GCAP Service Logo BlackGCAP Service Logo BlackGCAP Service Logo BlackGCAP Service Logo Black
  • Home
  • About Us
    • Our Team
    • Innovation
    • Diversity, Equity, and Inclusion
    • Careers
    • Contact Us
  • Services
    • Administrative Services
    • Capacity Building Programs
    • Certification Processing
    • Disparity Studies
    • Diverse Business Programs
    • Diversity, Equity, and Inclusion Consulting
    • PLA and Labor Compliance
    • Process Assessment and Improvement
  • Projects
  • Blog
  • Home
  • About Us
    • Our Team
    • Innovation
    • Diversity, Equity, and Inclusion
    • Careers
    • Contact Us
  • Services
    • Administrative Services
    • Capacity Building Programs
    • Certification Processing
    • Disparity Studies
    • Diverse Business Programs
    • Diversity, Equity, and Inclusion Consulting
    • PLA and Labor Compliance
    • Process Assessment and Improvement
  • Projects
  • Blog
✕
Caltrans DBE Supportive Services Survey
December 22, 2016
Free DBE Certification Workshop
January 2, 2017

Safe Harbor Cost Rate Test and Evaluation

Beginning in July 1, 2013, the Federal Highway Administration (FHWA) initiated a Safe Harbor Cost Rate Test and Evaluation program for Architectural and Engineering (A&E) consulting firms involved in federal-aid highway funded projects in 12 designated states, including California. The FHWA established an indirect cost rate of 110%, which is below the industry average, for newly established, small, or disadvantaged A&E firms.

The initial test and evaluation period was extended once and was about to expire on December 31, 2016. FHWA has informed participating states that the program has been extended again to run through July 31, 2017.

The Safe Harbor program provides a framework for A&E consulting firms to establish a cost history for the eventual development of an indirect cost rate compliant with Title 48 Code of Federal Regulation Section 31.

  • Remove a financial management barrier inhibiting new, small, or disadvantaged but qualified architectural and engineering consulting firms from entering the local agency administered, Federally-funded engineering services market;
  • Provide a framework for these consulting firms to establish a cost history for the eventual development of an indirect cost rate for the firm in accordance with the Federal Cost Principles; and
  • Enhance State DOT oversight of consulting firm compliance with the Federal Cost Principles by allowing limited State DOT audit resources to shift to higher risk firms and contracts under a risk-based approach.

For further information regarding the program and procedures, please review Caltrans Division of Local assistance Office Bulletin 13-07R at: http://www.dot.ca.gov/hq/LocalPrograms/DLA_OB/2013/ob13-07r.pdf

 

POINTS OF CONTACT: If you have any questions, please contact your  District Local Assistance Engineer.

Share
Sarah
Sarah
GCAP Service Logo Black

We bring expertise and innovation to every engagement, and work in partnership with our clients to deliver customized solutions that enhance and streamline operations.

About

  • About Us
  • Careers
  • Contact Us
  • Diversity, Equity, and Inclusion
  • Our Team

Services

  • Administrative Services
  • Capacity Building Programs
  • Certification Processing
  • Disparity Studies
  • Diverse Business Programs
  • Diversity, Equity, and Inclusion Consulting
  • PLA and Labor Compliance
  • Process Assessment and Improvement

Resources

  • Time Tracking Login
  • Blog
  • GCAP LinkedIn
  • California DBE Connections LinkedIn
    © 2025 GCAP Services, Inc. All rights reserved.