EP 1110-1-8
(Vol. 12)
31 July 03
Continue
from previous
NO
page
Is the cost of fuel 10% greater than or 10% less
NO
than the cost shown in Appendix B?
YES
Do the actual hours worked
exceed 40 hours per week?
The contractor shall be required to furnish copies of all
fuel supply contracts and invoices to the government to
The Department of the Treasury adjusts the CMR
support fuel cost adjustment. Request for upward
YES
(Prompt Payment Interest Rate) on or about 1
adjustment in the rates will be considered only when fuel
January and 1 July each year. For the current
is supplied by recognized distributors of bulk quantities
Prompt Payment Interest Rate see
Make adjustments to the FCCM
http://www.publicdebt.treas.gov/opd/opdprmt2.htm.
per the instructions in chapter 3,
If the contractor is able to furnish the above information,
section II, paragraph 3-8
adjust the fuel cost per the instructions in chapter 3,
NO
section II, paragraph 3-9.
Is the Cost of Money Rate (CMR) different from that
shown in chapter 2, section VII or Appendix B?
If fuel costs are adjusted FOG costs also need to be
YES
adjusted by applying the same ratio used to adjust the
fuel cost.
Is the equipment's date of
If the cost of money rate shown in chapter 2,
manufacture different from that in
section VII, is not the current rate, the FCCM
Table 2-1 (see chapter 2 section 1,
portion of the total hourly rate shall be adjusted.
paragraph 2-2)?
Adjust the Cost of Money Rate per the instructions
Equipment is older
in chapter 3, section II, paragraph 3-7.
Equipment is newer
If equipment is older than in Table 2-1 determine economic
life by dividing LIFE by Working Hours Per Year. (see
Adjust the rate using
chapter 3 section II, Paragraph 3-11.a.)
NO
Table 3-1 per the
instructions found in
Equipment age does not exceed economic life
chapter 3 section II,
Equipment age exceeds economic life
Paragraph 3-11.c.
Adjust the rate using
Adjust the rate using Table
Table 3-1 per the
3-1 per the example found
instructions found in
FINISHED (except for standby)
in chapter 3 section II,
chapter 3 section II,
Paragraph 3-11.a.
Paragraph 3-12.
Figure 1-1. Methodology for Developing an Hourly Ownership and Operating Rate for Construction Equipment (Continued)
1-4
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