2020-084 Ordinance - Laserfiche WebLink

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15. GENERAL PROVISIONS 15.1 Recovery of LPA's allocable project Direct Labor, Fringe Benefits, and/or Indirect Costs: To be eligible to recover any costs associated with the LPA's internal labor forces allocable to this PROJECT, the LPA shall make an appropriate selection below:[LPA official must initial the option selected.] 1. No cost recovery of LPA's project direct labor, fringe benefits, or overhead costs. (A) The LPA does not currently maintain an ODOT approved federally compliant time - tracking system', and (B) The LPA does not intend to have a federally compliant time -tracking system developed, implemented, and approved by ODOT prior to the period of performance of this PROJECT, and/or (C) The LPA does not intend to pursue recovery of these project direct labor, fringe benefits, or overhead costs during the period of performance of this PROJECT Agreement. 2. Direct labor plus indirect costs calculated using the Federal 10% De Minimis Indirect Cost Rate. 2 (A) The LPA currently maintains, or intends to develop and implement prior to the period of performance of this PROJECT, an ODOT approved federally compliant time -tracking system, and (B) The LPA does not currently have, and does not intend to negotiate, an ODOT approved fringe benefits rate prior to the period of performance of this PROJECT. 3. Direct labor, plus fringe benefits costs calculated using the LPA's ODOT approved Fringe Benefits Rate, plus indirect costs calculated using the Federal 10% De Minimis Indirect Cost Rate. 3 (A) The LPA currently maintains, or intends to develop and implement prior to the period of performance of this PROJECT, an ODOT approved federally compliant time -tracking system, and (B) The LPA currently has, or intends to negotiate, an ODOT approved fringe benefits rate prior to the period of performance of this PROJECT. 1 A `federally compliant time -tracking system" is supported by a system of internal controls and record-keeping that accurately reflects the work performed; which provides reasonable assurance that the time being charged is accurate, allowable, and properly allocated; is incorporated in official records such as payroll records; reasonably reflects the employee's total activity; provides a time or percentage breakdown on all activities, both Federally funded and non -Federally funded for the employee and complies with the LPA's pre -established accounting practices and procedures. 2 [Also be sure to read footnote # 1] The De Minimis Indirect Cost Rate is 10 percent of modified total direct costs (MTDC) per 2 CFR §200.414. The definition of MTDC is provided in the regulation at 2 CFR §200.68. Any questions regarding the calculation of MTDC for a specific project should be directed to the Office of Local Programs. Further, regardless of whether the LPA subrecipient negotiates overhead rates with ODOT or uses the 10 -percent de minimis rate, LPAs are required to maintain Federally -compliant time -tracking systems. Accordingly, LPAs are permitted to bill for labor costs, and then potentially associated fringe/indirect costs, only if the labor costs are accumulated, tracked, and allocated in accordance with compliant systems. Before an LPA is eligible to invoice ODOT for and recover the 10% de minimis indirect cost rate on any project, the LPA's time -tracking system and methods for tracking other project costs must be reviewed and approved by the ODOT Office of External Audits. A non -Federal entity that elects to charge the de minimis rate must meet the requirements in 2 CFR 200 Appendix VII Section D, Part 1, paragraph b. 3 [Also be sure to read footnotes # 1 and 21 The fringe benefits rate billed to this project must be determined in accordance with the Rate Agreement periodically negotiated with and approved by the ODOT Office of External Audits. The fiscal period when the LPA's direct labor costs are paid will be matched with the ODOT approved rate for that fiscal year to determine which rate is Page 22 of 27 Revision Date 3/26/2020