General Budget Requirements

Following is general information for use in preparing a proposal budget.

Indirect Costs

If bidder requests an indirect cost rate, it must submit documentation in the proposal demonstrating the rate has been approved by a cognizant federal, state, or other appropriate agency. Information must be provided on the type of rate (provisional, final, etc.), the base to which the rate is to be applied, and any other specifics related to the use of the approved indirect rate.

Before we negotiate a contract, a successful bidder must provide us with a line item indirect cost budget for review. We will negotiate any request for indirect costs in a contract.

Cost Reimbursement Contracts

H-GAC will negotiate cost reimbursement contracts. A proposal budget must describe and explain all office and overhead costs for which a bidder will request payment.

Marketing Expenses

Bidders should budget for purchase of Workforce Solutions franchise marketing materials such as brochures and other items used in the career offices, but that are procured centrally by H-GAC.

Profit or Fee

A for-profit bidder may request the payment of a fee for successful delivery of contract services subject to certain conditions. These conditions include:

  • H-GAC will negotiate all fees.
  • We will negotiate a profit or fee as a fixed dollar amount which may not exceed 8% of a base that is generally limited to salaries and benefits. The base against which a profit may be charged may not include any pass-through dollars such as funds paid directlyto customers or indirect expenses.
  • A contractor must meet and/or exceed performance measures negotiated in the contract to earn the profit or fee.
  • If applicable, a contractor will distribute profit across federal or state cost categories/funding streams in proportion to pre-profit costs in those cost categories/funding streams.

Cost Allocation

All of our contractors must prepare allocation plans that distribute costs among the various public revenue streams we use as revenue sources for our business, as well as across required cost categories within revenue streams. Contactors’ plans must meet requirements in the Texas Workforce Commission’s Financial Manualfor Grants and Contracts, which outlines state and federal standards for cost allocation plans. HGAC will review the plans.

Contractors will prepare cost allocation plans when negotiating a final contract.

Performance Measures: Terms and Requirements

H-GAC defines the performance measures and their terms and requirements for all our contracts.

Management & General

Management and General (M&G) expenses are defined as those personnel, facility, and other costs generally related to the implementation and delivery of career office services or other customer services that are over and above those costs directly associated with implementation of the franchise model. They are costs over and above those directly attributable to a specific location per the franchise model, or costs over and above those directly attributable to the actual delivery of services to customers, including employers and individuals. The manner of presenting and allocating M&G costs contained in your proposal is established for the purpose of evaluating the budget submitted and for negotiation leading to a contract with successful bidders.

Contract Budgets

We will provide information to successful bidders on preparing budgets for contracts. We will ask additional and detailed information beyond that we request for a proposal.

2018-2021 Gulf Coast Workforce System Request for Proposals

RESOURCES III 12 GENERAL Budget Requirements—Page1