Frequently Asked Questions

Q. What is a Term Agreement?
A. The purpose of Term Agreements is for the Department to pre-qualify consultants who will be available to perform services as the need arises. The "term" of a Term Agreement is usually 2 years. Should the Department decide to utilize a consultant under the Term Agreement, a Work Task Agreement will be negotiated and written. A list of consultants with a current Term Agreement is maintained by the CAU for use by the Department and Local Agencies to select consulting firms for professional services.

Q. How do I get on the Term Agreement List?
A. The Department solicits proposals for Term Agreements on a continuous basis. Term agreements use a qualification-based selection procedure to pre-qualify consultants in specific categories of expertise.  Click here to go to the current Term Agreement Solicitation.

Q. How do I get an approved overhead rate?
A. The consultant's overhead rates must be developed by an independent audit or review following parameters established in the revised 2009 AASHTO Audit Guide    Click here to access additional information regarding overhead rate requirements. 

Q. I am a one-person firm without an overhead rate. Can I still work for the Department?
A. In the absence of an audited overhead rate, fair and reasonable rates should be negotiated. These loaded hourly rates, that include all overhead and fees, become the hourly charge out rates for time worked directly on the project.

Q. What are "certified hourly rates"?
A. A current list providing each employee's name, job title, and raw (unburdened) hourly rate. The list is followed by a statement, certifying the information as true and accurate, signed and dated by a company official. Certified Hourly Wage Rates should follow the approved format, and must be provided in .pdf file format by e-mail to  The file name shall be the company name followed by the month and year (ConsultantName02/05).  The certified hourly rates document is kept confidential for use by the CAU, Internal Review, and Agreement Administrators to review cost estimates and invoices.

Q. How can I get work for the Department?
A. The Department follows Federally mandated qualification-based selection procedures for professional services. Individual project solicitations are utilized to select firms for projects greater than $500,000.  These solicitations are posted on this web site in Open Solicitations.

The Department also utilizes the Term Agreement List to select consultants for agreements less than $500,000.  Term Agreements use a qualification-based selection procedure to pre-qualify consultants in specific categories of expertise. Consultants may be selected from the Term Agreement list to perform professional services for the Department and for local municipalities on projects involving federal funding.  

Q. When are supplemental agreements allowed?
A. A supplemental agreement may be used to modify a Professional Agreement. Supplemental agreements are usually used to add work, address changes to the work, or change the agreement amount. Supplemental agreements cannot be written for Work Tasks (agreements written under a Term Agreement). A new Work Task must be prepared for the additional work.


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