TABLE OF CONTENTS. I. Purpose of Request II. Project Background and Objective III. Scope of Work and Performance Tasks...

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2 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 TABLE OF CONTENTS I. Purpose of Request... 4 II. Project Background and Objective... 4 III. Scope of Work and Performance Tasks... 5 IV. Implementation Schedule... 7 V. Evaluation and Selection Process... 7 VI. Proposal Content and Format... 8 VII. General RFP Requirements VIII. Contractual Information IX. Title VI Assurances Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 2

3 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 I GENERAL INFORMAITON Agency Overview. The Fargo-Moorhead Metropolitan Council of Governments (Metro COG) serves as the Council of Governments (COG) and Metropolitan Planning Organization (MPO) for the greater Fargo, North Dakota Moorhead, Minnesota metropolitan area. As the designated MPO for the Fargo-Moorhead Metropolitan Area, Metro COG is responsible under federal law for maintaining a continuous, comprehensive, and coordinated transportation planning process. Metro COG is responsible, in cooperation with the North Dakota and Minnesota Departments of Transportation (NDDOT and MnDOT, respectively) and our local planning partners, for carrying out the metropolitan transportation planning process and other planning issues of a regional nature. Metro COG represents eleven cities and two counties that comprise the Metro COG region in these efforts. Metro COG is seeking requests for proposals from qualified Consultants for the following project: Contracted Annual Audit Services for 2017, 2018 and 2019 All applicants meeting the deadline for submittal will receive consideration. Applications are due by 4:00pm. on Tuesday, October 17, Selection criteria will follow a qualifications-based review process to analyze proposals from responding consultants. The most qualified candidates may be invited to present an oral interview. Upon completion of technical ranking, oral interviews and possible discussion with candidate Consultants, Metro COG will enter into negotiations with the top ranked firm. The Consultant will submit with their response to this RFP a cost proposal for the services requested, by year in which the services will be provided. Metro COG reserves the right to reject any or all cost proposals submitted. This project will be funded, in part with federal transportation funds. The North Dakota Department of Transportation will determine the eligibility of federal funds for the project. The proposed schedule for the project is identified in section V of this RFP. Interested firms can request a full copy of the RFP by telephoning , or by christian@fmmetrocog.org. Copies will be posted on the North Dakota Department of Transportation QBS website ( the Metro COG website ( and are also available for download in.pdf format at Fax versions will be not accepted as substitutes for the hard copies. Once submitted, the proposals will become the property of Metro COG. This document can be made available in alternative formats for persons with disabilities Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 3

4 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 by calling Savanna Leach, Executive Secretary at II PURPOSE OF REQUEST. The Fargo Moorhead Metropolitan Council of Governments (Metro COG) is requesting proposals for the performance of audit services for the years ended December 31, 2017, December 31, 2018, and December 31, All detailed information needs are outlined in the following Request for Proposal (RFP). At the discretion of Metro COG, two one-year contract extensions (for 2020 and 2021 audits) may be executed. III TERMS AND CONDITIONS. Metro COG reserves the right to reject any or all proposals or to award the contract to the next most qualified firm if the successful firm does not execute a contract within thirty (30) days after the award of the proposal. Metro COG reserves the right to request clarification of information submitted and to request additional information from any proposer. Any proposal may be withdrawn up until the date and time set above for the opening of the proposals. Any proposals not so withdrawn shall constitute an irrevocable offer, for a period of 90 days, to provide to Metro COG the services set forth, or until one of the proposals have been approved by the Metro COG Policy Board. If, through any cause, the firm shall fail to fulfill in timely and proper manner the obligations agreed to, Metro COG shall have the right to terminate its contract. In this event, the firm shall be entitled to just and equitable compensation for any satisfactory work completed. Any agreement or contract resulting from the acceptance of a proposal shall be on forms either supplied by, or approved by Metro COG; and shall contain, at a minimum, applicable provisions of this request for proposal. Metro COG reserves the right to reject any agreement that does not conform to the request for proposal and any requirements for agreements and contracts. The firm shall not assign any interest in the contract and shall not transfer any interest in the same without prior written consent of Metro COG. Metro COG will not be liable for any cost incurred in the preparation of proposals. The submission of a proposal shall be prima facie evidence that the proposer has full knowledge of the scope, nature, quantity, and quality of work to be performed; the detailed requirements of the specifications; and the conditions under which the work is to be performed. Metro COG will not be liable for any costs not included in the firm s proposal. Metro COG reserves the right to conduct personal interviews with any or all proposers prior to selection. Metro COG will not be liable for any costs incurred by the proposer in connection with such interviews (i.e., travel, accommodations, etc.). Metro COG reserves the right to conduct pre-contract negotiations with any, or all potential proposers. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 4

5 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 Metro COG reserves the right in its sole discretion to accept the proposal it considers most favorable to Metro COG s interest, and the right to waive minor irregularities in the procedures. IV SCOPE OF WORK AND PERFORMANCE TASKS. A. Nature of Services Required: 1. The services required are audits conducted in accordance with generally accepted auditing standards as defined by the American Institute of Certified Public Accountants (AICPA) "Statements on Auditing Standards, and "Standards for Audit of Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office. The audits will also be conducted in accordance with all requirements of the Single Audit Act of 1984, and will follow provisions of Uniform Guidance in 2 CFR 200, Subpart F, and all current supplements. The auditor should be familiar with all of the above standards and comply with all pertinent provisions. 2. The auditor s reports will contain the auditor s opinion on the fairness of statement of financial position, and results of operations in accordance with generally accepted accounting principles, as well as all required reports on internal control, and compliance as mandated by 2 CFR 200, Subpart F. A separate management letter should be prepared to summarize all items which the auditor feels may improve or eliminate any financial or operating inefficiencies, detected during the audit engagement. 3. An annual audit exit conference with the Executive Director, and (if requested) the Metro COG Executive Committee, will be conducted by the auditor in charge. At this time, the findings and recommendations regarding compliance and internal control shall be discussed. The Executive Committee or its designees shall have the opportunity to respond, orally or in writing, to any findings. Any such written responses shall be included in the audit report. 4. The annual audit report will be presented to the Metro COG Policy Board by the firm s auditor in charge. 5. Should the circumstances disclosed by the audit call for a more detailed investigation by the auditor than necessary under ordinary circumstances, the auditor shall inform the Metro COG Policy Board in writing of the need for additional investigation, and the additional compensation required. Upon approval, an additional agreement may be made with the Metro COG Policy Board and the auditor for additional investigation. This agreement shall not ignore the routine portion of the examination to be performed as part of the normal examination. Any evidence of fraud, such as defalcation, misappropriation, misfeasance, malfeasance, embezzlement, or other illegal acts shall be immediately reported to the Metro COG Policy Board, who shall under all circumstances, have the preemptive authority to directly investigate such matters at their discretion. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 5

6 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and If any qualifications are placed on the audit by the federal or state officials, all corrective action and/or additional work to resolve the qualifications will be provided at no additional cost to Metro COG. B. Description of Metro COG Records to be Audited: 1. The Metro COG maintains general ledger and payroll records on a computerized general ledger software package titled Quick Books Accounting. Actual monthly processing and write-up services are contracted to an outside private financial consultant. Please note this consultant is not eligible to respond to this audit request for proposal. 2. Metro COG approves its budget annually and the budget cycle is on a calendar year. Metro COG generates monthly computerized reports of expenditures that are matched against the budget showing the line item balances remaining. Metro COG s budget consists of an operating budget and a budget for contracted planning services. 3. For the year ended December 31, 2016, records were kept by Metro COG on an accrual basis. Therefore, all requested audits will be reported on using an accrual basis of accounting. 4. A copy of Metro COG s 2016 audit, the relevant approved budgets, and sample monthly reports (expenditure spreadsheets) are available for inspection at the Metro COG office prior to a firm s proposal development. C. Assistance Available to the Firm: 1. Metro COG recognizes any technical and/or clerical support it can provide the proposer may have a significant effect on the fee. Therefore, Metro COG will provide staff who has dealt with the agency s annual bookkeeping to work specifically with the in-charge auditor to insure that all necessary records and data are provided to the firm for the completion of the audit in a timely manner. Metro COG staff will be available through the duration of the audit to respond to inquiries on accounting matters. The copy machine will be available for use by the firm while on site. 2. The proposer may use any and all schedules and records currently used by Metro COG. Metro COG will provide suitable office space for an individual working on the audit. Recognizing space is in limited quantity in the Metro COG office, it will be necessary for the firm to schedule their on-site work at least fourteen (14) days in advance. V IMPLEMENTATION SCHEDULE. Proposals will be posted to the North Dakota Department of Transportation and Metro COG websites on September 5, Additional notifications to vendors on the Metro COG master contacts file will also receive notification of the RFP release. Proposals will be received by the Metro COG Executive Secretary until Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 6

7 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and :00pm. on Tuesday, October 17, Contract award will be considered no later than December 21, 2017 at the Metro COG Policy Board Meeting. The contract will be executed with the contract start date to be January, Pre audit work may begin after the award at a time reasonable to both parties. The audit fieldwork may begin April with all on site audit procedures to be completed by June 30 of each year. Prior to submission of the completed opinion, the audit firm's staff will review a draft of the proposed report, opinion, and management letter with the Executive Director, key staff, and/or the Metro COG Executive Committee (late July). The final audit, including all required financial statements, opinions, reports, and management letter must be submitted no later than the second Tuesday of August The auditor in charge will be expected to present the final audit to Metro COG at its August meeting (usually the third Thursday of the month at 4:00 p.m. in the Metro COG Office Conference Room). If Metro COG fails to meet any of the above timetables, the time schedules will be adjusted accordingly. Metro COG will grant a three-year contract for the audit. However, Metro COG reserves the right to terminate the multi-year contract in the event deficient audits are submitted. Metro COG reserves the right to offer up to two, one-year extensions to the contract. VI EVALUATION AND SELECTION PROCESS. Metro COG intends to award the contract to the firm with the best proposal, as deemed appropriate for Metro COG's needs, through the consideration of the following factors and evaluation values. 1. Proposer's understanding of the auditing engagement and the requirements of the audit (40%) 2. Relevant qualifications and expertise of the firm (40%) 3. The audit fee (20%) Each proposal will be evaluated on the above criteria. After this review, and if deemed necessary, a select number of firms may be invited for oral interviews. Upon completion of this process, the Executive Committee will make a recommendation to the Policy Board as to which firm they feel can best provide these services to Metro COG. The selection committee, at the discretion of Metro COG and under the guidance of NDDOT policy, will entertain formal oral presentations for the top candidates to provide additional input into the evaluation process. The oral presentations will be followed by a question and answer period during which the committee may question the prospective consultants about their proposed approaches. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 7

8 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 Metro COG reserves the right to reject any or all proposals or to waive minor irregularities in said proposal, and reserves the right to negotiate minor deviations to the proposal with the successful Consultant. Metro COG reserves the right to award a contract to the firm or individual that presents the proposal, which, in the sole judgement of Metro COG, best accomplishes the desired results. The RFP does not commit Metro COG to award a contract. Metro COG is not responsible for any expenses incurred by a respondent for preparing a response to this RFP, or any activities conducted prior to contract award. Metro COG reserves the right to withdraw this RFP at any time without prior notice. All proposals, whether selected or rejected, shall become the property of Metro COG. VII PROPOSAL CONTENT. The vendor s proposal shall contain a description of the following: A summary of the firm s other governmental clients to include the types of services and years provided, and two references that may be contacted. Limit this schedule to the work completed in the last three calendar years. Names and job titles of any and all staff that will play a role in the audit. This should include partners in charge, review partners, any "key" managers, etc. Please provide a resume for the designated in charge auditor. It will be expected that the in charge auditor will be on site during the majority of the audit fieldwork. The in-charge auditor resume must include education, years of experience, years of government auditing experience, any governmental engagement the individual has worked on in the last four (4) years. An estimate of the number of hours the individuals listed in the previous section will spend on the engagement. These hours should be broken into preliminary planning; initial and fieldwork planning; fieldwork; opinion and management letter; and report release/presentation. The proposal shall provide a first year "not to exceed" fee that includes all costs. Each of the next two years fees will be identified for the year in which the services are requested. The Consultant and Metro COG may renegotiate the fee, if requested by either party, by December 1 of each year. A renegotiated fee increase shall at no time exceed the consumer price index for the 12-month period ending October 30. The proposal shall provide a flat rate per hour that will be charged for any additional work which may be agreed upon under separate contract with Metro COG. The firm s eligibility, or non-eligibility, as a Disadvantaged Business Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 8

9 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 Enterprise (DBE) under definition of 49 CFR, Part 23. A brief summary of the proposer s understanding of the work to be performed, and an indication of a commitment to initiate and perform the work within the established time frame. A statement indicating that the examination will be made in accordance with generally accepted auditing standards; also a statement that the primary purposes of the examinations are to express opinions on the financial statements and operations in accordance with GAAP, 2 CFR 200, Subpart F, and the Single Audit Act of Contact Information. Name, telephone number, address, mailing address and other contact information for the consultant s Project Manager. 2. Introduction and Executive Summary. This section shall document the firm name, business address (including telephone, FAX, address(es), year established, type of ownership and parent company (if any), project manager name and qualifications, and any major facts, features, recommendations or conclusions that may differentiate this proposal from others, if any. 3. Work Plan and Project Methodology. Proposals shall include the following, at minimum: a. A detailed list of tasks and subtasks to be completed, including a description of how they will be completed. A detailed work plan identifying the major tasks to be accomplished relative to the requested study tasks and expected product as outlined in this RFP; a detailed approach for completing the plan and a summary of the proposed methodology to establish consensus on recommendations within the final product; b. Milestones for the development of the project and completion of individual tasks should be submitted with the proposal. c. A timeline for completion of the requested services, including all public participation opportunities and stakeholder meetings. d. List of projects with similar size, scope, type, and complexity that the proposed project team has successfully completed in the past. e. List of the proposed principal(s) who will be responsible for the work, proposed Project Manager and project team members (with resumes). f. A breakout of time for each member identified as a participant in the development of the project. g. A list of any subcontracted agencies, the tasks they will be assigned, the percent of work to be performed, and the staff that will be assigned. h. List of client references for similar projects described within the RFP. i. Required Disadvantaged Business Enterprise (DBE) Firms participation documentation, if applicable. j. Ability of firm to meet required time schedules. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 9

10 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and Signature. Proposals shall be signed in ink by an authorized member of the firm/project team. 5. Attachments. Review, complete, and submit the completed versions of the following RFP Attachments with the proposal: Exhibit A - Exhibit A Cost Proposal Form (as identified in IX 1) Exhibit B Debarment of Suspension Certification Exhibit C Certification of Restriction on Lobbying Exhibit D Certification of Final Indirect Costs Exhibit E Current Federal Clauses VIII Submittal Information A. All proposals should be forwarded to: William A. Christian Executive Director Fargo Moorhead Metropolitan Council of Governments Case Plaza, Suite 232 One 2nd Street North Fargo, ND Questions relating to any portion of this RFP can be answered by the Executive Director by calling (Ext. 32) between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. All proposals must be in a sealed envelope and clearly marked in the lower left hand corner "Sealed Proposal Audit Services." All proposals must be received the deadline identified in Section V - Implementation Schedule, at which time they will be opened. Four (4) hard copies and one (1) copy in Adobe Acrobat format (.pdf) of the proposal must be presented. IX GENERAL RFP REQUIREMENTS. 1) Cost Proposal. All proposals must be clearly identified and marked with the appropriate project name and include a cost proposal per the requirements of this RFP. Cost proposals shall be based on an hourly not to exceed amount and shall follow the general format as provided within Exhibit A of this RFP. Metro COG may decide, in its sole discretion, to negotiate a price for the project after the selection committee completes its final ranking. Negotiation will begin with the consultant identified as the most qualified per requirements of this RFP, as determined in the evaluation/selection process. If Metro COG is unable to negotiate a contract for services negotiations will be terminated and negotiations will begin with the next most qualified consultant. This process will continue until a satisfactory contract has been negotiated. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 10

11 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and ) Consultant Annual Audit Information for Indirect Cost. Consulting firms proposing to do work for Metro COG must have a current audit rate no older than 15 months from the close of the firm s Fiscal Year. Documentation of this audit rate must be provided with the sealed cost proposal. Firms that do not meet this requirement will not qualify to propose or contract for Metro COG projects until the requirement is met. Firms that have submitted all the necessary information to Metro COG and are waiting for the completion of the audit will be qualified to submit proposals for work. Information submitted by a firm that is incomplete will not qualify. Firms that do not have a current cognizant Federal Acquisition Regulations (FARs) audit of indirect cost rates must provide this audit prior to the interview. 3) Debarment of Suspension Certification and Certification of Restriction on Lobbying. Respondents must attach signed copies of Exhibit B Debarment of Suspension Certification and Exhibit C Certification of Restriction on Lobbying within the sealed cost proposal. 4) Respondent Qualifications. Respondents must submit evidence that they have relevant past experience and have previously delivered services similar to the requested services within this RFP. Each respondent may also be required to show that similar work has been performed in a satisfactory manner and that no claims of any kind are pending against such work. No proposal will be accepted from a respondent whom is engaged in any work that would impair his or her ability to perform or finance this work. 5) Disadvantaged Business Enterprise. Pursuant to Department of Transportation policy and 49 CFR Part 23, Metro COG supports the participation of DBE/MBE businesses in the performance of contracts financed with federal funds under this RFP. Consultants shall make an effort to involve DBE/MBE businesses in this project. If the consultant is a DBE/MBE, a statement indicating that the business is certified DBE/MBE in North Dakota or Minnesota shall be included within the proposal. If the consultant intends to utilize a DBE/MBE to complete a portion of this work, a statement of the subcontractor s certification shall be included. The percent of the total proposed cost to be completed by the DBE/MBE shall be shown within the proposal. Respondents should substantiate (within proposal) efforts made to include DBE/MBE businesses. X CONTRACTUAL INFORMATION. 1) Metro COG reserves the right to reject any or all proposals or to award the contract to the next most qualified firm if the successful firm does not execute a contract within forty-five (45) days after the award of the proposal. Metro COG will not pay for any information contained in proposals obtained from participating firms. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 11

12 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and ) Metro COG reserves the right to request clarification on any information submitted and additionally reserves the right to request additional information of one (1) or more applicants. 3) Any proposal may be withdrawn up until the proposal submission deadline. Any proposals not withdrawn shall constitute an irrevocable offer for services set forth within the RFP for a period of ninety (90) days or until one or more of the proposals have been approved by Metro COG whichever comes first. 4) If, through any cause, the firm shall fail to fulfill in a timely and proper manner the obligations agreed to, Metro COG shall have the right to terminate its contract by specifying the date of termination in a written notice to the firm at least ninety (90) working days before the termination date. In this event, the firm shall be entitled to just and equitable compensation for any satisfactory work completed. 5) Any agreement or contract resulting from the acceptance of a proposal shall be on forms either supplied by or approved by Metro COG and shall contain, as a minimum, applicable provisions of the Request for Proposals. Metro COG reserves the right to reject any agreement that does not conform to the Request for Proposal and any Metro COG requirements for agreements and contracts. 6) The firm shall not assign any interest in the contract and shall not transfer any interest in the same without prior written consent of Metro COG. 7) Metro COG relies upon the Contractor to provide services in accordance with a contract and the performance standards set for each work assignment. The Contractor agrees that time is of the essence, and that contractual commitments shall be met. XI PAYMENTS 1. It is understood that the firm will bill no more than once a month. It is also understood that the firm will issue no penalties for all bills that are paid within thirty (30) days of receipt. Ten percent (10%) of the fee will be retained by Metro COG until the Policy Board approves the audit. 2. No additional fees will be paid unless the work is authorized, in writing, by the appropriate Council official. XII FEDERAL FUNDS The services requested within this RFP will be partially funded with funds from the Federal Highway Administration (FHWA) and the Federal Transit Administration (FTA). As such, the services requested by this RFP will be subject to federal and state requirements and regulations. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 12

13 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 The services performed under any resulting agreement shall comply with all applicable federal, state, and local laws and regulations. In addition, this contract will be subject to the Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments and cost eligibility/requirements of 2 CFR 200. XIII TITLE VI ASSURANCES. Prospective Consultants should be aware of the following contractual ( contractor ) requirements regarding compliance with Title VI should they be selected pursuant to this RFP: 1) Compliance with Regulations. The Contractor shall comply with the regulations relative to nondiscrimination in Federally-assisted programs of the U.S. Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time (hereinafter referred to as the Regulations). 2) Nondiscrimination. The Contractor, with regard to the work performed by it, shall not discriminate on the grounds of race, color, national origin, sex, age, disability/handicap, or income status**, in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Contractor shall not participate, either directly or indirectly, in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the contract covers a program set forth in Appendix B of the Regulations. 3) Solicitations for Subcontracts, Including Procurements of Materials and Equipment. In all solicitations, either by competitive bidding or negotiation, made by the Contractor for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential subcontractor or supplier shall be notified by the Contractor of the Contractor s obligations to Metro COG and the Regulations relative to nondiscrimination on the grounds of race, color, national origin, sex, age, disability/handicap, or income status**. 4) Information and Reports. The Contractor shall provide all information and reports required by the Regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information and its facilities as may be determined by Metro COG or the North Dakota Department of Transportation to be pertinent to ascertain compliance with such Regulations, orders, and instructions. Where any information required of a Contractor is in the exclusive possession of another who fails or refuses to furnish this information, the Contractor shall so certify to Metro COG, or the North Dakota Department of Transportation, as appropriate, and shall set forth what efforts it has made to obtain the information. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 13

14 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and ) Sanctions for Noncompliance. In the event of the Contractor s noncompliance with the nondiscrimination provisions as outlined herein, Metro COG and the North Dakota Department of Transportation shall impose such sanctions as it or the Federal Highway Administration may determine to be appropriate, including but not limited to: a) Withholding of payments to the Contractor under the contract until the Contractor complies; or b) Cancellation, termination, or suspension of the contract, in whole or in part. Incorporation of Title VI Provisions. The Contractor shall include the provisions of Section XIII, paragraphs 1 through 5 in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Regulations or directives issued pursuant thereto. The Contractor shall take such action with respect to any subcontract or procurement as Metro COG or the U.S. Department of Transportation, Federal Highway Administration, may direct as a means of enforcing such provisions, including sanctions for noncompliance provided, however, that in the event a Contractor becomes involved in, or is threatened with, litigation by a subcontractor or supplier as a result of such direction, the Contractor may request Metro COG enter into such litigation to protect the interests of Metro COG; and, in addition, the Contractor may request the United States to enter into such litigation to protect the interests of the United States. ** The Act governs race, color, and national origin. Related Nondiscrimination Authorities govern sex, 23 U.S.C. 324; age, 42 U.S.C. 6101; disability/handicap, 29 U.S.C. 790; and low income, E.O XIV TERMINATION PROVISIONS. Metro COG reserves the right to cancel any contract for cause upon written notice to the Contractor. Cause for cancellation will be documented failure(s) of the Contractor to provide services in the quantity or quality required. Notice of such cancellation will be given with sufficient time to allow for the orderly withdrawal of the Contractor without additional harm to the participants or Metro COG. Metro COG may cancel or reduce the amount of service to be rendered if there is, in the opinion of Metro COG, a significant increase in local costs; or if there is insufficient state or federal funding available for the service, thereby terminating the contract or reducing the compensation to be paid under the contract. In such event, Metro COG will notify the Contractor in writing ninety (90) days in advance of the date such actions are to be implemented. In the event of any termination, Metro COG shall pay the agreed rate only for services delivered up to the date of termination. Metro COG has no obligation to the Contractor, Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 14

15 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 of any kind, after the date of termination. Contractor shall deliver all records, equipment and materials to Metro COG within 24 hours of the date of termination. XV LIMITATION ON CONSULTANT All reports and pertinent data or materials are the sole property of Metro COG and may not be used, reproduced or released in any form without the explicit, written permission of Metro COG. Consultant should expect to have access only to the public reports and public files of local governmental agencies and Metro COG in preparing the proposal or reports. No compilation, tabulation or analysis of data, definition of opinion, etc., should be anticipated by the consultant from the agencies, unless volunteered by a responsible official in those agencies. XVI CONFLICT OF INTEREST Metro COG reserves the right at any time to preclude offering a work assignment to a Contractor should a real, apparent or potential conflict of interests exists as determined by Metro COG. No consultant, subcontractor or member of any firm proposed to be employed in the preparation of this proposal shall not have a past, ongoing or potential involvement which could be deemed a conflict of interest under North Dakota Century Code or other law. During the term of this Agreement, the consultant shall not accept any employment or engage in any consulting work that would create a conflict of interest with Metro COG or in any way compromise the services to be performed under this agreement. The consultant shall immediately notify Metro COG of any and all potential violations of this paragraph upon becoming aware of the potential violation. XVII INSURANCE The successful firm or individual shall provide evidence of insurance as stated in the contract prior to execution of the contract. Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 15

16 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 Exhibit A Cost Proposal Form Cost Proposal Form Include completed cost form (see below) in a separate sealed envelope labeled Sealed Cost Form Vendor Name and submit with concurrently with the technical proposal as part of the overall RFP response. The cost estimate should be based on a not to exceed basis and may be further negotiated by Metro COG up identification of the most qualified Contractor. Changes in the final contract amount and contract extensions are not anticipated. REQUIRED BUDGET FORMAT Summary of Estimated Project Cost 1. Direct Labor Hours x Rate = Project Cost Total Name, Title, Function 0.00 x 0.00 = x = x = Subtotal 2. Overhead/Indirect Cost (expressed as indirect rate x direct labor) = Subcontractor Costs Materials and Supplies Costs Travel Costs Fixed Fee Miscellaneous Costs Total Cost = Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 16

17 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 Exhibit B - Debarment of Suspension Certification Background and Applicability In conjunction with the Office of Management and Budget and other affected Federal agencies, DOT published an update to 49 CFR Part 29 on November 26, This government-wide regulation implements Executive Order 12549, Debarment and Suspension, Executive Order 12689, Debarment and Suspension, and 31 U.S.C note (Section 2455, Public Law , 108 Stat. 3327). The provisions of Part 29 apply to all grantee contracts and subcontracts at any level expected to equal or exceed $25,000 as well as any contract or subcontract (at any level) for federally-required auditing services (49 CFR (b)). This represents a change from prior practice in that the dollar threshold for application of these rules has been lowered from $100,000 to $25,000. These are contracts and subcontracts referred to in the regulation as covered transactions. Grantees, contractors, and subcontractors (at any level) that enter into covered transactions are required to verify that the entity (as well as its principals and affiliates) they propose to contract or subcontract with is not excluded or disqualified. They do this by (a) Checking the Excluded Parties List System, (b) Collecting a certification from that person, or (c) Adding a clause or condition to the contract or subcontract. This represents a change from prior practice in that certification is still acceptable but is no longer required (49 CFR ). Grantees, contractors, and subcontractors who enter into covered transactions also must require the entities they contract with to comply with 49 CFR 29, subpart C and include this requirement in their own subsequent covered transactions (i.e., the requirement flows down to subcontracts at all levels). Instructions for Certification: By signing and submitting this bid or proposal, the prospective lower tier participant is providing the signed certification set out below. Suspension and Debarment This contract is a covered transaction for purposes of 49 CFR Part 29. As such, the contractor is required to verify that none of the contractor, its principals, as defined in 49 CFR , or affiliates, as defined at 49 CFR , are excluded or disqualified as defined at 49 CFR and The contractor is required to comply with 49 CFR 29, Subpart C and must include the requirement to comply with 49 CFR 29, Subpart C in any lower tier covered transaction it enters into. By signing and submitting its bid or proposal, the bidder or proposer certifies as follows: The certification in this clause is a material representation of fact relied upon by the recipient. If it is later determined that the bidder or proposer knowingly rendered an erroneous certification, in addition to remedies available to the recipient, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The bidder or proposer agrees to comply with the requirements of 49 CFR 29, Subpart C while this offer is valid and throughout the period of any contract that may arise from this order. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions. Contractor Signature of Authorized Official Date / / Name & Title of Contractor s Authorized Official Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 17

18 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 Exhibit C - Certification of Restriction on Lobbying I, hereby certify on (Name and Title of Grantee Official) behalf of that: (Name of Bidder / Company Name) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. If any funds other than Federal appropriated funds have been paid or will be paid to any person influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form - LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S. Code 1352 (as amended by the Lobbying Disclosure Act of 1995). Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. The undersigned certifies or affirms the truthfulness and accuracy of the contents of the statements submitted on or with this certification and understands that the provisions of 31 U.S.C. Section 3801, et seq., are applicable thereto. Name of Bidder / Company Name Type or print name Signature of authorized representative Date / / (Title of authorized official) Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 18

19 Request for Proposals (RFP) Contracted Annual Audit Services for 2017, 2018 and 2019 Exhibit D Certification of Final Indirect Costs Firm Name: Proposed Indirect Cost Rate: Date of Proposal Preparation (mm/dd/yyyy): Fiscal Period Covered (mm/dd/yyyy to mm/dd/yyyy): I, the undersigned, certify that I have reviewed the proposal to establish final indirect cost rates for the fiscal period as specified above and to the best of my knowledge and belief: 1. All costs included in this proposal to establish final indirect cost rates are allowable in accordance with the cost principles of the Federal Acquisition Regulations (FAR) of title 48, Code of Federal Regulations (CFR), part This proposal does not include any costs which are expressly unallowable under the cost principles of the FAR of 48 CFR 31. All known material transactions or events that have occurred affecting the firm's ownership, organization and indirect cost rates have been disclosed. Signature: Name of Certifying Official (Print): _ Title.: _ Date of Certification (mm/dd/yyyy): _ Request for Proposals for Contracted Annual Audit Services for 2017, 2018 and 2019 FM Metropolitan Council of Governments 19

20 Exhibit E Federal Clauses

21 Federal Clauses

22 Fly America Requirements Applicability all contracts involving transportation of persons or property, by air between the U.S. and/or places outside the U.S. These requirements do not apply to micro-purchases ($3,000 or less, except for construction contracts over $2,000). Contractor shall comply with 49 USC (the Fly America Act) in accordance with General Services Administration regulations 41 CFR , stating that recipients and subrecipients of Federal funds and their contractors are required to use US Flag air carriers for US Government-financed international air travel and transportation of their personal effects or property, to the extent such service is available, unless travel by foreign air carrier is a matter of necessity, as defined by the Fly America Act. Contractor shall submit, if a foreign air carrier was used, an appropriate certification or memorandum adequately explaining why service by a US flag air carrier was not available or why it was necessary to use a foreign air carrier and shall, in any event, provide a certificate of compliance with the Fly America requirements. Contractor shall include the requirements of this section in all subcontracts that may involve international air transportation. Seismic Safety Construction of new buildings or additions to existing buildings. These requirements do not apply to micropurchases ($3,000 or less, except for construction contracts over $2,000). Contractor agrees that any new building or addition to an existing building shall be designed and constructed in accordance with the standards required in USDOT Seismic Safety Regulations 49 CFR 41 and shall certify compliance to the extent required by the regulation. Contractor shall also ensure that all work performed under this contract, including work performed by subcontractors, complies with the standards required by 49 CFR 41 and the certification of compliance issued on the project. Energy Conservation All Contracts except micro-purchases ($3,000 or less, except for construction contracts over $2,000) Contractor shall comply with mandatory standards and policies relating to energy efficiency, stated in the state energy conservation plan issued in compliance with the Energy Policy & Conservation Act. Clean Water All Contracts and Subcontracts over $100,000 Contractor shall comply with all applicable standards, orders or regulations issued pursuant to Section 508 of the Clean Water Act, as amended, 33 U.S.C. 1368, and other requirements of the Clean Water Act, as amended, 33 U.S.C Contractor shall report each violation to the recipient and understands and agrees that the recipient shall, in turn, report each violation as required to FTA and the appropriate EPA Regional Office. Contractor shall include these requirements in each subcontract exceeding $100,000 financed in whole or in part with FTA assistance. Lobbying Construction/Architectural and Engineering/Acquisition of Rolling Stock/Professional Service Contract/Operational Service Contract/Turnkey contracts over $100,000 Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352, as amended by the Lobbying Disclosure Act of 1995, P.L [to be codified at 2 U.S.C. 1601, et seq.] - Contractors who apply or bid for an award of $100,000 or more shall file the certification required by 49 CFR part 20, "New Restrictions on Lobbying." Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C Each tier shall also disclose the name of any registrant under the Lobbying Disclosure Act of 1995 who has made lobbying contacts on its behalf with non- Federal funds with respect to that Federal contract, grant or award covered by 31 U.S.C Such disclosures are forwarded from tier to tier up to the recipient.

23 Access to Records and Reports Applicability As shown below. These requirements do not apply to micro-purchases ($3,000 or less, except for construction contracts over $2,000) The following access to records requirements apply to this Contract: 1. Where the purchaser is not a State but a local government and is an FTA recipient or a subgrantee of FTA recipient in accordance with 49 CFR 18.36(i), contractor shall provide the purchaser, the FTA, the US Comptroller General or their authorized representatives access to any books, documents, papers and contractor records which are pertinent to this contract for the purposes of making audits, examinations, excerpts and transcriptions. Contractor shall also, pursuant to 49 CFR , provide authorized FTA representatives, including any PMO contractor, access to contractor's records and construction sites pertaining to a capital project, defined at 49 USC 5302(a)1, which is receiving FTA assistance through the programs described at 49 USC 5307, 5309 or Where the purchaser is a State and is an FTA recipient or a subgrantee of FTA recipient in accordance with 49 CFR , contractor shall provide the purchaser, authorized FTA representatives, including any PMO Contractor, access to contractor's records and construction sites pertaining to a capital project, defined at 49 USC 5302(a)1, which receives FTA assistance through the programs described at 49 USC 5307, 5309 or By definition, a capital project excludes contracts of less than the simplified acquisition threshold currently set at $100, Where the purchaser enters into a negotiated contract for other than a small purchase or under the simplified acquisition threshold and is an institution of higher education, a hospital or other non-profit organization and is an FTA recipient or a subgrantee of FTA recipient in accordance with 49 CFR 19.48, contractor shall provide the purchaser, the FTA, the US Comptroller General or their authorized representatives, access to any books, documents, papers and record of the contractor which are directly pertinent to this contract for the purposes of making audits, examinations, excerpts and transcriptions. 4. Where a purchaser which is an FTA recipient or a subgrantee of FTA recipient in accordance with 49 USC 5325(a) enters into a contract for a capital project or improvement (defined at 49 USC 5302(a)1) through other than competitive bidding, contractor shall make available records related to the contract to the purchaser, the Secretary of USDOT and the US Comptroller General or any authorized officer or employee of any of them for the purposes of conducting an audit and inspection. 5. Contractor shall permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. 6. Contractor shall maintain all books, records, accounts and reports required under this contract for a period of not less than three (3) years after the date of termination or expiration of this contract, except in the event of litigation or settlement of claims arising from the performance of this contract, in which case contractor agrees to maintain same until the recipient, FTA Administrator, US Comptroller General, or any of their authorized representatives, have disposed of all such litigation, appeals, claims or exceptions related thereto. Re: 49 CFR 18.39(i)(11). FTA does not require the inclusion of these requirements in subcontracts. Federal Changes All Contracts except micro-purchases ($3,000 or less, except for construction contracts over $2,000) Contractor shall comply with all applicable FTA regulations, policies, procedures and directives, including without limitation those listed directly or by reference in the Master Agreement between the purchaser and FTA, as they may be amended or promulgated from time to time during the term of the contract. Contractor's failure to comply shall constitute a material breach of the contract.