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Local Assistance Procedures Manual EXHIBIT 10-H1 <br />Cost Proposal <br />EXHIBIT 10-H1 COST PROPOSAL Page 2 of 3 <br />ACTUAL COST -PLUS -FEED FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS <br />(CALCULATIONS FOR ANTICIPATED SALARY INCREASES) <br />1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) <br />Direct Labor <br />Subtotal per Cost <br />Proposal <br />$250,000.00 <br />Total Hours per <br />Cost Proposal <br />5000 = <br />Avg <br />5 Year <br />Hourly <br />Contract <br />Rate <br />Duration <br />$50.00 <br />Year 1 Avg <br />Hourly Rate <br />2. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation % <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 estimated hours per year (Multiply estimate % each year by total hours) <br />Estimated % Completed <br />Each Year <br />Year 1 <br />20.0% <br />Year 2 <br />40.0% <br />Year 3 <br />15.0% <br />Year 4 <br />15.0% <br />Year 5 <br />10.0% <br />Total <br />100% <br />Total Hours per Cost <br />Proposal <br />* 5000 <br />* 5000 <br />* 5000 <br />* 5000 <br />* 5000 <br />Total <br />Total Hours per <br />Year <br />1000 <br />2000 <br />750 <br />750 <br />500 <br />5000 <br />Estimated Hours Year 1 <br />Estimated Hours Year 2 <br />Estimated Hours Year 3 <br />Estimated Hours Year 4 <br />Estimated Hours Year 5 <br />4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours) <br />Avg Hourly Rate Estimated hours <br />(calculated above) (calculated above) <br />Year 1 <br />$50.00 1000 <br />Year 2 <br />$51.00 2000 <br />Year 3 <br />$52.02 750 <br />Year 4 <br />$53.06 750 <br />Year 5 <br />$54.12 500 <br />Total Direct Labor Cost with Escalation <br />Direct Labor Subtotal before Escalation <br />Estimated total of Direct Labor Salary <br />Increase <br />Cost per <br />Year <br />$50,000.00 <br />$102,000.00 <br />$39,015.00 <br />$39,795.30 <br />$27,060.80 <br />$257,871.10 <br />$250,000.00 <br />Estimated Hours Year 1 <br />Estimated Hours Year 2 <br />Estimated Hours Year 3 <br />Estimated Hours Year 4 <br />Estimated Hours Year 5 <br />Transfer to Page 1 <br />$7,871.10 <br />NOTES: <br />L 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 />2. 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 />3. This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted <br />4. Calculations for anticipated salary escalation most be provided. <br />Page 2 of 9 <br />2 5 K-74 January 2018 <br />