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2/7/85 AC 150/5100-14A b. Alternatively, an independent engineering architecture, or planning firm, may be retained by the sponsor to aid in developing a cost estimate for professional services, the scope of work, or the selection criteria. The firm hired to perform any of these functions may be retained without using competitive negotiation procedures. However, that firm will not be eligible for further work on the project. - c. The importance of having a detailed cost analysis cannot be overemphasized. Without such an analysis, the sponsor does not have a benchmark for evaluating the cost of professional services. Figures 1 and 2, contained in appendix 3, present a suggested format for computing estimated costs of consultant services for the design and construction phases of a project. d. The curves contained in appendix 1 may be used as a basis for estimating the cost of design services. These curves represent projects of average complexity and average conditions. If a specific project is more complex, a higher percentage would be appropriate. Similarly, a relatively simple project would indicate a smaller percentage. If a consultant's fee indicates a higher percentage, the factors which make the project more complex than an average project should be explained. The final compensation, however, should be determined by negotiations based on the detailed scope of work and work -hour costs rather than strict adherence to the curves. 12. NEGOTIATIONS. An important objective of the negotiation process is to reach a complete and mutual understanding of the scope of services to be provided. The general scope of services, developed during initiation of the procurement process, is of necessity too broad to serve as the basis for a contractual agreement. The negotiation process offers the opportunity for refinement, amendment and complete definition of the services to be rendered. Specific elements to be established during negotiations include; project schedule, manpower requirements, level of effort, special services, and cost. a. Price Not a Selection Factor. (1) When agreement has been reached on the proposed scope of work, the sponsor should request the consultant to submit the proposed fee and supporting cost breakdown. The consultant should prepare a detailed estimate of the hours and cost required for each of the major tasks. In addition to charges for labor, the consultant should, if appropriate, indicate the costs for subcontractors, travel, living expenses, reproduction, and other direct out-of-pocket expenses expected to be incurred. (2) The sponsor should enter into negotiations with the consultant given first preference by the selection board and utilize technical assistance necessary to support the negotiations. During the negotiations, revisions of the proposed fee and supporting cost breakdown (if required) should be requested to reflect changes in, or clarifications of, the scope of work. Chap 2 Par 11 12