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Council approves $20,000 contract with Maximus to prepare cost allocation plan
Summary
The council approved Resolution 12691 to hire Maximus US Inc. for $20,000 to prepare a federally compliant cost allocation plan to help allocate shared administrative costs and improve grant reimbursement and user-fee settings.
The Common Council voted to approve Resolution No. 12691-060226, authorizing a $20,000 contract with Maximus US Inc. to prepare the city’s first formal cost allocation plan (CAP). Deputy city administrator and finance officer Max Gage said the plan will allocate shared administrative costs—finance, HR and IT—across departments and funding sources, give the city a basis for setting user fees, and provide an indirect-cost methodology acceptable to federal grantors.
Gage told the council that the city issued an RFP in March and received one responsive proposal from Maximus; the internal review team and the Personnel and Finance Committee recommended moving forward. "If your rate is higher than the de minimis 15 percent, you can get reimbursed at a higher rate," Gage said, describing one practical benefit for federally funded projects.
Council members spoke supportively about the CAP’s utility for budgeting, FEMA claims and grants work. A motion to approve the contract was seconded and passed by roll call.
Staff said Maximus has prepared many plans in Wisconsin and that the $20,000 contract would be used to develop a federally compliant CAP and indirect-cost rate that the city can use on grant applications and internal budgeting.
