HomeMy WebLinkAboutJacobs Engineering Group AG-C-412Local Agency
Standard Consultant
- Agreement
Consultant/Address /Telephone
Jacobs Engineering Group, Inc.
600 — 108th Avenue NE
Suite 700
Bellevue, WA 98004
1 Architectural /Engineering Agreement
❑ Personal Service Agreement
A. reement Number
AG -C -412
Project Title And Work Description
On -Call Services - Utility Design
Federal Aid Number
N/A
Agreement Type (Choose one)
❑ Lump Sum
Lump Sum Amount $
❑ Cost Plus Fixed Fee
Overhead Progress Payment Rate
Overhead Cost Method
• Actual Cost
• Actual Cost Not To Exceed
%
DEB Participation
• Yes 0 No %
Federal ID Number or Social Security Number
95- 4081636
• Fixed Overhead Rate
%
Fixed Fee $
Do you require a 1099 for IRS?
• Yes I No
Completion Date
12/31/2012
O Specific Rates Of Pay
►/ Negotiated Hourly Rate
• Provisional Hourly Rate
❑ Cost Per Unit of Work
Total Amount Authorized $ 100,000.00
Management Reserve Fund $ 0.00
Maximum Amount Payable $ 100,000.00
Index of Exhibits (Check all that apply):
❑ Exhibit A -1 Scope of Work
® Exhibit A -2 Task Order Agreement
❑ Exhibit B -1 DBE Utilization Certification
® Exhibit C Electronic Exchange of Data
❑ Exhibit D -1 Payment — Lump Sum
❑ Exhibit D -2 Payment — Cost Plus
® Exhibit D -3 Payment — Hourly Rate
❑ Exhibit D -4 Payment — Provisional
LI Exhibit E -1 Fee — Lump/Fixed/Unit
® Exhibit E -2 Fee — Specific Rates
® Exhibit F Overhead Cost
® Exhibit G Subcontracted Work
❑ Exhibit G -1 Subconsultant Fee
❑ Exhibit G -2 Fee -Sub Specific Rates
❑ Exhibit G -3 Sub Overhead Cost
® Exhibit H Title VI Assurances
® Exhibit I Payment Upon Termination of Agreement
® Exhibit J Alleged Consultant Design Error Procedures
® Exhibit K Consultant Claim Procedures
❑ Exhibit L Liability Insurance Increase
® Exhibit M -la Consultant Certification
® Exhibit M -lb Agency Official Certification
® Exhibit M -2 Certification — Primary
® Exhibit M -3 Lobbying Certification
® Exhibit M -4 Pricing Data Certification
❑ App. 31.910 Supplemental Signature Page
THIS AGREEMENT, made and entered into this day of
Between the Local Agency of C /Ty 0 A✓$vrRnl , Washington, hereinafter called the "AGENCY ",
and the above organization hereinafter called the "CONSULTANT ".
DOT Form 140 -089 EF
Revised 3/2008
Page 1 of 8
WITNESSETH THAT:
WHEREAS, the AGENCY desires to accomplish the above referenced project, and
WHEREAS, the AGENCY does not have sufficient staff to meet the required commitment and therefore deems it
advisable and desirable to engage the assistance of a CONSULTANT to provide the necessary services for the PROJECT;
and
WHEREAS, the CONSULTANT represents that he /she is in compliance with the Washington State Statutes relating to
professional registration, if applicable, and has signified a willingness to furnish Consulting services to the AGENCY,
NOW THEREFORE, in consideration of the terms, conditions, covenants and performance contained herein, or attached
and incorporated and made a part hereof, the parties hereto agree as follows:
I General Description of Work
The work under this AGREEMENT shall consist of the above described work and services as herein defined and
necessary to accomplish the completed work for this PROJECT. The CONSULTANT shall furnish all services, labor, and
related equipment necessary to conduct and complete the work as designated elsewhere in this AGREEMENT.
II Scope of Work
The Scope of Work and projected level of effort required for this PROJECT is detailed in Exhibit "A" attached hereto and
by this reference made a part of this AGREEMENT.
III General Requirements
All aspects of coordination of the work of this AGREEMENT with outside agencies, groups, or individuals shall receive
advance approval by the AGENCY. Necessary contacts and meetings with agencies, groups, and /or individuals shall be
coordinated through the AGENCY. The CONSULTANT shall attend coordination, progress and presentation meetings
with the AGENCY and/or such Federal, State, Community, City or County officials, groups or individuals as may be
requested by the AGENCY. The AGENCY will provide the CONSULTANT sufficient notice prior to meetings requiring
CONSULTANT participation. The minimum required hours or days notice shall be agreed to between the AGENCY and
the CONSULTANT and shown in Exhibit "A."
The CONSULTANT shall prepare a monthly progress report, in a form approved by the AGENCY, which will outline in
written and graphical form the various phases and the order of performance of the work in sufficient detail so that the
progress of the work can easily be evaluated.
The CONSULTANT, and each SUBCONSULTANT, shall not discriminate on the basis of race, color, national origin, or
sex in the performance of this contract. The CONSULTANT, and each SUBCONSULTANT, shall carry out applicable
requirements of 49 CFR Part 26 in the award and administration of USDOT- assisted contracts. Failure by the
CONSULTANT to carry out these requirements is a material breach of this AGREEMENT that may result in the
termination of this AGREEMENT.
Participation for Disadvantaged Business Enterprises (DBE), if required, per 49 CFR Part 26, or participation of Minority
Business Enterprises (MBE), and Women Business Enterprises (WBE), shall be shown on the heading of this
AGREEMENT. If D/M/WBE firms are utilized, the amounts authorized to each firm and their certification number will be
shown on Exhibit `B" attached hereto and by this reference made a part of this AGREEMENT. If the Prime
CONSULTANT is a DBE firm they must comply with the Commercial Useful Function (CUF) regulation outlined in the
AGENCY'S "DBE Program Participation Plan ". The mandatory DBE participation goals of the AGREEMENT are those
established by the WSDOT'S Highway and Local Programs Project Development Engineer in consultation with the
AGENCY.
All Reports, PS &E materials, and other data furnished to the CONSULTANT by the AGENCY shall be returned. All
electronic files, prepared by the CONSULTANT, must meet the requirements as outlined in Exhibit "C."
All designs, drawings, specifications, documents, and other work products, including all electronic files, prepared by the
CONSULTANT prior to completion or termination of this AGREEMENT are instruments of service for this PROJECT,
and are the property of the AGENCY. Reuse by the AGENCY or by others, acting through or on behalf of the AGENCY
of any such instruments of service, not occurring as a part of this PROJECT, shall be without liability or legal exposure to
the CONSULTANT.
DOT Form 140 -089 EF Page 2 of 8
Revised 3/2008
IV Time for Beginning and Completion
The CONSULTANT shall not begin any work under the terms of this AGREEMENT until authorized in writing by the
AGENCY.
All work under this AGREEMENT shall be completed by the date shown in the heading of this AGREEMENT under
completion date.
The established completion time shall not be extended because of any delays attributable to the CONSULTANT, but
may be extended by the AGENCY in the event of a delay attributable to the AGENCY, or because of unavoidable
delays caused by an act of GOD or governmental actions or other conditions beyond the control of the
CONSULTANT. A prior supplemental agreement issued by the AGENCY is required to extend the established
completion time.
V Payment Provisions
The CONSULTANT shall be paid by the AGENCY for completed work and services rendered under this
AGREEMENT as provided in Exhibit "D" attached hereto, and by reference made part of this AGREEMENT. Such
payment shall be full compensation for work performed or services rendered and for all labor, materials, supplies,
equipment, and incidentals necessary to complete the work. The CONSULTANT shall conform to all applicable
portions of 48 CFR Part 31.
A post audit may be performed on this AGREEMENT. The need for a post audit will be determined by the State
Auditor, WSDOT External Audit Office and/or at the request of the AGENCY'S PROJECT Manager.
VI Sub - Contracting
The AGENCY permits sub - contracts for those items of work as shown in Exhibit "G" attached hereto and by this
reference made part of this AGREEMENT.
Compensation for this sub - consultant work shall be based on the cost factors shown on Exhibit "G."
The work of the sub - consultant shall not exceed its maximum amount payable unless a prior written approval has been
issued by the AGENCY.
All reimbursable direct labor, overhead, direct non -salary costs and fixed fee costs for the sub - consultant shall be
substantiated in the same manner as outlined in Section V. All sub - contracts shall contain all applicable provisions of
this AGREEMENT.
With respect to sub - consultant payment, the CONSULTANT shall comply with all applicable sections of the Prompt
Payment laws as set forth in RCW 39.04.250 and RCW 39.76.011.
The CONSULTANT shall not sub - contract for the performance of any work under this AGREEMENT without prior
written permission of the AGENCY. No permission for sub - contracting shall create, between the AGENCY and subcontractor,
any contract or any other relationship. A DBE certified sub - consultant is required to perform a minimum
amount of their sub - contracted agreement that is established by the WSDOT Highways and Local Programs Project
Development Engineer in consultation with the AGENCY.
VII Employment
The CONSULTANT warrants that they have not employed or retained any company or person, other than a bona fide
employee working solely for the CONSULTANT, to solicit or secure this contract, and that it has not paid or agreed to
pay any company or person, other than a bona fide employee working solely for the CONSULTANT, any fee,
commission, percentage, brokerage fee, gift, or any other consideration, contingent upon or resulting from the award or
making of this contract. For breach or violation of this warrant, the AGENCY shall have the right to annul this
AGREEMENT without liability or, in its discretion, to deduct from the AGREEMENT price or consideration or
otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee.
Any and all employees of the CONSULTANT or other persons while engaged in the performance of any work or
services required of the CONSULTANT under this AGREEMENT, shall be considered employees of the
CONSULTANT only and not of the AGENCY, and any and all claims that may arise under any Workmen's
Compensation Act on behalf of said employees or other persons while so engaged, and any and all claims made by a
DOT Form 140 -089 EF Page 3 of 8
Revised 312008
third party as a consequence of any act or omission on the part of the CONSULTANT'S employees or other persons
while so engaged on any of the work or services provided to be rendered herein, shall be the sole obligation and
responsibility of the CONSULTANT.
The CONSULTANT shall not engage, on a full- or part-time basis, or other basis, during the period of the contract, any
professional or technical personnel who are, or have been, at any time during the period of the contract, in the employ
of the United States Department of Transportation, or the STATE, or the AGENCY, except regularly retired
employees, without written consent of the public employer of such person.
VIII Nondiscrimination
During the performance of this contract, the CONSULTANT, for itself, its assignees, and successors in interest agrees
to comply with the following laws and regulations:
Title VI of the Civil Rights Act of 1964
(42 USC Chapter 21 Subchapter V Section 2000d through 2000d -4a)
Federal -aid Highway Act of 1973
(23 USC Chapter 3 Section 324)
Rehabilitation Act of 1973
(29 USC Chapter 16 Subchapter V Section 794)
Age Discrimination Act of 1975
(42 USC Chapter 76 Section 6101 et seq.)
Civil Rights Restoration Act of 1987
(Public Law 100 -259)
American with Disabilities Act of 1990
(42 USC Chapter 126 Section 12101 et. seq.)
49 CFR Part 21
23 CFR Part 200
RCW 49.60.180
In relation to Title VI of the Civil Rights Act of 1964, the CONSULTANT is bound by the provisions of Exhibit "H"
attached hereto and by this reference made part of this AGREEMENT, and shall include the attached Exhibit "H" in
every sub - contract, including procurement of materials and leases of equipment, unless exempt by the Regulations or
directives issued pursuant thereto.
IX Termination of Agreement
The right is reserved by the AGENCY to terminate this AGREEMENT at any time upon ten (10) days written notice to
the CONSULTANT.
In the event this AGREEMENT is terminated by the AGENCY other than for default on the part of the
CONSULTANT, a final payment shall be made to the CONSULTANT as shown in Exhibit "I" for the type of
AGREEMENT used.
No payment shall be made for any work completed after ten (10) days following receipt by the CONSULTANT of the
Notice to Terminate. If the accumulated payment made to the CONSULTANT prior to Notice of Termination exceeds
the total amount that would be due when computed as set forth herein above, then no final payment shall be due and the
CONSULTANT shall immediately reimburse the AGENCY for any excess paid.
If the services of the CONSULTANT are terminated by the AGENCY for default on the part of the CONSULTANT,
the above formula for payment shall not apply.
DOT Form 140 -089 EF Page 4 of 8
Revised 3/2008
In such an event, the amount to be paid shall be determined by the AGENCY with consideration given to the actual
costs incurred by the CONSULTANT in performing the work to the date of termination, the amount of work originally
required which was satisfactorily completed to date of termination, whether that work is in a form or a type which is
usable to the AGENCY at the time of termination, the cost to the AGENCY of employing another firm to complete the
work required and the time which may be required to do so, and other factors which affect the value to the AGENCY of
the work performed at the time of termination.
Under no circumstances shall payment made under this subsection exceed the amount, which would have been made
using the formula set forth above.
If it is determined for any reason that the CONSULTANT was not in default or that the CONSULTANT'S failure to
perform is without the CONSULTANT'S or it's employee's default or negligence, the termination shall be deemed to
be a termination for the convenience of the AGENCY. In such an event, the CONSULTANT would be reimbursed for
actual costs in accordance with the termination for other than default clauses listed previously.
In the event of the death of any member, partner or officer of the CONSULTANT or any of its supervisory personnel
assigned to the PROJECT, or dissolution of the partnership, termination of the corporation, or disaffiliation of the
principally involved employee, the surviving members of the CONSULTANT hereby agree to complete the work under
the terms of this AGREEMENT, if requested to do so by the AGENCY. This subsection shall not be a bar to
renegotiation of the AGREEMENT between the surviving members of the CONSULTANT and the AGENCY, if the
AGENCY so chooses.
In the event of the death of any of the parties listed in the previous paragraph, should the surviving members of the
CONSULTANT, with the AGENCY'S concurrence, desire to terminate this AGREEMENT, payment shall be made as
set forth in the second paragraph of this section.
Payment for any part of the work by the AGENCY shall not constitute a waiver by the AGENCY of any remedies of
any type it may have against the CONSULTANT for any breach of this AGREEMENT by the CONSULTANT, or for
failure of the CONSULTANT to perform work required of it by the AGENCY. Forbearance of any rights under the
AGREEMENT will not constitute waiver of entitlement to exercise those rights with respect to any future act or
omission by the CONSULTANT.
X Changes of Work
The CONSULTANT shall make such changes and revisions in the complete work of this AGREEMENT as necessary
to correct errors appearing therein, when required to do so by the AGENCY, without additional compensation thereof.
Should the AGENCY find it desirable for its own purposes to have previously satisfactorily completed work or parts
thereof changed or revised, the CONSULTANT shall make such revisions as directed by the AGENCY. This work
shall be considered as Extra Work and will be paid for as herein provided under Section XIV.
XI Disputes
Any dispute concerning questions of fact in connection with the work not disposed of by AGREEMENT between the
CONSULTANT and the AGENCY shall be referred for determination to the Director of Public Works or AGENCY
Engineer, whose decision in the matter shall be final and binding on the parties of this AGREEMENT; provided,
however, that if an action is brought challenging the Director of Public Works or AGENCY Engineer's decision, that
decision shall be subject to de novo judicial review. If the parties to this AGREEMENT mutually agree, disputes
concerning alleged design errors will be conducted under the procedures found in Exhibit "J ", and disputes concerning
claims will be conducted under the procedures found in Exhibit "K ".
XII Venue, Applicable Law, and Personal Jurisdiction
In the event that either party deems it necessary to institute legal action or proceedings to enforce any right or
obligation under this AGREEMENT, the parties hereto agree that any such action shall be initiated in the Superior
court of the State of Washington, situated in the county in which the AGENCY is located. The parties hereto agree that
all questions shall be resolved by application of Washington law and that the parties to such action shall have the right
of appeal from such decisions of the Superior court in accordance with the laws of the State of Washington. The
CONSULTANT hereby consents to the personal jurisdiction of the Superior court of the State of Washington, situated
in the county in which the AGENCY is located.
DOT Form 140 -089 EF Page 5 of 8
Revised 3/2008
XIII Legal Relations
The CONSULTANT shall comply with all Federal, State, and local laws and ordinances applicable to the work to be
done under this AGREEMENT. This contract shall be interpreted and construed in accordance with the laws of the
State of Washington.
The CONSULTANT shall indemnify and hold the AGENCY and the STATE and its officers and employees harmless
from and shall process and defend at its own expense all claims, demands, or suits at law or equity arising in whole or
in part from the CONSULTANT'S negligence or breach of any of its obligations under this AGREEMENT; provided
that nothing herein shall require a CONSULTANT to indemnify the AGENCY or the STATE against and hold
harmless the AGENCY or the STATE from claims, demands or suits based solely upon the conduct of the AGENCY or
the STATE, their agents, officers and employees; and provided further that if the claims or suits are caused by or result
from the concurrent negligence of (a) the CONSULTANT'S agents or employees, and (b) the AGENCY or the
STATE, their agents, officers and employees, this indemnity provision with respect to (1) claims or suits based upon
such negligence (2) the costs to the AGENCY or the STATE of defending such claims and suits shall be valid and
enforceable only to the extent of the CONSULTANT'S negligence or the negligence of the CONSULTANT'S agents
or employees.
The CONSULTANT'S relation to the AGENCY shall be at all times as an independent contractor.
The CONSULTANT shall comply with all applicable sections of the applicable Ethics laws, including RCW 42.23,
which is the Code of Ethics for regulating contract interest by municipal officers. The CONSULTANT specifically
assumes potential liability for actions brought by the CONSULTANT'S own employees against the AGENCY and,
solely for the purpose of this indemnification and defense, the CONSULTANT specifically waives any immunity under
the state industrial insurance law, Title 51 RCW.
Unless otherwise specified in the AGREEMENT, the AGENCY shall be responsible for administration of construction
contracts, if any, on the PROJECT. Subject to the processing of a new sole source, or an acceptable supplemental
agreement, the CONSULTANT shall provide On -Call assistance to the AGENCY during contract administration. By
providing such assistance, the CONSULTANT shall assume no responsibility for: proper construction techniques, job
site safety, or any construction contractor's failure to perform its work in accordance with the contract documents.
The CONSULTANT shall obtain and keep in force during the terms of the AGREEMENT, or as otherwise required,
the following insurance with companies or through sources approved by the State Insurance Commissioner pursuant to
Title 48 RCW.
Insurance Coverage
A. Worker's compensation and employer's liability insurance as required by the STATE.
B. Commercial general liability and property damage insurance in an aggregate amount not less than two million
dollars ($2,000,000) for bodily injury, including death and property damage. The per occurrence amount shall
not exceed one million dollars ($1,000,000).
C. Vehicle liability insurance for any automobile used in an amount not less than a one million dollar ($1,000,000)
combined single limit.
Excepting the Worker's Compensation Insurance and any Professional Liability Insurance secured by the
CONSULTANT, the AGENCY will be named on all policies as an additional insured. The CONSULTANT shall
furnish the AGENCY with verification of insurance and endorsements required by the AGREEMENT. The AGENCY
reserves the right to require complete, certified copies of all required insurance policies at any time.
All insurance shall be obtained from an insurance company authorized to do business in the State of Washington. The
CONSULTANT shall submit a verification of insurance as outlined above within fourteen (14) days of the execution of
this AGREEMENT to the AGENCY.
No cancellation of the foregoing policies shall be effective without thirty (30) days prior notice to the AGENCY.
The CONSULTANT'S professional liability to the AGENCY shall be limited to the amount payable under this
AGREEMENT or one million ($1,000,000) dollars, whichever is the greater, unless modified by Exhibit "L ". In no
case shall the CONSULTANT'S professional liability to third parties be limited in any way.
DOT Form 140 -089 EF Page 6 of 8
Revised 3/2008
The AGENCY will pay no progress payments under Section V until the CONSULTANT has fully complied with this
section. This remedy is not exclusive; and the AGENCY and the STATE may take such other action as is available to it
under other provisions of this AGREEMENT, or otherwise in law.
XIV Extra Work
A. The AGENCY may at any time, by written order, make changes within the general scope of the AGREEMENT in
the services to be performed.
B. If any such change causes an increase or decrease in the estimated cost of, or the time required for, performance of
any part of the work under this AGREEMENT, whether or not changed by the order, or otherwise affects any other
terms and conditions of the AGREEMENT, the AGENCY shall make an equitable adjustment in the (1) maximum
amount payable; (2) delivery or completion schedule, or both; and (3) other affected terms and shall modify the
AGREEMENT accordingly.
C. The CONSULTANT must submit any "request for equitable adjustment ", hereafter referred to as "CLAIM ", under
this clause within thirty (30) days from the date of receipt of the written order. However, if the AGENCY decides
that the facts justify it, the AGENCY may receive and act upon a CLAIM submitted before final payment of the
AGREEMENT.
D. Failure to agree to any adjustment shall be a dispute under the Disputes clause. However, nothing in this clause
shall excuse the CONSULTANT from proceeding with the AGREEMENT as changed.
E. Notwithstanding the terms and conditions of paragraphs (A) and (B) above, the maximum amount payable for this
AGREEMENT, shall not be increased or considered to be increased except by specific written supplement to this
AGREEMENT.
XV Endorsement of Plans
If applicable, the CONSULTANT shall place their endorsement on all plans, estimates, or any other engineering data
furnished by them.
XVI Federal and State Review
The Federal Highway Administration and the Washington State Department of Transportation shall have the right to
participate in the review or examination of the work in progress.
XVII Certification of the Consultant and the Agency
Attached hereto as Exhibit "M -1(a and b)" are the Certifications of the CONSULTANT and the AGENCY, Exhibit "M
-2" Certification Regarding Debarment, Suspension and Other Responsibility Matters - Primary Covered Transactions,
Exhibit "M -3" Certification Regarding the Restrictions of the Use of Federal Funds for Lobbying and Exhibit "M -4"
Certificate of Current Cost or Pricing Data. Exhibit "M -3" is required only in AGREEMENTS over $100,000 and
Exhibit "M-4" is required only in AGREEMENTS over $500,000.
XVIII Complete Agreement
This document and referenced attachments contain all covenants, stipulations, and provisions agreed upon by the
parties. No agent, or representative of either party has authority to make, and the parties shall not be bound by or be
liable for, any statement, representation, promise or agreement not set forth herein. No changes, amendments, or
modifications of the terms hereof shall be valid unless reduced to writing and signed by the parties as an amendment to
this AGREEMENT.
XIX Execution and Acceptance
This AGREEMENT may be simultaneously executed in several counterparts, each of which shall be deemed to be an
original having identical legal effect. The CONSULTANT does hereby ratify and adopt all statements, representations,
warranties, covenants, and agreements contained in the proposal, and the supporting material submitted by the
CONSULTANT, and does hereby accept the AGREEMENT and agrees to all of the terms and conditions thereof.
DOT Form 140 -089 EF Page 7 of 8
Revised 3/2008
In witness whereof, the parties hereto have executed this AGREEM r • the day and year shown in the
"Execution Date" box on page one (1) of this AGREEMENT.
Bye E. aut_ Ire,. By
Consultant Agency �%-� L€wiS Mat
DOT Form 140 -089 EF Page 8 of 8
Revised 3/2008
Exhibit A -2
Scope of Work
(Task Order Agreement)
Each item of work under this AGREEMENT will be provided by task assignment. Each assignment will be
individually negotiated with the CONSULTANT. The amount established for each assignment will be the
maximum amount payable for that assignment unless modified in writing by the AGENCY. The AGENCY is
not obligated to assign any specific number of tasks to the CONSULTANT, and the AGENCY'S and
CONSULTANT'S obligations hereunder are limited to tasks assigned in writing. Task assignments may
include but are not limited to, the following types of work:
A. Preparation of plans, specifications, and cost estimates to support the design of utility (storm, sanitary sewer, water)
projects.
B. Assistance with environmental permitting, design analysis, and report preparation to support the design utility
(storm, sanitary sewer, water) projects.
C. Other tasks related to the design of utility (storm, sanitary sewer, water) projects as assigned.
Task assignments made by the AGENCY shall be issued in writing by a Formal Task Assignment Document
similar in format to page 2 of this exhibit.
An assignment shall become effective when a formal Task Assignment Document is signed by the
CONSULTANT and the AGENCY, except that emergency actions requiring a 24 -hour or less response can be
handled by an oral authorization. Such oral authorization shall be followed up with a Formal Task Assignment
Document within four working days, and any billing rates agreed to orally (for individuals, subconsultants, or
organizations whose rates were not previously established in the AGREEMENT) shall be provisional and subject
to final negotiation and acceptance by the AGENCY.
DOT Form 140 -089 EF Exhibit A -2
Revised 7/07
AGREEMENT #: AG -C -xxx
CONSULTANT:
PROJECT # /Name:
The general provisions and clauses of the Agreement referenced above shall be in full force and effect for
this Task Assignment.
Location of Project:
Maximum Amount Payable per this Task Assignment: $
Completion Date:
Scope of Work:
TASK ASSIGNMEN
TASK #: xxx- xxxx -xxx
Approvals
Consultant Project Manager:
Signature: Date:
City Project Manager:
Signature: Date:
City Mayor, if Task Assignment is over $5,000:
Signature: Date:
Note: If this task assignment is over $25,000 then it must go before the appropriate Committee and City
Council for approval prior to the Mayor's signature.
DOT Form 140 -089 EF Exhibit A -2
Revised 7/07
Exhibit C
Electronic Exchange of Engineering and Other Data
In this Exhibit the agency, as applicable, is to provide a description of the format and standards the
consultant is to use in preparing electronic files for transmission to the agency. The format and standards to
be provided may include, but are not limited to, the following:
I. Surveying, Utility Design & Plans Preparation Section
A. Survey Data — 2009 AutoCAD, ASCII text
B. Utility Design Files — 2009 AutoCAD
C. Computer Aided Drafting Files — 2009 AutoCAD
D. Spreadsheets — 2003 Microsoft Excel
E. Word Processing — 2003 Microsoft Word
E. Electronic Scans /Documents — Adobe PDF
II. Methods to Electronically Exchange Data
A. CD or DVD
B. FTP or Sharepoint site provided by the CONSULTANT
DOT Form 140 -089 EF Exhibit C
Revised 6/05
Exhibit D -3
Payment (Negotiated Hourly Rate)
The CONSULTANT shall be paid by the AGENCY for completed work and services rendered under this
AGREEMENT as provided hereinafter. Such payment shall be full compensation for work performed or services
rendered and for all labor, materials, supplies, equipment, and incidentals necessary to complete the work. The
CONSULTANT shall conform to all applicable portions of 48 CFR Part 31.
1. Hourly Rates: The CONSULTANT shall be paid by the AGENCY for work done, based upon the
negotiated hourly rates shown in Exhibit "E" and "F" attached hereto and by this reference made
part of this AGREEMENT. The rates listed shall be applicable for the first twelve (12) month
period and shall be subject to negotiation for the following twelve (12) month period upon request
of the CONSULTANT or the AGENCY. If negotiations are not conducted for the second or
subsequent twelve (12) month periods within ninety (90) days after completion of the previous
period, the rates listed in this AGREEMENT, or subsequent written authorization(s) from the
AGENCY shall be utilized. The rates are inclusive of direct salaries, payroll additives, overhead,
and fee. The CONSULTANT shall maintain support data to verify the hours billed on the
AGREEMENT.
2. Direct Non - Salary Costs: Direct Non -Salary Costs will be reimbursed at the Actual Cost to the
CONSULTANT. These charges may include, but are not limited to, the following items: travel,
printing, long distance telephone, supplies, computer charges and sub - consultant costs.
a. Air or train travel will be reimbursed only to economy class levels unless
otherwise approved by the AGENCY. The CONSULTANT shall comply with
the rules and regulations regarding travel costs (excluding air, train, and rental
car costs) in accordance with the AGENCY'S Travel Rules and Procedures.
However, air, train, and rental car costs shall be reimbursed in accordance with
48 CFR Part 31.205 -46 "Travel Costs."
b. The billing for Direct Non -Salary Costs shall include an itemized listing of
the charges directly identifiable with the PROJECT.
c. The CONSULTANT shall maintain the original supporting documents in their
office. Copies of the original supporting documents shall be supplied to the
AGENCY upon request.
d. All above charges must be necessary for the services provided under this
AGREEMENT.
3. Management Reserve Fund: The AGENCY may desire to establish a Management Reserve Fund to
provide the Agreement Administrator with the flexibility to authorize additional funds to the
AGREEMENT for allowable unforeseen costs, or reimbursing the CONSULTANT for additional
work beyond that already defined in this AGREEMENT. Such authorization(s) shall be in writing
and shall not exceed the lesser of $100,000 or 10% of the Total Amount Authorized as shown in the
heading of this AGREEMENT. The amount included for the Management Reserve Fund is shown
in the heading of this AGREEMENT. This fund may not be replenished. Any changes requiring
additional costs in excess of the Management Reserve Fund shall be made in accordance with
Section XIV, "Extra Work."
DOT Form 140 -089 EF Exhibit D -3
Revised 3/09
4. Maximum Total Amount Payable: The Maximum Total Amount Payable by the AGENCY to the
CONSULTANT under this AGREEMENT shall not exceed the amount shown in the heading of
this AGREEMENT. The Maximum Total Amount Payable is comprised of the Total Amount
Authorized, and the Management Reserve Fund. The Maximum Total Amount Payable does not
include payment for Extra Work as stipulated in Section XIV, "Extra Work." No minimum
amount payable is guaranteed under this AGREEMENT.
5. Monthly Progress Payments: Progress payments may be claimed on a monthly basis for all costs
authorized in 1 and 2 above. The monthly billing shall be supported by detailed statements for
hours expended at the rates established in Exhibit "E ", including names and classifications of all
employees, and billings for all direct non -salary expenses. To provide a means of verifying the
billed salary costs for the CONSULTANT'S employees, the AGENCY may conduct employee
interviews. These interviews may consist of recording the names, titles, salary rates, and present
duties of those employees performing work on the PROJECT at the time of the interview.
6. Final Payment: Final Payment of any balance due the CONSULTANT of the gross amount earned
will be made promptly upon its verification by the AGENCY after the completion of the work
under this AGREEMENT, contingent upon receipt of all PS &E, plans, maps, notes, reports,
electronic data and other related documents which are required to be furnished under this
AGREEMENT. Acceptance of such Final Payment by the CONSULTANT shall constitute a
release of all claims for payment, which the CONSULTANT may have against the AGENCY
unless such claims are specifically reserved in writing and transmitted to the AGENCY by the
CONSULTANT prior to its acceptance. Said Final Payment shall not, however, be a bar to any
claims that the AGENCY may have against the CONSULTANT or to any remedies the AGENCY
may pursue with respect to such claims.
The payment of any billing will not constitute agreement as to the appropriateness of any item and
at the time of final audit, all required adjustments will be made and reflected in a final payment. In
the event that such final audit reveals an overpayment to the CONSULTANT, the
CONSULTANT will refund such overpayment to the AGENCY within thirty (30) days of notice
of the overpayment. Such refund shall not constitute a waiver by the CONSULTANT for any
claims relating to the validity of a finding by the AGENCY of overpayment. The CONSULTANT
has twenty (20) days after receipt of the final POST AUDIT to begin the appeal process to the
AGENCY for audit findings.
7. Inspection of Cost Records: The CONSULTANT and their sub - consultants shall keep available for
inspection by representatives of the AGENCY, STATE and the United States, for a period of three
(3) years after receipt of final payment, the cost records and accounts pertaining to this
AGREEMENT and all items related to or bearing upon these records with the following
exception: if any litigation, claim or audit arising out of, in connection with, or related to this
contract is initiated before the expiration of the three (3) year period, the cost records and accounts
shall be retained until such litigation, claim, or audit involving the records is completed.
DOT Form 140 -089 EF Exhibit D -3
Revised 3/09
Exhibit E -2
Consultant Fee Determination - Summary Sheet
(Specific Rates of Pay)
Fee Schedule — See Attached Rate Schedule
DOT Form 140 -089 EF Exhibit E -2
Revised 6/05
AGC412 - Exhibit E -2
Hourly Overhead Profit (on DL) Rate
Discipline or Job Title Rate (DL) 122.88% 30% Per Hour
Principal $ 85.87 $ 105.52 $ 25.76 $ 217.15
Project Manager $ 68.38 $ 84.03 $ 20.51 $ 172.92
Civil Engineer Planner $ 62.34 $ 76.60 $ 18.70 $ 157.65
Sr Civil Engineer Design $ 57.91 $ 71.16 $ 17.37 $ 146.44
Civil Engineer Roadway $ 49.32 $ 60.60 $ 14.80 $ 124.72
Civil Engineer Design $ 37.08 $ 45.56 $ 11.12 $ 93.77
Envir -Water Res Engineer $ 38.64 $ 47.48 $ 11.59 $ 97.71
Structural $ 57.08 $ 70.14 $ 17.12 $ 144.34
Sr Electrical Engineer $ 65.14 $ 80.04 $ 19.54 $ 164.73
Jr Electrical Engineer $ 31.05 $ 38.15 $ 9.32 $ 78.52
CADD Lead $ 51.02 $ 62.69 $ 15.31 $ 129.02
CADD $ 43.88 $ 53.92 $ 13.16 $ 110.96
Contract Admin $ 48.72 $ 59.87 $ 14.62 $ 123.20
Administrative Assistant $ 20.72 $ 25.46 $ 6.22 $ 52.40
Exhibit F
Breakdown of Overhead Cost — See Attached Audit Report
DOT Form 140 -089 EF Exhibit F
Revised 6/05
Summary of At- Office and At -Site Rates
and
Statements of Fringe Benefit Expense and
General & Administrative Expense in Accordance with the
Federal Acquisition Regulation
North American Infrastructure
(formerly Jacobs Civil)
A Business Unit of Jacobs Engineering Group Inc.
For the Fiscal Year Ended October 1, 2010
With Report of Independent Auditors
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION WHICH HAS COMMERCIAL AND /OR FINANCIAL VALUE. SUCH INFORMATION HAS NOT
BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS
ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE IS MADE.
Summary of At- Office and At -Site Rates
and
Statements of Fringe Benefit Expense and
General & Administrative Expense in Accordance with the
Federal Acquisition Regulation
North American Infrastructure
(formerly Jacobs Civil)
A Business Unit of Jacobs Engineering Group Inc.
For the Fiscal Year Ended October 1, 2010
Contents
Report of Independent Auditors 1
Summary of At- Office and At -Site Rates 2
Statement of Fringe Benefit Expense 3
Statement of General & Administrative Expense 4
Notes to Statements of Fringe Benefit Expense and
General & Administrative Expense 5
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AND /OR FINANCIAL VALUE. SUCH INFORMATION HAS
NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION.
JACOBS ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE IS MADE.
Cleary & Gill LLC
REPORT OF INDEPENDENT PUBLIC ACCOUNTANT
To: Board of Directors of Jacobs Engineering Group Inc.
Re: indirect Cost Rates Prepared in Accordance with Part 31 of the Federal Acquisition Regulation
We have audited the accompanying Summary of At- Office and At -Site Rates, Statement of Fringe Benefit
Expense and Statement of General & Administrative Expense (Schedules of the Indirect Cost Rates) of North
American Infrastructure (NAI), a segment of Jacobs Engineering Group Inc., for the twelve months ended
October 1, 2010 prepared in accordance with Title 48, Code of Federal Regulations, Part 31 of the Federal
Acquisition Regulation (FAR). NAI is a wholly -owned business unit of Jacobs Engineering Group Inc. These
schedules are the responsibility of NAI's management. Our responsibility is to express an opinion on these
schedules based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and also the
standards applicable to financial audits contained in Government Auditing Standards (July 2007 Revision), issued
by the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the Schedules of the Indirect Cost Rates are free of material
misstatement. An audit includes reviewing, on a test basis, evidence supporting the amounts and disclosures in
the schedules and performing such other procedures as we considered necessary in the circumstances. Our audit
also included assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall schedule presentation. We believe that our audit provides a reasonable basis for our
opinion.
The aforementioned Schedules of the Indirect Cost Rates were prepared on a basis of accounting practices as
prescribed by Part 31 of the FAR as discussed in Note 2, and are not intended to be a presentation in conformity
with accounting principles generally accepted in the United States.
In our opinion, the Schedules referred to above present fairly, in all material respects, the Indirect Cost Rates of
NAI for the twelve months ended October 1, 2010, calculated in accordance with Part 31 of the FAR.
In accordance with the Government Auditing Standards, we have also issued our report dated March 15, 2011 on
our consideration of NAI's internal controls over financial reporting and our test of its compliance with applicable
laws and regulations. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report.
Individuals relying on this report must have an adequate understanding of Part 31 of the FAR. Therefore, this
report is intended solely for the information of management and government agencies for use under contracts
governed by the aforementioned regulations. It is not intended to be and should not be used by anyone other than
the aforementioned parties nor should it be used for any other purpose.
Arlington Heights linois
March 15, 2011
1
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Summary of At- Office and At -Site Rates
For the Fiscal Year Ended October 1, 2010
The At- Office and At -Site rates relative to the audited Fringe Benefit Expense and General & Administrative
Expense Statements were computed in accordance with Part 31 of the Federal Acquisition Regulation (FAR).
North American Infrastructure
At- Office
At -Site General & Administrative Rate
Use & Occupancy Rate
Fringe Benefit Rate
Combined Rate
69.92%
25.85%
27.11%
122.88%
At -Site
At -Site General & Administrative Rate 69.92%
Fringe Benefit Rate 27.11%
Combined Rate • 97.03%
See the following statements for detailed computations of the above Fringe Benefit Expense and General &
Administrative Expense rates and for the applicable explanatory notes.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AND /OR FINANCIAL VALUE. SUCH INFORMATION HAS
NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL SIMILAR OTHER LEGISLATION.
JACOBS ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE IS MADE.
2
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Statement of Fringe Benefit Expense
For the Fiscal Year Ended October 1, 2010
NAI DIRECT
FRINGE
BENEFIT
EXPENSE
(Note 4)
COSTS, NET OF ADJUSTMENTS
PAID TIME OFF $ 21,595,806
FICA 14,908,204
SUI 1,037,895
FUI 138,127
THRIFT PLAN 4,343,777
GROUP INSURANCE 10,315,461
WORKERS' COMPENSATION 479,508
GENERAL LIABILITY 3,394,173
EMPLOYEE ASSISTANCE PLAN 64,040
TOTAL ALLOCATED FRINGE BENEFITS $ 56,276,991
TOTAL FRINGE LABOR BASE $ 207,616,959
COMPANY -WIDE FRINGE BENEFIT RATE 27.11%
The accompanying notes are an integral part of this statement.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AND /OR FINANCIAL VALUE. SUCH INFORMATION
HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL OTHER SIMILAR
LEGISLATION. JACOBS ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE IS MADE.
3
INDIRECT LABOR
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Statement of General & Administrative Expense
For the Fiscal Year Ended October 1, 2010
GENERAL &
ADMINISTRATIV
TOTAL FAR E RATE APPLIED USE &
TOTAL UNALLOWABLE TO AT -SITE & AT- OCCUPANCY
INCURRED G &A COST NET CLAIMED OFFICE RATE (AT-
COSTS ADJUSTMENTS NOTES G &A COSTS PROJECTS OFFICE)
(Note 2)
$ 57,463,497 S (191,277) 5 $ 57,272,220 $ 57,272,220 5
INDIRECT EXPENSES
OFFICE OCCUPANCY EXPENSES 30,749,324 (28,723) 30,720,601 7,639,464 23,081,137
FRINGE BENEFITS 15,571,093 4 15,571,093 15,571,093
PERSONAL COMPUTER SERVICES 14,366,530 (53,673) 14,312,857 146,202 14,166,655
TRAVEL & BUSINESS MEALS 3.958,290 (548,430) 6 3,409,860 3,409,860 -
PENSION & STOCK AMORTIZATION 2,578,744 - 2,578,744 2,578,744
EMPLOYEE TRAINING & DUES 1,680,094 (273,985) 7 1,406,109 1,406,109
BUSINESS LICENSE & TAXES 1,123,220 (745) 1,122.475 961,992 160,483
VEHICLE EXPENSES 1,767,769 (764,863) 8 1,002,906 702,038 300,868
OFFICE AND OTHER SUPPLIES 757,879 (120,282) 637,597 8,583 629,014
OUTSIDE SERVICES 872,491 (202,415) 670,076 596,420 73,656
RECRUITING & RELOCATION 788,718 (220,042) 9 568,676 400,729 167,947
REPRODUCTION 333,937 (7,232) 326,705 - 326,705
POSTAGE & FREIGHT 197,666 (30) 197,636 197,636
TEMPORARY STAFF 133,330 2,511 135,841 135,841
PUBLIC RELATIONS & ADVERTISING 160,775 (138,320) 10 22,455 22,455
COSTRECOVERY (721,513) II (721,513) (721,513)
OTHER 2,134,485 (945,059) 12 1,189,426 962,010 227,416
SUBTOTAL INDIRECT EXPENSES $ 133,916,329 S (3,492,565) $ 130,423,764 $ 91,289,883 $ 39,133,881
OTHER INDIRECT EXPENSES
SALES, PROJECT SERVICES & CONST S 268,779 S (1,927) $ 266,852 S 266,852 5
PUBLIC MANAGEMENT & ADMINISTRATION 226,010 (66,963) 159,047 159,047
BONUS PAYMENTS 2,743,973 2,743,973 2,743,973
EMPLOYEE STOCK OPTIONS/PURCHASE PLAN 194,750 194,750 194,750
FIXED ASSET (GAIJy LOSS 207,318 207,318 207,318
SUBTOTAL OTHER INDIRECT EXPENSES $ 3,640,830 $ (68,890) $ 3,571,940 $ 3,571,940 5
ALLOCATIONS
CORPORATE ALLOCATIONS $ 52,002,764 S (1,693,026) 3,5 5 50,309,738 5 50,309,738 5
SUBTOTAL ALLOCATIONS $ 52,002,764 $ (1,693,026) S 50,309,738 S 50,309,738 S
TOTAL. G &A EXPENSES $ 189,559,923 5 (5,254,481) $ 184,305,442 S 145,171,561 S 39,133,881
DIRECT LABOR (TOTAL AND AT- OFFICE) $ 207,616,959 S 151,386,509
NORTH AMERICAN INFRASTRUCTURE INDIRECT COST RATES 69.92% 25.85%
AT- OFFICE GENERAL & ADMINISTRATIVE RATE 95.77%
The accompanying notes are an integral part of this statement.
TH:S DOCUMENT CONTAINS CONFIDENTIAL AND PROPRETARY INFORMATION THAT HAS COMMERCIAL AND/OR FINANCIAL VALUE. SUCH INFORMATION HAS NOT BEEN
PUBUCLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING
GROUP INC. REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE IS MADE
4
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General & Administrative Expense
for the Fiscal Year Ended October 1, 2010
1. Business and Basis of Presentation
The financial information presented in the accompanying Statements of Fringe Benefit Expense and General
& Administrative Expense includes the expenses of North American Infrastructure (formerly Jacobs Civil)
and Jacobs Civil Consultants Inc. (collectively the Company) for the fiscal year ended October 1, 2010.
Jacobs Civil Consultants Inc. was formerly known as Sverdrup & Parcel Consultants, Inc. The
accompanying statements include the expenses of the North American Infrastructure business unit as well as
the expenses of the infrastructure operations from the date of acquisition of Jordan Jones and Goulding Inc.,
which was acquired by Jacobs Engineering Group Inc. in Fiscal Year 2010. The Fiscal Year 2010 company-
wide indirect rates presented herein include the operations and results of North American Infrastructure (the
Company) and are calculated consistently with the Company's Fiscal Year 2009 company -wide indirect
rates.
The Company is a business unit of Jacobs Engineering Group Inc. (Parent Company) and Jacobs Civil
Consultants Inc. is a wholly -owned subsidiary of the Parent Company. The Parent Company is a publicly
traded company on the NYSE. The Company provides planning, design, construction management and
design/build professional services. Major markets include transportation, public works and environmental.
The Parent Company was originally incorporated in 1957, and its clients include federal, state, local, and
foreign government agencies, as well as numerous commercial entities. Revenues are derived from billings
for professional services: project services; process, scientific and systems consulting services; operations and
maintenance services, and construction services.
2. Basis of Accounting and Description of Accounting Systems
The Company's policy is to prepare the accompanying Statements of Fringe Benefit Expense and General &
Administrative Expense on the basis of accounting practices prescribed by Chapter 1, Part 31 and Chapter 99
of the Federal Acquisition Regulation (FAR). The above mentioned statements are not intended to present
the financial position or the results of operations of the Company in conformity with accounting principles
generally accepted in the US.
The Company maintains its books of accounts using the Accrual Method of accounting.
The Company uses a multi -step process to identify and quantify unallowable costs as defined in FAR Part 31.
First, the Company identifies certain expense accounts, expenditure types in the general ledger and certain
indirect projects as totally unallowable (e.g., interest expense, bad debts expense, etc.) For certain other
expense accounts that are likely to contain unallowable costs, the Company either reviews all of the
significant transactions in the account or it reviews a sample of the transactions in the account. For those
expense accounts that are sampled, the Company extrapolates the results of the sample to the related expense
account population. The larger unallowable balances generated by this process are footnoted as indicated
below. In addition, the Company voluntarily excludes certain other costs from the indirect cost pools, and it
uses estimates to determine the amount of certain other unallowable costs.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL ANDIOR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
5
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General & Administrative Expense
for the Fiscal Year Ended October 1, 2010
2. Basis of Accounting and Description of Accounting Systems (continued)
The Company maintains a job cost accounting system based on actual costs for recording and accumulating
costs incurred under its contracts. Each project is assigned a unique job number so that costs may be
properly segregated and accumulated in the Company's job cost, accounting system. Employee labor costs
are charged to jobs using the employee's actual hourly pay rate at the time that the labor is incurred. For
salaried employees, their actual hourly pay rate for job costing purposes is based on their annual salary
divided by 2,080 hours per year.
Direct and Indirect Costs- Costs are specifically identified and recorded separately in the formal financial
accounting records as Direct Costs and Indirect costs as established in accordance with our disclosed
practice. Direct costs are those costs that can be specifically identified to a customer project, work activity or
final cost objective. Indirect costs are those costs that cannot be specifically identified with a single customer
project, direct work activity or final cost objective. Contract/ Purchased labor is treated as Other Direct Costs.
Nonsalary Direct Project Costs sometimes referred to as Other Direct Costs are consistently charged to all
projects regardless of the recoverability from the customer.
Paid Time Off - The Company accrues Paid Time Off (PTO) based on the years of service for each
employee. PTO may be used by employees for a variety of reasons, including (but not limited to) vacation,
illness or accident, bereavement or personal time off. All requested PTO is subject to supervisory approval.
PTO benefits are paid based on the employee's base pay rate at the time that the absence occurs and does not
include any special forms of compensation such as incentives, commissions, bonuses or shift differentials.
Employees receive pay for all accrued but unused PTO hours upon separation from the Company.
Overtime Compensation - The Company's policy on pay practices and overtime pay eligibility compliance is
established to appropriately pay employees in accordance with their classifications as defined by the Fair
Labor Standards Act, 29 C.F.R. § 541.602 (FLSA). This policy discusses federal regulations regarding
overtime. State laws may be more restrictive than federal laws. Local Human Resources representatives
provide details regarding regulations for specific states. In certain circumstances, exempt employees may
receive additional compensation for work in excess of their regularly scheduled hours. The employee's
immediate supervisor is responsible for authorizing and supervising any overtime work performed.
Uncompensated Overtime - The Company's policy regarding overtime is to compensate NONEXEMPT
employees for authorized additional hours of work in accordance with the FLSA. EXEMPT employees
record only those overtime hours for which they are authorized to work and accordingly, compensated.
Depreciation - Property, equipment and improvements are recorded at cost. Depreciation and amortization is
computed primarily by using the straight -line method over the estimated useful lives of the assets. The cost
of leasehold improvements is amortized using the straight -line method over the lesser of the estimated useful
life of the asset or the remaining term of the related lease. Estimated useful lives range from 20 to 40 years
for buildings, from 3 to 10 years for equipment, and from 3 to 7 years for computers and software.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AND /OR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
6
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General & Administrative Expense
for the Fiscal Year Ended October 1, 2010
5. Excess Compensation
The adjustment to indirect labor of $191,277 includes $172,623 of unallowable executive compensation in
accordance with FAR 31.205 -6. The Company performed a multi -step compensation analysis to review and
demonstrate the reasonableness of employee and executive compensation. As part of this analysis, senior
executives were benchmarked to surveys in which Jacobs participated, and the remaining staff's
compensation was evaluated using a compensation matrix derived from ERI, PSMJ and Dietrich surveys.
The compensation analysis demonstrated the overall reasonableness of the Company's compensation. The
remaining adjustment of $18,654 consists primarily of costs related to reorganization costs in accordance
with FAR 31.205 -27. An additional excess compensation disallowance of $618,092 is included in the
Corporate Allocation disallowance in accordance with FAR 31.205 -6.
6. Travel & Business Meals
Based on a review of travel and related costs, NAI disallowed $548,430 in accordance with FAR 31.205 -46.
7. Employee Training & Dues
The adjustment amount of $273,985 represents dues that are unallowable in accordance with FAR 31.205 -14.
8. Vehicle Expenses
Based on a review of vehicle expenses $764,863 was disallowed in accordance with 31.205 -46 and 31.201 -
2(d)
9. Recruiting and Relocation
The relocation adjustment of $220,042 represents employee relocation expenses that are considered
unallowable in accordance with FAR 31.205 -35.
10. Public Relations and Advertising
The adjustment amount of $138,320 represents expenses that are considered unallowable in accordance with
FAR 31.205 -1.
11. Cost Recovery
The Cost Recovery accounts are used to charge projects for the usage of company -owned equipment,
supplies and vehicles. Portions of overhead relating to reproduction, vehicle costs, field equipment and
supplies and other miscellaneous costs are allocated (via a credit to cost recovery) to direct project expense
based on actual usage.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AND /OR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
8
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General -& Administrative Expense
for the Fiscal Year Ended October 1, 2010
12. Other
Included in the other adjustment of $945,047, are the following unallowable expenses of Fiscal Year 2010.
actual costs:
• Fines & Penalties (FAR 31.205 -15) $ 3,315
Contributions (FAR 31.205 -8) $ 127,624
Internal Promotion Meal & Entertainment (FAR 31.2 various) $ 440,692
External Promotion Meals, Entertainment & Other (FAR 31.2 various) $ 340.580
$ 912,211 *
*The remaining balance of the disallowed amount is determined using the methodology discussed in Note 2.
13. Pension Plans
The company offers a 401(k) pension plan, meeting the requirements of FAR 31.205 -6(j). The plan provides
maximum contributions within legal guidelines and a match equal to 50% of the first 6% of eligible pay.
•
14. Direct Cost Accounts include the following but are not limited to:
Travel, subsistence, and relocation
Subcontracts /Consultants
Contract Specific Training and employee development
Temporary and other purchased labor /services
Contract Specific Safety Supplies and Equipment rental/leases
Field Consumable/Expendable Supplies /Office Supplies
Other Equipment/Supplies
Telephone /Fax/Communications
Freight and Postage
Outside /Specialty Reproduction Costs
Specialty Taxes
The Company's internal controls include the segregation of duties between accounts payable job functions,
performance of a pre -audit on certain accounts /expenditure types, A/P Coding Training and control of
general and administrative costs through a rigorous budget vs. actual review process to avert the inclusion of
direct costs in the indirect cost pool.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AND /OR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
9
Cleary & Gill LLC
REPORT OF INDEPENDENT PUBLIC ACCOUNTANT
To: Board of Directors
Jacobs Engineering Group Inc.
Re: Internal Control Structure and Compliance with Applicable Laws and Regulations
We have audited the Summary of At- Office and At -Site Rates, Statement of Fringe Benefit Expense and
Statement of General & Administrative Expense (Schedules of the Indirect Cost Rates) of North American
Infrastructure (NAI), a business unit of Jacobs Engineering Group Inc., calculated in accordance with the
Federal Acquisition Regulation (FAR) Part 31 for the twelve months ended October 1, 2010, and we have
issued our report thereon dated March 15, 2011. These schedules are the responsibility of NAI's
management.
• We conducted our audit . in accordance with the auditing standards generally accepted in the United States
and the standards applicable to financial audits contained in Government Auditing Standards (July 2007
Revision), issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the aforementioned schedules are free
of material misstatement.
Internal Control Over Financial Reporting
The management of NAI is responsible for establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and procedures. The objectives of an
internal control structure are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed
in accordance with management's authorization and recorded properly to permit the preparation of the
aforementioned schedules in accordance with applicable regulations including Part 31 of the FAR.
Because of the inherent limitations in any internal control structure, errors or irregularities nevertheless
may occur and not be detected. Also, projection of any evaluation of the structure to future periods is
subject to the risk that procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit, we considered NAI's internal controls over financial reporting as a
basis for designing our auditing procedures for the purpose of expressing our opinion on the Schedules of
the Indirect Cost Rates, but not for the purpose of expressing an opinion on the effectiveness of NAI's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of NAI's internal control over financial reporting.
A control deficiency exists when the design or operation of an internal control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report
Cleary & Gill LLC
page 2
Internal Control Over Financial Reporting - continued
financial data reliably in accordance with U.S. generally accepted accounting principles such that there is
more than a remote likelihood that a misstatement of the entity's Schedules of the Indirect Cost Rates that
is more than inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the Schedules of the Indirect Cost Rates will
not be prevented or detected by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
above and would not necessarily identify all deficiencies in internal control that might be significant
deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above.
Compliance with Applicable Laws and Regulations
As part of obtaining reasonable assurance about whether the aforementioned schedules are free of material
misstatement, we performed tests of NAI's compliance with certain provisions of laws, regulations and
contracts; noncompliance with which could have a direct and material effect on the determination of the
actual indirect rates. However, the objective of our audit of the Schedules of the Indirect Cost Rates was
not to provide an opinion on overall compliance with those provisions. Accordingly, we do not express
such an opinion. Nonetheless, the results of our tests did not disclose any instances of noncompliance that
are required to be reported under Government Auditing Standards.
This report is intended for the information of NAI's management and those government agencies with
whom NAI has contracted. It is not intended to be and should not be used by anyone other than the
aforementioned parties nor should it be used for any other purpose.
Arlington Heights, Illinois
March 15, 2011
Exhibit G
Subcontracted Work
The AGENCY does not permit subcontracts for this AGREEMENT.
DOT Form 140 -089 EF Exhibit H
Revised 6/05
Exhibit H
Title VI Assurances
During the performance of this AGREEMENT, the CONSULTANT, for itself, its assignees, and successors in
interest agrees as follows:
1. Compliance with Regulations: The CONSULTANT shall comply with the Regulations relative to non-
discrimination in federally assisted programs of the AGENCY, Title 49, Code of Federal Regulations, Part
21, as they may be amended from time to time (hereinafter referred to as the "REGULATIONS "), which
are herein incorporated by reference and made a part of this AGREEMENT.
2. Non - discrimination: The CONSULTANT, with regard to the work performed during the
AGREEMENT, shall not discriminate on the grounds of race, color, sex, or national origin in the selection
and retention of sub - consultants, including procurement of materials and leases of equipment. The
CONSULTANT shall not participate either directly or indirectly in the discrimination prohibited by
Section 21.5 of the REGULATIONS, including employment practices when the AGREEMENT covers a
program set forth in Appendix B of the REGULATIONS.
3. Solicitations for Sub - consultants, Including Procurement of Materials and Equipment: In all solicitations
either by competitive bidding or negotiations made by the CONSULTANT for work to be performed
under a sub - contract, including procurement of materials or leases of equipment, each potential subconsultant
or supplier shall be notified by the CONSULTANT of the CONSULTANT'S obligations under
this AGREEMENT and the REGULATIONS relative to non - discrimination on the grounds of race, color,
sex, or national origin.
4. Information and Reports: The CONSULTANT 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 AGENCY, STATE or
the Federal Highway Administration (FHWA) to be pertinent to ascertain compliance with such
REGULATIONS, orders and instructions. Where any information required of a CONSULTANT is in the
exclusive possession of another who fails or refuses to furnish this information, the CONSULTANT shall
so certify to the AGENCY, STATE or the FHWA as appropriate, and shall set forth what efforts it has
made to obtain the information.
5. Sanctions for Non - compliance: In the event of the CONSULTANT'S non- compliance with the non-
discrimination provisions of this AGREEMENT, the AGENCY shall impose such AGREEMENT
sanctions as it, the STATE or the FHWA may determine to be appropriate, including, but not limited to:
• Withholding of payments to the CONSULTANT under the AGREEMENT until the
CONSULTANT complies, and/or;
• Cancellation, termination, or suspension of the AGREEMENT, in whole or in part
DOT Form 140 -089 EF Exhibit H
Revised 6/05
6. Incorporation of Provisions: The CONSULTANT shall include the provisions of paragraphs (1) through
(5) in every sub - contract, including procurement of materials and leases of equipment, unless exempt by
the REGULATIONS, or directives issued pursuant thereto. The CONSULTANT shall take such action
with respect to any sub - consultant or procurement as the AGENCY, STATE or FHWA may direct as a
means of enforcing such provisions including sanctions for non - compliance.
Provided, however, that in the event a CONSULTANT becomes involved in, or is threatened with,
litigation with a sub - consultant or supplier as a result of such direction, the CONSULTANT may request
the AGENCY and the STATE enter into such litigation to protect the interests of the AGENCY and the
STATE and, in addition, the CONSULTANT may request the United States enter into such litigation to
protect the interests of the United States.
DOT Form 140 -089 EF Exhibit H
Revised 6/05
Exhibit I
Payment Upon Termination of Agreement
By the Agency Other Than for
Fault of the Consultant
(Refer to Agreement, Section IX)
Lump Sum Contracts
A final payment shall be made to the CONSULTANT which when added to any payments previously made shall
total the same percentage of the Lump Sum Amount as the work completed at the time of termination is to the
total work required for the PROJECT. In addition, the CONSULTANT shall be paid for any authorized extra
work completed.
Cost Plus Fixed Fee Contracts
A final payment shall be made to the CONSULTANT which when added to any payments previously made, shall
total the actual costs plus the same percentage of the fixed fee as the work completed at the time of termination is
to the total work required for the Project. In addition, the CONSULTANT shall be paid for any authorized extra
work completed.
Specific Rates of Pay Contracts
A final payment shall be made to the CONSULTANT for actual hours charged at the time of termination of this
AGREEMENT plus any direct nonsalary costs incurred at the time of termination of this AGREEMENT.
Cost Per Unit of Work Contracts
A final payment shall be made to the CONSULTANT for actual units of work completed at the time of
termination of this AGREEMENT.
DOT Form 140 -089 EF Exhibit I
Revised 6/05
Exhibit J
Alleged Consultant Design Error Procedures
The purpose of this exhibit is to establish a procedure to determine if a consultant's alleged design error is of a
nature that exceeds the accepted standard of care. In addition, it will establish a uniform method for the resolution
and/or cost recovery procedures in those instances where the agency believes it has suffered some material damage
due to the alleged error by the consultant.
Step 1 — Potential Consultant Design Error(s) is Identified by Agency's Project Manager
At the first indication of potential consultant design error(s), the first step in the process is for the
Agency's project manager to notify the Director of Public Works or Agency Engineer regarding the
potential design error(s). For federally funded projects, the Region Highways and Local Programs
Engineer should be informed and involved in these procedures. (Note: The Director of Public Works or
Agency Engineer may appoint an agency staff person other than the project manager, who has not been
as directly involved in the project, to be responsible for the remaining steps in these procedures.)
Step 2 - Project Manager Documents the Alleged Consultant Design Error(s)
After discussion of the alleged design error(s) and the magnitude of the alleged error(s), and with the
Director of Public Works or Agency Engineer's concurrence, the project manager obtains more detailed
documentation than is normally required on the project. Examples include: all decisions and
descriptions of work; photographs, records of labor, materials and equipment.
Step 3 — Contact the Consultant Regarding the Alleged Design Error(s)
if it is determined that there is a need to proceed further, the next step in the process is for the project
manager to contact the consultant regarding the alleged design error(s) and the magnitude of the alleged
error(s). The project manager and other appropriate agency staff should represent the agency and the
consultant should be represented by their project manger and any personnel (including sub - consultants)
deemed appropriate for the alleged design error(s) issue.
Step 4 — Attempt to Resolve Alleged Design Error with Consultant
After the meeting(s) with the consultant have been completed regarding the consultant's alleged design
error(s), there are three possible scenarios:
It is determined via mutual agreement that there is not a consultant design error(s). If
this is the case, then the process will not proceed beyond this point.
It is determined via mutual agreement that a consultant design error(s) occurred. If this
is the case, then the Director of Public Works or Agency Engineer, or their
representatives, negotiate a settlement with the consultant. The settlement would be
paid to the agency or the amount would be reduced from the consultant's agreement
with the agency for the services on the project in which
the design error took place. The agency is to provide H &LP, through the Region
DOT Form 140 -089 EF Exhibit J
Revised 6/05
•
Local Programs Engineer, a summary of the settlement for review and to make
adjustments, if any, as to how the settlement affects federal reimbursements. No
further action is required.
There is not a mutual agreement regarding the alleged consultant design error(s). The
consultant may request that the alleged design error(s) issue be forwarded to
the Director of Public Works or Agency Engineer for review. If the Director of
Public Works or Agency Engineer, after review with their legal counsel, is not able
to reach mutual agreement with the consultant, proceed to Step 5.
Step 5 — Forward Documents to Highways and Local Programs
For federally funded projects all available information, including costs, should be forwarded
through the Region Highways and Local Programs Engineer to H &LP for their review and
consultation with the FHWA. H &LP will meet with representatives of the agency and the
consultant to review the alleged design error(s), and attempt to find a resolution to the issue. If
necessary, H &LP will request assistance from the Attorney General's Office for legal
interpretation. H &LP will also identify how the alleged error(s) affects eligibility of project costs
for federal reimbursement.
•
If mutual agreement is reached, the agency and consultant adjust the scope of work
and costs to reflect the agreed upon resolution. H &LP, in consultation with FHWA,
will identify the amount of federal participation in the agreed upon
resolution of the issue.
• If mutual agreement is not reached, the agency and consultant may seek settlement
by arbitration or by litigation.
DOT Form 140 -089 EF Exhibit J
Revised 6/05
Exhibit K
Consultant Claim Procedures
The purpose of this exhibit is to describe a procedure regarding claim(s) on a consultant agreement. The following
procedures should only be utilized on consultant claims greater than $1,000. If the consultant's claim(s) are a total
of $1,000 or less, it would not be cost effective to proceed through the outlined steps. It is suggested that the
Director of Public Works or Agency Engineer negotiate a fair and reasonable price for the consultant's claim(s) that
total $1,000 or less.
This exhibit will outline the procedures to be followed by the consultant and the agency to consider a potential
claim by the consultant.
Step 1 — Consultant Files a Claim with the Agency Project Manager
If the consultant determines that they were requested to perform additional services that were outside of
the agreement's scope of work, they may be entitled to a claim. The first step that must be completed is
the request for consideration of the claim to the Agency's project manager.
The consultant's claim must outline the following:
• Summation of hours by classification for each firm that is included in the claim;
•. Any correspondence that directed the consultant to perform the additional work;
• Timeframe of the additional work that was outside of the project scope;
• Summary of direct labor dollars, overhead costs, profit and reimbursable costs associated with
the additional work; and
• Explanation as to why the consultant believes the additional work was outside of the
agreement scope of work.
Step 2 — Review by Agency Personnel Regarding the Consultant's Claim for Additional Compensation
After the consultant has completed step 1, the next step in the process is to forward the request to the
Agency's project manager. The project manager will review the consultant's claim and will met with
the Director of Public Works or Agency Engineer to determine if the Agency agrees with the claim. If
the FHWA is participating in the project's funding, forward a copy of the consultant's claim and the
Agency's recommendation for federal participation in the claim to the WSDOT Highways and Local
Programs through the Region Local Programs Engineer. If the claim is not eligible for federal
participation, payment will need to be from agency funds.
If the Agency project manager, Director of Public Works or Agency Engineer, WSDOT Highways and
Local Programs (if applicable), and FHWA (if applicable) agree with the consultant's claim, send a
request memo, including backup documentation to the consultant to either supplement the agreement,
or create a new agreement for the claim. After the request has been approved, the Agency shall write
the supplement and/or new agreement and pay the consultant the amount of the claim. Inform the
consultant that the final payment for the agreement is subject to audit. No further action in needed
regarding the claim procedures.
DOT Form 140 -089 EF Exhibit K
Revised 6/05
If the Agency does not agree with the consultant's claim, proceed to step 3 of the procedures.
Step 3 — Preparation of Support Documentation Regarding Consultant's Claim(s)
if the Agency does not agree with the consultant's claim, the project manager shall prepare a
summary for the Director of Public Works or Agency Engineer that included the following:
• Copy of information supplied by the consultant regarding the claim;
• Agency's summation of hours by classification for each firm that should be included in the
claim;
• Any correspondence that directed the consultant to perform the additional work;
• Agency's summary of direct labor dollars, overhead costs, profit and reimbursable costs
associated with the additional work;
Explanation regarding those areas in which the Agency does /does not agree with the
consultant's claim(s);
Explanation to describe what has been instituted to preclude future consultant claim(s); and
• Recommendations to resolve the claim.
Step 4 — Director of Public Works or Agency Engineer Reviews Consultant Claim and Agency
Documentation
The Director of Pubic Works or Agency Engineer shall review and administratively approve or
disapprove the claim, or portions thereof, which may include getting Agency Council or
Commission approval (as appropriate to agency dispute resolution procedures). If the project
involves federal participation, obtain concurrence from WSDOT Highways and Local Programs
and FHWA regarding final settlement of the claim. If the claim is not eligible for federal
participation, payment will need to be from agency funds.
Step 5 — Informing Consultant of Decision Regarding the Claim
The Director of Public Works or Agency Engineer shall notify (in writing) the consultant of their
final decision regarding the consultant's claim(s). Include the final dollar amount of the accepted
claim(s) and rationale utilized for the decision.
Step 6 — Preparation of Supplement or New Agreement for the Consultant's Claim(s)
The agency shall write the supplement and/or new agreement and pay the consultant the amount of
the claim. Inform the consultant that the final payment for the agreement is subject to audit.
DOT Form 140 -089 EF Exhibit K
Revised 6/05
Exhibit M -1(a)
Certification Of Consultant
Project No.
.,1
1/ Local Agency
I hereby certify that I am �.ryp,Ld (�.. and duly authorized
representative of the firm of Jacobs Engineering Group, Inc. whose address is 600 — 108th Avenue NE, Suite 700,
Bellevue, WA 98004 and that neither I nor the above
firm 1 here represent has:
(a) Employed or retained for a commission, percentage, brokerage, contingent fee, or other
consideration, any firm or person (other than a bona fide employee working solely for me or the
above CONSULTANT) to solicit or secure the AGREEMENT;
(b) Agreed, as an express or implied condition for obtaining this contract, to employ or retain the
services of any firm or person in connection with carrying out this AGREEMENT; or
(c) Paid, or agreed to pay, to any firm, organization or person (other than a bona fide employee
working solely for me or the above CONSULTANT) any fee, contribution, donation, or
consideration of any kind for, or in connection with, procuring or carrying out this AGREEMENT;
except as hereby expressly stated (if any);
I acknowledge that this certificate is to be available to the Washington State Department of
Transportation and the Federal Highway Administration, U.S. Department of Transportation in
connection with this AGREEMENT involving participation of Federal -aid highway funds, and is
subject to applicable State and Federal laws, both criminal and civil.
i /z3/.z
Date
DOT Form 140 -089 EF Exhibit M -1(a)
Revised 6/05
Signature
Exhibit M -1(b)
Certification Of Agency Official
I hereby certify that I am the AGENCY Official of the Local Agency of Girl o F AA ua-N
Washington, and that the consulting firm or its representative has not been required, directly or indirectly as an
express or implied condition in connection with obtaining or carrying out this AGREEMENT to:
(a) Employ or retain, or agree to employ to retain, any firm or person; or
(b) Pay, or agree to pay, to any firm, person, or organization, any fee, contribution, donation, or
consideration of any kind; except as hereby expressly stated (if any):
I acknowledge that this certificate is to be available to the Washington State Department of
Transportation and the Federal Highway Administration, U.S. Department of Transportation, in
connection with this AGREEMENT involving participation of Federal -aid highway funds, and is
subject to applicable State and Federal laws, both criminal and civfi.
7 , 2-c
Date
DOT Form 140 -089 EF Exhibit M -1(b)
Revised 6/05
Signature
Exhibit M -2
Certification Regarding Debarment, Suspension, and Other Responsibility
Matters- Primary Covered Transactions
I. The prospective primary participant certifies to the best of its knowledge and belief, that it and its
principals:
A. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by any federal department or agency;
B. Have not within a three -year period preceding this proposal been convicted of or had a civil
judgment rendered against them for commission or fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or
contract under a public transaction; violation of federal or state antitrust statues or commission of
embezzlement, theft, forgery, bribery, falsification or destruction of records, making false
statements, or receiving stolen property;
C. Are not presently indicted for or otherwise criminally or civilly charged by a governmental
entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (I)
(B). of this certification; and
D. Have not within a three (3) year period preceding this application/proposal had one or more
public transactions (federal, state, or local) terminated for cause or default.
II. Where the prospective primary participant is unable to certify to any of the statements in this
certification, such prospective participant shall attach an explanation to this proposal.
Consultant (Firm): Jacobs Engineering Group, Inc.
/ALS / /2-
K Date)
DOT Form 140 -089 EF Exhibit M -2
Revised 6/05
(Signature) President or Authorized Official Consultant
Exhibit M -3
Certification Regarding The Restrictions
of The use of Federal Funds for Lobbying
The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her
knowledge and belief, that:
1.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 Federal
agency, a member of Congress, an 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.
2.If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any Federal agency, a member of
Congress, an officer or employee of Congress, or an employee of a member of Congress in
connection with this 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.
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 Section 1352, Title 31, U.S. Code. 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 prospective participant also agrees by submitting his or her bid or proposal that he or she shall
require that the language of this certification be included in all lower tier subcontracts which
exceed $100,000 and that all such subrecipients shall certify and disclose accordingly.
Consultant (Firm): Jacobs Engineering Group, Inc.
)/L3
(Date)
DOT Form 140 -089 EF Exhibit M -3
Revised 6/05
(Signature) President or Authorized Official onsultant
Exhibit M-4
Certificate of Current Cost or Pricing Data
This is to certify that, to the best of my knowledge and belief, the cost or pricing data (as defined in
section 15.401 of the Federal Acquisition Regulation (FAR) and required under FAR subsection 15.403 -4)
submitted, either actually or by specific identification in writing, to the contracting officer or to the
contracting officer's representative in support of AG -C-412 On -Call Services - Utility Design *
are accurate, complete, and current as of January 2012. * *. This certification includes
the cost or pricing data supporting any advance agreements and forward pricing rate agreements between
the offeror and the Government that are part of the proposal.
Firm Jacobs Engineering Group, Inc.
Name � o r1 c..Cf k J1) So
Title
O erakira As a1c 0c
Date of Extension * **
* Identify the proposal, quotation, request for price adjustment, or other submission involved,
giving the appropriate identifying number (e.g., RFP No.).
** Insert the day, month, and year when price negotiations were concluded and price agreement
was reached.
* ** Insert the day, month, and year of signing, which should be as close as practicable to the date
When the price negotiations were concluded and the contract price was agreed to.
DOT Form 140 -089 EF Appendix 31.910
Revised 6/05
CITY OF
®D-BuRN Peter B. Lewis, Mayor
1 WAASH II NGGTON 25 West Main Street * Auburn WA 98001.4998 * www.auburnwa.gov * 253-931-3000
I
December 27, 2012
Dawn Gamler
Jacobs Engineering Group, Inc.
600108 1h Avenue NE, Suite 700
Bellevue, WA 98004
RE. Supplemental Agreement No. 1 and Amendment No 1 to Task Assignment
CP1208-T001 for Agreement No. AG-C-412
On-Call Services — Utility Design
Dear Ms. Gamler
Enclosed please find an executed copy of the above-referenced Supplemental
Agreement No 1 This amendment extends the term of the agreement to December 31,
2013 and includes additional compensation in the amount of $27,204 00 for a total
agreement amount of $127,204 00.
Also enclosed is Amendment No. 1 to Task Assignment CP1208-TO01 For the City's
tracking and record keeping purposes, please reference AG-C-412 on all correspondence
and related material.
As the project manager, I am the designated contact for this agreement and all
amendments. Questions, assignments and coordination shall be routed through me.
You can contact me at 253-804-5059
Sincerely,
im Truong
Project Engineer
Department of Public Works
I
KT/ad/mh
Enclosure
cc: Dani Daskam, City Clerk (copy letter only)
AG-C-412
AUBURN * MORE THAN YOU IMAGINED
Organization and Address
Supplemental A reement # 1 Jacobs Engineering Group, Inc.
pp 9 600- 108"Avenue NE
Suite 700
Bellevue WA 98004
Agreement Number Phone
AG-C-412 425-452-8000
Project Number Federal Aid Number
N/A N/A
Project Title New Maximum Amount Payable
On-Call Services- Utility Design $127,204.00
Description of Work
Utility Design
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group Inc.
and executed on 7th day of February. 2012 and identified as Agreement No. AG-C-412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
I
Section I, SCOPE OF WORK, is hereby changed as follows:
No Change
II
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar
days for completion of the work to read: December 31 2013
III
Section V, PAYMENT, shall be amended as follows:
$27,204.00 is added to the total not-to-exceed agreement amount See attachments A and B for updated
Fee Schedule and Breakdown of Overhead Cost.
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
By- Ef' /LC`7 f NL,-Ct By' wls mayor
nsul$ A ' nature Approving Authority Signature
l Z�712z tL DEC 2 12012
Date ` Date
F.XF[IBIT A
Hourly Overhead Profit(on DL) Rate
Discipline or Job Title Rate(DL) 123.01% 30% Per Hour
Principal $ 90.16 $ 110.91 $ 27.05 $ 228.12
Project Manager $ 71.80 $ 88.32 $ 21.54 $ 181.66
Civil Engineer Planner $ 65.46 $ 80.52 $ 19.64 $ 165.61
Sr Civil Engineer Design $ 60.81 $ 74.80 $ 18.24 $ 153.84
Sr Civil Engineer Roadway $ 68.13 $ 83.81 $ 20.44 $ 172.39
Civil Engineer Roadway $ 5179 $ 63.70 $ 15.54 $ 131.02
Sr. Civil Engineer Design (QA) $ 69.71 $ 85.75 $ 20.91 $ 176.37
Sr Civil Engineer Design $ 59.03 $ 72.61 $ 1771 $ 149.35
Civil Engineer Design $ 38.93 $ 47.89 $ 11.68 $ 98.51
Envir-Water Res Engineer $ 40.57 $ 49.91 $ 12.17 $ 102.65
Sr Structural $ 64.53 $ 79.38 $ 19.36 $ 163.27
Structural $ 59.93 $ 73.72 $ 17.98 $ 151.64
Sr Electrical Engineer $ 68.40 $ 84.14 $ 20.52 $ 173.05
Jr Electrical Engineer $ 32.60 $ 40.10 $ 9,78 $ 82.49
CADD Lead $ 53.57 $ 65.90 $ 16.07 $ 135.54
CADD $ 46.07 $ 56.68 $ 13.82 $ 116.57
Permitting $ 52.41 $ 64.46 $ 15.72 $ 132.59
Contract Admin $ 53.14 $ 65.37 $ 15.94 $ 134.45
Sr Administrative Assistant $ 39.71 $ 48.85 $ 11.91 $ 100.47
Administrative Assistant $ 23.50 $ 28.91 $ 7.05 $ 59.46
i
EXHIBIT B
Summary of At-Office and At-Site Bates
and
Statements of Fringe Benefit Expense and
General&Administrative Expense in Accordance with the
Federal Acquisition Regulation
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
For the Fiscal Year F,uded September 30,2011
IVilh Report of Independent Auditors
i
I
I
I
i
THIS OOCUMENTCONTAINSCONFIOENTIALANO PROPRIETARYINFORMATNIN WHICHNAS COMMERCIALANNOR FINANCIALVALUE. SUCH INFORMATION HAS NOT
BEEN FUBLICLY DISCLOSED ANDISEXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL OTHER SIMRAR LEDISLATION JACOBS
ONGI14ECRING GROUP INC.REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE IS MADE
Summary of At-Office and At-Site Rates
and
Statements of Fringe Benefit Expense and
General&Administrative Expense in Accordance with the
Federal Acquisition Regulation
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
1
i
For the Fiscal Year Ended Seplember 30,2011
i
Contents
Report of Independent Auditors I
Summary of At-Office and At-Site Rates 1
Statement of Fringe Benefit Expense 3
I
Statement of General&Administrative Expense 4
Notes to Statements of Fringe Benefit Expense and
General&Administrative Expense 5 f
i
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL ANDIOR FINANCIAL VALUE SUCH INFORMATION HAS
NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION.
JACOBS ENGINEERING GROUP INC REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE 16 MADE
Cleary & Gill LLC
REPORT OF INDEPENDENT PUBLIC ACCOUNTANT
To: Board of Directors of Jacobs Engineering Group Inc.
Re: Indirect Cost Rates Prepared in Accordance with Part 31 of the Federal Acquisition Regulation
We have audited the accompanying Summary of At-Office and At-Site Rates, Statement of Fringe Benefit
Expense and Statement of General &Administrative Expense(Schedules of the Indirect Cost Rates)of North
American Infrastructure(NAI), a segment of Jacobs Engineering Group Inc., for the twelve months ended
September 30,2011 prepared in accordance with Title 48,Code of Federal Regulations,Part 31 of the Federal
Acquisition Regulation(FAR). NAI is a wholly-owned business unit of Jacobs Engineering Group Inc. These
schedules are the responsibility of NAI's management. Our responsibility is to express an opinion on these
schedules based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and also the
standards applicable to financial audits contained in Government Auditing Siandards•(July 2007 Revision),issued
by the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the Schedules-of the Indirect Cost Rates are free of material
misstatement. An audit includes reviewing,on a test basis,evidence supporting the amounts and disclosures in
the schedules and performing such other procedures as we considered necessary in the circumstances. Our audit
also included assessing the accounting principles used and significant estimates made by management,as well as
evaluating the overall schedule presentation. We believe that our audit provides a reasonable basis for our
opinion.
The aforementioned Schedules of the Indirect Cost Rates were prepared on a basis of accounting practices as
prescribed by Part 31 of the FAR as discussed in Note 2,and are not intended to be a presentation in conformity
with accounting principles generally accepted in the United States.
In our opinion,the Schedules referred to above present fairly, in all material respects,the Indirect Cost Rates of
NAI for the twelve months ended September 30,2011,calculated in accordance with Part 31 of the FAR.
In accordance with the GovernmentAuditing Standards,we have also issued our report dated March 20,2012 on
our consideration of NAI's internal controls over financial reporting and our test of its compliance with applicable
laws and regulations. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report.
Individuals relying on this report must have an adequate understanding of Part 31 of the FAR. Therefore,this
report is intended solely for tine information of management and government agencies for use under contracts
governed by the aforementioned regulations. It is not intended to be and should not be used by anyone other than
the aforementioned parties nor should it be used for any other purpose.
Arlington Heights,Illinois
Match 20.2012
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Summary of At-Office and Al-Site Rates
For the Fiscal Year Ended September 30,2011
I
i
The At-Office and At-Site rates relative to the audited Fringe Benefit Expense and General&Administrative
Expense Statements were computed in accordance with Part 31 of the Federal Acquisition Regulation(FAR).
North American Infrastructure
At-Office
At-Site General&Administrative Rate 72.52%
Use&Occupancy Rate 23.93%
Fringe Benefit Rate 26.56%
Combined Rate 123.01%
At-Site
At-Site General&Administrative Rate 72.52%
I
Fringe Benefit Rate 26.56%
Combined Rate 99.08%
See the following statements for detailed computations CHIC above Fringe Benefit Expense and General&
Administrative Expense rates and for the applicable explanatory notes.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT WAS COMMERCIAL ANWOR FINANCIAL VALUE. SUCH INFORMATION HAS
NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL SIMILAR OTHER LEGISLATION
JACOBS ENGINEERING GROUP INC. REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE IS MADE
2
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Statement of Fringe Benefit Expense
For the Fiscal Yenr Ended September 30,2011
NAI DIRECT
FRINGE
BENEFIT
EXPENSE
(Note 5)
COSTS.NET OF ADJUSTMENTS
PAID TIME OFF $ 22,558,921
FICA 15,328,901
SUI 1,447,592
FUI 140,086
THRIFT PLAN 4,395,560
GROUP INSURANCE 9,727,521
YORKERS'COMPENSATION 586,959
GENERAL LIABILITY 2,897,677
EMPLOYEE ASSISTANCE PLAN 64,230
TOTAL.ALLOCATED FRINGE BENEFITS $ 57,147,447
TOTAL FRINGE LABOR RASE $ 215,129,666
COMPANY WIDE FRINGE BENEFIT RATF, 26.56%
The accompanying notes are an integral part of this statement,
j
THIS BOCUMENT CONTAINS CONRDmnA AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL ANDAIR FINANCIAL VALUE.SUCH INFOmMTION
HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM CISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT AND ALL OTHER SIMILAR
LEGISIATIOR JACOBS ENGINEERING GROIP LNG REQUESTS WRITTEN NOTICE BEFORE ANY PUBLIC DISCLOSURE IS MADE.
3
North American Infrastructure
A Business Molt of Jacobs Engineering Croup Inc.
Statement of General&Administrative Expense
For the Fiscal Year Ended September 30,2011
GENERAL&
'TOTALFAR ADMINISTRATIVE USE&
TOTAL. UNALLOWAOLE RATE APPLIEDTO OCCUPANCY
INCURRED COS1' NET CLAIMED AT-S1T£&AT- RATE(AT-
G&A COSTS ADJUSTMENTS NOTES C&A COSTS OFFICE PROJRCTS OFFICE)
(Nute2)
INDIRF.CTLABOR 5 61.161,549 Y (344,735) •1 S 60,816,814 5 60,816,814 S ,
INDIRECT EXPENSES
OFFICE OCCUPANCY EXPENSES 30,100.684 (48,626) 30,052,058 7,199,825 22,852,233
FEINOE BENEFITS 16,245,958 5 16,245,958 16,245,959
PERSONAL COM?LITER SERVICES 12,228429 (56,861) 12,171,569 44,678 12,126,890
TRAVEL&BUSINFSSMEALS 4,142,340 (363,659) 6 3,773,681 3,773,681
PENSION&STOCK AMORT2 TION 3,193,860 3,193,860 3,193,860
EMPLOYEE TRAINING&DUES 1,793,807 (269,252) 7 1,524,555 7,524,555
BUSINESS LICENSE&TAXLS 595,340 (906) 594434 433,455 160,979
VEHICLEEXPENSES 1,453,482 (304,906) 8 1,148,576 874,683 273,893
OFFICE AND OTHER SUPPLIES 960,977 (172,982) 787,995 169,704 618,291
OUTSIDESHRVICC•S 965,077 (102,D13) 763,064 695,685 67,379 �
RECRUITING&RELOCATION 909,846 (317,994) 9 591,852 397,539 194,313
REPRODUCTION 300,331 (15,857) 284,474 284,474
POSTAGE&FREIGHT 165,116 (155) 164,961 164,961
TEMPORARY STAFF 231.502 (7) 231,495 231,495
PUBLIC RELATIONS A,ADVERTISING 58,512 (51,918) 10 6,594 6,594
COSTBECOYRRY (676,124) 11 (676,124) (676,124)
OMER 2,157,584 (1,043,232) 12 1.114.352 787,466 326,896
SUBTOI'6L INDIRECT EXPENSES S 135,898,27D 5 (3,098.103) S 132,790,167 S 95,884,829 S 36,905,338
OTHER INDIRECT EXPENSES
SALES,PROJECT SERVICES&CONSTRUCTION $ 309,642 S (2,194) S 307,448 S 3D7,448 S '
PUBLIC MANAGEMENT&ADMINISTRATION 167,590 (12,987) 154.603 154.603
BONUSPAYMENTS 3,132,820 3,132,820 3,132,820
EMPLOYEE STOCK PURCHASE PLAN 212,049 212,049 212,049
FI XED ASSET(OMN)7 LOSS 91•.516 91,536 91,536
SUBTOTAL OTHER INCH RF.CT EXPENSES $ 3,913,637 S '(15,181) $ 3,898,456 S 3,898,456 5
ALLOCATIONS
CORPORATE ALLOCATIONS $ 58,271,013 $ (2,031,550) 3,5 S 56,239.463 $ 56,239,463 $
SUBTOTAL ALLOCATIONS S 58,271,013 S (2,031,550) S 56,239.463 S 56,239,463 S
TOTAL.G&A EXPENSES S I9S,072,920 S (5,144,834) $ 192,928,086 $ 156,022,748 S 36,905,339
DIRECT LABOR(TOTAL AND AT-OFFICE) S 215,129,666 S 154,232,761
NORTH AM ERICAN INFRASTRUCTURE IN DIREC F COST RATES 72.52% 23.93%
AT-OFFICE GENERAL&ADMINISTRATIVE RATE 96.45%
The ACMAIPmrying noms arc an integral part of this statement-
THIS DOCUMENT CONTAINS CONN DENTIAL AND PROPRIETARY INFORNAFION THAT HAS COMMERCIAL ANWOR FINANCIAL
VALUE. SUCH INFORMATION I4AS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM
OF INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC. REQUESTSWRITrEN
4
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General& Administrative Expense
for the Fiscal Year Ended September 30,2011
1. Business and Basis of Presentation
The financial information presented in the accompanying Statements of Fringe Benefit Expense and General
&Administrative Expense includes the expenses of North American Infrastructure(formerly Jacobs Civil)
and Jacobs Civil Consultants Me.(collectively the Company)for the fiscal year ended September 30,2011.
Jacobs Civil Consultants Inc. was formerly known as Sverdrup&Parcel Consultants,Inc. The Fiscal Year
2011 company-wide indirect rates presented herein include the operations and results of North American
Infrastructure(the Company)and are calculated consistently with the Company's Fiscal Year 2010 company-
wide indirect rates.
The Company is a business unit of Jacobs Engineering Group Inc.(Parent Company)and Jacobs Civil
Consultants Inc. is a wholly-owned subsidiary of the Parent Company The Parent Company is a publicly
traded company on the NYSE The Company provides planning,design,construction management and
design/build professional services. Major markets include transportation,public works and environmental.
The Parent Company was originally incorporated in 1957,and its clients include federal,state, local,and
foreign government agencies,as well as numerous commercial entities. Revenues are derived from billings
for professional services:project services;process,scientific and systems consulting services;operations and
maintenance services,and construction services.
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2. Basis of Accounting and Description of Accounting Systems
The Company's policy is to prepare the accompanying Statements of Fringe Benefit Expense and General&
Administrative Expense on the basis of accounting practices prescribed by Chapter 1,Part 31 and Chapter 99
of the Federal Acquisition Regulation(FAR). The above mentioned statements are not intended to present
the financial position or the results of operations of the Company in conformity with accounting principles ;
generally accepted in the US. '
The Company maintains its books of accounts using the Accrual Method of accounting.
The Company uses a multi-step process to identify and quantify unallowable costs as defined in FAR Part 31.
First,the Company identifies certain expense accounts,expenditure types in the general ledger and certain
indirect projects as totally unallowable(e.g.,interest expense,bad debts expense,etc.) For certain other
expense accounts that are likely to contain unallowable costs,the Company either reviews all of the
significant transactions in the account or it reviews a sample of the transactions in the account. For those
expense accounts that are sampled,the Company extrapolates the results of the sample to the related expense
account population. The larger unallowable balances generated by this process are footnoted as indicated
below In addition,the Company voluntarily excludes certain other costs from the indirect cost pools,and it
uses estimates to determine the amount of certain other unallowable costs.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AN DIOR FINANCIAL VALUE
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION.JACOBS ENGINEERING GROUP INC.REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
5
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General & Administrative Expense
for the Fiscal Year Ended September 30,2011
2. Basis of Accounting and Description of Accounting Systems(continued)
The Company maintains a job cost accounting system based on actual costs for recording and accumulating
costs incurred under its contracts. Each project is assigned a unique job number so that costs may be
properly segregated and accumulated in the Company's job cost accounting system. Employee labor costs
are charged to jobs using the employee's actual hourly pay rate at the time that the labor is incurred. For
salaried employees,their actual hourly pay rate forjob costing purposes is based on their annual salary
divided by 2,080 hours per year
Direct and Induect Costs-Costs are specifically identified and recorded separately in formal financial
accounting records as Direct Costs and Indirect costs as established in accordance with our disclosed
practices. Direct costs are those costs that can be specifically identified to a customer project,work activity
or final cost objective. Indirect costs are those costs that cannot be specifically identified with a single j
customer project,direct work activity or final cost objective.Contract/Purchased labor is treated as Other
Direct Costs.
Nonsalary Direct Project Costs sometimes referred to as Other Direct Costs are consistently charged to all
projects regardless of the recoverability from the customer.
I
Paid Time Off-The Company accrues Paid Time Off(PTO)based on the years of service for each
employee. PTO may be used by employees for a variety of reasons, including(but not limited to)vacation,
illness or accident,bereavement or personal time off. All requested PTO is subject to supervisory approval.
PTO benefits are paid based on the employee's base pay rate at the time that the absence occurs and does not
include any special forms of compensation such as incentives,commissions,bonuses or shift differentials. ;
Employees receive pay for all accrued but unused PTO hours upon termination of employment.
Overtime Compensation-the Company's policy on pay practices and overtime pay eligibility compliance is
established to appropriately pay employees in accordance with their classification as defined by the Fair
Labor Standards Act,29 C.F.R. §541.602(FLSA).This policy discusses federal regulations regarding ;
overtime.State laws may be more restrictive than federal laws. Local Human Resources representatives
provide details regarding regulations for specific states. In certain circumstances,exempt employees may
receive additional compensation for work in excess of their regular schedules.It is the immediate
supervisor's responsibility to adequately supervise the overtime work performed.
Uncompensated overtime-The Company's policy regarding overtime is to compensate NONEXEMPT
employees for authorized additional hours of work. EXEMPT employees record only those overtime hours
for which they are authorized to work and accordingly,compensated. As a result,uncompensated overtime
is not tracked.
Depreciation-Property,equipment and improvements are carried at cost. Depreciation and amortization is
computed primarily by using the straight-line method over the estimated useful lives of the assets.The cost
of leasehold improvements is amortized using the straight-line method over the lesser of the estimated usefil
life of the asset or the remaining term of the related lease. Estimated useful lives range from 20 to 40 years
for buildings,from 3 to 10 years for equipment and fiom 3 to 7 years for computers and software.
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AND/OR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC.REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
6
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General &Administrative Expense
for the Fiscal Year Ended September 30,2011
2. Basis of Accounting and Description of Accounting Systems(continued)
The Company's method of estimating costs for pricing purposes during the proposal process is consistent
with the accumulation and reporting of costs under itsjob cost accounting system.
i
3. Allocation Methods
The Company has established two indirect rates:(1)an At-Office Rate that is applied to work performed in
Jacobs-provided facilities,and(2)an At-Site Rate that is applied to work performed at non-Jacobs(i.e.,
customer)provided facilities.The allocation base for the At-Site G&A rate includes all Professional Services
and all Field Staff Direct Labor including premiums.The allocation base for the At-Office G&A rate
includes At-Office Professional Services and At-Office Field Staff Direct Labor including premiums.
The Company uses the same fringe benefit rate for both its At-Office and At-Site direct labor and allocates
fringe benefit expenses based upon total payroll dollars(including premiums and excluding incentive
compensation.).
The Company receives an allocation of costs from the Parent Company that includes salaries,related fringe
benefits and general and administrative expenses. The G&A expenses include One costs of certain executive
management,legal,accounting,treasury,information technology,human resources,health and safety,and
other corporate functions. These costs are allocated to the Company based upon a three-tier method,which
allocates costs that are:(1)directly attributable to the Company;(2)separately associated with the Company j
that are allocated based upon appropriate bases that use direct labor dollars,total payroll dollars,revenues,or
a combination thereof;and,(3)amounts remaining after the first two tiers,allocated based upon a two-factor
formula that is computed using Professional Service and Field Staff payroll dollars and revenues.
Effective October 1,2008,the Parent Company allocated the costs of certain information technology,legal,
accounting,and health and safety functions benefiting domestic operations,excluding Jacobs Technology,
Inc.,through three expense pools:the Domestic Pool,the Public Sector Accounting Pool,and the Private
Sector Accounting Pool. Effective October 2,2010,these three pools were combined for allocation purposes.
Overall,NAI's allocation from the Domestic Pool increased in Fiscal Year 2011 due to higher spending in
the pool which was partially offset by a lower participation percentage in the pool.
The allocations of the Parent Company's Corporate Home Office costs have been properly adjusted to reflect
FAR Part 31 disallowances. These amorous were determined by the multi-step process described above it
Note 2. The net allowable costs for each of the Corporate}Lome Office cost pools are then allocated using
the methodologies described above.
4 Excess Compensation
The adjustment for excess executive compensation of$344,735 primarily reflects the salary disallowance in
accordance with FAR 31.205-6. To evaluate the overall reasonableness of employee compensation,the
Company performed a multi-step compensation analysis to review and evaluate One reasonableness of
employee and executive compensation. As part of this analysis,senior executives were bench narked
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AN DIOR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC.REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
7
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General&Administrative Expense
for the Fiscal Year Ended September 30,2011
4. Excess Compensation(continued)
to surveys in which Jacobs participated,while other staff were evaluated using a compensation matrix
derived from ER],PSMJ and Dietrich surveys.The overall results of the compensation analysis showed that
the Company's compensation was reasonable. Included in the above adjustment is$4,180 of costs related to
reorganization costs in accordance with FAR 31.205-27 An additional excess compensation disallowance of
$505,323 is included in the Corporate Allocation disallowance in accordance with FAR 31.205-6.
5. Fringe Benefits
The Parent Company calculates a Company-wide fringe benefit rate that is applied to its US business units
and wholly-owned subsidiaries. Fringe benefit costs include an adjustment of the indirect fringe benefit
expense recorded in the general ledger at the standard fringe rate of 31.5%to the Fiscal Year 2011 actual
fringe rate of 26.56%.
6. Travel&Business Meals
Based on a review of travel and related costs,NAI disallowed$368,659 in accordance with FAR 31.205-46.
7 Employee Training&Dues
The adjustment amount of$269,252 represents dues that are unallowable in accordance with FAR 31.205-14.
8. Vehicle Expenses
Based on a review of vehicle expenses$304,906 was disallowed in accordance with 31.205-46 and 31.201-
2(d).
9 Recruiting and Relocation
The relocation adjustment of$317,994 represents employee relocation expenses that are considered
unallowable in accordance with FAR 31.205-35.
10. Public Relations and Advertising
The adjustment amount of$51,918 represents expenses that are considered unallowable in accordance with
FAR 3 L205-1
THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL ANDIOR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION.JACOBS ENGINEERING GROUP INC.REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
8
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General&Administrative Expense
for the Fiscal Year Ended September 30,2011
I
11. Cost Recovery
The Cost Recovery accounts are used to charge projects for the usage of company-owned equipment,
supplies and vehicles.Portions of overhead relating to reproduction,vehicle costs,field equipment and
supplies and other miscellaneous costs are allocated(via a credit to cost recovery)to direct project expense
based on actual usage.
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12. Other j
Included in the other adjustment of$1,043,232 are the following unallowable expenses of Fiscal Year 2011
actual costs:
Fines&Penalties(FAR 31.205-15) $ 6,189
I
Contributions(FAR 31.205-8) $ 115,886 i
Internal Promotion Meal&Entertainment(FAR 31.2 various) $526,763
External Promotion Meals,Entertainment&Other(FAR 31.2 various) $378,338
$ 1,027,176
*The remaining balance of the disallowed amount is determined using the methodology discussed in Note 2.
13 Pension Plans
The company offers a 401(k)pension plan, meeting the requirements of FAR 31.205-60).The plan provides
maximum contributions within legal guidelines and a match equal to 50%of the first 6%of eligible pay
14. Belated Party Transactions
No adjustments or disclosures requited per FAR 31.205-26(e)or FAR 31.205-36(b)(3).
1 HIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL ANWOR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUB UGLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC.REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
9
North American Infrastructure
A Business Unit of Jacobs Engineering Group Inc.
Notes to Statements of Fringe Benefit Expense
and General&Administrative Expense
for the Fiscal Year Ended September 30,2011
15. Direct Cost Accounts include the following but are not limited to:
i
Travel,subsistence,and relocation
Subcontracts/Consultants
Contract Specific Training and employee development
Temporary and other purchased labor/services
Contract Specific Safety Supplies and Equipment rental/leases
Field Consumable/Expendable Supplies/Office Supplies
Other Equipment/Supplies
Telephone/Fax/Communications
Freight and Postage
Outside/Specialty Reproduction Costs
Specialty Taxes
The Company's internal controls include segregation of duties between accounts payablejob functions,
performance of pre-audit on certain accounts/expenditure types,A/P Coding Training and control of j
general and administrative costs through a rigorous budgeting process to avert the inclusion of direct costs in
the indirect cost pool.
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THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HAS COMMERCIAL AND/OR FINANCIAL VALUE.
SUCH INFORMATION HAS NOT BEEN PUBLICLY DISCLOSED AND IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF
INFORMATION ACT AND ALL OTHER SIMILAR LEGISLATION. JACOBS ENGINEERING GROUP INC.REQUESTS WRITTEN NOTICE BEFORE
ANY PUBLIC DISCLOSURE IS MADE.
10
Cleary & Gill LLC
REPORT' OF INDEPENDENT PUBLIC ACCOUNTANT
To: Board of Directors
Jacobs Engineering Group Inc.
I
Re: Internal Control Structure and Compliance with Applicable Laws and Regulations
We have audited the Summary of At-Office and At-Site Rates, Statement of Fringe Benefit Expense and
Statement of General&Administrative Expense(Schedules of the Indirect Cost Rates)of North American
Infrastructure(NAI),a business unit of Jacobs Engineering Group Inc.,calculated in accordance with the
Federal Acquisition Regulation(FAR)Part 31 for the twelve months ended September 30,2011,and we
have issued our report thereon dated March 20,2012. These schedules are the responsibility of NAI's
management.
We conducted our audit in accordance with the auditing standards generally accepted in the United States
and the standards applicable to financial audits contained in Governrnent Auditing Standards(July 2007
Revision),issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the aforementioned schedules are free
of material misstatement.
j
Internal Control Over Financial Reoortina
I
The management of NAI is responsible for establishing and maintaining an internal control structure. In
fulfilling this responsibility,estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and procedures. The objectives of an '
internal control structure are to provide management with reasonable,but not absolute,assurance that
assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed
in accordance with management's authorization and recorded properly to permit the preparation of the
aforementioned schedules in accordance with applicable regulations including Part 31 of the FAR.
Because of the inherent limitations in any internal control structure,errors or irregularities nevertheless
may occur and not be detected. Also,projection of any evaluation of the structure to finure periods is
subject to the risk that procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit,we considered NAI's internal controls over financial reporting as a
basis for designing our auditing procedures for the purpose of expressing our opinion on the Schedules of
the Indirect Cost Rates, but not for the purpose of expressing an opinion on the effectiveness of NAPS
internal control over financial reporting. Accordingly,we do not express an opinion on the effectiveness
of NAI's internal control over financial reporting.
A control deficiency exists when the design or operation of an internal control does not allow management
or employees, in the normal course of performing their assigned functions,to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency,or combination of control
deficiencies, that adversely affects the entity's ability to initiate,authorize,record,process,or report
Cleary & Gill LLC page 2
Internal Control Over Financial Reporting-continued
financial data reliably in accordance with U S.generally accepted accounting principles such that there is
more than a remote likelihood that a misstatement of the entity's Schedules of the Indirect Cost Rates that
is more than inconsequential will not be prevented or detected by the entity's internal controls.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the Schedules of the Indirect Cost Rates will
not be prevented or detected by the entity's internal controls.
Our consideration of internal control over financial reporting was for the limited purpose described above
and would not necessarily identify all deficiencies in internal control that might be significant deficiencies
or material weaknesses. Nonetheless, we did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses,as defined above.
Compliance with Applicable Laws and Regulations
As part of obtaining reasonable assurance about whether the aforementioned schedules are free of material
misstatement, we performed tests of NAT's compliance with certain provisions of laws,regulations and
contracts;noncompliance with which could have a direct and material effect on the determination of the
actual indirect rates. However,the objective of our audit of the Schedules of the Indirect Cost Rates was
not to provide an opinion on overall compliance with those provisions. Accordingly,we do not express
such an opinion. Nonetheless,the results of our tests did not disclose any instances of noncompliance that
are required to be reported under Government Auditing Standards.
This report is intended for the information of NAT's management and those government agencies with
whom NAT has contracted. It is not intended to be and should not be used by anyone other than the
aforementioned parties nor should it be used for any other purpose.
ea&t 6 `c�, �
Arlington Heights, Illinois
March 20,2012
Organization and Address
Su lemental A reement # 2 Jacobs En�qineering Group, i�o.
PP 9 600— 108 Avenue NE
Sufte Z00
Bellevue,WA 98004
Agreament Number Phone
A�-��2 425�52-8000
Projed Number Federal Aid Number
N/A N!A
Project 7itle New Maximum Amount Payable
On-Gall Services- Utilit Desi n $187 204.00
Description of Work
Utility Design
The Local Agency of the CiN of Auburn
desires to supplement the agreement entered irrto with Jacobs Enaineering Grouo. Inc.
and executed on 7th dav of Februarv. 2012 and identified as Agreement No. AGC-412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplemerit.
The changes to the agreement are described as follows:
I
Section I, SCOPE OF WORK, is hereby changed as follows:
No Chanqe.
II
Section IV,TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar days
for completion of the work to read: December 31. 2014
III
Section V, PAYMENT, shall be amended as follows:
$60.000.00 is added to the total not-to-exceed aa�eement amount. See attachments A and B for uodated Fee
Schedule and Breakdown of Overhead Cost.
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and retum to this office for fnal action.
By: 1 ,2.. . � 7JG By: . e ' or
�
Consultant Signature A proving Authority Signature
�,�/��j3 DEC 16 2013
' D'ate Date
EXHIBIT A
Hourly Overhead ProfiT(on Dl) Rate
Discipline orJob Title Rate(DL) 318.43% 30% PerHour
Principal $ 94.67 $ 112.12 $ 28.40 $ 235.19
Project Manager $ 75.39 $ 89.28 $ 22.62 $ 187.29
Civil Engineer Planner 5 65.73 $ 81.40 $ 20.62 $ 170J5
Sr Civil Engineer Design $ 63.85 $ 75.61 $ 19:15 $ 158.61
Sr Civil Engineer Roadway $ 71.54 $ 84.73 $ 21.46 $ 177.7&
CiVil Engineer Roadway $ 54.38 $ 64.40 $ 1631 $ 135.08
Sc CiJil Engineer Design (QA) $ 73.19 $ 86.68 $ 21.96 $ 181.84
Sr. Civil Engineer Design $ 61.98 $ 73.41 $ 18:59 $ 153.98
Civil Engineer Design $ 40.88 $ 48.42 $ 12.26 $ 101.56
Envir-Water Res Engineer $ 42.60 $ 50.45 $ 12.78 $ 105.83
Sr..Structural $ 67.76 $ 80.25 $ 2033 $ 168:34
Structucal $ 62.93 $ 74.53 $ 18.88 $ 156:34
Sr Electrical Engineer $ 71.82 $ 85.05 5 21.55 $ 178.41
Jr Electrical Engineer $ 34.23 $ 40.54 $ 10.27 $ 85.04
CADDIead $ 56.25 $ 66.62 $ 16.87 $ 139;74
CADD $ 48.38 $ 57.29 $ 14.51 $ 120:18
Permitting $ 55.03 $ 65.17 $ 16.51 $ 136.70
ContractAdmin $ 55.80 $ 66.08 $ 16.74 $ 138.62
SrAdministretiveAssistant $ 41.70 $ 4938 $ 12.51 $ 103.59
Administretive Assistant $ 24.68 $ 29Z2 $ 7.40 $ 613�
EXHIBIT B
�Summary of At-Ot6ce and AtSlte Rates .
�a
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cenval dc naminteqnnre Expeou in nccora■na wun�the
Falerei Aeqnliltlou Regalaflon. .
NOI'Yh L�IRCtiC8i1�P88t[UCL'tli'C �
A Baeinees IInte of JarnM Enqineerlop Group Ina
_. . . ....
ForthtFircalYmrEaddSe�bei28,3012
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_ . . . . . _ . . . . . .. .
. . . . . . . . _. : .
rwsnxurkrrtcarti�wsao�arovmu.umvnaw�runwFaaYiiiatiwwuiwsm�ti��FlrurepKVU�:stin�ruoia.unouiasnor
�wauarasa.osmasse��nwr�aso.osusta�neer�oF'aanqwtwa�tr�wo�uar�aemwtiefasueron�oes �
�a crtaw wC.amucvra�vntrrennm�ee�oaEUnweuc oisaasunc�s w�.
summary ur nt-oinco wa Ac,site xaus
aud
Steumenh of Fringe Beneflt E:peme eod
Gwasl&Admin�strattve Eipma iu Aeoaa'dmce wML the
Federai Acqalsltlon ReQaladon
North American Infrastructure
A Bus[ness Unit of Jaeobs Engtneering Gronp Ina
For fht F1satl Pror Endid Scptem8cr78,IOl2
Coutwp
Report of Indepe�eM Aaditors 1
Sammery ot At-0Hke aud At-Site Rata 2
Statemeut ot Fringe Bweflt Eipenx 3
Smt�ent of Gmernl&A�ilnbk�ativc Ezpenx 4
Notn to.Sffitemmb of FAnge Benellt Expense and
Gmerel&AdmWstrative Eipmse S
___ ..__
nreooaie�urmHr�usmr�xrua�vmvaorwErAarua�w,rroNn�rw�swm�cu��aonFlnurw�uvuue. sua�osvwnr.�ronw�s
r+vre�r+vueuc�r ds�x�am m o�uvr�xou a�tu�n�e cx�oa+oF m�uTeai�crNao�u.vma+sn�nux��row.
JtiWB9ENGINEERINOfiROUGtliCREGIlEST9WRfI7EN1iO�ICEB�AM'NJBLICOLStS.OSUfE1SW10E. �
Cleary Government Services, LLC
REPORT OF INDEPENDENT PUBLIC ACCOUNTANT
To: Board of Directora of Ja�bs Engineering Group Inc.
Re: Indirect Cost Rates Prepared in Accordance with Part 31 of the Fedecal Acquisition Regulation
We have auditod the accompanying Summary of At-0ffia and At-Siu Rates, Statement of Friage Benefit
Expense and Statement of General&Administtetive Expense(5chedules of the Indiract Cost Rates)of Nmth
American Infrastructure(NAI),a segment of Jacrobs Enginceriug Group Inc.,for the twalve months ended
September 28,2012 prepared in accordance with�fle 48,Code of Federal Rogulativns,Part 31 of the Fede�al
Acquisition Regulation(FAR). NAI is a wholly-owned busiaess unit of Jawbs Exiginc�ting Caoup Inc. These
schedulos ane tlu respansiibility of NAI's management. Our responsibility is to express an opinion on these
schedules based on our audit.
We conducted our sudit m accoxdance with auditiag standards generally accepted in the United States and also the
standands applicable to financial audits contained in Cravernmeni Auditing Stanrlards(July 2007 Revision),issued
by the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain mssonable ass�uance about whGher the Sch�dules of the Indir�t Cost Rates are&ee of material
misstatenunt. An sudit includes reviewing,on a test basis,evid�nce supporting the amounis and disclosures in
the schedules and performing such other proceduties as we considered necessary in the cu+camstances. Our sudit
atso includ�assessm8�8���8 P�Ples used and significant estimates made by management,as well as
evaluating the overall schedule presentatron. We believe tUat our audit provides a reasonable basis for our
oPimon.
The aforementioned Schedui�of the Indirxt Cast Rates were pa�epared on a basis of accounting pracrices as
prescribed by Part 31 of the FAR as discussed in Note 2,end aze�t intendal to be a preseatation in coafwmity
with acconnting principles generally accepted in the United States.
In our opimam,the Schedules referred w above prosent fauiy,in all material respxts,the Iadn+ect Cost Rates of
NAI for the twelve months onded Soptember 28,2012,calculated in aawrdance with Part 31 o£the FAR.
In a«:ordance with flu Government AuditingStandards,we have also issued our relwrt dated March 13,TA13 on
o�s rnnside�ation of NAI's intemal coatrols ova financiel reporting and aur test of its compliance with applicable
laws and regtilations. That repart is an integ�al part of an audit performed'm accordance with Government
Auditing Standards and should be read'm conjunction with Uris report.
Individuats relying on this report must t�ave an adequate undetstanding of Part 31 of the FAR. Thenfore,Uris
report is intendad solely for the mformation of managemeot and governmeat agencies for use under canUacta
governed by the aforementioned regulations. It is not intended to be and shouid�t be usod by anyoae othc than
tke aforemmtioned pazties nor should it be used for any othea piupose.
�c I�cMn�.ea��/��a,,�,
cm�,
Ma�h 13,?A13
1
Nort6 Ame�imn Infresoruetnre
.A Baalneu Unit of Jscobs Engineering Group Iue:
_ Sammary of At.OH7ce aad Ab5i0e Rata
For ffie Fiscal Year Endcd September 28,2012
The At-015ce md At-Site mte�relative'to the mufiit�d Fringe Bmefit_E�se end Gmaal�&Admmist�tivo
Ezpense Stetanrnis wce computed in eecwd��witb Pert 31 of the Fedaal Aequisition Reguletion(FAR}
North AmeTlesn InfrastruMuce
pt-Offlce
At-Si6e�maal&Ndministratiw�Rate 68A4°/.
Use&Oocupmcy Rete 23.66%
Frimige Beriefit Rate 2633%
Comhlned Rate 118A3°k
AtSite
At-Site Qrnetsl&Adminishetive Rate 68.4C%
Fringe Ba�efit Rate 26.33%
Combined Rate _.9d.77% _-_
� See the following ammnmm for�daeilod comptitatiais of the atiove frmge.Brnefit Expmse end Cieoeml&
Adminisqadve F�cpmse rete.a md for tbe applicable uplanatory aote.s.
_ _ _. _ .
TI�OOQIA�M CONTMl4 CO!lP�NMIAND PROPPotTARY P�OMMTIONTW�T W16�CW.MiD/OR FlNRdL7N.V/LLUE�SUCX PffORM11TI0N W13
t�T 9EEH PUBLICLY OISCLOSED MID IS E77m.l.67 RLON DISCLOSURE U1�ERtNE FREEDDM OF P1FQiW1qNACf ANDNJ:SWLLAR OTFIER LEGI9ATION.
� Uf70&4B&'ii1�tP16GiROlIPMC. RWUESTSVVWITENNDTILEBffOREIWYPUBLICDISCL09Ui�bM�OE �
2
Nort6 Amuiean Wres�ctwe
A Buatna�Unit of Jaeo6e Engineaing Gronp Inc.
Smeemeut otFlio�e Bme�t E:penee
For the Fiseal Year Ended Sept�bs 28,7Al2
NAI DIRECf
FItINGE
BElVEF7T
F.7CPG�PiSE
���
COSTS.NET OF ADJUSTMENTS
ram xrn�o� a a�,soa,?s6
�cn. is;o9a,or3
SUI 1,437,671
FIJI 102,945
THRIFT pI,AN 4,169,352
_
GROUP INSURANCE 9,307,052
WORI�BS'COMPENSATION 612,003
GFntFUSt.L�pg�qy 2,920,489
IIYIPLOYEE ASSISTANCE PLAN 59,637
TOTAL ALLOGITED FBiNGE BENEFTIS S 56,207,978'
TOTAL FRWGE Is1BOR BASE S 213,434,721
COMPANY-R'IDE FRINGE BENEFIT RATE Z633%
iLe a�paoymg notes are an 6mtegral pert of tLis stat�mt
nasooanm�rooNr�aaconamoanK,ua�Er�arasorw,t�rownurw�scao,meewµaonFnuuxt�tv�uuE suauarnauatda
w�a wrem�wmiur o�saos�n roro s omvt arox�u�metn��oou aF ngonw�+,ucrum�um�nsmure
�ras�anau.,u�coes e�om+�wo cwouv ex: �s7s wnrrfen�mrrE eson��ar vueue ase�n wwe
3
Nm14 Amalao InGutractme
A BMom Uolt dJaca�C�etl�Cmop Inc.
Sfummt otCeoerd k AOmid�tratl�e��euw
Fw IM FNuO Yev&odd 9ry0emDer 3B,3012
GF.�AL k
TOTALPAR AOM1IINISfCATIVL U8L&
UNAI.[.OWA818 RA7'LAPPiaD'['O OCCOPAHCY
1'O7ALQlCUB86D CO3� lOTC[AA� ATdll'ilAL RATL{AT-
GlACOS13 ADIUSfA�NTB NOT68 GRACOS[S OPPfC8PRO/SC18 O➢FIC�
M�A
�u.o� s Sa�u,Q,< i (170,6331 , s ,baw,m� s s�.oa.m� s -
ummacr wu+�
ormwoaar.�ncrm�ssa ze�o�.st� (ss.ssq w�s.ws s.mo,t3s s�.susa
RMOHB@16R3 I1�780.770 • 3 IA7N4770 N.760�7�1 -
PLF80DW.00MWIID[BHRVICBB [3�315.4q (63,370) 1]�2A�673 �I.pO 1]j10�lA
TGVel.L8u91�3E�ti N�4.�7 (359,628) 6 7,t6W69 3,BE0,769 ' -
em+swnasroac�e�mcrvwna+ �ssiaa - us�aa �ssua -
&�LOx6elaewnuasalPa t934�ro (be.es7) 7 �37uit7 t9037� -
vFmccetM0a36s �AU.Ne Pel.es� e �,06s:J90 u�aal zsu29
omcE�vmo'nmasuPPt.�s lAUA23 W�.� 81�.76a ZtUW 6o13u
om��v�s us.w� (sv.'rm� tevd+s +so.tn fot.a�
eusmess�sr�xes ssonm o.�on) . s�v.aav �os,ui U999!
RECAUrtRlOtP9.00wTmN &8,900 (76I.791) 9 I87JIl �56,163 91�50
eSPRODUCfAN Ti5.969 (it,975) 32{,591 • 27A,S9{
P06TAO6lPBeaHI IS3,T98 (7Cy 155�20 153330 -
iEA�OM0.Y41'APP 139,6&1 (� 139,675 U9,673 . -
euarsvu.�wa��rswo u,to7 R7,E6p to i,xa t�t -
Wsl'BECOVBeY (93r.12q - 71 (9561m) (931.130) .
oil�t 7.roiy33 p,dB.iW) 13 I.II3AtB ltB.7{7 215A7t
enSi'OTALU�muY.CfOTQ13�e f ILAOf.706 Y (7,tlA,ID� f 121JI7�0 3 MAtf,22S � fl.670.295
oSH�uvu1RPR.T�VQ966
S�LPS.IROIP.CfSF3Y1Qi5kCON5I 5 736A3t f (�.IIB) S 331,907 f 3J1,90� f -
'UBLiCMAN�OPJ.ffir�lMAmV6IRKMN 168,3b RI,l78) I66,B62 166,W -
BONI13�AYM@rt8 2,635.101 - 2,635,I01 3,6.75d0i -
�41.OVk1'8[OOCOPfl0:1171@fNASEMn 104.b�9 - 106.L79 m0,E79 -
ro�n��asercwuwwss u.x�� sssii sss��
aomon�.or�em�roQVa� s :+voss: s asioe� f s�evsis s �sQSte �
w.oc��mm�
WsMRK�AtLOC�7[ONS f 59.669�75 f QA�].l66) 7.J f 57.676A69 f A.636A6B t
wefOdLALLaCA'[1@a f S.f69�]! � RAGJ6q f Sti26+069 f SJ.O4I6D i
TO'PALGkAE1�ENSFS f 1C7.06l.l61 9 W77#S4 f ItL70l.M! S IKR/73I0 f k670�%
DIY6C1'WH061(T07AI.ANDA7-OWPICq i 7I7A767Si i 1S0.�AW6
NOBY9ARICR[CAPD68dS[YUC171REIlVDLlECI'CO31'YA7P8 6BAAG 21.66SL
A2-0BYIC6 GENERAI.A AD.�YISIRATrvB RA?E 9i10X
1'he�B mlea m m IekQri Oat afthit memmt
TW9 DOCWAEMCONWNS CONFlCEMNLANO P420PPoETARYItff'OMV�71W!7HAT WS�NLAI�CRPINAtSW.VALUE.St�FI
IIffORYATWN NASl16TBEEN PUBLIClY013ClOSmANOIS E7�A�f FRON dSCLOSME UNOERTXE Fl�EOORI OF MSOP6NTION�CfµD
MJ.OTFIEit&AIM1ARLF.WSlAT10tL JRCOBSENORJEERINGf7t0UPplG�TSYVRfTTEIVI'Ai10E8EFORE/iNYRIB{ACOISCLOSURE44
4
North American Infrastructure
.A Buelnw Unit of Jaeobs Engta[ering Gronp Inc.
Notes to Statements of Fringe Beuefit Eapense
and General&Administrative E�cpense
for the Fiseal Year Ended September 28,2012
1. Bnsine�and Basis of Preaentatlon
The finenciel infotmation presarted ia the eccompanying Statemeats of Friage BmeSt Expenae aad Gencal
Bc Adminisuative Fxpens�iacludes the expansos of NoAh Ameri�Iafiashuctun(foxmerly Iacobs Civ1)
md Jacobs Civil Consultants Inc.(colladvely�e CqmPanY)for the fiscel year eaded Soptember 28;2{I12.
Jacobs Civ�7 Consultantg Inc.was Soamerly Imown as Svordmp&Pazcel Consultaats,Iac. The Fiacet Year
2012.comPanY-wide indirect rates prea�ated Lecin include the operatioas end n�sults`of NoxtL Amecicea
Infreahvc4m(tho Company)aud ere calculated consistently with t6e Company's F'�sca!YeaF 2011 co�nY-
wide'indiiiect rates.
TLe Company is a business uoif of Jacobs En��min8�rOUP Inc•(Perent Com�nY)and Iacobs Civil
Coaviltants Inc.is a wholly-ownod subsidimy of thc Pe�t Company. The Pm+ent Company is a publicly
hadod�mpany on the NYSE. The CompanY Pro�$P1annin8>d�n.conshaction management and
desigolbu�7d W'efessional aecvic�s. Major merbets iacIude traosPortation,PubIic waxks and eavironmenteL
The Permt ComP�Y��S!�llY i�o:porat�d in 1957;and its cli�nts iaclude federel;etau:local.end
foreiSn Sovarnnuat agenciea,es weII as aumerous commercial entities. Revmues are derived from bIIliaBe..
for piofes.siemal secvices:project savices;proceas,scientific�d aystems coasulting secvixs;operationa end
maintenance services,and�n9truction services.
2. Bads of Acconating and DescripHon of Accoanting Systems
T7u Com�pany's policy is to prepare the accompanying$tatements of Fringe Benefit Expense and Genecal,Bc
Adminis6ative Expense on the basis of aoeo�mting Practixs P�scnbod bY ChaPtc 1,Pert 31 and Chapt6�99
of the Fedaal Acquisition Regulation(FAR). I3e sbove meatio�d staxmoots ar�not intendad to piesent
the finaneial positioa or the results of operations of the Company in confo:mity with accountiuig p;inci�ks
S�tiY�m the US.
'!he Co�any mai�ains its l�oks of accounta using the Acc:va]Method of accountiog.
The Company uees a m�ild-step process to idenrify and quantify,�allowable coste as deSn�in FAR Pmt 31.
Fi[st,tLe Company identifies ewr�ain e�en.se acwu�s,.oxPmditure h�pes in eLcgmcal kdgu md artsin
i�irect proj�as fofally unallowable(e.gy mteiest m��ense,bad dehtv expense,etc.) Fm�oaetain other
ezpense accouuts tLat aze Llcely Eo coatain unaltowable'costa,t�e Company either nevicws eII of flu
significent uansactions m the account or it reviews a sample of tbe uansec0ams m the eccount For those
ecpmse axowus tha4 ere sampled,tl�e Compeny exhatwlatea the resutts of the sample to tLe relsfed expcnse
account population. The latger�mallowable balancos geaerated by this pmces4 en foomotad as indieated
below.In aaaidon,the comipany wl�wtarily«cluda cermin oeher costs s�om the inaireci cost pools,ena 8
asas�mates to detecmine the amoimt of cerrain othu unallowable oosts.
�TMS DCCUI�Mf WMfAtliS CmIFmEMI4LL A/m PNOVR�TARl WFORMATIOM TNAT 1418 COIO�CULL NIOIOR FINRNGULL YALIIE.
BYCX 060AW11W1 NR8 NOT BffN PUBLICL�pSCL05�Alm B E1�AI�T tROY OWCL09YRE UIIDERTIE FltEEWiI OF
OffONAlATW11hCTlI11mALL0711EIt8@16ARl,Efii9lATI0N.JACbBS01p11@ERIt10fiRq�RIC.NE0l1E8T8YYNR7E11NDi10EBEFORE
ANT PUBLIC 018Ct.08URE B MMF. . . .. ... ....
$
North American Infrastructare
� A Baslnaa Uuk of Jxobe EnYioeer�ng Groap ina
Nota to Stateme�s of Fringe Benefit Ezpense
end Generat&Admiaistrative Eapense
for the Fiscal Y�r Ended September 28,2012
2. easis oraccoanNng ana nescrlpHon ornccouuUng syetems(coannuea)
The Ca�pany meintaias a job coat accoimting system based on actual costs for recording end accumulating
costs inoiated under its contracts. Each projoct is essign�a umque job number so fl�at oosts may bo
pmpecIy segregatod and acoumulet�in the Company's job cost accountmg system: Employee laba�cosb
are charged to jobs uaing the employoe's acfual hourly pay rau at the timo that the labor is mcurred. For
salazied employxs,thea actual hnurlY PaY rate for job costin%Pucposes is based oa their eanusl salsry
divided by 2,080 houcs per year.
DQect and Indirect Costa-Costs are apxifigally idmti£cd and cixorded sapazately m formal Snancial
accounting records as D'uect Costs ead lndirect costs as established in eccaadance wit6 our disclosed
ptactixs: D'uect costs are those costs tLat can be speci5cally identifiad W a customer project,work flctivity
or fmal cost obja:tive. Indin:ct costs eie ttiose costs tLaz cennot be specifically identified wifh a single -
cuatomer projec;diroct work activity or final cost objactive.ContracUPurchesed labor is treated es Otber
Direct Costs.
ATon-eelery Lliiec[Project Costs e�*��+:mwa ref'eixed to&s Othet Di[ect Costs aie consistendy cllai'gal tA ell
Projects rogsrdiess of the recovorablity from the customer.
Paid Time Off-The Compauy accnus Paid Time Off(PTO)besed on the yeacs of service fo;each
employee. PTO may be used by employees for a vaziety of navona,inclndinB(but not limit�to)vacation,
i7lness or eccidmt,bereavomcnt or personal time off. All requested PTO is aubject to s�pervisory approvaL
PTO bcnefita ere paid based on the employee's bese pey rate at the time tLat the absenco occurs md doeg not
include any s�ial fosms of compeasetion euch es incentivos,commissions,bamuses�shifr differentials.
F,mployees ractive pay for all accrued but unuscd PTO houra upoa teeminatioa of employment
Overtime Compensatioa-the CumP�Y'S Po�Y on P8Y P���ov��PaY���ttY�P�a�
�t�a w eaa�su�y rAy�toyeos in�wi�n��aoo�a�a by�Fau
Leboi Standacds Act,29 C.F.R.¢541.602(FLSA).Tlris poticy diacusses federal regulaflaas rogardiag
overt�e.State laws may be moi+e restrictive than fodefal laivs.Loca1 Humen Reaoivcoa ropresenmtiv�
provide detaila iege�ding reg�ilations tur spccifio smks. In certaia aucumsran«s:�t em�loS'��r .
receive additional compensation far owrk in eacess of eheir:egular schedulea.It ia tlie m�mediate
superviso�'s�pOns�b�7itY m ad�9uate1Y eupervi$e the ovcrtime work porfo�mod.
U�overtime-The Comp�y's policy�egaidmg overtime is w compensace NON£XE��T'
emPloY�s for m�orind additional houes of work. E7�f employeea rxard only thnse overtim�e Louts
for wlrich tLey an authoriud to work and accorAinS1Y,compensated• Ae a result,nncompensated overbme
is not har]ced.
��h�-P�P�'�Y;�Pmmt ead improvemants ere car[iad at cost Dapreciation and amor[iratinn is
�mP�P�Y by using the streight-line method ovor the estimated usefiil lives of the avseb.'I'he wst
of leaselwld improvementa ia emortized using the ahaight-liffi metLod mrer the lesser of the estimated useful
life of the esset or the
_. xemaining tecm of the nlated lease.Estimated useful livea can�from 20 to"40 yeets
for build'mga,from 3 to 10 yenrs for equipmmt md fiom 3 to 7 yeazs foi computees and software:
TW9 OOCIYEM NMAOD CANFlDENfIK A10 PROPR�TARY MFORNl1TWN TlNT MA8 COIO@RCULL A1010R PINI11tiNt VALUE
eua��awarax w�s rore�w vueuc�r ase�n am n e�r�tor asaosutre u�e n�e m�wr oF
naowu�xcrum N.�on�ee an�nwe�+o�au�.ucoea Bwaa.�wNC+oROw ae.�auESraYrwrrex rro�eecone
AMY PU&JC d9Q.O8UI8 6 MME . .. . . .
8
North Ameriean Infrastracture
A Bailnee�UnU oCdaeoM En�oeering Groap Ina
Notes w Statemente of Fringe BeneSt Ezpense
sad General&Administrative Eapense
for the Fiscsl Year Ended September 28,Z012
2. Bas(s ot Acconntlag and DeserlpHon ot Acwnating Systems(coatluned)
The Company+s method of Gsti�ng wsm for Pn�B P���6�P��P+ocess is consistmt
with tbe ar�,tm;�,•�aod reportmg of costs nnder itv job cost acoountiqB system.
3. ALLoeattoa Methads
The Cumpany hea esmblishad two indinct rate.v:(1)an At-0ffice Rau tl�et is appliad w wo�performod'm
Jacobs-pmvided facilities,md(2)an Atsite Rete thaz is�pli�to work perfoimad at mm-Jacobs(i.e.,
customcr)provided fac7iaes.The aIlocation base 5or the At-Site G&A rau includes all Pmfessional Secvices
and all Field Staff Direct Iabor incL�d'mg premi�s.The allocation bese fos tLe At-Office GBrA rete
inctudcs At-0ffice Profe.ssional Serviees and At-0ffia Field SmffDirect I�bor includ'mg pcemiums.
17m Company uses the seme fringe bene5t rate fa�both its At-0ffice�d At-Site d'uect labor end allocaus
fringe bmefit acpe�ses based upon t�l payroll dollazs(mcludin8 memiums acd exciud"mg mcentive
��)•
The Company x�eives an allocation of cosb from the Paccnt Co�any that inch�des salatias,related fringe
beoefits end general and adminietarive expenses. The G&A expenses iach�de the costs of certain executive
��t�8�+����B>�Y,information t�lmology,human msowces,heelth end sefety,end
other�sm fimcdnns. These costs eie allocated W the Company based upon a thnatier method,which
��osc�st��:p)a;�y�n�,vn�enle w sn�co��r:(2)s�ae�u�r assopaua wnn rn�co�r
tLat a�e elloeaud based upoa aPPropriace beses that use direct labor dollars,totel PaYroIl doilazs.revmues.or
a combiaetion tbeceof,end,(3)amo�mts remainiag aftar the fuat two tiece,atlocatod based upon a two-factor
foxmula ttiat is computod using Professioael Se�vice and Field Staff payroll dollazs and revenues.
13e allocafions of the Parent Compazry's Corpo:su Home Office costs have baen propedy adjusud to�t
FAR Yart 31 disallawancas. These amounts were detetminad by the mulfi-step procoss descn'bed abow ia
Nou 2. The net allowable costs for each of the Corpocata Home Office cost pools ere th�a aIlocatad usinig
the methndnlogies desen'bed above.
4. Ezceas Compensatlon
T6e edjustment for excesa executive eompeneation of$12�,633 primarily reIlocts the satacy disellowance in
accoidence with FAR 31.205-6. To evafi�aoe the overall reasonablmass of employx compensafion,tlm
ComQa�'Petfarmed a compensation analysis w review and evatuate the reasonablenoss of executive
compensation. Aa pazt of this eoalysis,emior esacutivea wece bmehm�d to su:veya ia wLich Jacobs
participsrod The overaII cesults of the c�peosation malysis showed that the Company's wm�ensation a+es
roasonable.An additional accasa compensation disallow�ce of 5326,063 is mcluded'm the Coxpocate
Allocadoa disellowance in accordance with FAR 31205-6.
TN600WIO:MiODNG018001U�0B(IIRLAIm VRO�ETARY tl�W7tON iW1T IW�YLL�NNICGL VLL�R
8{RM DWI�11TqN NI18 MOT B�N PI�tA.Y W�11Im B�1@►�ROY�WmER TI�F'�It OF
Offd1YATmN11CTA1mM1011�t801Y.11RtE0191J1T101L JACdBSEM00s-ETIIIOORMAOC.AEG28TBrINRd110�CE�FD�
1111P VIRIJC OIBCl,03111@ 9 MMe
�
North Americen Infrsstrueture
A Hosinew Udt of Jacobs Engineerlui Group Inc.
Notes to Stateme�s of Fringe Benefit Ezpense
and G�eral&Administrative Eapense
for tLe Fiscal Year Ended 5eptember 28,201Z
5. Fringe Benefits
The Parent Company celculates a Company-wide&inge bene5t rate that is appli�to its US basiness imita
and wholly-owned subsidiaries. Fringe benefit costs include an adjustmeat of the indirect friuge benefit
expense recorded in dx general ledga et tbe standard frmge rate of 31.5%to tLe Fiscal Year 2012 acwal
fiinge rate of 2633%.
6. Travel&Buslnesa Meals
Based on a review of tcavel and nlated costs,NAI disallowed 5559,628 in accrndance with FAR 31.205-46.
7. Employee Tralning&Dnes
1Le adjustment emount of$400,867 rapmseats dues tUat ere uaallowable in accordance with FAR 31105-14.
8. Vehicte Ezpenaes
Based on a rewiew of velricle e�cpensea 5381,858 was disellow�in eccordence with 31.205-46 and 31.201-
2(d).
9. Recruitlng and RelocaHon
The relocadoa adjustment of$361,391 represents employee relocation expenses t6et are considercd
uoatlowable in accordance with FAR 31.205-35.
10. Pablie Relat[ons and Advertising
The adjustment amount of$23,861 reptesentc expenses that are considered unallowable m accordance with
FAR 31.2Q5-1.
11. Cost Rewvay
The Cost Recovery acco�mts are u.+ed to chargc projects for the usage of co�my-owaed equipment,
supplia end velucl�.Prntions of oveiheed relating m reproduction,vebicle costs,fieid equipment and
supplia and other miscenA�eous costs are altoceEOd(via a cred'+t to wst mcovery)to di�ct project mcpensa
based on actnal nsage.
71W OOLIOIEM COMAWS COtffIDENMLAND PROPWETARY OffORYAI'bNTNAT FWS CO►WERCUL AAm10R FWRNCULL VALUE
sua auowanow nns�ror�vuauaro�ea.osEO�o a e��►mor oiec�osime u�n n�m�oor oc
avonr4rroN�craem au.on�a som.�a�ec�surax.ueaese�rm armw we.�raxmrrrex�eeFOne
nrr vumu�o rnne.
e
North American Infrastrnctnre
_ . _..
A Bvsmne Udt of Jaoobs Euylneerlu�Grwp Ine.
Notes to Statements of Fringe BeneSt Ezpense
and Gencral&AdwinislraHve Ezpense
for the FLveal Year Ended September Z8,201Z
12. Other
Included'm the other adjusoment of$1,048,104 ane the following unallowable�of Fiacel Year 2012
actoal costs:
Fmes&Poaaltias(FAR 31.205-15) $ 3y69
Conh�budons(FAR 31.205-8) $ 122,746
Intecnal Promorion Mea18c Enurminmept(FAR 31.2 various) �456,182
Extemal Promotion Meals,Entecminmeut&Other(FAR 31.2 various) S 435•644
S 1,018,541 '
'1'he remaming belance of tLe disallowed emouut is detmmined using the methodology discussed in Note 2
13. Pen�on Plsns
The Company offers a 401(l�pension pleq meeting the raquinementc of FAR 31105-6�).1Le plan provides
maximum conuibaflons with;n legal guidet;nes ana s roacch egual w so%of m�scsf 6°/u otelig3le Qay.
14. Rdated Party Trensections
No adjustments or diselosur�s 6ee regufred per FAR 31.205-26(e)or FAR 31105-36@)(3):
15. Mansgement's Evslustton of Sabsaqomt Events
Maoagement Les considced ead evalusted signifioant eubsaqumt ev�mta through Meteh&2013,and thene
weee no eigni5cant subsequent eventa that would have a maiaial effect on tLe FY2012 indimct retes.
nro o�r ooxrNws��vaorwrernar aconr�nopixnr w�s eo�umprt Fou�xui.r,�uk.
mxxvffomutrow�us xm e�x w�euar oisei.ca�am 4 et�r weaeo�a.o�we urmm txe�ooee oF
o�aaunox�crnso aionurt amua�eareu�.:uco�s�oo�mro m�wv nx.�ears wnmew x�ce ea�oae
aNr weuc ax�oauae e�aoe.
9
North Amertcan Infrashvctore
A Budow Un[t of JacoM Eugineerlog Gronp Ina
Notes M Statements of Fringe Benefit Expense
and General&Adminiatrattve Eapense
for the Fiscal Year Ended September 28,2012
16. Dlrect Cost Accounb Inctnde the following but are not limtted to:
Travel,subsistence,end relocation
Subcnntracts/Conauitants
Contract SpeciSc Txa'vimg and employee development
Tempoiary and othv punchased labor/services
Cnnt�aet SpeciSc Safety Supplies md Fquipmmt Mmaw�es
Field CoasumabldFacpeadable Supplies/0ffiee Supplias
Other EquipmenUSupplies
Telephone/Fax/Communications
Freight end Pos�ge
OutsidelSpxialty Repmduction Costs
Specialty Taxes
The Company's mtemal conhoLs include segregatina ofduties betwxu eccouats payable job 6mctions,
performance of a pro-audit on certain accounts/eapendituro types,A/P Coding Traming end con�ol of
gmeral a�adminis�ative costa through a rigorous budgeting process m avaid tUe inclusion of diTect cosis in
the indirect cost pooL
TNq WCIOENTCOMAPIS CGIffmENTNL Alm PROVNIETAXY BIFORW110tlTIMT W18 COIOAERCIAL AI�IOR FDIAICIAL VAWE.
BUCX MFORM0.TpN NAB NOTBE�I PUBUCL�'WSCLOSED ANO Rl7�IIPT iROY WBd.08YliE U/�R71R FR�A1 OF
�ffORI1NBDM 4CT AIN ML 07fiER BMIAR 6COISI�TIOt1.111COB3 ENGItlEERQ16 OROIIP 01C.REGIIEST81El�TEN NOfICE BEFW�
AtlYP11BllC O�CLOSIIRe 18111{DE.
�0
Cleary Government Services; LLC
REPORT OF INDEPENDENT FUBLIC ACCOUNTANT
To: BoardofDaectors
Jacobs Engiueering Group Inc.
Re: Internal Control Structure and Compliance with Applicable Laws and Regulations
We have audited tl�e Summaiy of AtAffice and At-Site Rates,Statement of Fringe Bmefit Expmse and
Statement of General&Adminisuative Expeose(Schadules of the Indirect Cost Rates)of North American
Infiashuctune(NAn,a busmess uoii of Jacobs En9nee�m6 GmuP Inc.,calculatod in ecw;dance with the,
Fedaral Acquisition Regulation(FAR)Part31 for tlu twelve months ended September Z8,2012,and we
have issued our report thereon dated March B,2013, These schaiules are the respons�'6ility of NAI's
manaBemeot•
We coaductad our eudit in accordance avith the auditing standards gmesally accepted in the Unitod Sfates
and the�dards applicable to Snancial sudits coatainal in Government Audi;eng S{mfdards(July 2007
Revision),issual by the Comptroller Genetal of tlu Unitod States. Those sEandards raquire thai we pian
and:pe;fo;m the sudit to obtain reesonable assuiance about whether the aforem�tioned schodules are&ee
of materisl misstatement.
Internal Co�rol Over Financial Renortina
The[nansgement of NAI is respansible for establishing and ma' A:ninw gn intemg��ppupl structtat and
for maintaining internal conuol over 5nancial reportm8: In fiilfillin8 this respons��bilitY,estimates and
jud�enfs by management are roquired to assess the expected benefits and rolated oosts of i�ernal ca�ol
strucpue poficies and procodures. The objective:v of an i�nal coatrol suucuae are to pmvide
maoagemmt with reasonablq but aot absolute;ess�aance that assets are safeguatded against loss fivm
im�rthoxizad use or disposition,and that tiansactions are eae�m accoidance azth managemertt's
suthorization and re+carded properly to pernrit the pieparation of the aforementionad schalµles m
accoxdance wiih applicable regulations inqluding Part 31 af the FAR. Bacause of the inhereot limitari�s
in any icititemal control stevcha�e,ermra or imegularities aevertheless may oce�and not be ddocted: ALao,
ProJxtion of any evaluatioa of the struchue to fut�se periods is sulije�t to the risk that pi�nes roay+
become inadequate bxause of cbanges in conditions or that thceffxtiveness of the design and operation �
of policips and proxdures may detaiorate.
�P�8�P�o�B our sudit,we considered NAI'.s intemal controls over Snencial reporting asa
basia for desiguiag our suditing pro�adures for the purpose of e�cpnssing our opinion on the Schalutes of
the lndirect 6ost Rstct,but not for the putpose of expressing an opinion on the effxtiveness of NAI's
internal eontrol over financial rePortu►8• A�oadinSlY,we do aot express en opiniom on the effectiveness
of NAI's intemal cantrol over financial reportiag.
A co�rol deficieocy eusts when the d�or operation of an i�emal conuol does not allow mana�ement
or employees,in the normal cautse of per_fqrming their assignod fimctioas,to prevent or detect
misstatCments on a timely basis. A significant deficieney is a control deficiency,or combination of control
deficiencies,that advezsely affects the entity's ability to initiate,authoriu,racoid�Process�or report
Cleary Goveminent Services, LLC ��z
Internal Control Over Fynancial Reoortin¢-continaed
6nancial data reliably in accordance with U.S.Seneral1Y accePted accountin8 P��Ples such thst there is
more than a remote l�kel�ood that a misstat�t of the eatity's Schedules of the Indiroct Gost Rates that
.
ia more than iuconscqumtial will not be prdyented or detected by the entity's internat c�ntcols.
A material weakaess is a significant deficiency,or combination of significant deficiencies,that results in
more than a remote likel�ood that a material misstatem�t of the Schadules of the Ind'unct Cost Raus will
, _ _ __ __. _
not be _. _ _ _ _. .
prevented or detected by the entity's i�ernal controls.
Ovr oonsideiation of i�ernal conuiol over financial reporting was for the limited pucpose dcscn'bed above
aad would not necessarily identify all deficimcies in iraernal coatrol that aright be significa�deficiencies
or material weaknesses_ Nonetheless,we did not identify any defic,i�cies in intemal control over financial
repoitmg that we consider to be mzterial wealmesscc,as defined above.
Compliance witL Aoalicable Laws and Reealstlona
As part of obtaining re�sonable asswance about whetha the afrnementianod schedules are frne of material
misstatement,we perFormed tests of NAI's compliance witti cermin pmvisions of laws,regiilatioas aad
contracts;noncompliance with which could have a direct and matecial effect on the determinarion of the
.. ._ .. , . __ ._
actual indiract rates. However,the objective of our audit of the Schedules of the Indiroct Cost Rates was
not to pmvide an opinian on oveiall campliance with those pmvisions. Accordingly,we do not exgcess
such an 6pimon. Nonetheless,the res�ilts of�t�sts did not disclose any instances of aoncompliance that
are requirecl to be reported under Csavernment Auditing Standards.
'I'his iypwt is i�ended for the information of NAI's management and those govemment agencies with
wham NAI has coa�acted. It is not i�endal to be and should not be used by anyone otha tban the
.; ___, _ : - _ _. _ _ �: _. _
aforemenhoned paities nor should it be iuod fo=any othe�pucpose.
�U�itAU'�%�=� °f�✓�����
cn��,nl�o�
March 13,2013
R 3.i(.01
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group, Inc.
and executed on 7th day of February, 2012 and identified as Agreement No. AG -C -412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
Section I, SCOPE OF WORK, is hereby changed as follows.
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar days
for completion of the work to read: No Change
Section V, PAYMENT, shall be amended as follows:
See attachment A for updated Fee Schedule
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
By: By.
Consultant Signature
//2 7//y
Da e
Nancy Backus Mayor
Approvi A Ihority Signature
JAN 214
Date
Organization and Address
Supplemental A reement # $
PP 9
Jacobs Engineering Group, Inc.
600 — 108'0 Avenue NE
Suite 700
Bellevue, WA 98004
Agreement Number
Phone
AG -C-412
425- 452 -8000
Project Number
Federal Aid Number
N/A
N/A
Project Title
New Maximum Amount Payable
On -Call Services - Utility Design
$127,204.00
Description of Work
-
Utility Design
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group, Inc.
and executed on 7th day of February, 2012 and identified as Agreement No. AG -C -412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
Section I, SCOPE OF WORK, is hereby changed as follows.
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar days
for completion of the work to read: No Change
Section V, PAYMENT, shall be amended as follows:
See attachment A for updated Fee Schedule
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
By: By.
Consultant Signature
//2 7//y
Da e
Nancy Backus Mayor
Approvi A Ihority Signature
JAN 214
Date
10 11:11r -1
City of Auburn
CP1208 - Sewer Pump Station Improvements
Jacobs Staff - Hourly Rates
Principal
$
94.67
$
112.12
$
28.40
$
235.19
Project Manager
$
75.39
$
89.28
$
22.62
$
187.29
Civil Engineering Planner
$
68.78
$
81.46
$
20.63
$
170.87
Sr Civil Engineer Design
$
63.85
$
75.62
$
19.16
$
158.63
Sr Civil Engineer Roadway
$
71.54
$
84.72
$
21.46
$
177.72
Civil Engineer Roadway
$
54.38
$
64.40
$
16.31
$
135.09
Sr. Civil Engineer Design (QA)
$
73.20
$
86.69
$
21.96
$
181.85
Sr. Civil Engineer Design
$
61.98
$
73.40
$
18.59
$
153.97
Civil Engineer Design
$
40.88
$
48.41
$
1126
$
101.55
Envir -Water Res Engineer
$
42.60
$
50.45
$
12.78
$
105.83
Sr. Structural
$
67.76
$
80.25
$
20.33
$
168.34
Structural
$
62.93
$
74.53
$
18.88
$
156.34
Sr. Electrical Engineer
$
71.82
$
85.06
$
21.55
$
178.43
Sr. Electrical Engineer (QA)
$
66.41
$
78.65
$
19.92
$
164.98
Jr Electrical Engineer
$
34.23
$
40.54
$
10.27
$
85.04
CADD Lead
$
56.25
$
66.62
$
16.88
$
139.75
CADD
$
48.37
$
57.28
$
14.51
$
120.16
Permitting
$
55.03
$
65.17
$
16.51
$
136.71
Contract Admin
$
55.80
$
66.08
$
16.74
$
138.62
Sr Adminstritative Assistant
$
41.70
$
49.39
$
12.51
$
103.60
Administrative Assistant
$
24.68
$
29.23
$
7.40
$
61.31
Estimator
$
72.51
$
85.87
$
2135
$
180.13
Sr. Estimator
$
80.61
$
95.47
$
24.18
$
200.26
� 3�r�1-q
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group Inc.
and executed on 7th day of February, 2012 and identified as Agreement No. AG -C -412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
Section I, SCOPE OF WORK, is hereby changed as follows:
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar
days for completion of the work to read: December 31, 2015
Section V, PAYMENT, shall be amended as follows.
No Change
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
By: C e By:
Consultant Signature
Date
Nancy Backus, Mayor
h
App vi g Authority Signature
DE 1 2014
Date
Organization and Address
Supplemental A reement # 4
pp g
Jacobs Engineering Group, Inc.
600 — 108" Avenue NE
Suite 700
Bellevue, WA 98004
Agreement Number
Phone
AG -C -412
425 - 452 -8000
Project Number
Federal Aid Number
N/A
N/A
Project Title
New Maximum Amount Payable
On -Call Services - Utility Design
$187,204.00
Description of Work
Utility Design
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group Inc.
and executed on 7th day of February, 2012 and identified as Agreement No. AG -C -412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
Section I, SCOPE OF WORK, is hereby changed as follows:
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar
days for completion of the work to read: December 31, 2015
Section V, PAYMENT, shall be amended as follows.
No Change
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
By: C e By:
Consultant Signature
Date
Nancy Backus, Mayor
h
App vi g Authority Signature
DE 1 2014
Date
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group, Inc.
and executed on 7th day of February 2012 and identified as Agreement No. AG -C -412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
Section I, SCOPE OF WORK, is hereby changed as follows:
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar
days for completion of the work to read: December 31, 2015
Section V, PAYMENT, shall be amended as follows:
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
By. o->• By:
Consultant Signature
/ / //9 /�Y
Date
Nancy Backus. Mayor
Ap ovifig Authority Signature
EC 12014
Date
Organization and Address
Supplemental Agreement # 4
Jacobs Engineering Group, Inc.
600 — 108'h Avenue NE
Suite 700
Bellevue, WA 98004
Agreement Number
_
Phone
AG -C -412
425- 452 -8000
Project Number
Federal Aid Number
NIA
N/A
Project Title
New Maximum Amount Payable
On -Call Services - Utility Design
$187,204.00
Description of Work
Utility Design
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group, Inc.
and executed on 7th day of February 2012 and identified as Agreement No. AG -C -412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
Section I, SCOPE OF WORK, is hereby changed as follows:
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar
days for completion of the work to read: December 31, 2015
Section V, PAYMENT, shall be amended as follows:
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
By. o->• By:
Consultant Signature
/ / //9 /�Y
Date
Nancy Backus. Mayor
Ap ovifig Authority Signature
EC 12014
Date
AMENDMENT #3 TO TASK ASSIGNMENT CP1208 -TO01
FOR ON -CALL PROFESSIONAL SERVICES AGREEMENT NO. AG -C -412
AGREEMENT #: AG -C -412
CONSULTANT: Jacobs Engineering Group
TASK AMENDMENT NO.: CP1 208-TO01 -A3
PROJECT #: CP1208, Sewer Pump Station Improvements
The general provisions and clauses of the Task Assignment and Agreement referenced above shall be
in full force and effect for this Task Assignment Amendment.
Location of Project: No Change
Maximum Amount Payable per this Task Assignment: The total task assignment amount is
increased by $7,500.00 for a total not to exceed amount of $84,704.00.
Completion Date:
SCOPE OF WORK
December 31, 2015
There is no change in the scope of work.
All other terms and conditions of On -Call Professional Services Agreement No. AG -C -412, as
amended, shall remain unchanged and in full force and effect.
APPROVALS
Consultant Project Manager:
Signature: ��J /� Date: 11119�iS�
City Project Manager: (
Signature: , ��t%+.� U' Date: I a I I y
AUA,u-,CITY OI' - � J Nancy Backus, Mayor
WASHINGTON 25 West Main Street* Auburn WA 98001 -4998 * www.auburnwa.gov * 253- 931 -3000
December 4, 2014
Dawn Gamier
Jacobs Engineering Group, Inc.
600 108th Avenue NE, Suite 700
Bellevue. WA 98004
RE: Supplemental 4 to Agreement for Professional Services, AG -C -412 and
Amendment 3 to Task Assignment CP1208 -TO01
On -Call Utility Design Services
Dear Ms. Gamier
Enclosed please find an executed copy of the above - referenced Supplemental No. 4.
This amendment is for a time extension only and extends the term of the agreement to
December 31, 2015. For the City's tracking and record keeping purposes, please
reference AG -C -412 on all correspondence and related material.
Also enclosed is an executed copy of Amendment 3 to Task Assignment CP1208 -T001.
Please reference Task Assignment No CP1208 -TO01 and AG -C -412 on all task
assignment correspondence.
As the project manager, I am the designated contact for this agreement and all
amendments. Questions, assignments and coordination shall be routed through me.
You can contact me at 253 - 804 -5063.
Sincerely,
C�k -�";Zj
Joe Chalmers
Project Engineer
Community Development & Public Works Department
JC /ad /mm
Enclosure
cc: Dani Daskam, City Clerk (copy letter only)
AG -C -412
CP1208 (2.20)
AUBURN * MORE THAN YOU IMAGINED
Organization and Address
Supplemental Agreement# 5
Jacobs 8 Avenue Group, Inc.
PP 9 600—108 Avenue NE
Suite 700
Bellevue,WA 98004
Agreement Number Phone
AG-0-412 425-452-8000
Project Number Federal Aid Number
WA N/A
Project Title New Maximum Amount Payable
On-Call Services-Utility Design $187,204.00
Description of Work
Utility Design
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group, Inc.
and executed on 7th day of February, 2012 and identified as Agreement No. AG-C-412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
Section I, SCOPE OF WORK, is hereby changed as follows:
No Change..
II
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar
days for completion of the work to read: December 31, 2016
111
Section V, PAYMENT, shall be amended as follows:
No Change
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
Donald K. Nelson Operations M ger
By: By: Nancy Backus, Mayor
c
l -
-Consultant Signature Approving • hi ity Signature _/
/P/v i� i2.• 1�ta• 15
Date Date
CITY OF
- *
ATB i T �T Nancy Backus, Mayor
WASH I NGTON 25 West Main Street * Auburn WA 98001-4998 * www.auburnwa.gov * 253-931-3000
December 17, 2015
Dawn Gamier
Jacobs Engineering Group, Inc.
600 108th Avenue NE, Suite 700
Bellevue, WA 98004
RE: Supplemental No. 5 to Agreement for Professional Services, AG-C-412
and Amendment No. 4 to Task Assignment CP1208-T001
Dear Ms. Gamier:
Enclosed is an executed copy of the above-referenced Supplemental No. 5 and
Amendment No. 4. These documents are for a time extension only and extend the term of
the agreement and task assignment to December 31, 2016.
For the City's tracking and record keeping purposes, please reference AG-C-412 and
Task No. CP1208-T001 on all correspondence and related material.
As the project manager, I am the designated contact for this agreement and all
amendments. Questions, assignments and coordination shall be routed through me.
You can contact me at 253-804-5059.
Sincerely,
Kim Truong
Project Engineer
Community Development & Public Works Department
KT/cw/as
Enclosure
cc: Dani Daskam, City Clerk
AG-C-412
AUBURN * MORE TI-IAN YOU IMAGINED
AMENDMENT#4 TO TASK ASSIGNMENT CP1208-T001
FOR ON-CALL PROFESSIONAL SERVICES AGREEMENT NO. AG-C-412
AGREEMENT it AG-C-412 TASK AMENDMENT NO.: CP1208-T001-A4
CONSULTANT: Jacobs Engineering Group
PROJECT#: CP1208, Sewer Pump Station Improvements
The general provisions and clauses of the Task Assignment and Agreement referenced above shall be
in full force and effect for this Task Assignment Amendment.
Location of Project: No Change
Maximum Amount Payable per this Task Assignment: There is no change to the amount authorized
in the original task assignment and subsequent amendments.
Completion Date: December 31, 2016
SCOPE OF WORK
There is no change in the scope of work.
All other terms and conditions of On-Call Professional Services Agreement No. AG-C-412, as
amended, shall remain unchanged and in full force and effect.
APPROVALS
O/1�el(✓r!>
Consultant fP ojeflanager 1/
Signature: 0:51-- Date: /02-ti'/i-
City Project Manager
Signature: t l' Date: I 9A5
Organization and Address
Supplemental Agreement # 5 Jacobs Ennineering Group, Inc.
PP 9 600—10r Avenue NE
Suite 700
Bellevue,WA 98004
Agreement Number Phone
AG-C-412 425-452-8000
Project Number Federal Aid Number
N/A N/A
Project Title New Maximum Amount Payable
On-Call Services-Utility Design $187,204.00
Description of Work
Utility Design
The Local Agency of the City of Auburn
desires to supplement the agreement entered into with Jacobs Engineering Group, Inc.
and executed on 7th day of February. 2012 and identified as Agreement No. AG-C-412.
All provisions in the basic agreement remain in effect except as expressly modified by this supplement.
The changes to the agreement are described as follows:
Section I, SCOPE OF WORK, is hereby changed as follows:
No Change.
II
Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar
days for completion of the work to read: December 31, 2016
Ill
Section V, PAYMENT, shall be amended as follows:
No Change
If you concur with this supplement and agree to the changes as stated above, please sign in the appropriate
spaces below and return to this office for final action.
Donald K. Nelson Operations anager
By: Ad By: Nancy Backus, Mayor
AL onsultant Signature Approving tHority Signature
toate Date