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t+ <br />SECTION IV Cost of Services <br />Requirement 4. <br />Discuss cost of services for each facet presented in Section III. <br />Our costs are roughly broken down by broad area as follows. <br />1. Data Gathering - $9,500,00 <br />II. Analysis and Alternative Identification - $7,000.00 <br />III. Reconnnendation Development - $4,000.00 <br />IV Report Preparation and Presentation - $4,500.00 <br />We propose a fixed fee arrangement for this engagement. A fixed fee arrangement is one <br />that includes all expenses and professional fees in one quote. The consultant assumes <br />responsibility for any cost overruns within the scope of the engagement. <br />Our fee for this engagement is $25,000. We traditionally invoice the client for 25% of the <br />total amount at the beginning of the engagement. Another 25% is billed at the completion <br />of our data gathering; another 25% is billed following the completion of the analysis and <br />preparation of preliminary recommendations and the remaining 25% invoiced upon <br />delivery of the final report. Timing of the invoices and actual amount to be invoiced is <br />negotiable upon award of the contract. <br />We have included all travel and related expenses in our fee quote and will be responsible <br />for those expenses. We believe the proximity to our base of operation allows us to pass <br />on the savings to Orange County.