Cost Recovery and Containment Study

The Bay Area Air Quality Management District ("Air District") requests proposals from qualified entities to conduct a Cost Recovery and Containment Study ("Study") comparing the Air District’s expenses associated with fee-related activities, to the revenue received from fee-related funding sources. The selected firm will review the Air District’s current cost recovery efforts and analyze historical cost trends. The Study will include researching and recommending novel cost recovery methodologies that would improve the Air District's practices. The Study will include an analysis of the Air District’s current cost containment strategies and provide recommendations to improve the management of the Air District’s costs and the quality of services provided to stakeholders. An interested firm's proposed timeline should complete the Study's deliverable of findings by March 31, 2027, with presentation(s) of the findings occurring at a later date.

The Air District expects to enter into contract with one (1) firm. The anticipated duration of the contract will be for a period of up to one (1) year, however, the Air District, at its sole discretion, will determine the initial duration of the contract and any subsequent extensions, as applicable.

The primary goal of the Study is to review the current cost recovery and allocation plan, to include the Air District’s current activities, programs, headquarters building, vehicles, and other current indirect costs.

Other important goals of this Study are to:

• Compare, ensure the accuracy, and validate the allocation of permit-related program activities to the associated revenues received from permit funding sources, through an evaluation of existing methods and models.
• Review the Air District’s timecodes, including, but not limited to: the Air District’s existing fee schedules and greenhouse gas fees and programs. Provide specific recommendations on improving tracking and management of program time allocations.
• Review the Air District’s methodology for allocating indirect costs and make recommendations for inclusion of new activities, and provide a brief description of support services provided and the basis upon which they should be allocated to direct programs.
• Review the Air District’s current methods and models for projecting future revenues and costs. Make recommendations on improving the procedures and process for the projections, including suggestions for any tools that could be used to do this.
• Review the Air District’s costs and make recommendations for potential areas for savings through efficiencies or otherwise.

Tasks

• Task 1: Review of Labor Expenditures and Identification of Cost Containment Opportunities
• Task 2. Determine Eligible Indirect Programs and Expenditures
• Task 3. Review Cost Allocation Methods and Audit Cost Recovery Results
• Task 4. Review the Permitting and Compliance System (PCS) and the Day Force Timekeeping System for Efficiency Opportunities
• Task 5. Review Costs in Fee Schedules Recovered Less than 85% for Efficiency Opportunities
• Task 6. Propose Permit Fee Schedule Full Cost Recovery Strategy and Timeline
• Task 7. Evaluation of Opportunities to Provide Fee Relief to Small Businesses
• Task 8. Draft and Final Report Requirements
• Task 9. Findings and Presentations to Others, as Requested
• Task 10. Project Management and Administration

The Air District tentatively anticipates up to three (3) presentations.

To respond to this Request for Proposals ("RFP"), a respondent must submit its proposal using the Air District's OpenGov Procurement Portal ("Portal"). Proposals must be received before **4:00 pm Pacific Time on Wednesday, December 2, 2026**. Late proposals will not be considered.

Any questions regarding this RFP should be submitted through the Question & Answer section of this RFP on the Portal.

Portal link: https://procurement.opengov.com/portal/baaqmd.

Proposals must be submitted electronically through the Portal. Encrypted or password protected files are prohibited.

Evaluation

A panel of Air District staff will evaluate all proposals based on the Phase 1 criteria. The panel will recommend firms to move on to the interview phase and will aggregate the evaluation in Phase 2 criteria with Phase 1 criteria. If two or more proposals receive the same number of points, the Air District will accept the lower cost offer.

• Expertise: 35 points
• Skill: 30 points
• Approach: 20 points
• Cost: 10 points
• References: 3 points
• Firm's Specialty Focus Area - Local Business: 2 points, Pass / Fail

The highest aggregate score from the proposal and interview will be awarded the RFP.