set-aside Exhibit E-1.doc

INSTRUCTIONS FOR CALCULATION OF PERFORMED WORK IAW "Limitations on Subcontracting" (FAR 52.219-14)

A. Identify what parts of the project will be "self-performed" by in-house forces and the related cost for each part, as defined below. Provide and illustrate the calculation for "percent of self-performed work", in accordance with the definitions below.

B. Definitions regarding self-performance of work by the Prime Contractor, in accordance with Contract Clause: "Limitations on Subcontracting" (FAR 52.219-14):

a. The work in this contract is “general construction” for purposes of Contract Clause "Limitations on Subcontracting."

b. "Self-performed work" generally includes costs for: mobilization and utilization of owned or rented plant and equipment to be operated by the contractor's own employees and labor associated with the aforementioned equipment; contractor's own labor to fabricate or to install materials into the finished construction; performance by the contractor's own employees of design work, land surveys and other engineering or technical specialist services required by the contract; supplies to directly support the aforementioned work to be accomplished by the contractor's own employees; and the contractor's own job overhead costs. Contractor markups for profit, general and administrative overhead, bonds, or other indirect costs on "self-performed" or subcontracted work are not "self-performed work" and are to be excluded from "total cost of the contract" for calculation purposes. Rental of plant or equipment for operation by subcontractors is not "self-performed work" but shall be included in the "total cost of the contract" for calculation purposes . Cost of materials to be incorporated into the work and supplies to support other than construction by the contractor's own employees are excluded from the above definition. Do not include these costs in the calculation.

c. "Total cost of the contract" means the total direct (variable, fixed, one-time and semi-variable) costs to the contractor, including jobsite overhead costs but excluding the cost of any materials to be incorporated into the work, to construct the project. It generally includes the cost of all self-performed work, as defined above, and all supplies and subcontract costs. The cost of subcontractor furnished materials will be excluded only to the extent that they can be segregated and identified in the subcontractors' proposals.

d. "Percent of self-performed work" is calculated by dividing the above defined cost of "self-performed work" by the "total cost of the contract" and multiplying the result by 100%.”

FORMAT FOR CALCULATION OF SELF-PERFORMED WORK

(For SET ASIDE Contract, only)

Use a format similar to the following to identify and calculate cost of the work to be self-performed. Refer to the definitions above pertaining to "Self-performance of work", "Cost of the Contract" and "Percent of Self-Performed Work".

A. Clearly describe the work to be self-performed:

B. Show Calculation of Self-Performed Work:

B.1 Total Proposed Price: $_______________

B.2 Subtract all G&A, home office overhead, prime ($______________) contractor's markups for profit, bond, state use tax, etc. on self- performed and subcontracted work

B.4 Subtract identifiable cost of materials to be incorporated ($______________) into the work

B.5 Remainder is "Total Cost of the Contract" = $______________

B.6 "Work to be self-performed": = $______________ (only cost for mobilization and utilization of owned or rented plant and equipment to be operated by the contractor's own employees, labor for equipment operated by contractor's own employees; contractor's own labor to fabricate or to install materials into the finished construction; (NON Design/Build Only: performance by the contractor's own employees of design work, land surveys and other engineering or technical specialist services required by the contract); supplies to directly support the aforementioned work to be accomplished by the contractor's own employees; and the contractor's own job overhead costs. NO MATERIALS!

B.7 % Self-performed Work = Line B.6/ Line B.5 X 100% = ______________%