(1) PROCEDURES . A grantee
shall implement cost containment measures for all capital assets and any
supply, service, or equipment item purchased by a grantee for projects funded
with a grant awarded under this chapter if the cost exceeds $2,500. The grantee
shall identify the cost containment procedure used when requesting
reimbursement. The department may request that the grantee submit proof of cost
containment procedures used in an application. The grantee shall use one or
more of the following cost containment procedures:
(a)
Average cost. Using cost
information obtained within the 12 months prior to the start date of the grant
agreement, determine an average cost per unit of material or labor for the
implementation of activities. The grantee may use information obtained from the
department, other departments, or other sources to determine average costs.
Under this option, eligible project costs may not exceed the average
cost.
(b)
Competitive
bidding. Following the requirements under ch. 16, Stats., a grantee
may request bids from contractors for the implementation of practices listed in
a grant agreement. The grantee shall identify criteria for determining
acceptable qualifications and publish these with the bid notice. Under this
option, a grantee may select the lowest responsible bidder.
Note: Applicants may wish to review the
Procurement Guide available on the Surface Water Grant Program
website.
(c)
Flat
rate. The department may establish flat rates for eligible costs
funded under this chapter. An applicant or grantee may choose to use the
department's flat rate as one means of cost containment. Cost containment for
services provided by a sub-unit of a local government may use one or more of
the flat rates chosen by that sub-unit of local government. The grantee may use
data obtained from the department, other departments, or from other sources to
determine a flat rate.
Note: Flat rates will be published by the
department on the Surface Water Grant Program website.
(d)
Force account. A grantee
may assign its employees to implement a practice.
(e)
Alternative cost containment
measures. The grantee may propose an alternative cost containment
procedure if the alternative is determined to be more effective than the cost
containment procedures described in pars. (a) to (d). The grantee shall
identify the alternative in the grant application it submits for review and
approval by the department.
(2) DONATIONS . The value of
donated materials and supplies, equipment, services, and labor necessary to
implement practices shall be established using cost containment procedures in
this section. The department may request that the grantee submit proof of
procedures used to value donations related to a project. All sources of grantee
match, including donations, shall be indicated in the grant application
submitted under this chapter. In-kind contributions shall abide by the all of
following cost containment measures:
(a) The
maximum value of donated professional labor may not exceed the prevailing local
market wage for equivalent work.
(b) The maximum value of donated
non-professional labor may not exceed the rate established by the department.
Note: The rate established by the department
will be published on the Surface Water Grant Program website.
(c) The value of donated equipment may not
exceed the amounts as determined under s. NR 193.07(2) (a) 5.
(d) The value of donated materials and
services may not exceed market rates and shall be established by
invoice.
(3) EXCEPTIONS.
(a) Cost containment procedures established
in this section do not apply to fee simple or easement land acquisition under
subch. VII. Cost of land acquisition shall in all cases be determined by
appraisal approved by the department.
(b) To further control certain supplies,
services, or equipment to be purchased by the grantee for department-approved
projects, the department may establish a maximum cost for some supplies,
services, equipment or activities in a landowner incentive program.
Department-established award caps will be identified in the Surface Water
grants Applicant Guide published by the department on the Surface Water Grant
Program website at least 90 days before the grant application submission
deadline.
