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do <br />• <br />IV. COMPENSATION FOR SERVICES <br />Task 1.0 - Assess Hazard and Design Remediation $12,000 Upper Limit <br />Compensation for Task 1.0 is to be paid on a salary cost basis plus other direct costs on an as <br />needed basis. (See Attachment B). <br />A. Salary Cost Basis with Upper Limit <br />For the Basic Services performed on a salary cost basis with an upper limit, IRC agrees to <br />pay CDM as follows: <br />For engineering services performed by CDM, the payment will be equal to the salary <br />cost of such services for each employee times 2.35 for overhead and profit plus actual <br />out-of-pocket expense costs. Salary cost is equal to 1.393 times direct salary costs and is <br />defined as the cost of salaries (including sick leave, vacation, and holiday pay applicable <br />thereto) for time directly chargeable to the project; plus unemployment, excise, and <br />payroll taxes; and contributions for social security, employment compensation <br />insurance, retirement benefits, and medical and other group insurance benefits. <br />Actual out-of-pocket expense costs are all costs other than salary costs that are incurred <br />during the progress of the work. the actual out-of-pocket expense costs include: air fare, <br />automobile rental if required, mileage charges, parking tolls, taxi, meals, lodging, <br />telephone, printing and reproductions costs, and other miscellaneous costs incurred <br />specifically for this project. The maximum cost for blueprint sheets is $1.10. The <br />maximum cost for mylar sheet is $11.00 and sepia sheet is $5.00. The charges for in- <br />house computer program and word processor usage will be at CDM"s regular rates. For <br />outside computer services, charges will be made at invoiced cost to CDM, <br />For the basic services performed on a salary cost basis with an upper limit, IRC agrees to <br />provide a written request before work is started by CDM. <br />&314tda A-2 <br />