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Local Assistance Procedures Manual EXHIBIT 10-111 Cost Proposal EXHIBIT 10-H1 COST PROPOSAL Page 2 of 3 ACTUAL COST -PLUS -FIXED FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS (CALCULATIONS FOR ANTICIPATED SALARY INCREASES) 1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) Direct Labor Total Hours per Avg 5 Year Subtotal per Cost Cost Proposal Hourly Contract Proposal Rate Duration $250,000.00 5000 = $50.00 Year 1 Avg Year 2 $51.00 Hourly Rate 2, Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %) 4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours) Avg Hourly Rate Proposed Escalation Year 1 $50.00 * 1000 Year 1 $50.00 + 2% _ $51.00 Year 2 Avg Hourly Rate Year 2 $51.00 + 2% _ $52.02 Year 3 Avg Hourly Rate Year 3 $52.02 + 2% = $53.06 Year 4 Avg Hourly Rate Year 4 $53.06 2% = $54.12 Year 5 Avg Hourly Rate 3. Calculate estimated hours per ,year (Multiply estimate % each year by total hours) Estimated % Completed Total Hours per Cost Total flours per Each Year Proposal Year Year 1 20.0% * 5000 = 1000 Estimated Hours Year 1 Year 2 40.0% * 5000 = 2000 Estimated Hours Year 2 Year 3 15.0% * 5000 = 750 Estimated Hours Year 3 Year 4 15.0% * 5000 = 750 Estimated Hours Year 4 Year 5 10.0% * 5000 = 500 Estimated Hours Year 5 Total 100% Total = 5000 4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours) Cost per Year $50,000.00 _ $102,000.00 $39,015.00 _ $39,795.30 _ $27,060.80 _ $257,871.10 $250,000.00 Estimated Hours Year 1 Estimated Hours Year 2 Estimated Hours Year 3 Estimated Hours Year 4 Estimated Hours Year 5 Transfer to Page 1 $7,871.10 NOTES: 1. This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the#' of years of the contract, and a breakdown of the labor to be performed each year. 2. An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable. (i.e. $250,000 x 2% x 5 yrs =.$25,000 is not an acceptable methodology) 3. This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted. 4. Calculations for anticipated salary escalation must be provided. Page 2 of 9 January 2018 Avg Hourly Rate Estimated hours (calculated above) (calculated above) Year 1 $50.00 * 1000 Year $51.00 * 2000 Year 3 $52.02 * 750 Year 4 $53.06 * 750 Year $54.12 * 500 Total Direct Labor Cost with Escalation Direct Labor Subtotal before Escalation Estimated total of Direct Labor Salary Increase Cost per Year $50,000.00 _ $102,000.00 $39,015.00 _ $39,795.30 _ $27,060.80 _ $257,871.10 $250,000.00 Estimated Hours Year 1 Estimated Hours Year 2 Estimated Hours Year 3 Estimated Hours Year 4 Estimated Hours Year 5 Transfer to Page 1 $7,871.10 NOTES: 1. This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the#' of years of the contract, and a breakdown of the labor to be performed each year. 2. An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable. (i.e. $250,000 x 2% x 5 yrs =.$25,000 is not an acceptable methodology) 3. This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted. 4. Calculations for anticipated salary escalation must be provided. Page 2 of 9 January 2018