DAVID GIONGCO Caltrans Local Assistance Engineer

Safe Harbor Rate Approved for Consultant Contracts

Effective July 1, 2013, all eligible architectural and engineering (A/E) consultant firms can choose to use the “Safe Harbor Rate” (SHR) of 110% for new A/E contracts using federal-aid highway funds executed by local agencies in the State of California within the test period1. The SFR is intended to remove a potential, initial financial barrier that may prevent or inhibit new, small, and disadvantaged A/E consulting firms from entering the State-administered, Federally-funded engineering services market.

For additional information regarding eligibility and requirements, refer to the recently issued DLA Office Bulletin (DLA-OB 13–07) and supporting attachments.

  1. July 1, 2013 – June 30, 2013.