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Local Assistance Procedures Manual EXIHBIT 10 -H <br />Sample Cost Proposal <br />Consultant <br />EXHIBIT 10 -11 SAMPLE COST PROPOSAL (EXAMPLE #I) Page 2 of 2 <br />ACTUAL COST - PLUS -FIXED FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS <br />(SAMPLE CALCULATIONS FOR ANTICIPATED SALARY INCREASES) <br />Contract <br />Date <br />1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) <br />Direct Labor Total Hours per <br />Avg <br />5 Year <br />Subtotal per Cost Cost Proposal <br />Hourly <br />Contract <br />Proposal <br />Rate <br />Duration <br />$250,000.00 5000 = <br />$50.00 <br />Year 1 Avg <br />+ 2% = <br />$52.02 <br />Hourly Rate <br />2. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %) <br />NOTES: <br />• This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the # <br />of years of the contract, and a breakdown of the labor to be performed each year. <br />• An estimation that is based on direct labor multiplied by salary increase %multiplied by the # of years is not acceptable. <br />(i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology) <br />• This assumes that one yen will be worked at the rate on the cost proposal before salary increases are granted. <br />LPP 15 -01 <br />25L -152 <br />Page 2 of 5 <br />January 14, 2015 <br />Avg Hourly Rate <br />Proposed Escalation <br />Year 1 <br />$50.00 <br />+ 2% = <br />$51.00 <br />Year 2 Avg Hourly Rate <br />Year 2 <br />$51.00 <br />+ 2% = <br />$52.02 <br />Year 3 Avg Hourly Rate <br />Year 3 <br />$52.02 <br />+ 2% = <br />$53.06 <br />Year 4 Avg Hourly Rate <br />Year 4 <br />$53.06 <br />+ 2% _ <br />$54.12 <br />Year 5 Avg Hourly Rate <br />3. Calculate <br />estimated hours per year (Multiply estimate % each year by total hours) <br />Estimated % Completed <br />Total Hours per Cost <br />Total Hours per <br />Each Year <br />Proposal <br />Year <br />Year 1 <br />20.0% <br />* 5000 = <br />1000 <br />Estimated Hours Year 1 <br />Year 2 <br />40.0% <br />* 5000 = <br />2000 <br />Estimated Hours Year 2 <br />Year 3 <br />15.0% <br />* 5000 = <br />750 <br />Estimated Hours Year 3 <br />Year 4 <br />15.0% <br />* 5000 = <br />750 <br />Estimated Hours Year 4 <br />Year 5 <br />10.0% <br />* 5000 = <br />500 <br />Estimated Hours Year 5 <br />Total <br />100% <br />Total = <br />5000 <br />4. Calculate <br />Total Costs including Escalation (Multiply Average <br />Hourly Rate by the number of hours) <br />Avg Hourly Rate <br />Estimated. hours <br />Cost per <br />(calculated above) <br />(calculated above) <br />Year <br />Year 1 <br />$50.00 <br />* 1000 <br />= $50,000.00 <br />Estimated Hours Year 1 <br />Year 2 <br />$51.00 <br />* 2000 <br />= $102,000.00 <br />Estimated Hours Year 2 <br />Year 3 <br />$52.02 <br />* 750 <br />= $39,015.00 <br />Estimated Hours Year 3 <br />Year <br />$53.06 <br />* 750 <br />= $39,795.30 <br />Estimated Hours Year 4 <br />Year 5 <br />$54.12 <br />* 500 <br />= $27,060.80 <br />Estimated Hours Year 5 <br />Total Direct Labor Cost with Escalation <br />= $257,871.10 <br />Direct labor Subtotal <br />before Escalation <br />= $250,000.00 <br />Estimated total of Direct <br />Labor Salary <br />= <br />Transfer to Page 1 <br />Increase <br />$7,871.10 <br />NOTES: <br />• This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the # <br />of years of the contract, and a breakdown of the labor to be performed each year. <br />• An estimation that is based on direct labor multiplied by salary increase %multiplied by the # of years is not acceptable. <br />(i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology) <br />• This assumes that one yen will be worked at the rate on the cost proposal before salary increases are granted. <br />LPP 15 -01 <br />25L -152 <br />Page 2 of 5 <br />January 14, 2015 <br />