Indirect Cost Allocation Plan and Analysis

The City of Pasadena's Water and Power Department (PWP) is seeking proposals from experienced technical and financial consulting firms to conduct a comprehensive overhead cost allocation study, plan, and model. The engagement will develop methodologies for precisely allocating overhead costs associated with various PWP services to other business units, ensuring compliance with regulatory standards and industry best practices. The study will support internal departmental use and external funding or financing applications, including grant submissions.

PWP is a municipally owned utility founded in 1912 with a fiscal year 2026 operating budget of $366 million and 442 full-time equivalent employees. The utility operates both electric and water systems organized into seven separate divisions: General Manager, External Affairs, Finance and Administration, Customer Service and Technology, Power Supply, Power Delivery, and Water Delivery. The selected firm will be responsible for executing tasks outlined in the detailed Scope of Work section.

Key deadlines include a Q&A deadline of December 3, 2025 at 10:00 PM and a proposal submission deadline of December 10, 2025 at 10:00 PM. Proposals must be submitted through the OpenGov procurement portal. The engagement is subject to City requirements, insurance requirements, information technology requirements, prevailing wage requirements, and federal contract provisions as outlined in the RFP.

Evaluation criteria will assess proposers' technical expertise, relevant experience with cost allocation methodologies, understanding of utility industry practices, project team qualifications, proposed approach and timeline, and cost reasonableness. The selected consultant will work directly with PWP leadership and finance staff to develop, refine, and implement the cost allocation model.