Capabilities will be underutilized to fit work flow
Consultants must maintain a back log of work to keep staff utilized and buffer against risk
Results in high overhead = (direct costs)+(direct costs*Ohrate) = total costs
Results in high multiplier = (direct labor costs)*multiplier = total costs
Homework Get on the Iowa DOT web page professional services web page ( http://www.prof-tech-consultant.dot.state.ia.us/ ) and identify how a consultant becomes qualified and selected to provide professional services for the Iowa DOT then get on the Minnesota DOT web page (http://www.dot.state.mn.us/consult/index.html) for professional services and identify how a consultant is selected to provide professional services for the Minnesota DOT. Compare and contrast the two states. Don’t be afraid to call either state’s consultant coordinator.