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<br /> <br />HARDESTY & HANOVER, LLC <br />Notes to Statement of Direct Labor, <br />Fringe Benefits and General Overhead <br />For the Year Ended December 31, 2019 <br /> <br /> <br />NOTE 10: FACILITIES CAPITAL COST OF MONEY (FCCM) <br /> <br />The FCCM rate was calculated in accordance with FAR 31.205-10, using average net book values <br />of equipment and facilities multiplied by the average Federal Prompt Payment Act Interest Rate <br />(Treasury Rate) for the applicable period. Equipment and facilities include furniture and fixtures, <br />computer equipment, vehicles, and leasehold improvements. The home office calculation follows: <br /> <br />Net Book Value of Assets – Prior Year $ 4,446,210 <br />Net Book Value of Assets – Current Year 6,319,327 <br /> 10,765,537 <br /> <br />Average Net Book Value $ 5,382,769 <br />Multiplied by: Average Treasury Rate 3.125% <br /> <br />Equals: Facilities Capital Cost of Money $ 168,212 <br />Divided by: Direct Labor Cost 23,750,162 <br /> <br />Equals: Facilities Capital Cost of Money Rate 0.7083% <br /> <br />NOTE 11: LIST OF OTHER DIRECT COST ACCOUNT AND CHARGE RATES <br /> <br />Non-salary direct project costs, sometimes referred to as other direct costs (ODCs) are consistently <br />allocated/costed to all projects. Cost items generally charged directly to projects are travel, <br />equipment rental, outside printing, drilling, lab, insurance liability, permits, miscellaneous storage, <br />parking and postage. <br /> <br />NOTE 12: COST ESTIMATION PROCESS <br /> <br />The Company’s method of estimating costs for pricing purposes during the proposal process was <br />consistent with the accumulation and reporting of costs under the Company’s job-order cost <br />accounting system. <br /> <br />NOTE 13: TREATMENT OF MILEAGE REIMBURSEMENT <br /> <br />All direct projects’ mileage reimbursement revenues derived while using company-owned vehicles <br />are shown as an offset to the overhead “Travel” account. An adjustment of $15,102 was made to <br />this account. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />-15-