Revised March 17, 2014
Contract Budget Instructions
Contract negotiation will take place between the appropriate DCFS staff member and contractor. The
parties will negotiate issues such as cost, timeframe, and whether there are any special
considerations to take into account. Once negotiations are completed and agreed upon, the
Contractor’s Negotiation Packet should be completed and signed by all parties present.
A. PERSONNEL/SALARY-- Any employee of the contractor whose work is tied to the grant. Each
position that will be allocated to this contract must be shown on budget. Only position title,
number of positions, annual allocated salary, and total budget amount for all similar positions
should appear on the contract budget document. If someone in the same position will be paid at a
different rate this should be listed separately on the contract negotiation documents. If the budget
is for one (1) year and raises will occur during that period, you should include the position at both
rates for the respective time periods. Details captured under Personnel Services from
Contractor’s Negotiation Packet should be copied and listed under the Personnel Category on
Contract Budget document
e.g. for Contractor’s Negotiation Packet
4 Program Managers @ 56,000.00=$224,000.00
2 Program Managers @ 60,000.00=$120,000.00
1 Administrative Assistant @ 6 months @ 15,000.00 + 6 months @ 18,000=$33,000.00
e.g. for Contract Budget Document
6 Program Managers = $364,000.00
1 Administrative Assistant=$33,000.00
Total: Personnel Cost= $377,000.00 List this number on last line under Total Personnel Cost on
Contractor Budget
B. FRINGE BENEFITS--Fringe benefits may include contributions for social security, employee
insurance, pension plans, etc. Only those benefits not included in an organization's budgeted
indirect cost line item (Contractor must provide a copy of indirect cost plan/rate document), if
applicable, may be shown as direct costs. The total allocated amount captured under Fringe on
the Contractor’s Negotiation Packet should be copied and listed under the Fringe Category on
Contract Budget document
e.g. for Contractor’s Negotiation Packet
FICA=6%
Medicare=2%
Insurance=10.5%
Retirement=7.5%
Unemployment=1.4%
Total: 27.4% x 377,000.00=103,298.00
e.g. for Contract Budget Document
Fringe Benefits= $103,298.00 List this number in last column under Total Fringe Benefits on
Contract Budget document
Revised March 17, 2014
C. TRAVEL- Expenditures for training and travel for contract related purposes as authorized in the
contract and in accordance with State of Louisiana Travel Policies and Procedures (PPM 49)
unless otherwise stated in the contract such as registration fees, mileage, meals, lodging, etc.
When a project will involve the travel of a number of people to a conference, institute, etc., these
costs may be summarized on one line and include the total cost for the trips. All trips must be
listed individually with a total for each trip and must provide the name of the work related
conference.
e.g. for Contractor Negotiation Packet document
6 attending 3 day NASA conference Houston, Texas @ 750.00=4,500.00
3 attending 2 day JAYCE conference New Orleans, LA @ 450.00=1,350.00
2 attending 3 day JAXSTON conference Las Vegas, Nevada @ 1,500=3,000.00
Routine job-related travel is reimbursed at the annual mileage rate in accordance with PPM 49
and approved by the Division of Administration. Reimbursements will be allowed per the PPPM
State Travel Regulations cents per mile, not to exceed a maximum of 99 miles per round trip
and/or day.
e.g. Travel for Program Manager= 3,500.00
D. OPERATING EXPENSES—Non-salary related expenditures for the day to day operations of the
contractor. Details captured under Operating Expenses on the Contractor’s Negotiation Packet
document should be copied and listed under the Operating Expenses Category on Contract
Budget document.
e.g. for Contractor’s Negotiation Packet document
a) Rent – Indicate formula used to arrive at DCFS portion (e.g.: Lease cost per sq ft x total sq ft
assigned to program)
b) Utilities – Indicate formula used to arrive at DCFS portion (e.g.: % of program x total monthly
utilities costs
c) Telephone – Indicate formula used to arrive at DCFS portion (e.g.: % of program x total monthly
phone costs
d) Other-List details and justification as to how expenditure relates to day to day operations of the
contractor. Remember to place etc after last listed item here
Total: Add line items a-d under the Operating Expenses category for total cost.
e.g. for Contract Budget document
Rent—$2,450.00
Utilities--$500.00
Telephone--$500.00
Total: 3,450.00
Revised March 17, 2014
E. SUPPLIES-- Expenditures for articles and commodities which are consumed, to be consumed, or
materially altered when used in the operations of business. List items by name and a total for
entire purchase on Contractor’s Negotiation Packet.
e.g. for Contractor’s Negotiation Packet document
paper
700.00
pens
600.00
envelopes
300.00
postage
500.00
telephones
600.00
calculators
750.00
Total: Add items under the Supplies category for total cost.
e.g. for Contract Budget document
paper, pens, envelopes, postage, telephones, calculators, etc.
Total: 3,450.00
F. PROFESSIONAL SERVICES– Expenditures for services provided in specialized or highly
technical fields by sources outside of the contractor. Professional services include accounting and
auditing, management consulting, engineering and architectural, legal, medical, and dental.
e.g. for Contractor’s Negotiation Packet document
Speaker/Trainers
$15,000.00
e.g. for Contract Budget document
Speakers/Trainers, etc.
Total: $15,000.00
G. OTHER CHARGES – Expenditures peculiar to a contractor and not otherwise chargeable to
another expenditure category. Expenditures for other charges must be identified and approved in
the contract and budget documents
e.g. for Contractor’s Negotiation Packet document
Printing $600.00
e.g. for Contract Budget document
printing services, flyers, etc.
Total: $600.00
Revised March 17, 2014
H. EQUIPMENT/ACQUISITION—Tangible assets purchased for use in the operations of an office
such as office machines and furniture. Cost would include purchase price, delivery charges, taxes,
and other purchase related costs. Equipment is defined as any item of value and/or has a useful
life of more than one (1) year. The value of equipment is defined by the user agency and funding
source. It is important to consider whether or not the purchase of permanent equipment will be
less expensive than rental. List items by name and specify a total for entire purchase. Details
captured under Equipment/Acquisition on the Contractor’s Negotiation Packet document should
be copied and listed under the Equipment/Acquisition Category on Contract Budget document.
The Contractor is required to obtain prior approval by DCFS before making purchase.
e.g. for Contractor’s Negotiation Packet document
Computers
5,500.00
Printers
6,500.00
Office Furniture 8,500.00
e.g. for Contract Budget document
computers, printers, office furniture, etc.
Total: 20,500.00
I. INDIRECT COSTS, IF APPLICABLE-- Indirect costs are defined as administrative or other
expenses that are not directly allocable to a particular activity or project; rather they are related to
overall general operations and are shared among projects and/or functions. Expense categories
that may be used to determine indirect costs may include the salaries of executive officers, the
costs of operating and maintaining facilities, local telephone service, office supplies, and
accounting and legal services for administrative/executive staff. Indirect costs are computed by
applying an indirect cost rate from an approved plan to a distribution base defined in that plan
(usually the direct costs of the project). Use of this line item must be supported by a copy of the
contractor’s approved indirect rate plan. Details captured under Indirect Costs on the Contractor’s
Negotiation Packet document should be copied and listed under the Indirect Costs Category on
Contract Budget document.
BUDGET REVISION VS CONTRACT AMENDMENT
BUDGET REVISION: An internal budget revision can be processed to move funds between
categories that were approved by OCR in the original contract and will not affect the maximum
contract amount. Documentation of the revision should be forwarded to DCFS Administrative
Services to be kept with the original contract file.
CONTRACT AMENDMENT: A contract amendment must be processed to increase the number of
positions or staff not approved in the original budget, to add a budget category not approved in the
original budget, to deobligate contracted funding by decreasing or reducing the maximum contract
value, to change the scope of work, or to change any other of the original terms of the contract.
This procedure must be followed with all contracts (OCR or DCFS approved).