RES 81381 - Laserfiche WebLink

Kennedy/Jenks Engineers 657 H~,vafd Street San Francisco. California 94105 415-362-6065 FIRM'S POLICIES FOR DETERMINING DIRECT AND INDIRECT COSTS (FOR ATTACHMENT TO EPA FORM 5700-41) Kennedy/Jenks Engineers, Inc. determines direct and indirect costs on a historical basis from segregated charges against a chart of accounts. Salaries are charged against job numbers four productive work and over- head numbers for non-productive time, such as administration, profes- sional development, vacation, sick leave, etc. Since the firm is a corporation, all personnel are compensated according to defined pay rates on besis of qualifications, experience and responsibilities. Salary rates are for a normal 8 hoL~ day, 40 hour week, with overtime paid for authorized work. Technicians, draftsmen and support person- nel are paid at the time and one-half rate, and pro~essional personnel are paid at the regular rate for overtime. The firm, at its sole discretion, determines the need to utilize over- time work in order to meet project schedules. It is contemphted that overtime work will be required during the performance of the required services. Due to the nature of the principals' work, time is charged to overhead accounts, such as administration, client contact or professional devel- opment. However, the demands of certain jobs require the unique exper- tise am1 experience that can only be provided by a principal. In such cases, their time is charged directly to the job, Hourly labor rates indicated in the budgets have been escalated to reflect the estimated rates in effect at the midpoint of the project time period. Time charged to the project will be at the actual rates in effect at the time the work is performed. Overhead charges are based on historic costs as applied to Job charged payroll. Overhead rate~ are periodically audited by the EPA Audit Division for conformsrice with FPR's. The provisional rate used in form 5700-41 has been prepared recognizing the most recent EPA audited figures which are based on historical costs and management's estimate for the current year. As provided in Appendix C-l, this provisional rate will be modified by an amendment to each yearly or other agreed period, and either decreased or increased to properly compensate for the total overhead costs to Kennedy/Jenks Engineers for the period during which the work is performed. 9/81 Honolulu · Irvine · PalO Alto · San Frar~iscO · Tacoma