Basis for Compensation. Subject to the terms of a Work Authorization issued pursuant to subsection 3.c. below, the Authority agrees to pay, and the Consultant agrees to accept as full and sufficient compensation and reimbursement for the performance of all Services as set forth in this Agreement, hourly rates for the staff working on the assignment computed as follows: where Direct Labor Cost equals salary divided by 2080; FAR equals Consultant’s most recent audited overhead rate under 48 C.F.R. Part 31, Federal Acquisition Regulations (FAR 31); and 1.10 reflects a 10 percent (10%) profit. Representative rates computed through this methodology as of the Effective Date of this Agreement are reflected in Appendix B. Rates will be revised annually to reflect adjustments to the Direct Labor Costs and audited FAR rates; no adjustment shall be made to the specified profit percentage. The first adjustment shall be considered in January 2021. All adjustments shall be agreed to by the parties prior to implementation, and the Authority shall have the right to review and/or audit Consultant’s Direct Labor Costs and FAR rates upon written request and as provided in subsection (f) hereto. During the term of this Agreement Consultant shall provide to the Authority, prior to requesting any adjustment to rates, a copy of the report establishing a new FAR rate for Consultant. The payment of the hourly rates and allowed costs shall constitute full payment for all Services, liaisons, products, materials, and equipment required to deliver the Services.
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Sources: Traffic and Revenue Engineering Services Agreement, Traffic and Revenue Engineering Services Agreement