Developing the annual Indirect Cost Rate (ICR) can place a significant burden on small or emerging Architectural & Engineering (A&E) consulting firms that lack financial sophistication to develop an ICR. This is also true for established A&E consulting firms that may not have previous experience developing an ICR in compliance with Part 31 of Title 48 of the Code of Federal Regulations. This may create a barrier for eligible and qualified firms to compete for federally-funded contracts
To help alleviate and remove potential barriers, DPAC has developed and updated its SHR. Effective immediately, DLA is adopting DPAC’s SHR process and rates. All eligible A&E consultant firms may choose to use the SHR rate on new A&E contracts for federal-aid contracts in the State of California. The updated Safe Harbor Indirect Cost Rates are set at 120% for Home and 90% for Field, but usage will require pre-approval by completing and submitting the following SHR form https://dot.ca.gov/-/media/dot-media/programs/procurement-contracts/documents/ca-safe-harbor-rate-form.pdf and any other documents as needed to the Independent Office of Audits and Investigation (IOAI) at conformance.review@dot.ca.gov, with subsequent acceptance by IOAI.
To access the Office Bulletin #21-06 announcement regarding DLA’s adoption of DPAC’s SHR, please refer to the following link:https://dot.ca.gov/programs/local-assistance/guidelines-and-procedures/division-of-local-assistance-office-bulletins-dla-obs.
For questions regarding the requirements for the SHR, please contact: The’ Pham at the.pham@dot.ca.gov.