Hiring a Consultant
Supplemental Topic
Hiring a Consultant
Contents
Introduction
Types of Consultants......
Overviews of Consultant Hiring Processes......
Options for Hiring a Consultant
Term Contracts......
Sole-Source Situations (for Any Dollar Amount)......
Quotes or Bids......
Submitting the RX Worksheet(s)
Preparing the Worksheet(s)......
RX for Consultant Services......
RXs for Advertising......
Preparing the Consultant Agreement
Consultant’s Agreement......
Professional Design Agreement (Limited Scope)...... 20
Consultant Signature Requirements......
Preparing the Contract Approval Package
Completing the A-910 Form......
Assembling Contract Documents for Processing......
Figures
1Requisition (RX) Worksheet
2A-910 Form
Charts
1Process Flow for Hiring a General Consultant (Fees Less Than $10,000)
2Process Flow for Hiring a General Consultant (Fees $10,000 to $19,999)
3Process Flow for Hiring a General Consultant (Fees $20,000 or More)
4Process Flow for Hiring a Consultant–Designer (Fees Less Than $25,000)
5Process Flow for Hiring a Consultant–Designer (Fees $25,000 or More)
Introduction
The University Architect Division follows well-defined processes for choosing Associate Architect/Engineers and Construction Contractors. (The chapters “Selecting the A/E Design Firm”, “Preparing for Construction Bidding”, and “Awarding the Construction Contracts” present the details of these processes.)
However, many projects and activities require outside help from experts other than an Associate or a Construction Contractor. The University looks to consultants in various fields to provide many different services.
This topic presents the University’s preferred process for hiring consultants.
Types of Consultants
Consultants hired by the Division fall into either of two categories: General Consultants and Consultant–Designers. The consultant type determines which standard agreement should be used between the consultant and the University.
- General Consultants are those who provide any services not related to project design. General Consultants are not subject to the provisions of the Ohio Revised Code (ORC), section 153. The Consultant’s Agreement is used to document the relationship between a General Consultant and the University.
Food-service providers and computer experts are examples of General Consultants.
- Consultant–Designers provide limited-scope services related to the design of a construction or renovation project. Because the services they provide are design-related, Consultant–Designers are subject to the requirements of ORC 153. In limited-scope situations where the standard A/E agreement is not appropriate, the Professional Design Agreement (Limited Scope) is used to document the relationship between a Consultant–Designer and the University.
Geotechnical engineers, structural analysts, surveyors, and acoustical experts are all examples of Consultant–Designers.
See “Preparing the Consultant Agreement” in this topic for more information on the different consultant agreements.
Overviews of Consultant Hiring Processes
Departments in the University Architect Division work with University Purchasing to locate and secure consultant services. Within each consultant type (General Consultant or Consultant–Designer), the fee value of a proposed agreement determines the correct hiring process.
The General Consultant Hiring Process
Three possible scenarios exist:
Scenario 1: General Consultant fees will total less than $10,000.
Scenario 2: General Consultant fees will total between $10,000 and $19,999.
Scenario 3: General Consultant fees will total $20,000 or more.
Charts 1–3 show the process flow for hiring a General Consultant under each scenario.
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Hiring a Consultant
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Hiring a Consultant
The Consultant–Designer Hiring Process
For Consultant–Designers, two scenarios exist:
Scenario 1: The Consultant–Designer’s fee will total less than $25,000.
Scenario 2: The Consultant–Designer’s fee will total $25,000 or more.
Charts 4 and 5 show the process flow for hiring a Consultant–Designer under each scenario.
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Hiring a Consultant
Options for Hiring a Consultant
Departments usually secure consultant services by working with Purchasing to obtain quotes or competitive bids. For some types of services, however, the University may have a term contract in place that will meet the need. At other times, only one vendor may be able to provide the exact services required, within the project’s schedule.
The Buyer will evaluate each consultant need and advise the department about the most appropriate solution for finding services.
The sections that follow present more information about each option.
Term Contracts
Sometimes an existing contract can fulfill an emerging service need. Upon receiving a department’s request for consultant services, Purchasing will investigate any term contracts that have been established by UC, the State of Ohio, or the Inter-University Council (IUC).
If a new request can be fulfilled through an existing contract, the University can assign the work to the contract holder without obtaining quotes or bids from other vendors. However, the holder of the existing contract must provide the University with a specific price quote for the new work. The Project Administrator can either work with the consultant directly or ask the Buyer to do so.
A term contract establishes the consultant’s regular compensation rates for the work being performed under the contract. The Project Administrator or Buyer should discuss the scope of the work with the term contract holder and provide specifications if appropriate. The consultant still must provide an estimate of the cost and time required to perform the scope of work.
If a term contract is in place for a needed service, Purchasing notifies the requesting department. The Project Administrator provides information about the project to the term contractor, who submits a quote. If this quote is acceptable, the Project Administrator submits a requisition (RX) worksheet for the services (see the section “Submitting the RX Worksheets”).
Sole-Source Situations (for Any Dollar Amount)
When a needed commodity or service can be provided by only one vendor, the department may be able to initiate an agreement with that vendor and bypass the usual process of obtaining quotes or bids.
Before authorizing this type of agreement, University Purchasing requires the requesting department to justify the sole-source strategy. The justification must demonstrate that all of the following conditions apply:
- The service is available from only one source.
- The service has unique features or attributes that are not available from other providers.
- These unique features or attributes fulfill a significant, legitimate need for the requesting department.
To pursue a sole-source purchase of services, the Project Administrator first provides information about the project to the proposed sole-source consultant, who submits a quote. If the quote is acceptable, the Project Administrator develops a letter of justification to Purchasing, addressing each of the three conditions cited above. This letter must be included with the RX worksheet for the services.
If Purchasing agrees with the reasons presented, the sole-source purchase can go forward. Purchasing also may request a more detailed explanation from the department before approving the purchase. If the purchase does not qualify as a sole-source situation, Purchasing notifies the department.
Quotes or Bids
When neither a term contract nor a solesource situation applies, Purchasing or the Project Administrator asks vendors to submit quotes or bids (depending on the fee amount).
Quotes or Bids?General Consultant Hiring Process
Scenario / Approach
- Fees Under $10,000
- Fees $10,000 to $19,999
- Fees $20,000 or More
Consultant–Designer Hiring Process
Scenario / Approach
- Fees Under $25,000
- Fees $25,000 or More
Obtaining Quotes
General Consultant, Fees Under $10,000
If General Consultant fees will be less than $10,000, the Project Administrator (or a designee within the requesting department) must obtain written price quotes from at least three consultants.
Note: The requesting department should forward any written price quotes it has collected to Purchasing before making a decision. Purchasing may want to obtain additional information from one or more vendors or ask a different vendor to submit a quote.
Consultant–Designer, Fees Under $25,000
When seeking a Consultant–Designer in this price range, the Project Administrator can use the Architect/Engineer (A/E) Long List. The A/E Long List file is available as an icon on the Windows™ desktops of the user PCs within the University Architect Division.
When a Consultant–Designer has been selected, the Project Administrator then submits a requisition for the services (see “Submitting the RX Worksheets”).
Obtaining Bids
For General Consultant agreements with fees of $10,000 to $19,999, Purchasing obtains bids by distributing a Price Inquiry package to qualified consultants. If fees will be $20,000 or more, a legal advertisement inviting bids must be published in local newspapers.
For Consultant–Designer agreements where fees will exceed $25,000, the Project Administrator can choose between the Price Inquiry and legal advertising options, as described below.
Price Inquiry (General Consultant, Fees $10,000 to $19,999; Consultant–Designer, Fees $25,000 or More)
Purchasing prepares a Price Inquiry package to notify vendors of General Consultant opportunities in the $10,000 to $19,999 fee range. A Price Inquiry package can also be prepared for Consultant–Design opportunities with fees of $25,000 or more.
The Price Inquiry package includes the following components:
- Terms and conditions for any contract resulting from a bid
- Copy of the specifications submitted by the Project Administrator
- Instructions to the vendor
- A page on which the vendor supplies its bid to perform the work
The Price Inquiry package is submitted to a list of consultants developed by the Project Administrator and/or Purchasing.
To begin the process of distributing a Price Inquiry package, the Project Administrator first develops a Request for Proposal (RFP) and specifications that describe the project, its deliverables, and the criteria for selection of the consultant.
Next, the Project Administrator submits a requisition worksheet for the consultant services (see “Submitting the RX Worksheets”). The completed RFP and specifications must be attached to or included with the RX worksheet so Purchasing can include specification information in its Price Inquiry.
After preparing the Price Inquiry package, Purchasing distributes it to all potentially qualified consultants. (For Consultant–Design opportunities, Purchasing must distribute the package to all A/E Long List firms that provide the needed service.) When all bids are in, the Buyer develops a bid analysis and forwards it to the Project Administrator along with copies of the original bids.
The department considers all bids and selects the consultant whose proposal satisfies all selection criteria at the lowest price. The department then forwards its award recommendation to the Buyer.
Note:If the department does not select the lowest bid, the award recommendation must include a justification for this decision.
Legal Advertising (General Consultant, Fees $20,000 or More; Consultant–Designer, Fees $25,000 or More)
For General Consultants, the process for obtaining bids in the fee range of $20,000 or more is similar to that for fees of $10,000 to $19,999, except that the consultant opening is publicized through legal advertising rather than Price Inquiry.
For Consultant–Design opportunities with fees of $25,000 or more, the Project Administrator can choose legal advertising as an alternative to distributing a Price Inquiry Package.
Again, the Project Administrator begins by developing an RFP and specifications, and attaches these documents to the requisition worksheet for consultant services.
To initiate Purchase Orders for legal advertising, the Project Administrator must complete two additional RX worksheets for the costs of advertising in the Cincinnati Enquirer and the Cincinnati Herald (Sesh Communications). All three RX worksheets should be submitted at the same time. (See “Submitting the RX Worksheets”.)
Purchasing uses the information in the specifications to develop the legal advertisements, which are then published once in each of the local newspapers. The ads include the title of the project; the bid number; the bid closing date and time; and pre-bid information, if applicable. Ads also provide the Purchasing department’s address for submission of bids.
When all bids are in, the Buyer develops a bid analysis and forwards it to the Project Administrator along with copies of the original bids. The department considers all bids and selects the consultant whose proposal satisfies all selection criteria at the lowest price. The department then forwards its award recommendation to the Buyer.
Note:If the department does not select the lowest bid, the award recommendation must include a justification for this decision.
Submitting the RX Worksheet(s)
An RX worksheet is a formal request to create a Purchase Order. The appropriate timing for submitting the RX worksheet varies by consultant type and fee scenario, as shown in the table that follows.
RX Worksheet TimingGeneral Consultant Hiring Process
Scenario / When to Submit RX Worksheet
- Fees Under $10,000
Term contract: After receiving a quote from the term contractor
Quotes: After receiving quotes from three or more consultants and selecting the lowest/best
- Fees $10,000 to $19,999
Term contract: Same as above
Bids: After developing an RFP and specifications, but before Purchasing develops the Price Inquiry package
- Fees $20,000 or More
Term contract: Same as above
Bids: After developing an RFP and specifications, but before Purchasing develops the legal advertising
Consultant–Designer Hiring Process
- Fees Under $25,000
- Fees $25,000 or More
Advertising: After developing an RFP and specifications, but before Purchasing develops the legal advertising
Preparing the Worksheet(s)
Project Administrators can use a Microsoft®Access™ database (OASIS) to enter the information needed for the RX worksheet (Figure 1). The worksheet can also be prepared manually (i.e., the Project Administrator can fill out a hard copy of the worksheet, and a support staff member will key the information into the database).
Note: RFPs, specifications, and justifications for sole-source purchase, if applicable, must be included with the RX worksheet.
After completing an RX worksheet, the Project Administrator forwards it to the Capital Finance department. Capital Finance will enter the information into the College and University Financial System (CUFS) and record the system-assigned requisition number for each requisition.
The following information is included on the RX worksheet:
- The Project Administrator’s name and phone number (DEPT CONTACT and DEPT CONTACT PHONE fields);
- The date the requisition is being created;
- Vendor information, if available (name, address, phone number, contact person’s name, and vendor code);
- Term contract number, if applicable;
- Indication that the requisition is for services;
- Project-related accounting information (the FUND, AREA, and ORGN fields);
- Vendor-related accounting information (the OBJECT and SUB OBJ fields);
- The service being requisitioned, and the unit and total costs; and
- The project number and name, if applicable.
RX for Consultant Services
The RX worksheet cannot be fully completed until a quote or bid has been accepted for the consultant services. Until that time, the vendor information and cost data are not known. However, the Project Administrator can prepare all other information for the RX and submit it to Capital Finance for entry into CUFS.
The Project Administrator can enter a cost of $1 on the RX until the actual cost of the services is known. Once a bid or quote has been accepted and an agreement signed, Purchasing will adjust the RX to reflect the true cost and issue a Purchase Order.
RXs for Advertising
The Project Administrator forwards completed advertising requisitions to Capital Finance. After entering the requisition data into CUFS as described above, Capital Finance forwards the advertising request to Purchasing. Purchasing will contact each publication to schedule the advertisements.
Preparing the Consultant Agreement
Once a quote or bid has been accepted, the Project Administrator must determine whether a contract will be required between the consultant and the University. If so, the Project Administrator should prepare the appropriate consultant agreement.
The two types of consultant agreements are described below.
Note:If no consultant agreement is required, Purchasing will issue a Purchase Order to the consultant.
Consultant’s Agreement
This instrument is used as a contract for general consultant services that do not involve design work. It states the standard terms and conditions between the University and the consultant, and should be modified to include project-specific information. The Consultant’s Agreement can be accessed by logging in to the University Architect Division Intranet (authorization is required), clicking on Project Administration, and clicking the Consultant’s Agreement link under Agreements.