NOTES TO SCHEDULES OF OVERHEAD COST RATES December 31, 2019
Project Labor – The Company charges actual direct labor to the appropriate project.
Paid Time Off – The Company has established policies which compensate employees for absences due to vacation and sickness based on service requirements. There are no policies with regard to comp time. Upon separation of employment, employees receive a percentage of unused vacation paid out to them based on the date of separation.
Contract Labor – The Company uses outside professional services as needed to complete projects. The services are project specific and thus these costs are charged directly to the individual project.
Premium Overtime – The premium portion of overtime compensation is segregated in the Company's general ledger and included in the indirect cost pool.
Uncompensated Overtime – The uncompensated portion of overtime incurred by employees charging direct project time is accounted for, by individual project, in a separate general ledger account, which is classified as an indirect cost.
FAR Section 31.205-6(p) sets a specific dollar limit on the compensation, as defined in FAR Section 31.205-6(a), of “senior executives.” Management identified the forms of compensation paid to the Company’s senior executives, concluding that all such forms were allowable. Management then utilized the 2020 National Compensation Matrix (“the NCM”) to evaluate the reasonableness of total compensation for each individual deemed a senior executive. Total 2019 compensation for all of the ten individuals deemed a senior executive was less than that computed by the NCM for the respective position.
The Company has a 401(k) pension plan, meeting the requirements of FAR Section 31.205-6(j), to which it makes a cash contribution equal to 50% of the salary reduction elected by each employee up to a maximum of 4% of regular compensation.
The Company had no other deferred compensation agreements.
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