Adviser Remuneration Framework - AusAID

Advisers may choose to rent accommodation at a higher rate than is covered by AusAID’smaximum monthly accommodation rates for the relevant location. Excess rental costs will be at theadviser’s own expense.Managing contractors should request the relevant accommodation rates from AusAID staffmanaging the activity for adviser personnel they wish to engage.3.7 Making an offer to the preferred candidateAfter you have calculated the preferred candidate’s total remuneration package and support costs,you may make an offer to the preferred candidate. If the adviser is eligible to charge managementfees, the following applies.i. Management feesManagement fees 1 vary depending on the market, company structure, location where services willbe provided and the nature of services being procured. They will be determined on a case by casebasis as a result of a competitive approach to market. In instances where advisory services aredirectly sourced without a competitive process, AusAID staff should seek advice from Procurementand Agreement Services through the standard contract clearance process.AusAID’s treatment of management fees will vary according to the selection process and nature ofthe adviser engagement.• For advisers engaged through an open competitive procurement process, either for individualactivities or as part of teams, tender documentation will be structured so that managementfees are separated from individual adviser remuneration and any identified adviser supportcosts. Management fees will be assessed through the competitive assessment of tenderproposals.• For individual advisers, management fees are limited to insurance costs that are not solelylinked to the current assignment and therefore will not be reimbursed at cost (e.g. professionalindemnity insurance) and a contribution to any office running costs. These overheads must bejustified and clearly documented and may not exceed ten per cent of the total adviserremuneration. Individual advisers cannot charge for profit.For advisers engaged through a company, management fees must be clearly documented andjustified. AusAID staff must carefully consider this justification prior to passing to Procurement andAgreement Services for clearance. Eligible management fee components will be defined in thecontract and may include:⋅⋅⋅⋅⋅profits, including commercial margins and mark-up for personnel and projectmanagement;financial management costs;costs of contractor administrative and head office staff, including the cost of acontractor representative, if any;costs associated with establishing and maintaining premises and equipment, includingutilities;insurance costs as required by the contract, but exclusive of the costs of medicalinsurance for advisers;1 AusAID contracts and tender documentation will prescribe what is chargeable in the management fee. As ageneral rule the management fee may include indirect overheads (i.e. legitimate costs that are indirectlyattributable to the adviser assignment), direct overheads (i.e. legitimate costs directly attributable to theassignment that are not covered in adviser support costs) and/or company profit.10 of 20