On March 7, 2005, the Ohio Department of Transportation announced a change in the method of calculating the fixed fee (profit) portion of fees in consultant agreements. The new method used a statewide average overhead rate for all fixed fee calculations, and eliminated profit on non-salary direct costs. The fixed fee percentages currently listed in Chapter 5 of the Department’s Volume 1: Consultant Contract Administration Manual are not impacted by this change.

Weighted average overhead rates will be revised annually on or about July 1 as new fiscal year information becomes available. Please note that this policy is limited to the calculation of fixed fee (profit) amounts and does not impact allowable overhead rates.

Current Average Overhead Rate Effective July 1, 2022: 157.25%
The revised rate will apply to proposals for agreements and modifications received in Consultant Services on or after July 1, 2022, and similarly for task order proposals (for existing agreements) received in districts or other offices. If a project profile was established in SAFe prior to July 1st the rate will remain at the rate established at time of profile creation.

This rate was calculated based on a weighted average with the weighting based on funds encumbered from FY 2018 through FY 2022 (as of 03-31-22).  Sixty firms were included in calculations for the overall rate. Please contact your Somerset Advisor at 317.472.2200 or with any questions.