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By developing a system to allocate these costs to jobs based on direct labor hours or some other appropriate allocation method, you'll have a better understanding of what jobs cost in "real time. Harvey goes on that we have surge capacity even working the 19 million direct labor hours this year and 25 million direct labor hours next year, within the work being performed currently. The contractor's proposal contains an adequate description of its basis for direct labor hours, including sufficient rationale for engineering judgment and projections from prior work completed on similar programs. |
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