Consultant Rates of Payment
Consultant rates of payment are to be reasonable and consistent with fees for similar services in the market place. The consultant rate maximum limit is $650 per day or $81.25 per hour. This does not mean the rate can or should be the maximum limit for all consultants. Rates should be established on a case-by-case basis and must be reasonable and allowable. Consultant rates should be consistent with current market value for the service. The consultant rate agreement file must contain a justification of the agreed upon rate, the contract, copies of invoices and copies of work performed.
If a grantee wishes to exceed the maximum daily rate allowed (excluding travel and travel-related costs – see Chapter XI – Travel, Conferences, Meetings for consultants, prior written authorization from CVAD is required. The term daily rate refers to an eight-hour day. An eight-hour day may include preparation, evaluation, and travel time in addition to the time required for actual performance. Please note, however, this does not mean the rate can exceed the maximum daily rate allowed. If a consultant’s rates are greater than the maximum rates allowed no portion of the consultant’s fees can be paid with federal funds, not even the portion that meets the federal standards.
Independent Consultants: The rate of compensation for these individuals must be reasonable and consistent with that paid for similar services in the market place. Compensation may include the value or the cost of fringe benefits. Resources to determine current market value include:
- Current salary & fringe benefits for similar work
- Competitive contract bids
- The Bureau of Labor Statistics Wage Data by Area and Occupational website