HomeMy WebLinkAboutContract 34105:�f �l' ��t'`(��'T�,�Y
`'° ;
, �
� � � r�����
� , p V _ .
PROFESSIONAL SERVICES AGREEMENT
This Services Agreement ("Agreement") is effective as of the 29th day of September,
2006 ("Effective Date"), by and between the City of Fort Worth, Texas, a home rule
municipal corporation situated in Tarrant, Denton, and Wise Counties, Texas
(hereinafter referred to as "Client") and MAXIMUS, Inc. (hereinafter referred to as
"MAXIMUS") with reference to the following:
WHEREAS, Client requires the services to implement certain recommendations
resulting from an operational review of its Finance Department; and
WHEREAS, MAXIMUS has the requisite experience and expertise and is willing to
provide such services.
NOW, THEREFORE, in consideration of the mutual terms, conditions and covenants
set forth herein, the parties agree as follows:
1. SCOPE OF SERVICES
Client hereby engages MAXIMUS to perform the services as described Exhibit A, Scope
of Services. During the term of this Agreement Client may request changes in the
Scope of Services. Any such change, including any increase or decrease in the amount
of MAXIMUS' compensation, requires the mutual agreement of the parties and shall be
effective when incorporated by written amendment to this Agreement.
2. COMPENSATION AND METHOD OF PAYMENT
Client agrees that compensation and method of payment to MAXIMUS shall be
according to Exhibit B, Cost and Fee Schedule. The maximum amount to be paid to
MAXIMUS for all professional services performed hereunder shall be $59,100.00. In
addition, Client will reimburse MAXIMUS up to $1,200.00 for allowable direct expenses.
MAXIMUS shall submit monthly invoices to the Client in sufficient detail to support the
services provided during the previous month. Client agrees to pay those invoices within
thirty (30) days of receipt. In the event the Client disputes a portion of an invoice, the
Client agrees to pay the undisputed portion of the invoice within thirty (30) days of
receipt and to provide MAXIMUS a detailed statement of the Client's position on the
disputed portion of the invoice within thirty (30) days of receipt. Client's failure to pay
any amount of an invoice that is not the subject of a good-faith dispute within thirty (30)
days of receipt shall entitled MAXIMUS to charge interest on the overdue portion at the
lower of 1.5% per month or the highest rate permitted by law.
3. TERM OF CONTRACT
Unless terminated pursuant to Section 7 and/or 8 hereof, the term of this Agreement
shall be one year from the Effective Date, or until completion of the subject matter�
������w� ������
�!� ������AQY
�1, ���i�, �l(.
contemplated herein, whichever occurs first.
4. RESPONSIBILITIES
A. The parties understand and agree that the Client is providing certain personnel
resources and facilities to MAXIMUS in connection with selected tasks under this
Agreement and MAXIMUS is relying on the availability of such resources. The Client
shall provide these resources in a timely manner and represents that the personnel
resources are appropriately qualified and capable of perForming the assigned tasks.
B. MAXIMUS shall document all costs by maintaining complete and accurate
records of all financial transactions associated with this Agreement, including, but not
limited to, invoices and other official documentation which sufficiently support all
charges under this Agreement.
C. MAXIMUS shall retain financial, programmatic, client data and other service
records for three (3) years from the date services are completed.
5. RIGHTS IN DATA
Client shall have a perpetual, nontransferable, paid-up right and license for purposes of
its internal business to use, copy, modify and prepare derivative works of the deliverable
items developed by MAXIMUS in the course of the services pursuant to this Agreement,
whether jointly or individually, subject to the Confidentiality provisions of this Agreement.
6. INDEPENDENT CONTRACTORS
A. This Agreement shall not constitute, create, or otherwise imply an employment,
joint venture, partnership, agency or similar arrangement, and nothing contained herein
shall be construed as providing for the sharing of profits or losses arising from the
efforts of either or both of the parties hereto. Each party to this Agreement shall act as
an independent contractor, and neither party shall have the power to act for or bind the
other party except as expressly provided for herein. MAXIMUS assumes sole
responsibility for determining the manner and means of perFormance hereunder.
B. MAXIMUS and its employees shall not be eligible for any benefit available to
employees of Client, including, but not limited to, workers compensation insurance,
state disability insurance, unemployment insurance, group health and life insurance,
vacation pay, sick pay, severance pay, bonus plans, pension plans, savings plans and
the like.
C. No income, social security, state disability or other federal or state payroll tax
shall be deducted from payments made to MAXIMUS under this Agreement. MAXIMUS
agrees to pay all state and federal income taxes and other levies and charges as they
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 2 of 15
become due on account of monies paid to MAXIMUS hereunder, and to defend,
indemnify and hold Client harmless from and against any and all liability resulting from
any failure to do so.
D. MAXIMUS' services shall be exempt from State sales, use or similar taxes.
However, in the event any such taxes are applicable to this contract, such taxes shall be
treated as a reimbursable business expense under the terms of this Agreement.
E. MAXIMUS may provide services to others during the same period MAXIMUS
provides service to Client under this Agreement.
7. TERMINATION FOR CONVENIENCE
A. Client may terminate this Agreement for its convenience at any time by giving at
least thirty days notice in writing to MAXIMUS. In the event of termination pursuant to
this Section, MAXIMUS shall be entitled to receive payment for all work completed or in
progress, and for costs reasonably incurred to close out its services. Compensation is to
include fees, expenses, and liabilities to subconsultants or other third parties.
Consultant will make reasonable attempts to cancel all such liabilities in order to
mitigate the cost to Client. If this Agreement is terminated due to the fault of MAXIMUS,
Section 8 hereof relative to termination shall apply.
B. This Agreement may be terminated by the Client if all or part of applicable funding
becomes unavailable to the Client. If applicable funding is reduced, Client may either
cancel this Agreement or offer a contract amendment reflecting the reduced funding. If
this Agreement is cancelled, Client agrees to reimburse MAXIMUS for all expenditures
made in good faith that are unpaid at the time of termination, including all work products
completed or in-process, and for the time required to discontinue onsite activities in an
orderly manner, not to exceed the maximum amount payable under this Agreement.
8. TERMINATION FOR DEFAULT
Either party shall have the right to terminate this Agreement if the other party is in
default of any obligation hereunder and such default is not cured within thirty (30) days
of receipt of a written notice specifying such default. In the event of such a termination,
Client shall reimburse MAXIMUS for all work completed to such termination.
9. LIMITATION OF LIABILITY
In no event shall MAXIMUS be liable for special, indirect, incidental, economic,
consequential or punitive damages even if MAXIMUS has been advised of the likelihood
of such damages. Client agrees that MAXIMUS' total liability to Client or any third party
for any and all damages whatsoever arising out of or in any way related to this
Agreement from any cause, including but not limited to contract liability or MAXIMUS
negligence, errors, omissions, strict liability, breach of contract or breach of warranty
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 3 of 15
@lr����Ei!� ���V��
�� ��������
�. �'�?���, ����,
shall not, in the aggregate, exceed the four times fees paid to MAXIMUS hereunder.
10. INSURANCE
MAXIMUS shall maintain the following insurance during the term of this Agreement:
A. Worker's Compensation and Employer's Liability Insurance in accordance with
applicable law.
B. Commercial General Liability Insurance on a per occurrence basis with limits of
liability not less than $1,000,000 per occurrence and aggregate combined single limit,
Personal Injury, Bodily Injury and Property Damage.
C. Automobile Liability Insurance with limits of liability of not less than $1,000,000
per occurrence combined single limit including Bodily Injury and Property Damage.
Coverage shall include all owned vehicles, all non-owned vehicles, and all hired
vehicles.
D. Professional Errors and Omissions Insurance which shall include Consultant's
Computer Errors and Omissions Coverage, with limits not less than $1,000,000 per
claim and in the aggregate.
11. INDEMNIFICATION
MAXIMUS agrees to defend, indemnify and hold harmless Client and its officials, agents
and employees from and against third party claims, actions, suits or proceedings
brought against said parties to the extent caused by the negligent act, error, or omission
of MAXIMUS or anyone for whom it is legally liable in the performance of services
hereunder. MAXIMUS is not required hereunder to defend, indemnify and hold
harmless Client from liability resulting from its negligence or wrongful acts. The
indemnity required hereunder shall not be limited by reason of the specification of any
particular insurance coverage in this Agreement.
12. NON-SOLICITATION
The parties agree that, during the term of this Agreement and for a period of one year
from the termination of this Agreement, neither party will solicit for employment or
otherwise attempt to hire any employees of the other party or its affiliates who were
involved in the performance or direct oversight of this Agreement without the prior
written consent of such party.
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 4 of 15
���� �v �_ .
^ � • � l '.�;'�� �:9 f::�
u � Ir:
��� ����� `���
� �'g�l�� 15i1.
13. COMPLIANCE WITH LAW
A. In rendering services under this Agreement, MAXIMUS shall comply with all
applicable federal, state and local laws, rules and regulations pertaining to equal
employment opportunity and shall not discriminate based on age, ancestry, color,
gender, marital status, medical condition, national origin, physical or mental disability,
race, religion or sexual orientation.
B. MAXIMUS will comply with all applicable federal, state and local laws, rules and
regulations regarding the maintenance of a drug-free workplace.
14. CONFIDENTIALITY
MAXIMUS agrees that all information disclosed by the Client to MAXIMUS shall be held
in confidence and used only in perFormance under this Agreement. MAXIMUS shall
exercise the same standard of care to protect such information as is used to protect its
own proprietary or trade secret information.
Client understands and agrees that it may have access to confidential or proprietary
information, processes or documentation owned or controlled by MAXIMUS. Client
understands and agrees that disclosure or use of such information, processes or
documentation may violate MAXIMUS' trademarks, copyrights or other proprietary
rights. Client agrees to exercise reasonable standards of care to protect such
information, processes or documentation.
15. INSPECTION
Authorized representatives of Client may inspect or audit MAXIMUS' performance and
records pertaining to this Agreement at the MAXIMUS business office during normal
business hours.
16. ASSIGNMENT
Neither party shall assign or transfer this Agreement nor any duties or obligations
hereunder without the prior written approval of the other party.
17. NOTICES
All notices under the Agreement will be in writing and will be delivered by personal
service, facsimile or certified mail, postage prepaid, or overnight courier to such address
as may be designated from time to time by the relevant party, which initially shall be the
address set forth below:
Services Agreement
Fort Worth Finance Dept. �, �I� �, � r ��„ ��
RecommendationImplementation ��Y�l�i�W�1 �ii�C�l'�i�l�l
Page 5 of 15 �+�'� �(���O��i ��
f li G:�"v�(9�� 1���
CLIENT
City of Fort Worth
1000 Throckmorton Street
Fort Worth, Texas 76102
Karen L. Montgomery
Assistant City Manager/Chief
Financial Officer
MAXIMUS
David W. Eisenlohr
Sr. Vice President
13601 Preston Road, Suite 201 E
Dallas, TX 75240
Any notice sent by certified mail will be deemed to have been given five (5) days after
the date on which it is mailed. All other notices will be deemed given when received. No
objection may be made to the manner of delivery of any notice actually received in
writing by an authorized agent of a party.
18. GOVERNING LAW
If any action, whether real or asserted, at law or in equity, arises on the basis of any
provision of this Agreement, venue for such action shall lie in state courts located in
Tarrant County, Texas or the United States District Court for the Northern District of
Texas — Fort Worth Division. This Agreement shall be construed in accordance with the
laws of the State of Texas.
19. SURVIVAL
Notwithstanding the expiration or early termination of this Agreement, the provisions
hereof pertaining to Confidentiality and Non-Solicitation shall survive.
20. SEVERABILITY
If any provision of the Agreement is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remaining provisions shall nevertheless continue in
full force without being impaired or invalidated in any manner.
21. FORCE MAJEURE
Neither party shall be liable hereunder by reason of any failure or delay in the
performance of its obligations hereunder (except for the payment of money) on accour�t
of strikes, shortages, riots, insurrection, fires, flood, storm, explosions, earthquakes,
acts of God, war, governmental action, labor conditions, material shortages or any other
cause which is beyond the reasonable control of such party.
22. WAIVER
No provision of the Agreement may be waived unless in writing, signed by both of the
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementarion
Page 6 of 15
parties hereto. Waiver of a breach of any provision of the Agreement shall not operate
or be construed as a waiver of any subsequent breach of such provision, nor shall a
waiver of any one provision of the Agreement be deemed to be a waiver of any other
provision.
23. AMENDMENTS, SUPPLEMENTS
The Agreement may be amended or supplemented only by the mutual written consent
of the parties' authorized representatives.
24. BINDING EFFECT, BENEFITS
The Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective successors and assigns. Notwithstanding anything contained in the
Agreement to the contrary, nothing in the Agreement, expressed or implied, is intended
to confer on any person other than the parties hereto or their respective successors and
assigns, any rights, remedies, obligations or liabilities under or by reason of the
Agreement.
25. HEADINGS
The Section headings in the Agreement are inserted only as a matter of convenience,
and in no way define, limit, or extend or interpret the scope of the Agreement or of any
particular Article or Section.
26. AUTHORIZATION
Each of the parties represents and warrants that the Agreement is a valid and binding
obligation enforceable against it and that the representative executing the Agreement is
duly authorized and empowered to sign the Agreement.
27. COUNTERPARTS
The Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and #he
same instrument.
28. ENTIRE AGREEMENT
The Agreement and any schedules and exhibits thereto contain the entire agreement
and understanding of the parties with respect to the subject matter hereof, and
supersedes and replaces any and all prior discussions, representations and
understandings, whether oral or written.
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 7 of 15
���n I � �
17���.t:� �:���:' : T.
�li� '����?�`�```:�;.'�:.
rl� ���UGl9�� I�G\��
29. MINORITY and WOMEN BUSINESS (M/WBE) PARTICIPATION
In accord with City of Fort Worth Ordinance No. 15530 the City has goals for the
participation of minority and woman business enterprises in City contracts. Consultant
acknowledges the M/WBE goal established for this Contract and its commitment to
meet that goal. Any misrepresentation of facts (other than a negligent
misrepresentation) and/or the commission of fraud by the Consultant may result in the
termination of this Contract and debarment from participating in City contracts for a
period of time of not less than three (3) years.
(Remainder of page intentionally left blank.)
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 8 of 15
IN WITNESS WHEREOF, the parties have executed this Agreement through their duly
authorized representatives.
MAXIMUS
r
David W. �isenlohr
Senior Vice President
APPRQ�VED AS TO FORM AND
LEG/�cL�TY: ^
A4�'i J' R s ' �
Assistant City Attorney
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
City of Fort Worth
,-�� % _�? �
; , � ; �, � ��i�
��J=��-�-'_r �7 , � � ;i�� � ��(���'�! _-��L
�� `
Karen L. Montgomery ��J
Assistant City Manager/Chief Financial
Officer
ATTEST:
Marty Hendri
City Secretary
Contract Authorization: M&C C-�'�OCp
Date: j(,�(�/o(P
'�I���v1J`-�L ;;�?��� ���.:;
Page 9 of 15 ���' ��� �I ��';1� ��(^
�� ������� ��i��
EXHIBIT A
SCOPE OF SERVICES
September 25, 2006
Ms. Karen Montgomery
Mr. Richard Zavala
City Manager's Office
1000 Throckrriorton Street, Lower Level
Forth Worth, Texas 76102
Dear Ms. Montgomery:
Based on my recent conversations with Mr. Zavala, MAXIMUS, Inc., together with the Webb Watch
Corporation, is pleased to submit this letter outlining our proposal to provide implementation support
services in connection with the recently completed Operations Review of the Fort Worth Finance
Department.
As you both lrnow, the Finance Department is facing a crisis of confidence and is in urgent need of
effective interventions to correct identified problems, capture new opportunities and restare its stature
within both the organization and the community. We were privileged to help the City develop a roadmap
to follow and now look forward to supporting your continuing efforts to achieve meaningful
improvements in performance. We have given considerable thought to how we might best serve you and
this letter describes our recommended approach, includes a menu of services we could furnish and
describes our value proposition.
Imnlementation Supuort Approach
MAXIMUS and Webb Watch together provide the resources and specific governmental operations,
�nancial management and governmental accounting expertise to deliver high-quality and responsive
support to the City's implementation efforts. We have carefully reviewed the findings and
recommendations of the Operations Review and believe that our time and resources can add the most
value, at the City's option, in the following areas:
• Periodic consultation and independent verification / validation of the City staff's progress on their
implementation program. This will include development of a detailed master calendar of
accounting activities, accountabilities, deadlines and standards
• Consultation and project management oversight for Finance staff assigned to develop a
comprehensive policy and procedures manual, quality assurance program and cyclical internal
controls review process
Services Agreement
Fort Worth Finance Dept. ��, �-j-�=n ,i= o., �� o, j
Recommendation Implementation ��S ��='�L,� L ���`'�'J��
Page 10 of 15 ���'`� ����� �+ S�
�, �������, ���.
• Development and delivery of a training program for all Finance and Accounting professionals to
prepare them to take meaningful responsibility for the design and monitoring of an effective
system of internal controls
• Specific follow up research and analysis of all areas of potential control weakness identified in
the Webb Watch data analysis with a particular focus on purchasing — including, especially, the
City's purchasing card program — as well as payables, payroll and treasury operations
We also understand that it is the City's intention to assume direct responsibility for a number of the other
taslcs in the project implementation plan included in the Operations Review Report such as the
development of an enterprise rislc management program, the development of a comprehensive
competency model, support in the formation of the City Council Audit Committee and other taslcs.
We believe that the tasks to be assigned to our team, as well as others which may subsequently be added,
are all essential to the successful transformation of the Finance Department and that an aggressive "full
court press" is necessary. The below describes each of these implementation support project, provides a
brief description, and indicates the lead consultant for each.
Implementation Support Description Responsible
Project Consultant
1. Independent verification / The City staff, under the du-ection of the Acting Finance MAXIMUS and
validation of implementation Directar and under the direction of the ACM / CFO, will have Webb Watch
progress and development of the lead role in the refinement of the implementation plan and in
a detailed master calendar of its execution. This will include the development and publication
accounting activities. of a detailed implementation timetable, deadlines and
accountabilities. Importantly, it will also include a process for
regular progress reporting to the City Council and the public.
The MAXIMUS / Webb Watch team proposes to provide
independent verifcation and validation of the progress reports,
including our own "stoplight (green, yellow, red)" to assess the
adequacy of the progress made and to identify and evaluate
potential risks to the successful accomplishment of the
implementation plan and the timeliness of its completion.
We would expect to attend bi-weekly meetings of the
implementation team, to review reports and documentation,
perform interviews and observations as required and to attend
and independently present our progress assessments to executive
management and the City Council
2. Comprehensive policy This project involves the provision of consultarive and quality Webb Watch
and procedures manual, assurance support to City staff teams assigned to the
quality assurance program development of a comprehensive accounting procedures
and cyclical internal controls manual, the design of an effective internal QA review program
review process. for key Finance functions and the development of a proactive
program for the review and testing of internal control relevance
and effectiveness as a strategy to mitigate the City's risk of
future undetected failures in the control environment. This
project addresses multiple known risks within the Finance
Deparrinents operations.
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 11 of 15
Implementation Support Description Responsible
Project Consultant
3. Internal controls h�aining COSO requires that financials managers at alllevels of the Webb Watch
for Finance staff. organization be provided training necessary to ensure a"sound
understand'mg of the essential components of a comprehensive
framework of internal conri•ol."
This project requires that a formal training cui�riculum be
developed in appropriate detail for executive and operational
management, centralized fmance staff and financial / fiscal
administrators operating within the City's decentralized model.
Once developed, we would expect to deliver a minimum of five
training sessions, plus a"h-ain the h-ainer" model, along with
supporting materials, to facilitate the Finance Deparlment's
future training of Deparhnental financial and operational
managers.
4. Follow up research and The Webb Watch Coiporation identified tlu�ough its Proactive Webb Watch
analysis of all areas of Detection Tecluiique data analysis a number of indicators of
identified potential control potential conri-ol weakness in the payable, payroll and cash
weakness. management area. In addition, there have been recent, highly
publicized problems with other governments with conhols on
the usage of purchasing card technology. This project involves
the completion of additional, more detailed investigation of
these areas of potential control weakness, working with and
tluough the appropriate City staf£ It also includes a new
detailed analysis and evaluation of the effectiveness and
conh�ols in place around the purchasing card program
Proiect Bud�ets
The table below shows our proposed fees and expenses for each of the individual proj ects described
above.
Implementation Support Pricing Basis / Assumptions Professional
Project Fees*
1. Provide independent • Attendance at bi-weekly implementation status meetings $20 000
,
verification / validation of • Monthly preparation of an independent report on
implementation progress and implementation progress
development of a detailed • Up to 20 hours per month
master calendar of � Three months of support
accounting activities.
2. Comprehensive policy • Primary drafting and program development to be $17,500
and procedures manual, accomplished by assigned City of Fort Worth staff
quality assurance program • Consultative services, review and quality control support
and cyclical internal controls to be provided through Webb Watch
review process. • Estimated project duration of 4 months, with 16 hours of
effort from Webb Watch Corporation each month
3. Internal controls training • 40 hours program design $21,600
• 4 hours per session
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 12 of 15
� �������� ������
�I� ��������
�. �`�ibl��� �����
Implementation Support Pricing Basis / Assumptions Professional
Project Fees*
for Finance staff. • 10 sessions
4. Follow up research and • Hourly rate of $275 Not to exceed
analysis of all areas of • At the City's discretion 160 total hours
identified potential conh-ol • No work will be performed unless and until directed in of effort
weakness. writing by the City. without a
formal conh�act
amendment
* Yrotessional tees only. ll�rect expenses w�ll be b��lea on an actua� cos[ nas�s.
M/WBE Involvement
MAXIMUS understands and supports the City of Fort Worth's commitment to inclusion of small,
minority and women owned enterprises in its cont�-acting opportunities. We further understand that the
participation goal for this conhact has been established at 5%. We commit to the City of Fort Worth that,
if approved, we will malce a good faith effort meet or exceed that goal.
As we have in the past on other contracts with the City of Fort Worth, MAXIMUS will employ the firm
of Business and Professional Staffing, a NCTRCA certified woman owned company, to provide resources
to the project team. Business Professional Staffing was founded in 1988 to provide accounting and
administrative staffing to companies and public sector agencies throughout the DlFW Metroplex.
Mare speciiically, Ms. Shirley Sewell, who has worked with MAXIMiJS for many years through our
relationship with Business Professional Staffing, will be assigned to and an active member of our project
team for implementation support effort. Ms. Sewell will function as an integral part of the project team,
with specific responsibilities including, but not limited to, the following:
• Periodic attendance at implementation status meetings
• Preparation and review of implementation status reports
• Review of draft policies and procedures
• Participation in follow up research assignments if and as we are directed to provide such services.
Based on our project budget, a minimum of $3,000 for Ms. Sewell from Business Professional Staffing is
planned. The company's contact information is:
Business Professional Staffing
13601 Preston Rd., Suite 701 W
Dallas, Texas 75240
(972) 991-0041
Our Value Proposition
We believe that MAXIMUS and Webb Watch together can add considerable value in support of your
implementation effort. We can help keep the team focused on priorities and risks, we can provide deep
functional and technical knowledge of governmental accounting and reporting, financial management and
operations. Importantly, we also bring a sophisticated understanding of the business of local government
and the particular circumstances facing the City of Fort Worth.
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 13 of 15
�����;�%'i� ���;i�'i�
■pr,� ■���/ ��\'2C ���11!��Iu'f�', o�\}I,'�
V •• L:. J iu �+ Y%Y 1� Y,
� �.- -, �� 1! g �
T�7'+: i�� I ,
� `.%�1. J�� 9�.�V�
A very tangible part of the value we bring to the implementation support project is the fact that we have
no learning curve to navigate. As the authors of the Operations Review report, we have already invested
significant ainounts of time and t�esources to becoming very fatniliar with the oiganization, processes,
people and challenges of the Finance Departinent. Our estimate of the dollar benefit of our pre-existing
understanding, knowledge and data pi•eviously collected is approximately $30,000 -$35,000. This
estimate is derived from the hours expended in initial interviews and data gathering, a portion of the
analytical work after the data was collected, and the cost of the Webb Watch data analysis used to identify
potential control weaknesses.
Should you have any questions or desire any further information, please feel free to contact me at your
convenience at (972) 490-9990.
Sincerely,
l
David Eisenlohr
Senior Vice President
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
Page 14 of 15
EXHIBIT B
COST AND FEE SCHEDULE
Proiect Budgets
The table below shows our proposed fees and expenses for each of the individual proj ects described
above.
Implementation Support Pricing Basis / Assumptions Professional
Project Fees*
1. Provide independent • Attendance at bi-weekly implementation status meetings $20,000
verification / validation of • Monthly preparation of an independent report on
implementation progress and implementation progress
development of a detailed • Up to 20 hours per month
master calendar of • Three months of support
accounting activities.
2. Comprehensive policy • Primary drafting and program development to be $17,500
and procedures manual, accomplished by assigned City of Fort Worth staff
quality assurance program • Consultative services, review and quality control support
and cyclical internal controls to be provided through Webb Watch
review process. • Estimated project duration of 4 months, with 16 hoius of
effort from Webb Watch Corporation each month
3. Inteinal conh-ols training • 40 hours program design $21,600
for Finance staf£ • 4 hours per session
• 10 sessions
4. Follow up research and • Hourly rate of $275 Not to exceed
analysis of all areas of • At the City's discretion 160 total hours
identified potential conhol • No work will be performed unless and until directed in of effort
weakness. writing by the City. without a
formal contract
amendment
* Professional fees only. Direct expenses will be billed on an actual cost basis.
Services Agreement
Fort Worth Finance Dept.
Recommendation Implementation
ll�����W� �6����i �
Page 15 of 15 b11 Y���������
�Y, �°���'�, ����,
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/26/2006
DATE: Tuesday, September 26, 2006
LOG NAME: 13MAXIMUS OP REFERENCE NO.: ��C-21706
SUBJECT:
Authorize an Agreement with Maximus, Inc., for Professional Services to Assist with the
Implementation of Certain Finance Department Operational Review Recommendations
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an agreement with Maximus, Inc., for professional services to assist with the implementation
of certain recommendations from an operational review of the Finance Department; and
2. Authorize payment for services to Maximus, Inc., in an amount not to exceed $60,300.
DISCUSSION:
On January 24, 2006, (M&C C-21269) the City Council authorized the City Manager to enter into an
agreement with Maximus, Inc., to conduct an operational and performance review of the Finance
Department. The findings and recommendations from the review were presented to the City Council on
August 22, 2006. Due to the scope and magnitude of the implementation plan and the need to complete
the 2005 Comprehensive Annual Financial Report (CAFR), City staff recommends that the services of
Maximus, Inc., be retained to assist with the implementation of several of the recommendations.
It is proposed that Maximus, Inc., assist in:
1. Independent verification/validation of implementation progress and development of a detailed master
calendar of accounting activities including a implementation timetable, with deadlines, accountabilities and
progress reporting to Council.
2. Development of a comprehensive policy and procedures manual, quality assurance program and
cyclical internal controls review process including internal quality assurance review program for key finance
functions, as well as the development of a proactive program for the review and testing of internal controls.
3. Internal controls training for Finance Department managers, fiscal administrators and accountants, and
fiscal staff in other City departments. A minimum of five training sessions will be delivered, plus a"train the
trainer" session to allow the City to address future training needs.
Approval of this professional services agreement will enable staff to focus on other major recommended
operational and control changes, as well as completion of the 2005 Comprehensive Annual Financial
Report (CAFR). Immediately following the submission of the 2005 CAFR, work will need to begin on the
2006 CAFR. Maximus proposes to complete these services within a four month period. The proposed fee
for services is $59,100. In addition, any reimburseable expenses up to $1,200. City staff considers this to
be fair and reasonable.
Logname: SSSPINKS RAMP Page 1 of 2
M/WBE - Maximus, Inc., is in compliance with the City's M/WBE Ordinance by committing to 5 percent
M/WBE participation. The City's goal on this project is 5 percent.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations, funds are available in the
FY2007 operating budget, as appropriated, in the General Fund.
TO Fund/Account/Centers
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Logname: SSSPINKS RAMP
FROM Fund/Account/Centers
GG01 539120 0131010 $60,300.00
Karen Montgomery (6222)
Richard Zavala (Acting) (8313)
Richard Zavala (Acting) (8313)
Page 2 of 2