PTRCB Claim Preparation Costs
Reimbursement Policy

PTRCB Contractor Owned
Equipment Policy

Effective: May 10, 2000
Presiding Officer: Tim Hornbacher

Purpose:  To document the Board staff procedure for determining maximum reimbursable rates for contractor owned equipment.

If an Industry Standard can not be established due to insufficient submissions (less than three) and the equipment is contractor owned, the Rental Rate Blue Book will be utilized to determine maximum reimbursable rates.

Rates can be subject to daily, weekly or monthly calculations depending on the number of hours used in a 30-day period. The following examples reflect the process used to determine these rates.

Example:

Equipment = Diesel powered 16 ft, shallow draft, inland tug boat (100 HP)
Regional factor for Marine equipment in Montana = 1.00

BLUE BOOK RATES

Monthly $
Weekly $
Daily $
Hourly $		 Hourly Estimated Operating Cost $/hr

1,710.00

480.00

120.00

18.00

12.45

When equipment is used less than 6 hours in a 30-day period on a single claim, the pre-approved hourly rate will be reimbursable. In the event that the rate was not pre-approved, the Rental Rate Blue Book will be used to determine if the rate invoiced is reasonable.

If the tug boat was used for 5 hours in a 30 day period,
the hourly rate plus operating cost would
be reimbursable.

(Hourly rate + estimated operating cost) x number of hours used =
($18.00 + $12.45) x 5 hours =
$30.45/hr x 5 hours = $152.25

When the amount of time invoiced is 6 hours or more in a 30-day period on a single claim, a maximum hourly rate according to the Rental Rate Blue Book will be established by using the equations in the examples below.

If the equipment is used between 6 and 24.0 hours in a
30-day period, the daily rate is applied.

Allowable hourly rate is calculated from the daily rate:

[(daily rate x regional adjustment) / 8]
+ estimated operating costs x number of hours used =
reimbursable cost

The tug boat is used 18 hours in a 30-day period.
The daily rate for tug boat is $120.00/day

[($120.00 x 1.00) / 8]
+ $12.45 x 18 hours used =
[($15.00) + $12.45 ] x 18 hours =
$27.45/hr x 18 hours = $494.10 total reimbursable cost

 

If equipment is used between 24.1 and 80 hours in a
30-day period, weekly rate is applied.

Allowable hourly rate is calculated from the weekly rate =

[(weekly rate x regional adjustment) / 40]
+ estimated operating costs x number of hours used =
reimbursable cost

The tug boat is used 36 hours in a 30-day period. The weekly
rate for the tug boat is $480.00/week

[($480.00 x 1.00) / 40] + $12.45 x 36 hours used =
[($12.00) + $12.45 ] x 36 hours =
$24.45/hr x 36 hours = $880.20 total reimbursable cost

 

If equipment is used over 80 hours in a 30-day
period, monthly rate is applied.

Allowable hourly rate is calculated from the monthly rate =

[(monthly rate x regional adjustment) / 176]
+ estimated operating costs x number of hours used =
reimbursable cost

The tug boat is used 90 hours in a 30-day period.
The monthly rate for the tug boat is $1720.00/month

[($1720.00 x 1.00) / 176] + $12.00 x 90 hours used =
[($9.77) + $12.450 ] x 90 hours =
$22.22/hr x 90 hours = $1999.80 total reimbursable cost

If an Industry Standard cannot be established and the item is not listed in the Rental Rate Blue Book, Board staff will survey rental companies in the contractor’s locale to establish a reasonable rate for that item.

This policy does not apply to rental companies. Rental rates will be reimbursed at actual cost when documented with an invoice.

Reference:

ARM 17.58.341(3)(a) – Rules of Consultant Labor Codes, Titles and Duties
Rental Rate Blue Book published by Primedia Information Inc.
Historical Board Decisions