BERG AND ASSOCIATES, INC. - Laserfiche WebLink

Home Browse Search

Lodal Assistance Procedures Manual EXHIBIT 10,H1 Coat Proposal EXHIBIT 10-H1 COST PROPOSAL Page 2 of 3 CAST -PLUS -FIXED 1`83 OR LVIPP SUM OR FIRM FIXED PRICE CONTRACTS (CALCULATIONS FOR ANTICIPATED SALARY INCREASES) 1. Calculate Average Hourly Rate for tat yearof the contract (Direct Labor Subtotal divided by total hours) Direct Labor Total Hours per Avg 5 Year S*Mal per Cost coat Proposal Hourly Contract Proposal Rate Duration $25D,000AO S00 a $0100 Year Avg Hourly Rate 2. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %) Avg Hourly Rate Proposed Escalation Year 1 $50,00 + 2°% _ $61.00 Year 2 Avg Hourly Rate Year 2 $51,00 + 2% _ $52.02 Year 3 Avg Hourly Rate Year 3 $52.02 + 2^/e - W.06 Year 4 Avg Hourly Rate Year 4 $53.08 + 2"% _ $54.12 Year 5 Avg Hourly Rate 3. Calculate estimated hours par year (Multiply eatlmate % each yearby total hours) Estimated % Completed Total Hours per Cost Total Houra per Each Year Proposal Year Year 1 20.0% " 8000 = 1000 Estimated Hours Year 1 Year 2 40.0% 5000 2000 Estimated Hours Year 2 Year 1510% 5000 = 750 Eatim ated Hours Year 3 Year 4 16.0°% • 5000 m 780 Estimated Hours Year 4 Year 5 10.0°% 5000 r 500 Estimated Hours Year 5 Total 100% Total = 5000 4. Calculate Total Casts Including Escalation (Multiply Average Hourly Rate by the number of hours) Avg Hourly Rate Estimated hours Cost per (calculated above) (calculated above) Year Year 1 $50 00 1000 - $50,000,00 Estimated Hours Year 1 Year $51,00 2000 c $102,00040 Estimated Hours Year 2 Year 3 $52.02 750 $30,015.60 Estimated Hours Year 3 Year $53.06 7&0 = $39,705.30 EetimatedHours Year 4 Year& $54,12 500 a $27,060.80 Estimated Hours Year b Total Direct Labor Cost with Escalation = $257,871.10 Direct Labor Subtotal before Escalation $250,000,00 Estimated total of Direct Labor Salary = Transfer to Page 1 Increase $7,571.10 NOTES: 1. Thistanottheonlywaytoestimatesalatyincreases,Othermethodawlllbeacceptedif.theyclaarlyindicatethe°% Increase, the 0 of years of the contract, and a breakdown of the laborto be performed each your, 2 An estimation that is based on direct labor multiplied by salary Increase % multiplied by the 0 of years is not acceptable. (Le, $250,000 x 2% x 5 yra = $25,000 is not an acceptable methodology) 3. This assumes that one yearwlll be worked at the rate on the cost proposal before salary Increases are granted. 4. Calculations for anticipated salary escalation must be provided, 2of0 2020