(1) If the service has not recently
been purchased competitively, a three year price shall be verified by the
evaluation and analysis of the costs assigned to each of the elements
comprising the total fair market price submission. The three year price shall
be comprised of a base year price with a not-to-exceed percentage of increase
or decrease for two follow along years. Each follow along year is optional with
the agreement of the qualified nonprofit agency and ordering office.
(2) Using the forms, format, and procedures
as prescribed by the committee, the qualified nonprofit agency or CNA shall
supply the committee with cost breakdown information on each element, taking
into consideration the following:
(a) Direct
labor wages
Direct labor wages shall be determined by the qualified
nonprofit agency through the use of a community prevailing wage survey as
described by the federal department of labor and the "Fair Labor Standards
Act." A copy of the prevailing wage survey shall be presented to the committee.
(b) Indirect labor
(i) Supervisory hours shall be limited to a
total of eight per cent of the direct labor hours.
(ii) The wages for supervisors shall be no
greater than fifty per cent above the direct labor rate.
(iii) Any requests to exceed the guidelines
put forth in this paragraph shall be considered by the committee on an
exception basis as prescribed by rule 4115-7-15 of the Administrative Code.
(c) Payroll taxes
(i) Allowable taxes are those customary to
the private sector, unless stipulated in Chapter 3309. of the Revised Code and
would be paid to the workers and supervisors providing the service. The maximum
allowance is twelve per cent of the hourly wage for both direct and indirect
positions.
(ii) Any request to
exceed the guidelines put forth in this paragraph shall be considered by the
committee on an exception basis as prescribed by rule 4115-7-15 of the Administrative Code.
(d) Holiday/vacation/sick leave benefits
(i) Allowable leave shall be established at
one hundred twenty hours per year for each full-time equivalent position (two
thousand eighty hours per year) as required for direct and indirect labor.
Leave shall be prorated to cover positions that are not full-time.
(ii) Any request to exceed the guidelines put
forth in this paragraph shall be considered by the committee on an exception
basis as prescribed by rule 4115-7-15 of the Administrative Code.
(e) Overhead/burden
(i) The qualified nonprofit agency shall
recover up to fifteen per cent of the direct and indirect labor totals for
overhead expenses including, but not to exceed, the payroll taxes and benefits
guidelines as defined in paragraphs (E) (2) (c) and (E) (2) (d) of this rule
for costs associated with business-related contract administration.
(ii) Any request to exceed the guidelines put
forth in this paragraph shall be considered by the committee on an exception
basis as prescribed by rule 4115-7-15 of the Administrative Code.
(f) Supplies
(i) Using the forms, format, and procedures
as prescribed by the committee, all expendable supplies shall be itemized,
detailing unit of purchase, quantity, purchase price, and annual total cost.
(ii) If the supply is specified as
a sole-source item by the ordering office, or is by nature sole-sourced, it can
be explained as an exception.
(iii) For any single category expendable
supply with an annual usage projected to be in excess of one thousand dollars,
the qualified nonprofit agency or CNA shall supply three responsive and
responsible competitive discounted quotes to the committee or present as part
of the recommended fair market price supply, prices predicated upon the
applicable state of Ohio general distribution contract or state term schedule.
If three competitive quotations are used, the price submitted as part of the
recommended fair market price shall be predicated upon the lowest responsive
and responsible discounted quotation received.
(iv) Any request to exceed the guidelines put
forth in this paragraph shall be considered by the committee on an exception
basis as prescribed by rule 4115-7-15 of the Administrative Code.
(g) Equipment allowance
(i) Using the forms, format, and procedures
as prescribed by the committee, all equipment shall be itemized, detailing unit
of purchase, quantity, purchase price, amortization period, and annual
amortization amount.
(ii) The
acquisition price of equipment in excess of one thousand dollars per individual
item and one thousand five hundred dollars per series of like items calculated
into the recommended fair market price shall be determined by one of the
following methods:
(A) Establishing price
through the state of Ohio general distribution contract,
(B) State term schedule, or
(C) Competitive, quotation.
(iii) Competitive quotation shall
require the solicitation and presentation to the committee of three written
competitive, responsive, responsible, and discounted quotations, except as
noted in paragraph (E) (2) (g) (v) of this rule. The allowable equipment cost
calculated into the proposed fair market price shall be at the price
represented by the lowest, responsive, and responsible competitive discounted
quotation.
Common business practices shall be used for the acquisition of
equipment priced under one thousand dollars per individual item and one
thousand five hundred dollars per series of like items.
(iv) If the equipment is specified as a
sole-source item by the ordering office, or is by nature sole-sourced, it can
be explained as an exception.
(v)
Any request to exceed the guidelines put forth in this paragraph shall be
considered by the committee on an exception basis as prescribed by rule 4115-7-15 of the Administrative Code.
(h) Equipment amortization
(i) The committee shall provide an approved
useful life table and all equipment shall be amortized and the cost recovered
in accordance with the table.
(ii)
Any request to exceed the guidelines put forth in this paragraph shall be
considered by the committee on an exception basis as prescribed by rule 4115-7-15 of the Administrative Code.
(i) Equipment maintenance
(i) The committee shall provide an approved
schedule for the allowance of maintenance money for equipment with an
acquisition cost in excess of one thousand dollars per individual item and one
thousand five hundred dollars per series of like items which have not been
fully amortized.
(ii) An allowance
of up to twenty per cent of one year's amortization rate for equipment with an
acquisition cost in excess of one thousand dollars per individual item and one
thousand five hundred dollars per series of like items may be allocated for
preventative and corrective maintenance for equipment which has been fully
amortized.
(iii) Any request to
exceed the guidelines put forth in this paragraph shall be considered by the
committee on an exception basis as prescribed by rule 4115-7-15 of the Administrative Code.
(j) Equipment disposal
(i) All equipment with an acquisition cost in
excess of one thousand dollars or one thousand five hundred dollars per series
of like items which has been fully depreciated against and has fully recovered
one hundred per cent of the original acquisition cost for the qualified
nonprofit agency through state use service, shall be considered to retain a
residual value of ten per cent of the original acquisition cost at the time of
disposal.
(ii) The residual value
amount shall be deducted from the acquisition cost of replacement equipment
included with the next fair market price proposal using the forms, format, and
procedures prescribed by the committee.
(iii) If it is determined that the equipment
being disposed of has a residual value greater than ten per cent of the
acquisition cost, the qualified nonprofit agency or CNA shall submit a bill of
sale or certificate of trade-in for the amount of the residual value, to be
deducted from the acquisition cost of replacement equipment included with the
next fair market price proposal using the forms, format, and procedures
prescribed by the committee.
(iv)
If it is determined that the equipment being disposed of contains no residual
value, the qualified nonprofit agency or CNA shall, using the forms, format,
and procedures prescribed by the committee, document that the ordering office
has inspected the equipment and certified it to be worthless.
