600 KAR 6:010. Definitions for 600 KAR
RELATES TO: KRS 45A.030, 45A.085,
45A.095, 45A.800-45A.835, 45A.838, 23 C.F.R. 172, 23 U.S.C. 112, 121
STATUTORY AUTHORITY: KRS 45A.838
NECESSITY, FUNCTION, AND CONFORMITY: KRS
45A.838(1), (4), and (5) require the Transportation Cabinet to promulgate
administrative regulations relating to the establishment and operation of professional
service firm pools. This administrative regulation establishes the definitions
for terms used in 600 KAR Chapter 6.
Section 1. Definitions. (1)
"Award" means the presentation of an agreement or contract to a
(2) "Cabinet" means the
Kentucky Transportation Cabinet.
(3) "Change order" is defined
in KRS 45A.030(2).
(4) "Competitive negotiation"
means negotiations that meet the requirements established in KRS 45A.085.
(5) "Consultant" means a firm
which has been selected to perform engineering or engineering-related services
for the cabinet as the prime or top-ranked firm in accordance with 600 KAR
(6) "Continuous professional
liability policy" means professional liability insurance coverage which is
maintained without a gap in coverage in order to become and to remain
prequalified with the Transportation Cabinet.
(7) "Contract" is defined in
(8) "Contract modification" is defined
in KRS 45A.030(8).
(9) "Cost per unit of work"
means a price based on a unit if the extent of work cannot be defined but a
cost of the work per unit can be determined in advance with reasonable
(10) "Cost plus a fixed fee"
means a price based on the actual allowable cost of the work plus any
preestablished fixed amount for operating margin.
(11) "DBE" means a
disadvantaged business enterprise as defined and certified in accordance with
the provisions of 600 KAR 4:010.
(12) "Direct salary" means the
salary of a person directly involved with and chargeable to a specific project,
e.g., engineering or draftsperson time spent on a project.
(13) "Discipline" means an
engineering or related service area with responsibility falling to a specific
(14) "Engineer" is defined by
services" is defined by KRS 45A.800(7).
(16) "Firm" is defined by KRS
(17) "FHWA" means the Federal
(18) "Lump sum" means a fixed
price, including cost and operating margin, agreed upon between a consultant
and cabinet for a group of tasks without a breakdown of individual values,
i.e., a lot price.
(19) "Modification" means a
formal revision to the terms of a contract.
negotiation" means negotiations that meet the requirements established in
(21) "Overhead costs" means an
indirect cost that:
(a) Is not chargeable to a specific
1. Personnel salaries;
3. General maintenance and repair;
4. Building rent;
6. Furniture; and
7. A similar cost related to conducting
(22) "Overhead submission
packet" means a package of information containing a summary of the:
(a) Firm's overhead expense accounts;
(b) Direct and indirect labor; and
(c) Direct costs of items outlined in 600
KAR 6:080, Section 1(5).
(23) "Pool" means a group of
firms selected to provide engineering or engineering-related services.
(24) "Prequalification" means
the evaluation of a professional:
(a) To determine if he or she is
qualified to contract with the cabinet for engineering or engineering-related
(b) By consideration of:
1. Financial capability;
2. Technical expertise;
4. Past performance;
5. Management; and
6. Similar business factors.
category" means a type of project for which engineering or engineering-related
services are contracted.
(26) "Prime" or "top-ranked"
means a consultant:
(a) Awarded a contract under 600 KAR
(b) Performing at least fifty (50)
percent of the dollar value of the work for a project.
(27) "Principal" means an
(a) Owns directly or indirectly more than
ten (10) percent of the voting interest in a consulting firm; or
(b) Serves as:
2. Vice president;
4. Director; or
5. Another firm officer.
(28) "Project-specific professional
liability insurance" means separate professional liability coverage which
provides noncancelable coverage for the duration of a specific project and
continuing through a discovery period after construction is complete.
(29) "Professional liability
policy" means claims-made insurance coverage for engineering or
engineering-related services which indemnifies a firm, a past or present
partner, an officer, a director, a stockholder, or an employee while acting
within the scope of firm duties, against the following:
(a) A negligent act;
(b) An error or omission in performing a
professional service; or
(c) Failure to provide a service in
accordance with standard of care.
(30) "Professional services"
means specialized services performed by an individual or consultant of
recognized technical competence.
(31) "Project" means an
undertaking by the Transportation Cabinet as defined in KRS 45A.800(4).
(32) "Project manager" means
the director of the user division or person designated by the user division
director to oversee the performance of a consultant to perform contracted
services on a project.
(33) "Proof of necessity" means
the justification to employ an:
(d) Attorney; or
(e) Other professional.
(34) "Proposal" means an offer
made by a firm to the cabinet as a basis for negotiations for entering into a
(35) "Salary additives" means
an employer-paid fringe benefit, including:
(a) The employer portion of FICA;
(b) Health insurance;
(c) Group life insurance;
(d) A state unemployment contribution; or
(e) A similar employee benefit.
(36) "Scope of work" means all
services and actions required of the consultant by the contract.
(37) "Services" is defined in
(38) "Six (6) year plan" means
the document prepared by the Transportation Cabinet in accordance with the
provisions of KRS 176.419 through 176.440.
(39) "Standard of care" means
the ordinary and reasonable care required and established by expert testimony
of what a reasonable and prudent professional would have done under the same or
(40) "Subconsultant" means a
second consultant contracted to a prime consultant for the performance of work
contracted by the cabinet to the prime consultant.
(41) "Termination clause" means
a contract clause which allows the cabinet to terminate, at its own discretion,
the performance of work and to make settlement of the consultant's claims.
(42) "User division" is defined
in KRS 45A.800(6).
(43) "Work unit" means an item
on a list of tasks which are required to be accomplished by the consultant in
order to satisfactorily complete the scope of work. (22
Ky.R. 1403; eff. 4-5-96; Am. 24 Ky.R. 1373; 1689; eff. 2-19-98; 25 Ky.R. 1952;
2559; eff. 5-4-99; 33 Ky.R. 539; 1307; eff. 11-9-2006.)