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Phone: 609.530.2452

Professional Services
Cost Basis Approvals

Cost Basis Approved Firms (excel 144kb)
   Current as of March 9, 2015
Note: If your firm is Cost Basis Approved and does not appear on this list, please contact the Bureau of Professional Services.

The bureau also issues approval letters to all firms. While every effort is made to keep the web site up to date, this signed letter is to be accepted as official approval for all contracting purposes in the event that a firm does not appear on the web site.

Cost Basis Approval Questionnaire and exhibits (pdf 110k)

Cost Basis Approval Questionnaire and exhibits (doc 159k)

Please Note:

Cost Basis Approval packages must be submitted at a minimum, seven (7) business days prior to any proposal submission date to allow for proper review and approval of the package.

Failure to meet this time requirement may result in rejection of a consultant's technical proposal for not being cost basis approved for a solicitation.

To become prequalified with the Department of Transportation, your firm must receive Cost Basis Contracting approval after completing the attached questionnaire and background information in the manner in which the Department contracts for professional services.

Cost basis approval is part of the prequalification process and is required for both prime and sub-consultants.

A subconsultant is any college, university, individual, firm, or business who, for a negotiated fee, render "professional services" needed to develop or maintain the multi-modal transportation network in NJ, when submitted as part of a prime consultant's technical proposal. A "professional service" is described under N.J.S.A. 45:8-28(b) (rtf 49k). All entities rendering such service as defined are subconsultants. All subconsultants require Cost Basis Approval as of the closing date of the solicitation.

All entities submitted as part of the prime consultant's technical proposal which will not render or offer "professional services" as defined in the statute do not require Cost Basis Approval because they are not subconsultants.

To obtain approval, you project accounting system must reconcile with your financial accounting system and must be capable of segregating and accumulating both direct and indirect costs on an individual project basis. It should also provide for identification and segregation of costs considered unallowable by the federal acquisition regulations. (Subpart 31.2 contracts with commercial organizations.

These regulations are available from the Superintendent of Documents, P.O. Box 371954, Pittsburgh, Pa. 15250-7954 (phone no. (202) 512-1800 - fax no. (202) 512-2250).

The prequalification questionnaire provides a comprehensive look at your accounting system and must be completed fully with all supporting documents so that the department will have enough information to be certain that your system meets the requirements. Incomplete questionnaires cannot be processed for approval.

Where the review indicates that your project accounting system does not meet all of the requirements, you will be advised of what is necessary to bring your system up to an approvable level.

A project accounting system that meets the department’s requirements is also a valuable tool for the consultant in managing resources. Since approval of your system is essential for prequalification, to avoid any delay in that approval make sure that all of the items on the questionnaire are complete and all supporting documents are included with the initial submission.

In addition to the federal regulations, the Department’s contracts also classify your employee job titles per the American Society of Civil Engineers’ (ASCE) grades and the New Jersey Civil Service titles. Please click under primary activities, title reviews, and wage rates

The Bureau of Auditing reserves the right to audit consulting firms at any time.

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  Department of Transportation
  P.O. Box 600
  Trenton, NJ 08625-0600
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  Last Updated:  March 10, 2015