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'J' f MGT of America 455 Capitol Mall G Suite 600 M T Sacramento, CA 958 I 4 . . p:(916)443-341] Of AMERICA, INC. f: (9 16) 443-1766 www.mgtofamerica.com October 30, 2008 Delivery to: City Clerk City of Redwood City 1017 Middlefield Road Redwood City, CA 94063 Phone: (650) 780-7220 Attn: Mr. Brian Ponty, Director of Finance Subject: Proposal in response to City of Redwood City's RFP for Overhead Cost Allocation Plan Dear Mr. Ponty: We appreciate the opportunity to respond to the City of Redwood City's (City) Request for Proposal for an Overhead Cost Allocation Plan and associated services. In this engagement, the City and MGT of America, Inc. (MGT) will enter into a partnership that will result in a modern and defensible City cost allocation plan that is based on OMB A-87 principles and an understanding of cost allocation principles that have been applied by our consulting staff tracing back to the mid-1970s. In August 2007, MGT acquired PRM, and the former PRM staff form the core of our state and local government costing practice. Over the past year, the costing practice has doubled in size as MGT continues to expand its consulting staff to meet the needs of our local agency clients. MGT is a national research and management consulting firm specializing in providing management and financial services to public-sector clients. Over the past 34 years, we have successfully served more than 3,200 clients in 48 states and several foreign countries. With 130 professionals we are small enough to provide personalized service with reasonable fees; yet, large enough to serve a national client base and exceed the requirements of the most sophisticated clients. The benefit of MGT's costing services commitment to Redwood City is the deepest, most experienced staff of cost accounting experts in the nation. We have the resources, the commitment and the expertise to ensure that every MGT engagement is successful, especially Redwood City's cost allocation plan project. Benefits to Redwood City Raw numbers are the means to an end, not the end itself. The City will receive the following benefits from partnering with MGT for this cost allocation plan project: .:. A Track Record of Excellence. We prepare cost allocation plans for the largest agencies in the country and in the state of California. Agencies such as Orange County, Riverside County, LA Metro, San Francisco, Denver, Miami and San Mateo County, can use any consulting firm to prepare their cost allocation plans, but all selected MGT of America, Inc. Our firm has a track record of excellence in our consulting engagements and that's especially true with our cost allocation plans. We do excellent work, we stand by our commitments, and we do everything possible to ensure that our clients are unconditionally happy with our project deliverables.