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SCHEDULING AND FEES <br />The project can begin two weeks after receiving your approval to <br />proceed. Phase I will will require approximately two weeks to <br />complete depending on the availability of your staff. Phase II <br />will require approximately two weeks. Phase III will take eight <br />to ten weeks depending on the response from vendors. For your <br />planning purposes, you should assume that it will take several <br />months beyond Phase III to complete Phase IV. <br />Fees for Phases I, II, and III will be between $6,500 and <br />$7,500. This does not include direct expenses for travel, <br />telephone, photocopying, stenographic and clerical services which <br />will be billed at cost. <br />The fee structure by phase is shown below: <br />Description Fee Range <br />Phase I - Define system requirements $2,500 - 3,000 <br />Phase II - Develop cost analysis of alternatives 1,500 <br />Phase III - Select processing alternatives 2,500 - 3,000 <br />$6,500 - 7,500 <br />For this type of project we bill our clients on a monthly basis <br />based on our estimate of the percentage of completion of each <br />phase plus direct expenses. Payment is expected within fifteen <br />days. Amounts past due are subject to a one and one -half percent <br />late charge each month until paid. <br />Thank you for the opportunity to submit this proposal. We are <br />eager to assist you in this most important project. If this <br />letter properly states your understanding of our assistance, <br />please sign a copy and return it to us as our authorization to <br />proceed. <br />Sincerely yours, <br />. .. if, (L.- <br />mes F. Snyde <br />Management Advisors, Inc. <br />3FS /pm <br />Accepted by: Date: <br />41 <br />