Evaluating Methods of Calculating the Fixed Fee on Professional Service Contracts

The South Carolina Department of Transportation routinely retains Professional Consulting Engineering firms to provide engineering design and related professional services for the preparation of construction plans or design-build Request for Proposal bid packages for a wide variety of Federal-aid Highway Program roadway and bridge construction projects throughout South Carolina.The purpose of this project is to examine the current process of determining a "Fair and Reasonable" fixed fee for professional service contracts and to evaluate possible alternative methods including practices in other states that may improve the process, particularly in light of the considerable variation in audited overhead rates among consulting firms. In reviewing such alternative methods particular attention will be given to evaluating the potential impact of the method as an incentive to consulting firms to effectively manage their overhead costs.

Improving the Asset Inventory Process

The South Carolina Department of Education (SCDE) is required by the State of South Carolina to provide an accurate physical count of all Capitalized assets listed on their inventory by the end of the fiscal year. There were no published procedures for employees to follow as guidelines for identifying, tracking, reporting and disposing of assets. This has led to errors in identifying items that require asset numbers, completing the shopping carts and transfer/disposal of assets. These errors cause additional work for the Asset Accountant, Procurement Analyst and Accounts Payable Supervisor. The scope of this project is to improve the fixed asset process by developing and publishing asset inventory procedures to ensure accountability and accuracy of all item listed on SCDE inventory.