<p> Sample: Cost Benefit Analysis for Professional Services Contract</p><p>The following is a cost benefit analysis for hiring Mr. X on a contract to oversee and train personnel in the Department's Interstate Guide Sign Design Unit. Mr. X has over 34 years of experience in with DOTD 17 of which was spent in doing Interstate Sign Design. Before retiring from LADOTD, Mr. X’s main job function was running the Department's Interstate Sign Design Unit. </p><p>Mr. X's contract is based on a 30-hour week at a rate of $32 per hour for 48 weeks. This adds up to $46,080.00 per year. In addition, Mr. X's contract includes $1,000.00 for travel expenses. </p><p>The cost difference between Mr. X's contract and a full time DOTD employee performing the same duties for 1 year:</p><p>DOTD ET DCL (TS 312) pays $62,172 plus a 59.8% payroll additive rate for employee benefits = $99,350. The actual cost based on 30-hour week and 48 weeks in a year is $68,780 [(30/40) x (48/52) x 99,350]. </p><p>Mr. X's total contract = $47,080.00</p><p>Contract means a savings (Benefit) to the Department of $21,700 per year.</p><p>Fringe costs divided by salary of state employee equals % for payroll additive rate. Claiborne per sf rate for 2009/2010 = $24.3763194</p>