Cost Allocation Plan

Location:	California
Posted:	Feb 2, 2026
Due:	Feb 27, 2026
Agency:	City of San Mateo
Type of Government:	State & Local
Category:	R - Professional, Administrative and Management Support Services
Publication URL:	To access bid details, please log in.

Bid Title:	Cost Allocation Plan
Category:	ALL OPEN RFPs
Status:	Open

Description:

The City of San Mateo (the City) is requesting proposals from qualified consultants to provide cost allocation services. The selected Consultant will be responsible for developing a comprehensive Cost Allocation Plan. The primary goal of this study is to incorporate the plan into internal service funds, establish appropriate funding levels, and create a cost allocation methodology for charging General Fund departments the appropriate amounts to keep them funded.

Publication Date/Time:

2/2/2026 8:00 AM

Closing Date/Time:

2/27/2026 5:00 PM

Contact Person:

Karley Toffey, Senior Management Analyst, Finance Department, ktoffey@cityofsanmateo.org, (650) 522-7106

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REQUEST FOR PROPOSALS

City of San Mateo

Cost Allocation Plan

CITY OF SAN MATEO, CALIFORNIA

02/02/2026

CITY OF SAN MATEO

330 W. 20th Avenue

San Mateo, CA 94403

I. INTRODUCTION

The City of San Mateo (the City) is requesting proposals from qualified consultants (firms) to

provide cost allocation services. The selected Consultant will be responsible for developing a

comprehensive Cost Allocation Plan. The primary goal of this study is to incorporate the plan

into internal service funds, establish appropriate funding levels, and create a cost allocation

methodology for charging General Fund departments the appropriate amounts to keep them

funded.

All responses to this opportunity must conform to the requirements of the Request for

Proposal (RFP). Failure to do so may result in the response being considered non-responsive.

All proposals submitted to the City shall become the exclusive property of the City. All

submissions shall become a matter of public record subject to disclosure.

II. BACKGROUND

The City of San Mateo, incorporated in 1894, is the largest municipality in San Mateo County,

California. The City is centrally located on “The Peninsula,” between San Francisco to the north

and San Jose to the south. The City borders the communities of Belmont, Burlingame, Foster

City, and Hillsborough, as well as the unincorporated Highlands-Baywood Park area of San

Mateo County.

The City of San Mateo is a charter city and has a Council-Manager form of government. Five

council members, elected by district, serve for four-year terms. The City Council selects a

mayor from among its members each December for a one-year term. The City Manager is

appointed by the Council and serves as the chief executive officer responsible for the day-to-

day administration of City affairs. The Council also appoints a city attorney. There are seven

advisory boards and commissions appointed by the Council.

The City provides a wide range of municipal services including police, public works, parks and

recreation, library, planning and zoning, building inspection, code enforcement, affordable housing,

sewer system, street maintenance, economic development, and general administrative services.

The City shares a consolidated Fire Department with the cities of Foster City and Belmont.

III. PROJECT OBJECTIVES

The objective of the RFP is to receive proposals for reviewing and updating the City of San

Mateo’s cost allocation plan for every City department with overhead calculations for cost

recovery.

Full Cost Allocation Plan

The purpose of the Cost Allocation Plan is to ensure that the City of San Mateo has a basis for

applying comprehensive overhead rates and is accurately accounting for the true cost of

services by each department. A full Cost Allocation Plan can allocate all indirect costs. Best

practices, accounting standards and Uniform Administrative Requirements, Cost Principles, and

Audit Requirements for Federal Awards (OMB Uniform Guidance) deem it necessary for the

City to maintain a well-documented cost allocation plan that will help it to appropriately

allocate general and administrative costs in the budget. The Plan shall also properly identify

overhead rates that can be used in the calculation of billable hourly rates for user fees, and

reimbursements from other governmental agencies. The City’s last Cost Allocation Plan was

completed in 2020 as part of a larger fee study.

IV. SCOPE OF SERVICES

Consultants may submit proposals for scope of services listed below. Consultants may also

propose using sub-consultants for part of the work. Subject to further discussion with the

selected firm(s), the City anticipates that the scope of work on this assignment may include

some or all of the following services:

Cost Allocation Plan

1. Work and meet with selected City staff to refine the project scope, purpose, uses, and

goals to ensure that the study will be both accurate and appropriate to San Mateo’s

needs.

2. Meet with staff and conduct interviews across all relevant departments as needed to

gain an understanding of the City’s processes and operations. Identify costs so they

can be allocated to and tracked by the appropriate department

3. Identify the total cost of providing each City service at the appropriate activity level

and in a manner consistent with all applicable laws, statutes, rules and regulations

governing the collection of fees, rates, and charges by public entities including, but

not limited to, the State Controller’s Office Guidelines for Cost Claiming and OMB 2

CFR Part 225 standards.

4. Develop a Cost Allocation Model using FY25/26 budget and/or actual data for

calculation of the total costs of providing each City service. The requirements of the

model should allow for:

a. Additions, revisions, or removal of direct and overhead costs so the cost

allocation plan can be easily adapted to a range of activities, both simple and

complex

b. The ability of the City to continuously update the model and full cost allocation

plan from year to year as an organization and/or service model changes occur

over time.

5. Report on other matters that surface during the evaluation that the City should

consider.

6. Present the plan to the City’s steering committee and make necessary adjustments as

requested.

7. Provide the City with an electronic copy of the final comprehensive review, including

related schedules and cost documentation in a format such as Microsoft Word and

Excel that can be edited and updated by City staff to accommodate changes in the

organization or changes in costs.

8. Provide a computer-based model in Excel for adjusting these fees and charges for the

City’s current and future needs and provide the City with an electronic copy of the

final cost documentation in a format that can be edited and updated by City staff to

accommodate changes in the organization or changes in costs.

9. Consult with City staff, should the need arise, to defend the cost allocation plan as a

result of audits or other challenges.

V. SUBMITTAL REQUIREMENTS

Proposers who wish to be considered for this project must submit an electronic copy of their

proposal to the City for review. Electronic documents should be submitted in PDF form.

Proposals should be clear and concise. At a minimum, each proposal must include the following

information in sections as outlined below.

a. Submittal Cover Form and Cover Letter

The proposal shall be submitted with a cover letter. The letter accompanying the proposal

must provide the name, title, address, telephone number, and signature of the individual(s)

authorized to negotiate and bind the firm contractually. An unsigned proposal or one signed

by an individual unauthorized to bind the firm may be rejected. The cover letter shall

provide a summary of the firm’s capabilities and availability of staff, information and

qualifications of the proposed lead who will be representing the firm.

b. Project Approach and Proposed Scope of Work

Provide a detailed description of the firm’s proposed approach to implementing the Scope

of Services described in Section III. At a minimum, the approach shall include an

implementation plan for the tasks described in the scope of services and any recommended

revisions or additions to the list of tasks. Tasks should be organized into phases constituting

measurable deliverables.

c. Project Schedule and Timeline

Outline a proposed project schedule and timeline starting from a kickoff meeting to

development of draft documents and final reports. This schedule can be phased or

organized in a manner the proposed deems most effective as long as there is a clearly

defined plan articulated in the proposal.

d. Experience and Qualifications

Provide a brief history of the firm, including the name of the firm, general services,

experience, the year the firm was established under the current name, the principal place of

business, and the location of local office(s). Indicate any other previous names for the firm

during the last five years and the year any name change was effective.

e. Completed Reports

Proposals should provide (2) completed reports that the firm has previously developed

for cities, counties or local government agencies that are comparable to the project

outlined in this RFP.

f. References

Provide a list of at least three client references for whom the firm has performed similar

work to that requested in this RFP during the past five years. For each client, please provide

the name of the client, location, proposed staff who worked on the project, description of

services, telephone number and email address.

g. Resumes and Qualifications of Proposed Personnel

This section should list key team members who will be assigned to the project, their role on

the project, primary office location, relevant experience, and applicable licenses and

certifications. This section should also include brief resumes for all key personnel proposed

for the Project.

h. Fee Schedule

Indicate the costs and hours for the total project, on a task-by-task basis and on a sub

consultant basis, inclusive of reimbursables. Provide a table with the estimated labor hours

by personnel proposed for the project for each task identified in the Scope of Services. The

table shall include subtotals by both column and row along with a total estimated hours to

perform the Scope of Services. All pertinent and relevant assumptions that may affect the

proposed hours shall be clearly listed in this section of the proposal, and prices quoted must

be binding for a minimum of the life of the project. Proposers should also include standard

hourly rates for proposed personnel.

The method of payment to the successful proposer(s) shall be on a time and expense

reimbursement basis for actual work performed. The fee schedule shall include direct costs

and overhead such as, but not limited to, transportation (within the greater Bay Area unless

approved prior), communications, subsistence, and materials. Progress payments will be

based on actual hours, hourly costs and support service costs charged to the project,

typically on a monthly basis.

i. Conflict of Interest

Provide names of individuals associated with the firm that have a potential conflict of

interest. The City may not contract with a proposer if the proposer is an employee, officer,

or director of the proposer’s firm, or any immediate family member of the preceding, has

served as an elected official, employee, board, or commission member of the City who

influences the making of the contract. Furthermore, the City may not contract with any

proposer whose income, investment, or real property interest may be affected by the

contract. Proposals are subject to disqualifications based on such a conflict of interest as

determined by the City.

j. Terms and Conditions

This is the opportunity summary page. It provides an overview of this opportunity and a preview of the attached documentation.

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Cost Allocation Plan

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See also