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SECTION 5 - COST PROPOSAL <br />Sierra's pricing methodology is designed to ensure a BEST VALUf.' offering which considers <br />the budget realities of our government clients <br />Our long history of serving government agencies at the local state, and federal levels has tuned <br />us to the budget realities these agencies continually face. We have organized our company to be <br />responsive to that, as government agencies make up nearly 100% of our business base. We <br />maintain very modest facilities, with emphasis on modern technological tools for our technical <br />staff rather than up -scale offrces for our management personnel. We focus on strong <br />compensation for our technical staff — they form the basis for our management team to have <br />jobs! This results in low overheads supporting high quality ITprofessionals — a genuine VALUE <br />ADDED situationfor our clients. <br />Sierra's Pricing Deflects our Emphasis on Government Clients <br />Sierra°s business focus is on providing IT services for local government agencies. We refuse to <br />be distracted by pursuing commercial staffing work, That business area requires higher <br />investments and higher overheads with resultant higher costs and lower quality service for our <br />government clients. It detracts from what we know best — government support! <br />Sierra has been regularly audited by the Defense Contract Audit Agency for compliance with <br />Federal regulations concerning business operations. Our record is immaculate. Our business <br />processes ensure accurate and accountable billings and payments to our contractors and <br />suppliers. We are trained and knowledgeable in government regulations and very experienced <br />with the labor laws concerning professional contract labor employers. <br />Table 1 rates are for year I and then escalated by 3% per year. Actual rates generally fall below <br />the highest rates shown here. Highest rates allow for special circwnstances or particularly <br />skilled personnel. Pricing for "payrolled" personnel, referred by you, will be discounted, as per <br />Note D in Table 2. <br />5-1 SC20-011 <br />SIERRA CYBERNETICS Santa Ana IT Professional Services <br />