Negotiation of Consultant Contracts - 591-0211-20

Description of Agency

The Michigan Department of Transportation (MDOT) uses a Quality Based Selection (QBS) process for procuring consultant services. Using QBS, MDOT selects a consultant after a comprehensive evaluation of bidders’ qualifications, such as knowledge, skill, experience, and other project-specific factors, other than cost. After selection of the most qualified consultant, MDOT must negotiate a fair and reasonable cost for the agreed-upon scope of services with the consultant based on the scope and cost estimates provided by MDOT engineers at the onset of the selection process and prior to advertisement. When negotiations are unsuccessful, MDOT may proceed to the next most qualified and approved consultant from the original selection. On average, MDOT negotiates approximately 720 contracts per year.

Audit Objective

To assess the sufficiency of MDOT’s negotiation efforts when procuring consultant contracts.


Estimated Release Date: Early 2022

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