co n tact MAXIM US be f o r e releasing a n y pages marked,d,propnetary.
•
CITY OF MIAMI BEACH, FLORIDA p ��9[j J�J�i ,C
RFP 50-11/12 1,/1T1 U 11►U
COMPANY PROPRIETARY
Contact Phone Negotiator for Description
Client Name Name Number E-mail Address Consultant Plans of Services
Department Joseph Young, (850)717-7018 voungioCa�dor.state.fl. Troy Tangen& US A-87 Cost
of Revenue Budget us Keith Frazier Department of Allocation Plan
Director Health and
Human
Services
Department Leticia (727)518-3202 Nazario- Troy Tangen& US A-87 Cost
of Veterans' Nazario- ext.5538 BraddockLFDVA.st Keith Frazier Department of Allocation Plan
Affairs Braddock, ate.fl.us Health and
Director of Human
Administration Services
Fish and LaVondria (850)617-9668 lavondria.norton c(�mv Troy Tangen& US A-87 Cost
Wildlife Norton, fwc.com Keith Frazier Department of Allocation Plan
Conservation Professional Interior
Commission Accountant
Specialist,
Finance and
Budget Office
Note 1 2 CFR Part 225, Appendix C, 11D.3. stipulates that local governments claiming central services costs must
develop a plan in accordance with the requirements described in Appendix C of OMB Circular A-87 and maintain
the plan and related supporting documentation for audit. Local governments that have not been designated as a
"major local government"are not required to submit their plans for Federal approval unless they are specifically
requested to do so by the cognizant agency.
Firm Information TAB 2-9
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
TAB 3
Firm Experience
CITY OF MIAMI BEACH, FLORIDA IMUS
i
RFP 50-11/12
TAB 3. FIRM EXPERIENCE
SECTION For the past three decades, cost accounting of government services has been a
ORGANIZATION principal line of business for MAXIMUS staff. We offer the City of Miami Beach both
A.Past Experience with a national perspective and in-depth knowledge of Florida local government. Our
Governmental extensive overall cost allocation experience, our financially stable and responsible
Entities
B.QualifcationslTeam company, and our deep bench of resources makes MAXIMUS your best partner for
Members and Key this effort.
Personnel
C.Understanding
Requirements, A. PAST EXPERIENCE WITH GOVERNMENTAL
Scope of Work and ENTITIES
Deliverables
D.Project Management
E.Service Quality We are proud to have provided MAXIMUS Consulting Services has the
Program tens of thousands of counties and
background,knowledge,experience,and
cities with cost accounting collective expertise required to develop
services since 1975. Because of accurate,thorough cost allocation plans..
our long partnership with our ✓ MAXIMUS prepares more than 1,000 cost
clients, many local governments allocation plans annually. We prepare
have first-hand experience with more cost allocation plans than all other
firms combined. Our cost allocation
the high quality services systems and methodologies have all been
MAXIMUS delivers. We strongly approved by the federal government.
encourage the City to contact our ✓ We created the computerized cost
clients and find out why our other allocation tools and methodologies that
clients selected MAXIMUS to many other firms try to emulate.
meet their challenges and exceed ✓ We have helped states and local
their expectations. governments successfully negotiate and
defend their cost allocation plans.
The client list provided in TAB 2 - FIRM INFORMATION, include people
who continue to work beside us and have tested our capabilities. Our current and
past clients opted to work with MAXIMUS based upon our ability to deliver a
solution addressing not only the stated requirements, but also act as a
consultative partner to help them to operate within dynamic and challenging
environments. The references provided will describe our working relationship as
MAXIMUS assumes the role of a stakeholder resulting in the following:
• Overall success of their project;
• Unmatched quality and expertise of our personnel;
• Our ability to manage and maintain projects on schedule;
• Our problem-solving skills;
• Our candid communication and open interaction with client staff;
• Our ability to assess project risks and develop effective mitigation strategies;
and
• Clients' willingness and eagerness to work with us again.
MAXIMUS works hard for each client we serve, including the numerous
customers not noted in this proposal. The clients listed are merely a
Firm Experience TAB 3-1
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
RFP 50-11/12
representative sampling of clients of similar size and organizational complexity
to the City of Miami Beach that the proposed Project Team members have
worked with over the past three years.
B. QUALIFICATIONS/TEAM MEMBERS AND KEY
PERSONNEL
MAXIMUS has developed thousands of cost allocation plans. Our approach to
cost allocation has been refined over the past 39 years and is crafted to ensure
expediency, effective use of City staff time, full cost recovery, and federal
compliance. We have drawn on this extensive experience as well as our deep
knowledge of local government operations in Florida in presenting our approach.
Our knowledge of Florida accounting systems, charts of accounts, and
documentation sources ensures no disruption to recoveries and minimal staff
time.
We offer the City of Miami Beach a team with the experience required to
The personnel assigned produce successful results. All of our team members have a comprehensive
to this team have
extensive experience in understanding and applied knowledge of local government full costing concepts,
all aspects of cost as well as OMB Circular A-87 and ASMB C-10 (Implementation Guide for
allocation plans as well OMB Circular A-87). They have completed hundreds of cost allocation plans for
as the Federal costing cities, counties and states. The City can be assured that our proposed team will
principles and procedures
found in OMB Circular A- develop thorough cost allocation plans, which will withstand scrutiny and fully
87 and ASMB C-10 recover allowable costs.
We also offer the City of Miami Beach the assurance that comes with a
corporate-wide quality assurance program. All consulting staff follow our
internally-developed Professional Practice Guide which lays out procedures and
standards of practice that ensure the highest quality of services to our clients.
In this section,we detail our proposed project team and staff experience.
Proposed Project Team and Organizational Structure
The MAXIMUS team assembled to conduct this project includes some of the
firm's most senior experts in cost accounting principles. This team has assisted
hundreds of government agencies at the state and local level in the development,
preparation and negotiation of cost allocation plans, indirect cost proposals,
fringe benefit rates, internal service fund billing rates,and user fee studies.
The personnel assigned to this team have extensive experience in all aspects of
cost allocation studies, as well as the Federal costing principles and procedures
found in OMB Circular A-87 and ASMB C-10. Our project team will draw on a
variety of specialized technical and programmatic skills. Moreover, our size
allows us to be able to recruit and maintain a solid cadre of professional
consultants with a broad mix of skills. Specifically, we have seventy experienced
cost allocation specialists to draw upon if additional staff is needed.
Firm Experience TAB 3-2
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
•
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
Y lUS
•
RFP 50-11/12
Project Organization
The team that MAXIMUS has assembled for this project is particularly well
qualified to assist the City with the requested scope of services. Troy Tangen
will serve as the Project Director of the engagement and Keith Frazier will serve
as our Project Manager. We have developed our project organization to provide
the City of Miami Beach with specialized expertise as well as project consultants
who will be responsible for day-to-day efforts. Exhibit 3.1 - Project Staffing
Plan shows our proposed project structure.
Project Director
Troy Tangen
Project Manager
Keith Frazier
1
Project Project
Consultant Consultant
Meredith Clonch Susan Gray
Exhibit 3.1 -Project Staffing Plan. This chart depicts our proposed project
organization and staff plan, which is designed to provide the City of Miami Beach
with day-to-day consultants as well as specialized expertise.
The utilization of senior-level staff with extensive subject matter expertise will
ensure comprehensive and effective cost allocation plans. The roles and
responsibilities of each position in the staffing plan are described below.
Project Director: The Project Director will have primary responsibility for the
project and ensures that necessary resources are available to the project team.
The Project Director directs the MAXIMUS team effort and provides necessary
input and guidance to help ensure project success. It is the Project Director's
responsibility to ensure that quality work and customer satisfaction are achieved.
The Project Director is also responsible for suggesting overall strategies to the
project team and assisting in identifying solutions to any implementation barriers.
The Project Director will also play a direct role in this project and will review the
cost allocation plan preparation work to assure compliance with OMB A-87
Circular Guidelines and accuracy and consistency in the application of Federal
cost principles with other governments that we serve.
Project Manager: The Project Manager will be the primary contact person for
City staff. The Project Manager has the day-to-day responsibility for the project
and guides the work on the multiple tasks. The Project Manager ensures that
Firm Experience TAB 3-3
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
project implementation occurs on schedule and in accordance with all
requirements and has responsibility for regular client communication and
reporting. The Project Manager will have on-site responsibilities and be available
to City management and staff to respond to questions and address issues that may
arise throughout the cost plan development process. Further, the Project
Manager will be responsible for staff interviews, data collection efforts, data
compilation and tabulation, and the preparation of supporting schedules, and
work paper documentation.
Relevant Experience of Each Individual
All staff assigned to this MAXIMUS warrants that all persons assigned to this project will be employees
project are full-time of MAXIMUS and fully qualified to perform the required work. We have
MAXIMUS employees proposed staff experienced with the preparation of cost allocation plans. Every
and fully knowledgeable consultant assigned to this project is fully knowledgeable of OMB Circular
of OMB Circular A-87 A-87 policies and procedures, understands how to maximize indirect costs within
federally allowable limits, and knows how to effectively interview staff so as to
minimize City staff time and efficiently gather data.
In this section, we summarize the qualifications of our key staff. The wealth of
experience our proposed staff members bring to this project is demonstrated in
the following sections.
Project Director: Troy Tangen, CPA, CGFM, CGMA
Our proposed Project Troy Tangen has prepared more than 500 cost allocation plans and associated
Director is a licensed rate analyses during his 23 years with our firm. A licensed CPA, he has assisted
CPA and CGFM local governments as well as state departments. He has provided the following
types of services: Full Cost, OMB Circular A-87, and OMB Circular A-122
Cost Allocation Plan development; cost-based rate development, rate and fee
setting, and design and implementation of cost survey documents. Mr. Tangen
currently prepares the State of Florida's Statewide Cost Allocation Plan,which is
prepared and negotiated annually with the U.S. Department of Health and Human
Services, Division of Cost Allocation. Additionally, Mr. Tangen is responsible
for all cost allocation plan services performed in Alabama, Florida, Georgia, and
Mississippi. Mr. Tangen has also prepared local government cost allocation
plans for many large local governments, including the City of Tampa,
Hillsborough County,and Miami-Dade County among many others.
Project Manager: Keith Frazier
Keith Frazier will be the Project Manager. Mr. Frazier brings over 16 years of
local government experience to the engagement, with particular focus on Florida
cities and counties. Mr. Frazier's range of experience includes preparation of
cost allocation plans for a multitude of large local government clients in Florida,
including the City of Boca Raton, City of Hallandale Beach, City of Jacksonville,
City of Miramar, City of Venice, Charlotte County, Duval County, Hernando
County, Marion County, Okaloosa County, Orange County, Pasco County, and
Sarasota County to name but a few. Additionally, Mr. Frazier prepares the OMB
Firm Experience TAB 3-4
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
•
CITY OF MIAMI BEACH, FLORIDA MAXIMUS' ' �yr
RFP 50-11/12
Circular A-87 cost allocation plans for many Florida state agencies and the State
of Alabama Statewide Cost Allocation Plan.
C. UNDERSTANDING REQUIRE E TS, SCOPE OF
WORK AND DELIVERABLES
Having set a foundation based on an understanding of our clients' expectations,
MAXIMUS built an approach to projects based on the best practices and
guidelines as adapted by our extensive experience. Many local governments are
seeking to recover expenditures that support the administration of enterprise
fund,special revenue districts,and/or Federal programs.
The City of Miami Beach incurs costs to provide central services such as
accounting, purchasing, personnel, legal, facilities maintenance, information
technology and other functions to the various City departments. Full costing
principles and the OMB Circular A-87, Cost Principles for State, Local and
Indian Tribal Governments, provides a costing methodology that, if carefully
•
followed, results in a more comprehensive identification of central services cost
and the benefits provided to City departments, funds, and federal programs. If
other City departments benefit from the central services provided to the
department, these central service costs may be recovered from the funds and/or
the Federal government will pay its fair share of the City's cost of providing
these services.
Under OMB Circular A-87 guidelines, which are now codified in the Code of
Federal Regulations (CFR) at 2 CFR Part 225, local governments may be
reimbursed for administrative and support costs if they are supported by a cost
allocation plan prepared in compliance with the cost principles contained in the
Circular(¶C.3.d.Appendix A to 2 CFR 225).
Many Federal programs have agreed to a policy of paying Federal participation
in these funds to local governments if they prepare the required cost allocation
plan. `2 CFR Part 225, Appendix C, ¶D.3. stipulates that local governments
claiming central services costs to Federal awards must develop a plan in
accordance with the requirements described in Appendix C of OMB Circular A-
87 and maintain the plan and related supporting documentation for audit
purposes. However, these local governments are not required to submit their
plans for federal approval unless they are specifically requested to do so by a
cognizant agency.
The determination of the indirect costs of programs, activities, and services in
government may have benefits beyond the recovery of Federal funds from grant
programs. For example, the City administers funds that must be self-sustaining
from operating revenues. By determining the indirect costs which support these
funds, charges for services provided by the General Fund can be better supported
and recovered. In addition, other departments or operations may need to know
Firm Experience TAB 3-5
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TRITI
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
their total costs (direct and indirect) in order to establish user fees, permits,
contract rates,professional hourly rates,and costs of special services.
Approximately 1,000 cities, counties and federal grant recipients nationwide are
currently developing these plans with our assistance and will recover substantial
sums of money. Throughout the nation, more cities and counties have selected
MAXIMUS to prepare their cost allocation plans than all other firms combined.
The scope of services requested by the City of Miami Beach states virtually
verbatim the responsibilities and goals of MAXIMUS Consulting Services: to
develop cost allocation plans that appropriately and equitably identifies and
quantifies the costs incurred by the City in supporting enterprise, internal service
and special revenue fund operations, and administering state and federal grants
and awards.
We commit to preparing and documenting cost allocation plans in compliance
with OMB Circular A-87(2 CFR Part 225)and full costing principles,which will
clearly delineate the relationship between the services and costs affecting the
City's General Fund and other funds. The tasks of the proposed cost allocation
services include:
✓ Meeting with the Office of Budget and Performance Improvement (OBPI)
and Finance personnel to discuss objectives of the study, the departments
involved, the sections and functions to be included in the study, and
organizational changes that have occurred since the last cost allocation study
was implemented;
✓ Reviewing allocation statistics and criteria used in the prior study, and meet
with departments involved to collect any data needed to update allocation
assumptions and statistics to conditions for the applicable fiscal year being
studied.;
✓ Collecting organizational, personnel, and financial information relative to the
study;
✓ Developing an expenditure analysis which ties back all study costs to the
audited financial statements for the applicable fiscal year being studied;
✓ Generating cost allocation summary schedules and narratives in a format that
can be applied prospectively for future budgets using standard cost allocation
methodology and cost principles contained in Federal Circular OMB A-87;
✓ Reviewing the cost allocation plans with OBPI and Finance personnel;
1✓ Revising the cost allocation plans as necessary;
✓ Producing draft study document, including all supporting schedules,
statistical data,and assumptions for review by City staff; and
✓ Incorporating comments from City staff; and providing a final report
including all supporting schedules, statistical data, and assumptions in
original form (word, excel, etc.) as well as in a printer-ready portable
document format(PDF)format; and
Firm Experience TAB 3-6
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
WAIT
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
Due to our broad experience, economies, and efficiencies, each of these
objectives can be met with minimal cost to the City, and can potentially yield
millions of dollars in revenues.
METHODOLOGY/APPROACH TO WORK
THE BENEFITS OF A COST ALLOCATION PLAN
DEPARTMENTS OR < SUPPORT
UNITS WITH DIRECT DEPARTMENTS
PUBLIC CONTACT OR UNITS
CUSTOMERS
MAXIMUS Local government services divide into two groups: those that serve the public
understands the City directly and those that serve indirectly. Ignoring the cost of support departments
of Miami Beach's or units burdens the health of the General Fund. The remedy is to prepare a"cost
requirements and allocation plan" to trace indirect costs to the departments, units or funds that
can draw on our
extensive experience serve customers.
helping other clients
address similar The term "cost allocation plan" has its origin in a Federal regulation, now known
issues. as 2 CFR Part 225, formerly as OMB Circular A-87. Several decades ago, the
Federal government agreed to reimburse state and local governments for certain
overhead costs if they documented those costs using this set of rules.
There are many benefits to a cost allocation plan.
1. Other funds, especially enterprise funds and special revenue funds, may
receive administrative support from the General Fund for free or at a
substantial discount to actual cost. With a cost allocation plan, you have a
defensible basis for seeking reimbursement. Not having a plan may cost the
City millions of dollars annually.
2. With an overhead cost component, user fee prices can recover the full cost of
P
service provided to customers. If you do not bill overhead costs to fee
customers (many of whom are not residents or taxpayers), you force
taxpayers to subsidize the shortfall. This is worth several hundred thousand
dollars a year for larger cities and counties.
3. Some programs may be eligible for grants that would reimburse indirect
costs in addition to direct programs already funded by grants. The value of
Firm Experience TAB 3-7
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
Ti :r
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
this extra revenue is difficult to predict, depending on the number and nature
of the grants you receive.
4. Intergovernmental agreements for other jurisdictions that receive services
should bear their fair share of overhead expense. A cost allocation plan
identifies the cost of service so that those you serve may pay their fair share.
The City has requested a proposal to develop and prepare Cost Allocation Plans.
Our study will stand up to scrutiny with clear documentation and be consistent
with laws and regulations about cost recovery.
MAXIMUS has the fiscal and technical ability to do this work correctly and
quickly.
COST ALLOCATION PLANS
We have provided consulting services to state and local
governments since 1975. Many of these services have focused on
analysis of costs eligible for reimbursement from other funds,
departments, levels of government or overhead rates and user fees.
Cost A cost allocation plan distributes costs of
allocation "central services" overhead departments.
plan Central services are administrative units
that serve operating departments.
Examples include accounting, budget,
human resources, purchasing, general
legal, facility management, and data
processing.
Our job is to develop a cost allocation plan and explain to you how to use it. The best
way to accomplish this is to:
1. Provide solid, defensible calculations. The numbers have to be right and the
documentation has to be easy for non-technical staff to follow. We have to tell a
complex story in plain English.
2. Involve client staff so that the analysis is sound, more likely to be implemented and
more useful to managers.
3. Follow applicable rules and regulations.
4. Coach on implementation. We have seen good studies wait for months to be
enacted because clients need coaching on implementation.
There are two uses for our analysis. The first use involves preparation of a "full cost
allocation plan" that may be used for internal fund charges, fee studies,
intergovernmental agreements, or for other non-grant indirect cost charges. This version
Firm Experience TAB 3-8
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
RIP 5 /
OF MIAMI BEACH, FLORIDA MAXIMUS .
includes a more comprehensive list of costs than the "federal" version of the cost
allocation plan(OMB Circular A-87).
The second is for Federal cost claiming. The rules for Federal claiming are more
restrictive, so the City will benefit from having two separate versions of the analysis
prepared. An OMB Circular. A-87 ("OMB A-87") version.complies with federal costing
guidelines as described in 2 CFR Part 225 (formerly "OMB Circular A-87"). The
allocated costs from this version are used to develop the indirect cost rates that are
applied to Federal or State grants. "Federally unallowable" activities and costs are
excluded from this version. Federal rules acknowledge that state and local governments
incur these costs, but do not reimburse them.
Some Federal or State grants allow for reimbursement of indirect costs based on the
application of indirect cost rates. Federal or State grantor agencies may choose to review
the Cost Allocation Plan (CAP) and the related indirect cost rate proposal. Federal
guidelines under OMB Circular A-87 do not require local governments to submit these
documents unless specifically requested. Even when submitted, Federal agencies do not
always review the documents. They may accept them subject to the right of subsequent
audit. Whether submitted or not, the City is required to produce a cost allocation plan
and maintain the document as support of the costs for audit purposes.
With your assistance, we will gather data, prepare the cost allocation plans and as
requested, instruct personnel in the application of indirect cost rates to specific programs.
We assume that the City personnel will be available for liaison roles. We want staff
involved to insure a continuity of the plan and understanding of our work.
MAXIMUS has identified comprehensive work plan tasks for preparing the cost
allocation plans. These tasks outline the work necessary to develop the plan and a
projected deliverable schedule applicable to these tasks is provided in the E. Project
Schedule,below.
DEVELOP ENT OF
COST ALLOCATION PLANS
y
We will review your prior cost allocation efforts for any necessary modifications due to
�� � Y p Y rY
Yorganizational changes, etc., and prepare a new cost allocation plan (CAP) based on the
x
Y_-- t�-: r� most recent fiscal year's actual costs available. We prepare two versions: an "OMB
'I's~ Circular A-87" version and a"Full Cost"version. The results of the OMB Circular A-87
,sN��s , ‘, ._
CAP are to be used as the source of final indirect costs for computation of the indirect
cost rates. During this phase of the project, the total costs of City departments and
divisions that provide central services are clearly identified and allocated to the users of
those services. The tasks of this phase are as follows:
Firm Experience TAB 3-9
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA
FP 50-11/12 MAXIMUS
.
PHASE I— CENTRAL SERVICE COST ALLOCATION PLANS
Task 1. Pre-Engagement Conference
Our approach to overall project management begins with project initiation activities. To
facilitate communication from the outset, MAXIMUS recommends a formal kick-off
meeting be conducted to bring together our personnel and client project participants.
This meeting is intended to solidify a partnership around the project, gain commitment to
a common objective, and gauge the expectations of various participants. A clear and
mutual understanding of project objectives is necessary at project initiation to ensure
ongoing success. The purpose of this meeting is to:
• Introduce the MAXIMUS Project Team;
We propose holding a • Review project objectives with the group;
formal kick-off meeting to
establish a clear and • Confirm project work plan elements, including scope and overall work plan;
mutual understanding of • Define communication and control procedures to be used;
project objectives and set • Discuss project deliverables and schedules;
the groundwork for the
project. • Establish points of contact;
• Review project reporting requirements; and
• Discuss data available in electronic format and capability of sending through e-mail,
etc.
Our success and longevity in meeting and exceeding client expectations since 1975 is
predicated on the trust developed with our clients through open and clear communication
throughout our engagements. Our project management approach is founded on this
premise and the availability of project managers to our clients. We truly believe that all
successful projects are the result of the collaboration between us and our clients.
Accordingly, as we will provide timely project status updates throughout the engagement
to the City, we encourage and expect the City will present any issues or concerns
regarding or affecting the project to MAXIMUS.
During this task, MAXIMUS also recommends a Cost Allocation Orientation Session be
made with department and fund managers and representatives. It has been our experience
that overview and training sessions are extremely beneficial in the cost plan development
process. Subsequent to these trainings, Central Service Department staffs better
understand how the information being requested of them is utilized within the cost
allocation process. This has the direct effect of improved allocations as staff may be able
to identify data and metrics that may better represent the level of service or benefit being
provided to other agencies and departments. Moreover, receiving departments' staffs
become more knowledgeable of the various elements and components of the cost
allocation process and how costs are ultimately allocated. These sessions result in more
customer "buy in" by those non-General Fund departments and funds that are charged
indirect costs.
Task 2. Determine Available Financial Information
This task involves identifying the reports and sources for financial information to be
used. At a minimum, department or appropriation expenditure summaries, a chart of
accounts and appropriate organization charts are required. Available financial data would
include a detail run of actual expenditures during the year with information to permit
account analyses. Further, payroll information on a fiscal year basis must be obtained for
Firm Experience TAB 3-10
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
RIP /
OF MIAMI BEACH, FLORIDA MAXIMUS
all individuals in central service departments and internal service funds. For FY 2014, at
a minimum, we will need copies of the following information:
• 2014 Adopted Budget
• 2015 Adopted Budget
• 2014 Detail Listing of Revenues versus Budget
• 2014 Detail Listing of Expenditures versus Budget
• 2014 Schedule of Expenditure of Federal Assistance(SEFA)
We will use audited financial results for the fiscal year ended September 30, 2014 to
prepare the cost plan based on actual expenditures.
Task 3. Obtain and Review Current Organization Chart
This task involves reviewing the City's organization chart applicable to FY 2014, as well
as FY 2015, and comparing the chart to the prior year's organization chart to determine if
there have been any changes. We will also review the prior year's cost allocation plan to
determine if there are additional opportunities for including central services cost.
Task 4. Review Programs, Internal Service Fund Operations, and
Government Administrative and Central Service Expenses
We will review and assess the City's current programs and evaluate the contribution of
administrative and central services to their support. This review will include assessing
historical cost recoveries and the extent that modifications may be implemented to
enhance or ensure the full recovery of all allocable costs.
We will also perform a review of current internal service fund operations and evaluate the
contributions of administrative and central services to their support. This review will
identify support services being provided to internal service fund operations, as well as
those services that benefit the operations that may not be directly identified. This review
will assist in the identification of additional opportunities to enhance administrative
recoveries to the General Fund.
A review and assessment will be performed of current administrative and central service
expenses that can be allocated to an indirect cost pool. Generally,the City's organization
structure,chart of accounts, and expenditure data are sufficient to determine the costs that
may be classified as indirect costs for cost allocation purposes. We will perform this
review independently and perform a comparison and an assessment with the City's
current indirect cost pools. We are often able to identify additional administrative costs
that are eligible for allocation to benefiting programs and funds.
Task 5. Classify All Government Departments, Agencies,
Commissions, Authorities, Boards, etc.
After updating the latest organization chart, all organization units are classified as
executive, legislative, or judicial. This classification is required because most legislative
costs are not allowable for recovery under OMB Circular A-87. The level of detail
within the City's account code structure will be determined for the classification of cost
centers to be reflected in the plans. Each cost center will be classified as either a"central
service" (source of indirect costs) or "receiving" (receiver of indirect costs) department
Firm Experience TAB 3-11
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
TIM t
CITY OF MIAMI BEACH, FLORIDA MAXIMUS�
RFP 50-11/12
for CAP purposes. From these determinations, the basic structure of the Plan will be
developed using the MAXCARSTM software.
Non-departmental cost centers, including depreciation or use charges, employee benefits
and insurance, interest, and general expenses must be analyzed to determine their specific
makeup for inclusion in the plan or as separate chargeable items.
Task 6. Meet with the City Staff to Confirm Organization and Indirect
Cost Goals
This task involves meeting with appropriate City staffs to assess the City's indirect cost
goals, confirm our understanding of the City's organization, any evident changes since
the last cost allocation studies were prepared, determine the impact on the cost plan
structure of any changes, confirm our assessments as to the greatest opportunities for
increasing recoveries, and discuss any other changes in the cost plan structure that may
better serve the present and future needs of the City management.
Task 7. Interview Central Service Staff
Interviews with managers of appropriate City staff will be scheduled and held to
determine what variety of distinct administrative functions may exist within a single
administrative cost center. The best rationale for distributing the administrative unit's
cost across those internal functions and the best available statistical indicator to be used
for allocating each function's cost to user cost centers will also be identified.
Interviews with central services departments will generally be conducted in person. We
have found that interviews and meetings are more meaningful and productive when
conducted in this manner. Face-to-face interactions allow the MAXIMUS consulting
team to meet with program managers and representatives of the various activity areas to
most effectively define our approach and work with the City officials. We will bring
copies of previous studies and drafts of other similar items that are relevant to the issues
being discussed. Our goal for these meetings is two-fold: both parties have a clear
understanding of what we are trying to accomplish and how we intend to accomplish it.
Of course, if a particular Government official prefers phone or e-mail meetings, we are
happy to.oblige..
Task 8. Analyze Expenditures, Classify Costs and Record
Administrative Costs
After obtaining the financial information identified in Task 2 above, it is necessary to
analyze source documentation to correctly classify costs within central service agencies
by functional cost pool. This procedure provides the required accuracy needed for
precise allocations. An established format from prior year plans facilitates our effort;
however, analysis and interview work must be conducted to determine the
comprehensiveness of prior procedures and to update the plan for changes in organization
or service provision. Also, revenue offsets to identified expenditures must be analyzed
and properly classified within each functional area. Actual costs of each administrative
cost center for each fiscal year will be recorded and distributed by functional activity
using the MAXCARSTM System.
Firm Experience TAB 3-12
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
'
CITY
P 1 MIAMI BEACH, FLORIDA
RFP 5 - /
MAXIMUS'
Task 9. Determine Allocation Statistics and Develop Allocation Base
Data
This task of the project involves the analysis of a diverse variety of statistical reports and
other information collected as the best available indicators of relative levels of
administrative support provided by administrative units to their respective users.
Depending upon the level of cost center detail reflected in these reports, allocation base
data will be summarized or extrapolated to correlate with the level of detail upon which
the Plans will be structured. This task is critical to ensure that administrative costs are
allocated fairly and accurately. OMB A-87 provides substantial leeway in selecting
allocation bases, but they must be defensible during negotiations. Allocation statistics,
which will be gathered at high levels of detail wherever practical, assure that central
services are measurable in specific units of service provided.
MAXIMUS utilizes a For example, the Human Resources Department may provide a range of services to
"double step-down" employees grouped within various classes of merit service. The Department may also
cross-allocation deal with training and exam administration. We will match the appropriate statistic to
methodology to each cost, representing each of the variety of personnel-related services, to assure the
accurately and highest reasonable degree of accuracy in allocations. We will also request that all
equitably account for
all true costs of a department statistical data be provided for use in the CAP be submitted first to the City's
program or service. Project Manager for review. We will not include in the CAP statistical data that has not
been approved for use by the City's Project Manager. Moreover, we will assume all data
received from the City has been thoroughly vetted for use in the CAP.
Task 10. Review Administrative Cost Centers for Costs Recovered
by Direct Billings, Budget Transfers, etc.
The City shall notify us of any occurrences of reimbursements to administrative units
directly to the General Fund, which may not be readily apparent from financial records.
These costs will be examined and appropriate adjustments of allocable costs will be
made. This task ensures that non-General Fund operations are not allocated additional
costs that may already have been reimbursed.
Task 11. Prepare Cost Allocation Worksheets and Data Entry
Formats, and Supervise and Verify Data Entry
For each central service agency, a series of work-papers will be prepared showing the
expenditures of the particular cost grouping for the appropriate fiscal period being
analyzed. Any unallowable expenditure under OMB A-87 guidelines is eliminated;
building and equipment depreciation are added back; and other adjustments for revenue
offsets or expenditure transfers are recorded. The resulting amount, plus allocations from
other central service agencies that maintain a supportive relationship with the ones being
analyzed, are identified as allowable costs for allocation to benefiting departments.
Based upon the allocation statistics and units of service identified in Task 9, the portion
of allowable costs to each department is calculated.
The MAXIMUS Project Manager will be responsible for supervising and verifying the
accuracy and completeness of data entered into the MAXCARSTM System. Advanced
Firm Experience TAB 3-13
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
Prrra
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
data editing and verification capabilities are major enhancements incorporated into the
current MAXIMUS software to ensure costs and statistics are entered accurately.
Task 12. Allocate Central Service Costs
MAXIMUS uses a sophisticated computerized cost allocation system (MAXCARSTM) to
generate its cost allocation plans. This system was designed to meet all Federal
regulations regarding the proper allocation of costs and to ensure full cost recovery to
state and local governments. The MAXCARSTM cost allocation system is used by
MAXIMUS Consultants to develop and prepare over 1,500 cost allocation plans
annually.
We will use Using cost data and allocation statistics, MAXCARSTM allocates the cost of overhead to
MAXCARSTM,our well- the grantee departments. MAXCARSTM uses a double step-down allocation procedure to
honed computerized distribute costs among central services and to grantee departments that receive benefits.
cost allocation system, The double step-down procedure initially requires a sequential ordering of departments.
to allocate overhead Department indirect cost allocations are then made in the order selected to all benefiting
costs to grantee
departments through a departments, including cross allocations to other central service departments. To ensure
double step-down that the cross-benefit of services among central service departments is fully recognized, a
procedure. step-down allocation for each central service department is made.
Task 13. Summarize Indirect Costs by Benefiting Department
Depending on the level of organization detail established for the structure of the CAP,
allocated costs will be summarized in the cost allocation plan for each fund, department,
division, section, commission, agency, board, authority, etc. which receives
administrative support services from other departments and which are of interest for
costing purposes. The Project Manager will carefully review the summary and detail
schedules for accuracy and clarity of presentation.
MAXIMUS cost Task 14. Prepare Draft Cost Allocation Plans
allocation schedules MAXIMUS will prepare the draft cost allocation plans based on actual costs for the fiscal
and report provide for year. The cost allocation plans will be prepared utilizing our industry leading automated
a comprehensive, cost allocation system,MAXCARSTM.
clear,and concise
audit trail,which
documents all costs The OMB Circular A-87 cost allocation plan will incorporate the methodologies defined
and allocations. in the previous tasks and be in accordance with the cost principles of OMB Circular A-87
and applicable implementation guidance. Specifically, the plan will contain a
determination of total costs incurred for providing supporting services (e.g., General
Administration, Personnel, Finance, Building Maintenance, and Data Processing, etc.)to
benefiting grantee funds and departments. As required by OMB Circular A-87, we will
also include a narrative description of all functions, activities and allocation bases that are
included in the CAP. For each overhead unit we will prepare a brief description of the
mission and functions. The narrative will explain the allocation method for each
identified function,and also the nature of any unallocated cost.
MAXIMUS will also prepare a Full Cost Allocation Plan for the City. This phase of our
work involves costing services provided to non-Federal programs, such as proprietary
Firm Experience TAB 3-14
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
•
•
Willi
L-
.OF MIAMI BEACH, FLORIDA
RFP50-11/12 VL 1/1j /� .> 1IY1I_A Al �c
funds, internal service funds and special revenue funds. Therefore, the cost principles of
OMB Circular A-87 need not be used and substitution of full cost principles is necessary.
This task includes converting the OMB Circular A-87 plan to one which includes certain
general government operations and costs that are specifically disallowed under the
Circular,but are a necessary cost of government operations.
Task 15. Meet with the City's Project Manager to Review Plans
MAXIMUS will meet with the City's management group to review the draft CAPs to
identify any necessary modifications. As with all MAXIMUS cost allocation plans, the
CAP will provide an audit trail that permits individual cost allocation methods to be
reviewed for accuracy and provide detail to support the amounts allocated. Based on
the City's Project Manager's comments and advisement, MAXIMUS will make any
necessary modifications in order to finalize the plans.
We will stand by our Task 16. Present Final Cost Allocation Plans to the City
work and will represent MAXIMUS will incorporate modifications based on the comments received from the
the City and answer
auditor questions for up City's Project Manager's review of the draft cost allocation plans. The final cost
to three years after the allocation plans will be submitted to the City no later than fifteen (15) days after receipt
plan is finalized. of the Project Manager's comments. If no modifications are required,we will finalize the
cost allocation plans. MAXIMUS will provide the City with three (3) bound copies of
each cost allocation plan and one (1) electronic copy of each plan in portable document
format(PDF)that may be used for reproduction and distribution.
PHASE I!— SOUTH POINTE COST ALLOCATION STUDY
During this phase of the engagement, MAXIMUS will prepare a Cost Allocation Study
for the South Pointe area. Whereas the Central Services Cost Allocation Plan allocated
central service costs to benefiting funds and departments, including the South Pointe area,
the South Pointe Cost Allocation Study will recognize the administrative and other direct
City costs incurred within the -former South Pointe RDA. The tasks that will be
performed during this phase include:
Task 17. Review City Departments and Services Serving the South
Pointe Area
During this task, MAXIMUS will meet with the City Department managers that provide
services within the South Pointe area. The purpose of these meetings is to identify the
City services and costs that are allocable to the South Point area. During this task, we
will also quantify the level of service and costs provided within the South Pointe area.
Our review will included, but not necessarily be limited to, Fire, Ocean Rescue, Police,
Homeless, Code Compliance,Recreation, Landscaping,and Sanitation.
Task 18. Develop South Pointe Cost Allocation Plan
During this task, we will develop the South Pointe Cost Allocation Plan. Based on our
meetings and review of Department services, we will utilize the financial data for the
fiscal year to develop the cost pools that will be allocated to the South Pointe area.
Depending on the various activities and functions of each Department, we may develop
separate allocation methodologies to ensure the appropriate distribution of costs to the
Firm Experience TAB 3-15
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
MAXIMUS
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 �` AXl!Y►lAd7
area. Additionally, we will include within the allocated costs the Central Service indirect
costs allocated to the various City Departments providing direct services, as well as any
other cost adjustments such as building and/or equipment depreciation. At the conclusion
of this task, we will have identified and quantified the total Central Services and other
direct Department costs allocable to the South Pointe area.
Task 19. Submit Cost Allocation Plan for Review
Once the South Pointe Cost Allocation Plan has been prepared, we will submit the cost
plan and supporting documentation to the designated the City staff for review. During
this task, we will make any requested adjustments and/or modifications. At the
completion of this task, the South Pointe Cost Allocation Plan will be prepared in final
delivery form. The final report will be provided in portable document format (PDF) and
three(3)bound copies.
PHASE III— RESORT TAX ELIGIBLE COST ALLOCATION STUDY
During this phase of the engagement, MAXIMUS will prepare a Cost Allocation Study
that documents and quantifies the City services and costs that are eligible for funding
from the Resort Tax. Similar to the South Pointe Cost Allocation Plan, we will prepare a
Cost Allocation Study that allocates administrative and direct costs to the Resort Tax
fund. The tasks that will be performed during this phase include:
Task 20. Review City Departments Deemed Resort Tax Eligible
During this task, MAXIMUS will meet with the City Department managers that the City
has deemed "Resort Tax eligible." The purpose of these meetings is to identify the City
services and costs that are related to the promotion of tourism and are allocable to Resort
Tax funding. During this task, we will quantify the level of service and costs provided by
City departments that are consistent with the promotion of tourism. Our review will
included,but not necessarily be limited to,Fire, Ocean Rescue,Police,Code Compliance,
Recreation, Landscaping, Sanitation, Golf Courses, Arts and Cultural Centers, Museums,
and any other functions and/or events that the City has concluded is Resort Tax eligible.
Task 21. Develop Resort Tax Cost Allocation Plan
MAXIMUS will develop a Resort Tax Cost Allocation Plan. Using the departments'
expenditures for the applicable fiscal year, we will develop the administrative and direct
cost pools to be allocated to the Resort Tax Fund. Depending on the various activities
within each department, it may be necessary to create a number of separate allocation
methodologies to ensure the appropriate distribution of costs that are Resort Tax eligible.
The Central Service indirect costs allocable to the Resort Tax Fund will also be included
in the cost allocation analysis. Moreover,we will also include building and/or equipment
depreciation as appropriate. We will also quantify the "overlap" of City service costs
allocable to both the South Pointe area and the Resort Tax Fund. At the conclusion of
this task, we will have developed a Resort Tax Cost Allocation Plan that identifies and
quantifies the total costs (both Central Services and direct department) allocable to the
Resort Tax Fund and eligible for reimbursement.
Firm Experience TAB 3-16
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
Y lUS
RFP 50-11/12
Task 22. Submit Cost Allocation Plan for Review
Once the Resort Tax Cost Allocation Plan has been prepared, we will submit the cost
plan and supporting documentation to the designated the City staff for review. During
this task, we will make any •requested adjustments and/or modifications. At the
completion of this task, the Cost Allocation Plan will be prepared in final delivery form.
The final report will be provided in portable document format (PDF) and three (3) bound
copies.
PHASE IV- PROJECT COMPLETION
Task 23. Post Engagement Conference
MAXIMUS will conduct a post engagement conference with the City staffs upon
completion of the cost allocation plans. During this conference, we will review and
evaluate plan elements, allocation methodologies, and the cost allocation results. The
primary purpose of the conference will be to determine how the cost allocation process
may be improved upon to better serve the City's interests. The conference will be
conducted on a single work date to mitigate interruptions to the City personnel work
schedules.
•
Firm Experience TAB 3-17
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
•
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
50-11/12
STATE OF THE ART SOFTWARE
Identify Methodologies Which May Favorably Impact Indirect Cost
We employ the latest
cost accounting Recoveries
techniques to justify The key to optimizing recoveries is expert staff and state of the art software.
user fee charges and MAXIMUS staff provides extensive knowledge of full costing principles and OMB
s other
syste yste chargeback Circular A-87 and will ensure the City a successful engagement. A cornerstone of
• ms.
MAXIMUS' continued success in providing professional services to governmental
clients is our commitment to finding innovative cost allocation techniques that can be
used to fully recover allowable indirect costs: We employ the latest cost accounting
techniques to justify cost allocations, user fee charges, and other chargeback systems.
We believe that to maintain our competitive edge we must continue to be at the forefront
of creative approaches to assist government officials with the complicated issues they
face today.
MAXCARSTM, our state of the art cost allocation software, provides for an initial
cross-allocation with a step-down second allocation among central service functions. The
cross-allocation feature provides for greater accuracy in the accounting of costs, whereas
the step-down methodology results in greater flexibility in cost recovery. Our system has
been accepted by federal cost negotiators from the following federal agencies: Health and
Human Services, Housing and Urban Development, Justice, Labor, Commerce, Interior,
Environmental Protection Agency, and Transportation.
MAXCARSTM SOFTWARE — THE COST ALLOCATION SYSTEM
"74 Our consultant's work on the cost allocation plans will be processed using MAXCARSTM.
MAXCARSTM is a proprietary cost allocation solution that simplifies and streamlines the
� P P ry P
aF process of developing cost allocation plans. Used on a daily basis by more than 100 of our
1° x0
professional consultants, it empowers a trained consultant to outperform any spreadsheet
system.
MAXIMUS developed the first computerized cost allocation system for government. Our
proprietary cost allocation .software, MAXCARSTM, is the result of over 20 years of
continuous development and refinement. Unlike other spreadsheet cost allocation
applications, our system has been designed specifically for indirect cost allocation plan
preparation. MAXCARSTM allows us to evaluate alternative allocation bases and to quickly
assess the impact of changes during the negotiation process. The MAXIMUS methodology
and computerized double step down cost allocation system has been reviewed and accepted
by all Federal cognizant agencies to which our plans have been submitted.
Database vs. Spreadsheet
Written in Microsoft relational database management system, exporting data is simple and
easy. In addition, data entered in one field automatically populates every related field,
report or view. This program is powerful enough to run a Statewide Cost Allocation Plan
and simple enough to be used by many local governments.
•
Firm Experience TAB 3-18
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
•
MAXIMUS' 11.
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 M
As a database,MAXCARSTM offers significant advantages over a spreadsheet such as
Excel:
> With MAXCARSTM, there is no guessing at formulas and links between formulas.
Linked formulas do not get lost in extensive calculations between cells.
> Multiple "step downs" that redirect costs allocated to central service units onward to
direct service units are routine. In Excel,this is difficult.
> Excel worksheets can be designed for routine data collection and then uploaded directly
into the model through the Excel Interface. •
> MAXCARSTM provides a clear paper trail of documentation and narratives for auditors.
• As a database, MAXCARSTM maintains multiple models so that year to year
comparisons and trends can be analyzed.
The Spreadsheet Interface r- °
MAXCARSTM comes with a spreadsheet - r "
interface for easy importing and editing of
�;e�os+.w,ueamp a a c .. ..�
financial data. This interface can be used with nom' ' `°n _ � slit : iu!4: v a9eu
7�mswa�rx ri�r 1+t+n ,wu t,s_s x?.
n rua:38134
standard cut and paste functions for editing � '; - J
'tQiCw�h d+dpn .�Y'115 4138�1;' 6t;7<.TAe.)1 �) c`Su 73 3(R?47
1� c � :. a ; a o
tt,iiaw dllvreoi lSwtt,! SiiF &'•!R `Nhr^.St .y`A.,;k;IJ:'3:o:*„:"a
and quick importing. The interface can also be �'c ;; F,�, Ya ,, �r F ,�; � .,�.°
TStAljtsnnanu C 9' _ .�
used to design import templates for large ;P^°°°"""' �° "'L° &'' *''
volumes of data
- X81
'S1
Standard Reports ar; J,, - FIN,INKOPTIpii,Sta
.
MAXCARSTM comes with 38 standard reports, most of which are required for Federal
submission purposes. Among the many standard reports are comparative reports which
provide for the comparison of up to four (4) separate cost allocation plans for several
attributes, including allocated costs, detailed allocated costs, pre-allocated expenses, and
allocation statistics. These reports are pivotal as management tools in reviewing the cost
allocation plans and ensuring the consistency and quality of the results. Additional custom
reports can be developed with standard query editors.
A Mature System
On its 5th release, MAXCARSTM is a mature system. It has passed the test of the most
rigorous users in the country and its results have passed audits by Federal and State
reviewers coast-to-coast. It has been successfully used to develop over 12,000 cost plans
for over 4,000 governmental clients throughout the United States.
Firm Experience • TAB 3-19
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
Wre
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
RFP 50-11/12
PROVEN COST MANAGEMENT CONSULTING SERVICES
MAXIMUS Consulting Services has expertise in many fields of interest and need for the
Government. Staff is available to provide other consulting services to the City as needed.
Engagements which require only brief telephone conversations will be provided free of
charge. Other engagements are more involved and require a change order to the contract.
Services available to the City include:
• Billing methodologies for billed services;
• Identifying industry best practices and benchmarks for services;
• Performing management reviews of department operations; and
• User fee studies for services provided to citizens for which the City expects to be paid.
MAXIMUS has provided similar services to many cost allocation plan clients. In the last
five years, MAXIMUS has performed user fee studies, cost of service analyses, and
business process reviews and efficiency studies for several cost plan clients. MAXIMUS
Consulting Services is one of only a few cost allocation consulting companies nationwide
that has the expertise to provide these other services.
Identifying Industry Best Practices to Recover Full Cost of Operations
As part of our commitment to be at the forefront of creative approaches to assist government
officials with the complicated issues they face today, MAXIMUS stays abreast of industry
best practices to recover full cost of operations. We will bring this knowledge to bear on
our work for the City.
Reporting Requirements
Timely and accurate information and feedback is critical to successful operations and to
maintaining a good working relationship with our client. If chosen for this project, our
commitment is to keep the City Project Manager apprised of our activities and performance
progress through written monthly progress reports. The reports will provide a discussion of
our progress on the cost allocation plan and include information on work completed,
difficulties, or problems, recommended solutions, resolutions achieved, and unresolved
issues remaining. The MAXIMUS Project Manager will be responsible for communicating
regularly with the City Project Manager.
Firm Experience
TAB 3-20
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH,FLORIDA
RFP 50-11/12 MAXIMUS
PROJECT SCHEDULE
Project Timeline by Major Tasks
We anticipate the project to take approximately ten to thirteen weeks to finalize the cost allocation plans. A proposed project
schedule and timeline is provided below.
Week
Task 1 2 3 4 5 1 6 7 8 19 I 10 I 11 I 12 I 13 I TBD
PHASE I—CENTRAL SERVICE COST ALLOCATION PLANS
Task 1. Pre-Engagement Conference.
Task 2. Determine available financial information.
Task 3. Obtain and review current organization chart.
Review current federally funded City programs,
Task 4. internal services fund operations,and administrative •
and central service expenses
Task 5. Classify all City Departments,Agencies,
Commissions,Authorities,Boards,etc.
Task 6. Meet with City staff to confirm organization and
indirect cost goals.
Task 7. Interview Central Service staff.
Task 8. Analyze,classify and record administrative costs.
Task 9. Determine allocation statistics and develop allocation •
•
base data.
Task 10. Review administrative cost centers for costs
recovered by direct billings,budget transfers,etc. .. • . . •
Task 11. Prepare cost allocation worksheets,and supervise •
•
and verify data entry.
Task 12. Allocate central service costs.
Task 13. Summarize indirect costs by department.
Firm Experience TAB 3-21
Certain parts of this proposal may contain proprietary information.Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH,FLORIDA �V ll J ^
RFP 50-11112 MAXIMUS
Week
Task 1 2 3 4 5 6 7 8 9 10 11 12 13 TBD
Task 14. Prepare draft cost allocation plans.
Task 15. Meet with the City Project Manager to review cost
lik
allocation plans and make modifications.
Task 16. Present final cost allocation plans to the City.
Ilak
PHASE II—SOUTH POINTE COST ALLOCATION STUDY
Task 17. Review City Departments and Services Serving the
South Pointe Area.
Task 18. Develop South Pointe Cost Allocation Plan. ..
Task 19. Submit South Pointe Cost Allocation Plan for Review
and Finalize Deliverable.
PHASE III—RESORT TAX COST ALLOCATION STUDY
Task 20. Review City Departments Deemed Resort Tax
Eligible.
IITask 21. Develop Resort Tax Cost Allocation Plan. ., .
Task 22. Submit Resort Tax Cost Allocation Plan for Review
and Finalize Deliverable.
PHASE IV—PROJECT COMPLETION
Task 23. Post Engagement Conference.
Indicates Project Task work being performed(includes MAXIMUS and the City Staff if applicable)
Indicates Elapsed time as work is being performed on Central Services Cost Allocation Plan(final allocations to be included in South Pointe and Resort Tax Cost Allocation
Plans)
Indicates date that all cost and statistical data has been provided by departments,reviewed and validated by the City Project staffs,and submitted to MAXIMUS in order to
achieve Project Schedule deliverable dates
Illak Indicates dependent task;work on subsequent tasks cannot be performed until this task has completed
Firm Experience TAB 3-22
Certain parts of this proposal may contain proprietary information.Please contact MAXIMUS before releasing any pages marked,proprietary.
CITY OF MIAMI BEACH,FLORIDA A A/��/I US
RFP 50-11/12 Y 1!V\ !V►UJ
This schedule is representative of similar projects;however,the actual project may require less or more time depending upon any
number of factors. Please note that this project and the above schedule will require the City staff to be diligent in responding to
requests for data,and in reviewing data,drafts and reports. MAXIMUS will commit to meeting the project schedule provided the
City staffs respond to data requests and reviews in a timely manner.
Firm Experience TAB 3-23
Certain parts of this proposal may contain proprietary information.Please contact MAXIMUS before releasing any pages marked,proprietary.
.t
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
�
RFP 50-11/12
D. PROJECT MANAGEMENT
The not-for-profit Project Management Institute, Inc. (or "PMI") defines a project as, "A
temporary endeavor undertaken to create a unique product, service or result." (A Guide to
the Project Management Body of Knowledge, 4th Edition, Project Management Institute,
Inc., page 5, 2008). Our firm has adopted the PMI methodology as a framework for all of
our projects. The PMI approach amounts to an industry standard for a rigorous and scalable
approach to project management. It addresses the phases of a project: initiating, planning,
executing,monitoring&controlling and closing.
Having set a foundation based on an understanding of our clients' expectations, MAXIMUS
built its approach to project management based on PMI best practices and guidelines as
adapted by our extensive experience. Our Project Management Approach includes five (5)
defined phases: Project Initiation, Planning, Execution, Control, and Closing.
Project Management Approach
Initiation Planning
•Update Warkptan •Risk Management
•Establish Project Team •Quality Assurance Plan
•Project Kick-Ott Meeting •Communication Plan
i •Project Admin Procedures
•
•
Execution Control Closing
•Execute Workplan •Update Workplan •Verify All Tasks
•Status Reporting •Risk Mitigation Completed
•Issues Tracking •Quality Management •Transition to State
MAXIMUS Project Management Approach. The five (5)phases of MAXIMUS project
management include initiation,planning, execution, control, and closing.
The "customer— client" relationship is an important recognition that good projects do not
just happen without putting time into the management of the project itself. Our objectives
for this project will be to:
• Fulfill the needs and satisfy the expectations of the City of Miami Beach
• Foster shared understanding of pertinent issues and identify and implement appropriate
solutions
• Execute the project with minimum disruption to the City staffs in performance of their
regular duties
• Complete the project on time and within budget
A clearly defined project management structure and work plan ensures project resources are
focused and coordinated. The detailed work plan establishes a baseline that is critical for
managing change and risk going forward. An integrated, comprehensive approach to
planning and operations aligns strategic priorities and provides the foundation for a portfolio
Firm Experience
TAB 3-24
Certain parts of this proposal may contain proprietary information. Please contact MAXIMUS before releasing any pages marked,proprietary.
Th
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
of capability.
The figure below illustrates the principles and practices we follow to help ensure successful
delivery of the services you request—the core of which is strong project management.
• Strong Project Management: We will use a strong and holistic project management
approach to help ensure completion of objectives and tasks on time, in scope, and within
budget. However,we will also be flexible and adjust that approach to react to
developments that may arise as we conduct the study,so that we are prepared to
integrate changes or updates into our project plan and approach.
• Collaborative Working
Style: We understand
that knowing the"right"
answer is not always
sufficient, so we work in
a collaborative and strang project Collaborative
A
` �
collegiate way with our Management Working Style:; I
clients. This not only
helps us find the
appropriate solution
Sucll .
together, it also allows
�Serrr3oe Delivery- \
for maximum knowledge
transfer and professional R
development
opportunities.
O€sciplined Solid Practices
• Solid Practices and 3 Execution-' K F end Standards
Standards: Our project
work is based on industry
practices such as the
Project Management r.q;
6^m.327Q99d55
Institute(PMI), Software
Engineering Institute(SEI), Institute of Electrical &Electronics Engineers(IEEE), and
other guiding organizations.
• Disciplined Execution: Our disciplined execution of project tasks means we will
provide high quality products and desired outcomes on-time and within budget.
Key elements of our project management approach and the advantages to the City are
presented in the figure below.
Approach
Elements Advantages to the City
• Well defined plans and schedules including stated tasks
Structured Plans • Standards based on PMI methodology
and Processes • Tasks have measurable outputs that contribute to ensuing tasks
f • Regular status reports and communication
Firm Experience TAB 3-25
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CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
Approach
Elements Advantages to the City
Rigorous QA • Focus on quality products and services
• Consistent measurements to assess progress
Process IN Continuous process improvement evaluation
Approach • Focus on the City's goals and objectives
Tailored to the • Team members selected who can best meet those goals and
objectives
City's Unique
• Approach refined to meet changing needs of the City
Needs
• Collaborative approach with Government stakeholders
Work as • Side by side rather than face to face dialogue
Partners • Secure up front agreement
• Communication protocols include key project stakeholders
We Follow Structured Work Plans and Processes
Our firm has been successfully providing consulting services for our state and local agencies
for more than 35 years and a key component of our success is the application of mature
processes and industry standard methodologies for project management, quality assurance,
and risk management. We are committed to providing the highest quality services. We
manage our projects carefully and we maintain a rigorous quality assurance process to
ensure client satisfaction. Working hand-in-hand with our client is a fundamental tenet of
our methodology and philosophy. This minimizes the risk of errors, omissions, or faulty
documents. Our processes allow our staff to operate `at its best.'
We understand operational and organizational assessments and we will make sure we clearly
understand what goals and objectives the City wants to achieve on each task requested so
that we can structure a project work plan that schedules the work and estimates the level of
effort required to meet those goals and objectives.
We Apply a Rigorous Quality Assurance Process
Fundamental to our success is an uncompromising focus on quality. We adhere to a rigorous
quality assurance process that is proactive, and is aimed at identifying and addressing quality
problems before they become crises. Our methodology is focused on problem prevention,
through early detection, and problem avoidance. All work performed on this project will be
performed in accordance with our proven methodology and performed by a team of skilled,
experienced consultants.
Our approach to quality assurance is founded in the concept of continuous quality
improvement advanced by W. Edwards Deming and others. In preparing detailed project
work plans, we will define the outcomes expected, identify the tasks that need to be
performed and the processes that we will follow to monitor progress, and measure whether
quality standards are being met.
Firm Experience TAB 3-26
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CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
j / i '
j�V Ir XI V 1U
We have gained extensive experience in quality assurance and risk management through our
work on thousands of projects. Our approach involves establishing controls to manage work
efforts, quality, risk,and performance against schedule, budget, and project goals.
• Quality Control: The project quality plan is the primary means for ensuring delivery of
high quality work products within committed resources, schedule, and budget. In the
quality plan we define the contents of each deliverable and how it will be structured. We
will work closely with the City to finalize a quality plan, which we will maintain
throughout the project's duration.
• Change Control: We utilize our project change control procedures to manage requests
for work. A Project Change Request (PCR) Form will be issued when MAXIMUS and
the City mutually agree upon work to be accomplished outside the scope of the contract.
• Risk Management: We understand both risk avoidance and mitigation. A well-defined
and executable risk management plan provides critical guidelines and procedures for
addressing potential risks that may negatively affect the outcomes of a project. We
require development and implementation of a risk management plan for all our projects.
Our rigorous quality assurance and quality control process ensures that the project is
properly managed and staffed, remains on schedule, and is completed with a focus and
dedication to quality deliverables.
Our Approach is Tailored to Meet Your Unique Needs
Over the years, MAXIMUS has developed proven methods to manage large complex
projects. We rely on the creativity and innovative abilities of our team to tailor these
approaches and methods to the unique requirements the City will have. We also refine our
approach based on best practices learned on prior projects. We develop rigorous project
work plans and schedules,and we apply industry standard project management, risk
management, and quality assurance methods. We offer the high level of expertise and deep
understanding of local governmental structures. We have a track record of success in many
cities, counties,and states.
We Will Work as Partners with the City
MAXIMUS believes that a collaborative work environment is a key ingredient for success.
As such, we work cooperatively with all stakeholders to ensure that all perspectives and
issues are addressed,mutual agreement reached,and successful programs implemented.
Establishing an environment that fosters collaboration among project participants is a critical
success factor. Information sharing, collaboration, and joint problem solving is a cornerstone
of our approach to this effort.
One of our staff members' strengths is their ability to develop effective partnerships with our
clients. We understand that we are your consultants and that you are in control of the
programs. We will consult with you on what we believe is the most effective strategy to
meet your goals and objectives. Many of our staff members are former city, county,or state
employees. Thus,we know and understand how public agencies operate and how decisions
are made. We will work as your partner so that together we can design projects to best fit
with how the City operates and best meets the Government's goals and objectives.
Firm Experience
TAB 3-27
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C�c.
/Y°t'ii -sr:.
CITY OF MIAMI BEACH, FLORIDA MAXi1VILiS
RFP 50-11/12
E. SERVICE QUALITY PROGRAM
The City of Miami Beach needs to be certain that the vendor selected for this project has a
strong service quality program in place that supports the procedures necessary for meeting
the goals of the procurement. This includes standardized procedures for completing tasks
and submitting deliverables in a timely fashion, as well as reporting on the work completed
and anticipating, identifying, and resolving emergent problems and issues. We take great
pride in the quality of our project management and quality assurance program.
Client-Focused Management Methodologies
Thousands of
government customers MAXIMUS Consulting Services has worked with thousands of government customers
have helped us learn during our more than 35 years in business. These customers have reinforced our
management techniques identification of the project management components that contribute most to meeting or
that focus on our clients' exceeding their expectations on major project deliverables. We have found that a successful
unique needs and
requirement. project and a satisfied client require us to meet specific expectations. Client Expectations for
Effective Project Management summarizes these expectations.
1
Ready Access to
the Project Director
10 &Managers r 1 2
Effective f i Ready Access to
Management ,�/ i MAXIMUS Corporate
of Staff i "�` ,�. l Management;X--
i Responsiveness 1 4 Detailed
to Client Concerns ` pro
je Panning tisfiecl
�f - Successful „---3 ---- „
g \ Project 4
Quality& } Timely Delivery z
t Continuity of Products S
of Staff Services
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5 q
Flexibility in i ./7 I High Quality 1
Making Mid-Course i t Products&
Changes Services
Effective Sudgetittg
&Cost Control
07•7:557542
Client Expectations for Effective Project Management. We illustrate the
components of project management that lead to a successful project and a
satisfied client.
The City's expectations will be our primary guide in applying our management
approach as further described below in MAXIMUS Project Management.
Firm Experience TAB 3-28
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Ff
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
MAXIMUS Project Management
1. Access to Project Manager 16. Effective Budgeting and Cost Control
• MAXIMUS Project Manager is the primary contact • Inadequate attention to budget can pose serious
person for this project i obstacles to effective project management
• Project Manager is readily available to you at all times In We use available resources carefully in order for you
■ Project Manager is available to you on short notice to receive the best possible services for the dollars
• Project Manager is immediately responsive to your you invest
concerns E• Project team scope of work is continually reviewed to
make certain all members remain focused on project
objectives
2. Access to Corporate Management 7. Flexibility in Making Mid-Course Changes
• Corporate management is readily contacted if you I■ Mid-course changes are often needed due to
want to discuss any concerns about the project i unforeseen developments
• Corporate officers are always available to you in • MAXIMUS project team is flexible in accommodating
support of our proposed Project Team your desires, even if a contract amendment is
required
i• Project Manager and Project Director has ready
access to corporate management to make changes in
1 direction with minimal disruption
3. Detailed Up-Front Planning ;8. Quality and Continuity of Staff
• Detailed up-front planning is a key indicator of !• Quality and continuity of staff is key to project
successful management success
• "Failing to plan is planning to fail" i• Key personnel are not replaced after the initial stages
• MAXIMUS keeps you informed regarding detailed of the project
plans and schedules for completing each major task ?• Back-up plan for management personnel ensures
and subtask i uninterrupted project operations in event of
• All project staff members have a complete i unforeseen turnover
understanding of all plans and schedules • Corporate resources allow us to replace staff if
• Plans are used as a baseline against which to report ! necessary with individuals of equal or greater
progress qualifications
• Plans are updated to reflect changes in the
environment or other salient factors
4. Timely Delivery of Products and Services 9. Responsiveness to Client Concerns
• Timely receipt of project deliverables is of paramount I• Project Manager responds immediately to any of your
importance to you ! concerns about the project
• We accommodate your need for ambitious timeframes • Responses are constructive and effective in resolving
• Materials and services to support these timeframes are! the problem
provided as warranted i• Project Manager and Project Director have ready
access to other experienced individuals within our
organization, as well as corporate management
5. High Quality Products and Services 10. Effective Management of Staff
■ You may need project products for critical decision- I• Hiring well qualified staff is the first step
making activities j• Activities of staff are properly managed and
• We ensure that you receive products and services that coordinated
contain accurate and current information i• Project Manager has effective procedures to ensure
• Your satisfaction depends on our providing the best I the quality and timeliness of all products and services
possible service and highest quality deliverables ! delivered by staff
MAXIMUS Project Management. This table further explains our 10 key management components.
Firm Experience TAB 3-29
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WYER
CITY OF MIAMI BEACH, FLORIDA I A
RFP 50-11/12 `►V'1l�I
Structured Professional Practices
All MAXIMUS At MAXIMUS, we are committed to implementing procedures and standards of practice
consultants,managers, that ensure the highest quality of services to our clients. To this end, we have developed a
and project staff are Professional Practice Guide (the Guide) for our Consulting Segment to enforce project
required to adhere to the
policies outlined in our planning, execution, and management procedures that meet the expectations of both our
Consulting Segment's clients and MAXIMUS management. The purposes of the Guide are to:
Professional Practice
Guide.
• Provide a project management framework for performing and promoting a broad range
of high quality consulting activities.
• Establish the basis for the evaluation of project/contract performance.
• Foster improved organizational processes and operations.
We assure the City that all MAXIMUS consultants, managers, and project staffs are
required to adhere to these standardized procedures and, where appropriate will enhance and
modify them to meet the unique needs of the City. We believe that through adherence to
this Guide and its associated standards, we will achieve greater customer satisfaction and
improved financial performance.
In addition to the management approaches and controls discussed above, we believe that the
development, implementation, and execution of a project Quality Plan is crucial to ensuring
that deliverables and reports are timely, effective, and comprehensive.
Quality Plan
A Quality Plan is the
primary tool to ensure MAXIMUS views the Quality Plan as our primary tool to help the project deliver the
that we will deliver the highest possible quality results within committed resources, schedule, and budget. Our
highest possible results, Project Manager will develop the Quality Plan during project start-up and ensure that it is
including timely reports successfully executed and updated to make certain that quality expectations are met.
and deliverables.
As outlined in the MAXIMUS Professional Practice Guide, our Quality Plan identifies
expectations for quality and our plan to make sure that the expectations are met. It also
describes the processes and activities that will be put into place to ensure that quality
deliverables/work products are produced.
Overview of Quality Plan identifies the type of information that we typically include in a
quality plan and that we would include in our plan for this project. By necessity, this plan
must be fully developed in close collaboration with the City.
Firm Experience TAB 3-30
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•
VFW
CITY OF MIAMI BEACH, FLORIDA MAXIMUS
RFP 50-11/12
Quality Plan Component Function
Project Overview '• Describes background and context for the project
• Identifies quality standards that the project will follow
• Identifies quality-related tools that will be utilized
Completeness and '■ Describes the review process and acceptance/approval criteria that will be applied to
Correctness Criteria the project deliverables
• Describes the criteria that define each deliverable as complete and correct, including
the approved format and content(level of detail)
• Ensures up-front work with the City project manager to define what it means for a
deliverable to be considered complete and correct
• Improves likelihood that the project, deliverables, and reports will meet the
expectations of the City project manager.
Quality Assurance ;• Description of the process used to create and manage the services and deliverables
• Definition of processes to be reviewed and how review will occur
• Includes assignment of specific quality assurance roles and responsibilities to
specific team members
Quality Control • Outlines the activities associated with the creation of project deliverables for
verification that deliverables are of acceptable quality
• Ensures that deliverables meet the completeness and correctness criteria
established in the quality planning process
• Provides for second-level review by appropriate MAXIMUS management prior to
submission of deliverable to the City project manager.
• Decreases likelihood that the City project manager will reject deliverables due to
preventable defects
• Describes process to track and resolve defects identified in either internal or
Government review
• Review of the deliverable by the Project Director and Quality Assurance Director,
prior to submitting the deliverable to the client
Reporting • Describes the quality reports that project staff will produce
• Includes the method and frequency of providing reports to MAXIMUS management,
the project team,and the City project manager
• Identifies the quality records that will be maintained for the project
Overview of Quality Plan. This exhibit describes the major expected components of our Quality Assurance
Plan for this project.
Firm Experience TAB 3-31
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TAB 4
Cost Proposal
TRO
CITY
P OF MIMI BEACH, FLORIDA
RFP MAXIMUS
lUS
TAB e COST PROPOSAL
With each and every one of our clients, we endeavor to create a long-term
professional relationship of confidence and trust. Our goal is that we become a
trusted resource for the City of Miami Beach's managers; a valuable partner that
the City may turn to for consulting assistance and advisement whenever
necessary. We have developed just such a relationship with hundreds of our
clients, which is a testament to our on-going success over the last 39 years.
Because of our extensive experience preparing Full Cost and OMB Circular A-87
cost allocation plans on an annual basis, we understand the requirements of the
scope of services and have a thorough understanding of local government
operations. Moreover, the efficiencies of our processes over the last three
decades allow us to accurately price projects and provide our services in an
economical manner. We believe — and our clients frequently affirm — that we
provide significant value to our clients in relation to our fees.
We are able to leverage MAXIMUS has provided a Total All-Inclusive Maximum Price for the
our extensive experience requested scope of services. If our proposal is accepted, the proposed fees will
and project efficiencies to not increase over the agreed upon contractual amount for the entire contract term,
offer our Clients regardless of changes in accounting principles,cost principles, or State or Federal
competitive fees. laws, rules and requirements associated with Full Cost and OMB Circular A-87
Cost Allocation Plans.
COST COMPONENT DETAIL
FY 2014 Cost Allocation Plan Development
Under the,proposed scope of services, MAXIMUS will develop, prepare, and
submit to the City of Miami Beach the following:
1. A City-wide Central Services Cost Allocation Plan in compliance with the
costing principles contained in 2 CFR Part 225 (OMB Circular A-87) and.
applicable implementation guidance based on actual costs for the fiscal year
ended September 30, 2014.
2. A City-wide Central Services Cost Allocation Plan prepared using full
costing concepts based on actual costs for the fiscal year ended September
30, 2014.
3. A Cost Allocation Study to determine the annual costs incurred in the City
within the area known as "South Pointe," formerly the South Pointe
Redevelopment District, which is funded by tax increment revenues. This
cost allocation study will be prepared based on actual costs for the fiscal year
ended September 30, 2014 and will identify and quantify the cost of City
services incurred within and/or allocable to the South Pointe area.
Cost Proposal TAB 4-1
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CITY OF MIAMI BEACH, FLORIDA IM US
lU5
RFP 50-11/12
4. A Cost Allocation Study to determine the annual cost of City services that
are eligible to be funded from Resort Taxes. This cost allocation study will
be prepared based on actual costs for the fiscal year ended September 30,
2014 and will identify and quantify the Resort Tax eligible costs that are
incurred within or are allocable to the South Pointe area and those Resort Tax
eligible costs that are outside the South Pointe area.
Based on the proposed scope of services, tasks and deliverables described in our
accompanying proposal, MAXIMUS is proposing the following All-Inclusive
Maximum Price. This fee is an all-inclusive fee and includes all travel and
project related expenses. MAXIMUS will not solicit additional fees for the
proposed scope of services. MAXIMUS will only invoice the City for the
hours actually worked up to the total All-Inclusive Maximum Price provided
below:
Project Staff Hours Hourly Rate Fees
(Contract Category)
Project Director 40 $250 $10,000
(Principal)
Project Manager 192 $175 $33,600
(Senior Consultant)
Project Consultants 24 $100 $2,400
(Consultant)
Sub-Total Labor 256 $46,000
Total Fixed Fee $46,000
Deliverable Hours Fees
Central Services Cost Allocation Plan 144 $26,400
Resort Tax Cost Allocation Plan 56 $9,800
South Pointe Cost Allocation Plan 56 $9,800
Total Fixed Fee 256 $46,000
The above quoted fees include the deliverables defined above and the tasks
delineated within TAB 3 — FIRM EXPERIENCE of our proposal. The fee is
inclusive of two (2) on-site visits to the City of Miami Beach. One (1) on-site
visit will be performed for project initiation activities, department and staff
interviews, and data request and collection efforts. One(1) other on-site visit will
be performed as necessary to review the prepared cost allocation plans with
Office of Budget and Performance Improvement (OBPI) and Finance personnel.
Any additional on-site visits will be performed only upon the written request of
Cost Proposal TAB 4-2
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•
CITY OF MIAMI BEACH, FLORIDA
FP 50-11/12 MAXIMUS
the City and at the City's sole discretion. Any additional on-site visits will be
invoiced at actual time and expense.
Additional Services
MAXIMUS is available to assist the City of Miami Beach with additional related
services as may be required by the City. MAXIMUS has specialized experience,
•
skills and qualified staff in the following areas:
• Assisting governmental agencies in the development, preparation and
negotiation of cost allocation plans and indirect cost rates;
• Developing and documenting indirect cost methodologies;
• Developing internal service fund billing and charge-back rates;
• Assessing and developing user fees/rates for services provided to outside
users; and
• Performing process simulation, improvement, and efficiency studies for
government operations.
If the City is interested in additional services beyond those delineated in RFP 50-
11/12, MAXIMUS will provide a separate proposal and quote for the scope of
services requested.
Cost Proposal TAB 4-3
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•
t
CITY OF MIAMI BEACH, FLORIDA
RFP 50-11/12 MAXIMUS
TERMS AND CONDITIONS
MAXIMUS will perform the Statement of Work (SOW) under a professional services agreement
containing negotiated and mutually acceptable terms and conditions.
MAXIMUS is quoting a maximum, not to exceed fee of forty-six thousand dollars ($46,000) for
preparation of the FY 2014 Cost Allocation Plans. MAXIMUS will invoice based on the actual hours
worked on the study project-to-date upon delivery of the first draft of the cost allocation study and the
actual hours worked in order to finalize the study upon submission of the final deliverables.
MAXIMUS has based its pricing for this engagement utilizing the estimated level of effort we expect it
will take to complete the deliverables. This level of effort is in part determined by our past work
experience with counties of similar size and organizational complexity to that of the City of Miami
Beach, as well as our increased efficiencies and assigned tasks for the proposed SOW. However, the
SOW is a management consulting service and is dependent upon on a number of factors and conditions
which may by unique to the City and this engagement.
MAXIMUS shall provide guidance to the City in determining the data required. The City acknowledges
and agrees that MAXIMUS shall be entitled to rely upon the accuracy and completeness of the data
provided by the City to perform the work under this SOW. The City shall provide all such data in a
timely manner sufficient to allow MAXIMUS to provide the Services. MAXIMUS shall have no liability
to the City whatsoever if the City provides incomplete or inaccurate data or provides data in an untimely
manner.
The City represents that all financial and statistical information provided to MAXIMUS by the City, its
employees and/or agents is accurate and complete to the best of the City's knowledge. MAXIMUS shall,
upon notice of audit, make work papers and other records available to the auditors. MAXIMUS sole
responsibility under an audit shall be to provide reasonable assistance to the City through the audit and to
make those changes to the work product as required as a result of the audit. MAXIMUS shall not be
liable for any audit disallowances or any missed or lost revenue associated with, or related to, the
services,regardless of cause.
Cost Proposal TAB 4-4
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