Cost Explanations

BASIS OF COSTS

Introduction

RCCC Inc. is pleased to submit our Cost Proposal for Temporary Disaster Workforce Jobs Grant for the Department of Labor Employment Training Administration, Workforce Investment Act as required and in accordance with the National Emergency Grants Administration.

A. Business Status

RCCC was incorporated in 1981 by Tony McElroy, Chief Executive Officer and President. RCCC is a 501c3 organization designated by the Internal Revenue Service.

B. Contract Type

C. Period of Performance

The term of this grant shall be six (^) month from the effective date of award.

D. Rationale for RCCC Price Elements

Costs and prices proposed by RCCC fall int three categories: (1) total labor costs; (2) other direct costs(ODCs)., and (3) burden (indirect cost) rates. The elements of each category are described below.

Direct Labor Costs

Direct Labor rates are based on marketplace surveys and are commensurate with the RCCC Corporate Salary Administration Plan.

Salary Costs

Hourly direct salary costs are derived by dividing annual compensation by the number of potential labor hours in a year (2080). These hourly rates are then multiplied gy the number of hours allocated to an individual in a labor category to determine estimated direct labor costs.

Fringe Benefit Costs

Total personnel costs are the sum of direct labor and fringe benefits costs. Yhe componenets contributing to the fringr benefits pool are:

(1) personal leave

(2) administrative leave

(3) holiday leave

(4) medical and dental insurance

(5) life insurance

(6) 401(k) Program contributations

(7) other RCCC functions not project related

In this proposal, RCCC is proposing a fringe benefit rate of 32.74%.

Overhead and General and Administrative Costs

RCCC currently applies two types of burden rates (indirect costs) in cost estimates: (1) labor overhead and (2) general and administrative(G&A) RCCC proposes group overhead rates and...