Common use of Exception Reports Clause in Contracts

Exception Reports. CDOT will make a determination if the employees’ proposed direct labor rate has exceeded the criteria for “fair and reasonableness” as defined by the FAR Part 31.201-3 and 31.205- 6(b). If an Exception Report is issued it may be cleared by one of the following methods: 1. You may submit your firm’s Compensation Study relative to the employee classifications for our review. (Methodology similar to the AASHTO Audit & Accounting Guide, 7.5(C)). If a Study is provided please include the names of the independent survey’s used, your methodology in its creation and the results broken down by 25%, 50% and 75% quartiles) 2. You may submit a job description for those classifications that are in dispute. This should include the typical job duties, required experience and education, and a brief explanation as to why this person should be paid more than the median rate for their job classification. Please also include the employees resume. 3. You may reduce the listed employees’ proposed rates to match the Reviewed Rates and submit a new letter to request approval reflecting the revised proposed rates. 4. You may remove the listed employees from your request and submit a new list. You will be given a certain date by which to have your response. Should there be no response or an agreement not made the employee(s) in question will be removed from the request and the balance (if any) of employees will be processed.