Section NR 193.08 - Cost containment(1) PROCEDURES . A grantee shall implement cost containment measures for all capital assets and any supply, service, or equipment item purchased by a grantee for projects funded with a grant awarded under this chapter if the cost exceeds $2,500. The grantee shall identify the cost containment procedure used when requesting reimbursement. The department may request that the grantee submit proof of cost containment procedures used in an application. The grantee shall use one or more of the following cost containment procedures: (a)Average cost. Using cost information obtained within the 12 months prior to the start date of the grant agreement, determine an average cost per unit of material or labor for the implementation of activities. The grantee may use information obtained from the department, other departments, or other sources to determine average costs. Under this option, eligible project costs may not exceed the average cost.(b)Competitive bidding. Following the requirements under ch. 16, Stats., a grantee may request bids from contractors for the implementation of practices listed in a grant agreement. The grantee shall identify criteria for determining acceptable qualifications and publish these with the bid notice. Under this option, a grantee may select the lowest responsible bidder. Note: Applicants may wish to review the Procurement Guide available on the Surface Water Grant Program website.
(c)Flat rate. The department may establish flat rates for eligible costs funded under this chapter. An applicant or grantee may choose to use the department's flat rate as one means of cost containment. Cost containment for services provided by a sub-unit of a local government may use one or more of the flat rates chosen by that sub-unit of local government. The grantee may use data obtained from the department, other departments, or from other sources to determine a flat rate. Note: Flat rates will be published by the department on the Surface Water Grant Program website.
(d)Force account. A grantee may assign its employees to implement a practice.(e)Alternative cost containment measures. The grantee may propose an alternative cost containment procedure if the alternative is determined to be more effective than the cost containment procedures described in pars. (a) to (d). The grantee shall identify the alternative in the grant application it submits for review and approval by the department.(2) DONATIONS . The value of donated materials and supplies, equipment, services, and labor necessary to implement practices shall be established using cost containment procedures in this section. The department may request that the grantee submit proof of procedures used to value donations related to a project. All sources of grantee match, including donations, shall be indicated in the grant application submitted under this chapter. In-kind contributions shall abide by the all of following cost containment measures: (a) The maximum value of donated professional labor may not exceed the prevailing local market wage for equivalent work.(b) The maximum value of donated non-professional labor may not exceed the rate established by the department. Note: The rate established by the department will be published on the Surface Water Grant Program website.
(c) The value of donated equipment may not exceed the amounts as determined under s. NR 193.07(2) (a) 5.(d) The value of donated materials and services may not exceed market rates and shall be established by invoice.(3) EXCEPTIONS. (a) Cost containment procedures established in this section do not apply to fee simple or easement land acquisition under subch. VII. Cost of land acquisition shall in all cases be determined by appraisal approved by the department.(b) To further control certain supplies, services, or equipment to be purchased by the grantee for department-approved projects, the department may establish a maximum cost for some supplies, services, equipment or activities in a landowner incentive program. Department-established award caps will be identified in the Surface Water grants Applicant Guide published by the department on the Surface Water Grant Program website at least 90 days before the grant application submission deadline.Wis. Admin. Code Department of Natural Resources NR 193.08
Adopted by, CR 19-078: cr. Register May 2020 No. 773, eff. 6-1-20; correction in (3) (b) made under s. 35.17, Stats., Register May 2020 No. 773, eff. 6/1/2020