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Local Assistance Procedures Manual _ Exhibit 10-H Page 1 of 5 EXHIBIT 10-H COST PROPOSAL (EXAMPLE #1) PAGE 2 OF 2 ACTUAL COST-PLUS-FIXED FEE OR LUMP SUM (FIRM FIXED PRICE) CONTRACTS (SAMPLE CALCULATIONS FOR ANTICIPATED SALARY INCREASES) Consultant CDM Smith Contract No. Date 3/15/2016 1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) 42444 Direct Labor Subtotal Total Hours Avg Hourly 5 Year Contract per Cost Proposal per Cost Proposal Rate Duration $70,583.84 1122 = $62.91 Year 1 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 $62.91 + 2.2% _ $64.29 Year 2 Avg Hourly Rate Year 2 $64.29 + 2.3% _ $65.77 Year 3 Avg Hourly Rate Year 3 $65.77 + 2.0% _ $67.09 Year 4 Avg Hourly Rate Year 4 $67.09 + 2.0% _ $68.43 Year 5 Avg Hourly Rate 3. Calculate estimated hours per year (Multiply estimate % each year by total hours) Estimated % Total Hours Total Hours Completed Each Year per Cost Proposal per Year Year 1 60.00% * 1122.0 = 673.2 Estimated Hours Year 1 Year 2 40.00% * 1122.0 = 448.8 Estimated Hours Year 2 Year 3 0.00% * 1122.0 = 0.0 Estimated Hours Year 3 Year 4 0.00% * 1122.0 = 0.0 Estimated Hours Year 4 Year 5 0.00% * 1122.0 = 0.0 Estimated Hours Year 5 Total 100% Total = 1122.0 4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours) Avg Hourly Rate Estimated hours Cost per Year (calculated above) (calculated above) Year 1 $62.91 * 673 = $42,350.30 Estimated Hours Year 1 Year 2 $64.29 * 449 = $28,854.67 Estimated Hours Year 2 Year 3 * 0 = $0.00 Estimated Hours Year 3 Year 4 * 0 = $0.00 Estimated Hours Year 4 Year 5 * 0 = $0.00 Estimated Hours Year 5 Total Direct Labor Cost with Escalation = $71,204.98 Direct Labor Subtotal before Escalation - $70,583.84 Estimated total of Direct Labor Salary Increase = $621.14 Transfer to Page 1 NOTES: • 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. • 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) • This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted. LPP 15-01 ATTY/AGR.2016.053/CDM Smith January 14, 2015