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AC 150/5100-14A <br />2/7/85 <br />25. RETAINER. <br />a. The employment of consultants on a retainer basis is a common practice. <br />This practice assures the sponsor of always having the services of a certain <br />individual engineer or organization available for future work. This method is used <br />in cases of protracted litigation or for work over the years when the calls on the <br />consultant may be intermittent. It is also used in the development of undertakings <br />for which the services of a consultant specialist are not required on a full-time <br />basis. On large projects, this method enables the sponsor to have the specialists <br />who prepared the original plans and specifications on hand for maintenance or <br />additions. <br />b. The retainer fee varies with the character and value of the services to <br />the sponsor and with the reputation and standing of the consultant in his/her <br />profession. <br />c. The terms of agreement for services on a retainer basis vary widely. <br />Compensation may be based on a fixed sum, paid monthly, or on some other mutually <br />agreeable basis, with per diem or hourly rates in addition for time spent at the <br />request of the sponsor. In any case, the same principles, explained previously for <br />per diem or hourly charges, govern under retainer contracts. <br />d. This type of contract is rarely used for grant projects. However, it is <br />permissible to use a firm on retainer for projects without further procurement <br />action if: <br />(1) The retainer contract was awarded as a result of competition. <br />(2) The parties competing for the retainer were advised that subsequent <br />grant funded projects (including the scope of services for those projects) would be <br />performed under the retainer contract. <br />(3) The price for the work performed under the grant will be fair and <br />reasonable and supported by a price or cost analysis. <br />e. Detailed records should be kept to identify that work which 1s a part of a <br />Federal grant project and eligible for reimbursement. <br />26. COST PLUS A FIXED PAYMENT. <br />a. The cost plus a fixed payment contract 1s frequently used when the <br />consultant is required to start work before the cost and scope of the project can <br />be accurately determined. <br />b. This type of contract provides for reimbursement of allowable costs such <br />as salary, overhead, and direct nonsalary expenses, plus a fixed payment. <br />20 <br />Chap 4 <br />Par 25 <br />.7 <br />