Method of Computing Hourly Compensation. For Services paid for on an hourly basis, the SFMTA shall pay Contractor the applicable hourly rates in Appendix B, “Calculation of Charges” plus a fixed contractor fee, the sum of which equals the fully burdened hourly rates. The hourly rate shall be the sum of the applicable unburdened hourly rate and overhead rate shown in Appendix B. The fixed contractor fee shall cover profit, non- compensable overhead, and other operating costs. Contractor’s xxxx-up for managing Subcontractors shall be no more than 5% of the fully burdened hourly rate.
Method of Computing Hourly Compensation. (a) Fully Burdened Hourly Labor Rates: The fully burdened hourly labor rates in Appendix B include all direct labor costs, indirect/overhead costs, and services such as reproduction, administrative staff assistance. These hourly labor rates shall be fixed at that level until 12 months after date of effective date of this Agreement. Thereafter, during the term of this Agreement, Contractor may request to escalate these hourly labor rates based on the annual percentage change in the Consumer Price Index for All Urban Consumers for the San Francisco-Oakland-Hayward area (CPI-U). Contractor must request any escalation of these rates no later than 30 days before the anniversary of the Effective Date of this Agreement, and failure to timely do so may result in a denial of the request. Any requests for escalation of hourly labor rates must include evidence of the change in the CPI-U. The SFMTA will review all requests for escalation of fees within 30 days of receipt and notify Contractor of either an approval or denial. If approved, the new rates will be approved under a contract modification signed by the both parties. In no event will the start of the new rates be backdated unless it can be shown that there was a delay on the part of the SFMTA in reviewing the request for escalation of rates.
