Interstate 40 Value Pricing Assessment

**Proposal to**:

Federal Highway Administration, Value Pricing Pilot Program

**Proposed by**:

North Carolina Agricultural and Technical State University (NCA&T)

Piedmont Authority for Regional Transportation

University of North Carolina at Chapel Hill

North Carolina Department of Transportation

**Proposal assistance from**:

UrbanTrans Consultants, Inc.

June 2001

# DRAFT 

# Contacts:

**NCA&T** Julian Benjamin

Department of Economics and Transportation Logistics Professor

North Carolina A&T State University (336) 334-7744

Greensboro, NC 27411

**Piedmont Authority for Regional Transportation** Brent McKinney

Piedmont Triad International Airport Acting Director

Greensboro, NC 27409 (336) 662-0002

**North Carolina Department of Transportation** Mrinmay Biswas

1549 Mail Service Research and

Raleigh, NC 27699 Analysis Engineer

\(919\) 715-2465

**The University of North Carolina** Asad Khattak

CB 3140 Howell Hall Associate Professor

Chapel Hill, NC 27599 (919) 962-4760

# Introduction

This proposal for the North Carolina Interstate 40 (I-40) Value Pricing
Program has been developed in accordance with the application guidelines
for the Value Pricing Pilot Program (VPPP) authorized by Section 1216
(a) of the Transportation Equity Act for the 21^st^ Century (TEA-21).

The proposed study would assess the design, operational and financial
feasibility, as well as expected public acceptance and use of Managed
Lanes (ML), including High Occupancy / Toll (HOT) lanes and other
potential value pricing options, as part of value pricing implementation
on I-40 in the Piedmont (Greensboro, High Point, and Winston-Salem) and
Research Triangle (Raleigh and Durham) areas of North Carolina.

The proposed project is a feasibility study to be funded through a VPPP
grant for 80% of project cost from the Federal Highway Administration
(FHWA). The North Carolina Agricultural and Technical State University
(NCA&T) and the North Carolina Department of Transportation (NCDOT)
proposes to meet all legal and administrative requirements relating to
matching funds, selection and remuneration of consultant, monitoring
work, reporting, accounting for funds, and other matters of concern.

# Sketch Plan

This sketch plan follows the general guidance as set forth by the FHWA's
Value Pricing Pilot Program. NCA&T will submit a detailed scope of work
for review by the Federal Interagency Review Group before October 1,
2001.

## Congestion Problem to Be Addressed

This application for funding from the Value Pricing Pilot Program
pertains to the I-40 Corridor in the Piedmont and Research Triangle
regions. The proposed value pricing program will manage heavy volume and
interregional travel along the corridor. The length of I40 in the
Triangle Region is 47 miles with approximately 20 miles with adequate
capacity for managed lanes and 61 miles with a planned increase in the
four lane segments. The corridor average ADT 84,555 and 87,066
respectively.

### Facility Description

I-40 fluctuates between four and eight-lanes of general-purpose traffic
within the study corridor.

As depicted in ***Figures 1 and 2,*** the proposed study area will
investigate the I-40 corridor, in Wake, Durham, Guilford, and Forsyth
Counties (Research Triangle and Piedmont Triad areas). The study area
includes I-40 between I-440 and State Routes 15 and 501 in
Raleigh-Durham, and, between Business 40 (west of Winston-Salem) to I-85
in Greensboro. These areas are listed as maintenance for ozone and
carbon monoxide.

**Existing Conditions and Typical Cross-section**

In Raleigh-Durham, I-40 carries over 73,000-vpd at its eastern
Raleigh/Wake County endpoint, 78,000-vpd at its western Durham Freeway
endpoint, and average volumes between 81,000-vpd and 126,000-vpd at the
midpoint of the area. Similarly, in the Piedmont Triad, I-40 carries
over 87,000 at its eastern Burlington endpoint, 55,000-vpd at its
western Winston-Salem endpoint, and average volumes between 74,000-vpd
and 144,000-vpd at the midpoints in the area.

I-40 is the principal east-west corridor for the southern half of the
country. As such, the highway segments in the research Triangle are
seriously over-capacity and rate as one of the most congested highways
in the country. Due to continued growth of employment and residents, the
segments in the Piedmont Triad are showing signs of similar affects
during peak period congestion.

Similarities of the two I-40 regions are relevant by examining the
counts on the accompanying maps. Major differences in travel patterns
are relevant by the fact that much of the congestion in both morning and
evening is attributed to the major employment destination of the
Research Triangle Park. Much of the congestion is targeted to travelers
coming into the Park in the morning and leaving again in the evening.
Parallel corridors do exist for the Triangle Region along highway 70,
54, and 64 unlike the existing arterials in the Triad Region. Much of
the travel in the Triad Region is crossing municipal boundaries of
Winston-Salem to Greensboro, Greensboro to High Point, and High Point to
Winston-Salem and vise versa. Below are figures associated with both
regions. ADT counts were derived from the NCDOT.

  ----------------- ----------------- ----------------- -----------------
  [Triangle                           [Piedmont Triad   
  Region]{.mark}                      Region]{.mark}    

  Laneage           Varies 4 / 6 / 8  Laneage           Varies 4 / 6 / 8

  Length            47                Length            61 miles

  Low point ADT     38,000            Low point ADT     50,000

  High point ADT    126,000           High point ADT    144,000

  Corridor Average  84,555            Corridor Average  87,066
  ADT                                 ADT               

  Peak period LOS   Monday - Friday   Peak period LOS   Monday - Friday

  Peak LOS          See map           Peak LOS          See map
  ----------------- ----------------- ----------------- -----------------

**Travel Market**

I-40 serves a variety of travelers and destination attractors. When
assessing the travel markets along I-40 we consider demand, congestion,
existing transit, growth, origins/destinations/purposes, and land use
changes. Primary growth in business and resident occupancy has shown to
occur along the I-40 corridor throughout North Carolina.

Highest rates of travel and the major destinations occur between CBD's,
the two airports; Raleigh-Durham International and the Piedmont Triad
International. Other major destinations include corporate business parks
on and around the Hwy. 68 corridor in the Triad and the Research
Triangle Park in the Triangle region. Much of the congestion on I-40 in
the Triangle region both east and west is directly attributed to
commuters into and out of the Research Triangle Park. University
complexes accessible along I-40 contribute to congestion including Duke
University, UNC Chapel Hill, North Carolina State, NCA&T, Greensboro
Technical and many others.

Retail and recreational facilities also contribute to congestion
problems as major attractions. These types of destinations include the
Sports and Entertainment arena in the Raleigh area, shopping malls in
Raleigh, Durham, Greensboro, and Winston-Salem. Among the most
staggering statistics are the commuting patterns within the two regions
of I-40. The Triad experiences over 100,000 daily commuters into and
within the region. The majority of commuters travel within the four
urbanized areas that are adjacent to one another. Another large influx
of commuters travel from bedroom communities into the urbanized areas
both for work and recreational purposes.

These bedroom communities in the Triad region include areas like Rural
Hall, Thomasville, Summerfield, Archdale, Pleasant Garden, and Union
ridge to name a few. The Triangle region also consist of many bedroom
communities contributing to congestion on I-40. These would include
towns like Apex, Fuquay-Varina, Knighdale, Wendell, Morrisville and Oak
Grove to name a few. Commuting patterns are seen on primary and
secondary arterial leading into I-40 for cross region commutes. These
arterial include highways 1, 401, 54, 64, 70, 15/501 and Interstate 85
in the Triangle region, and highways 29, 421, 311, 68, 52, 158, 70 and
Interstate 85 in the Triad region. Commuting times are primarily morning
and evenings directly related to work shifts. Major congestion in both
regions begin as early as 7:00 a.m., lasting to 9:00 a.m., and in the
evening beginning at 4:30 p.m. and lasting past 6:30 p.m.

Like many other growing areas in the country the I-40 corridor of North
Carolina experiences congestion, air quality mitigation hazards and
associated road rage of frustrated travelers. The typical travel times
in the peak period for both the Triangle and Triad regions is one to one
and a half hours through the full segment identified in the accompanying
maps. The average travel time delay in both areas due to over capacity
is 35 to 45 minutes in either region of the I-40 corridor.

## 

## 

## Nature of the Proposed Pricing Program

The I-40 Value Pricing Assessment offers a new investigation of value
pricing applications for FHWA. This project will differ from previous
projects funded by FHWA and will add to the collective body of
information regarding the implementation of value pricing in the United
States. The distinctive characteristics of this proposal are, in no
particular order:

-   This corridor lies in the southeast portion of the country, where
    value pricing has not been considered nor implemented to date

-   The corridor features only medium-sized urban areas where the public
    transit services are limited. As the presence of alternatives is
    often cited as a necessity for value pricing, this proposal will
    test the effects of value pricing in an area where alternatives to
    the automobile are extremely limited.

-   The corridor includes two closely located urbanized areas, where
    both directions of the corridor are congested during the peak hours.
    Interregional travel has not yet been a consideration for value
    pricing.

### Goals and Objectives of the Value Pricing Program on I-40

The intent of this proposed program is to evaluate the use of value
pricing I-40, in order to better manage and optimize the use of the
corridor. The Managed Lane concept as initially identified by the
project team includes the following elements:

-   High Occupancy / Toll (HOT) (free use by High Occupancy Vehicles,
    tolled use by Single Occupant Vehicles)

-   Bus Rapid Transit (BRT)

-   Conversion of existing laneage to Managed Lanes. This element
    reduces the overall cost of implementation, however, the public
    acceptance of such a proposal is crucial. As such, the public
    involvement element of this proposal will be extensive.

The overall intent of the study is to answer the following questions:

-   Is conversion from a general-purpose lane to a Managed Lane both
    feasible and desirable by members of the public? How will this
    affect corridor stakeholders?

-   Will Managed Lanes maximize the availability of excess capacity
    during the peak periods? In other words, will Managed Lanes create
    an incentive to utilize the shoulders of the peak period?

-   Will Managed Lanes encourage ridesharing and the use of transit in
    the corridor?

-   Will the Managed Lanes proposal raise enough revenue each year to
    pay for its own expenses? In other words, will the project be a
    self-sustaining enterprise? How should any potential excess revenue
    be distributed? How would this distribution plan stand with the
    public-at-large?

-   What impact will Managed Lanes have upon local and regional air
    quality?

-   Are there identifiable champions for value pricing on I-40? Who are
    they and how can they be activated?

### Initial Pricing Schedules

The cornerstone of value pricing as it applies to the Managed Lanes
concept is its use of variable pricing of highway facilities, in order
to maintain a consistent level of service guarantee to users. As used on
other facilities, toll rates on I-40 will vary by volume to the
available capacity on the corridor's individual segments, to be
established as toll zones.

This study will investigate the use of tolling as a means of: 1)
estimating total revenue, and hence, return on investment; 2)
maintaining level of service in the corridor and on each segment; and 3)
affecting the principal goals and objectives of the study, as identified
above. To this end, NCA&T, and its consultants will compile toll
estimates that maintain these key objectives. All tolls would be
collected via Electronic Toll Collection or similar technology.

It should be noted that initial toll rates would be established in
collaboration with the state and local agencies involved. The principal
agencies identified include: 1) North Carolina Department of
Transportation, Office of Research and Analysis; 2) the Raleigh MPO
(Capital Area MPO) and the Durham MPO (DCHC MPO); 3) the Greensboro MPO,
the Winston-Salem MPO, the Burlington-Graham MPO and the Piedmont
Authority for Regional Transportation.

### Initial Enforcement

Borrowing from the lessons learned from San Diego's I-15 and the
California Private Transportation Company's SR-91 value priced
facilities, enforcement on I-40 will be based upon visual observation
for compliance with occupancy policies. The I-40 Value Pricing
Assessment will evaluate enforcement options, including peer
enforcement, photo enforcement, and other alternatives.

### Alternative Transportation in the Corridor

The Research Triangle already features a regional transit system, and
one is currently being considered for the Piedmont Triad. Managed Lanes
on I-40 will provide a dedicated right of way for transit, thereby
enhancing the extent of transit service in the corridor. Additional
park-and-ride lots and local circulation to area destinations would be
planned and implemented in a future study and implementation plan.

### Proposed Study

NCA&T and NCDOT propose a four-tiered analysis for the I-40 Value
Pricing Assessment. The total budget for this study is \$503,000.

[Task One: Project Administration]{.underline}

NCDOT will establish the administration of the grant from FHWA. In
addition, NCDOT will prepare the project organization in order to
fulfill the intent of the project objectives. To this end, the following
actions will be conducted:

-   Establish project management

    -   Designate NCDOT project manager. The project manager will have
        overall responsibility of the project developments.

    -   Designate members of Project Management Team (comprised of all
        agency participants in the I-40 study). This body will provide
        overall guidance of project tasks and activities.

    -   Designate members of Project Policy Committee (comprised of
        decision-makers in the I-40 corridor). This body will make final
        recommendations regarding the adoption and implementation of
        Managed Lanes on the I-40 corridor.

-   Establish NCA&T investigation management

    -   Designate NCA&T principal investigator and co-principal
        investigator

    -   Determine NCA&T investigation activities

-   Contract with value pricing experts to augment local experts

    -   Release a Request for Proposals, in compliance with Federal and
        state contracting guidelines

    -   Obtain contractual services

-   Develop a cooperative scope of work and task delineation between
    NCDOT, NCA&T, PART, UNC-CH and the consultant.

> ***Timeline:*** Two months from start of project
>
> ***Budget:*** \$14,000

-   NCDOT

-   \$10,000 NCA&T

-   \$2,000 PART

-   \$2,000 UNC-CH

[Task Two: Develop Baseline Body of Knowledge]{.underline}

The first task for all investigators is the development of a baseline
body of knowledge regarding Managed Lanes, HOT Lanes, and value pricing
implementation. In addition to a literature review, this task may also
involve the interview and/or conference of value pricing implementers
from around the United States. The allocation of specific tasks between
NCDOT, NCA&T, PART, UNC-CH and contractors will be determined in *Task
One: Administration*. Opportunities to leverage existing bodies of
knowledge will be made to the fullest extent possible. Specific research
elements will include:

-   Facilities and Studies

    -   I-15 (San Diego)

    -   SR-91 (Orange County)

    -   I-10 (Houston)

    -   US 101 (Sonoma County)

    -   I-25 (Denver)

    -   I-394 (Minneapolis)

    -   Maryland DOT

-   Technical Feasibility

    -   Configuration

    -   Access

    -   Laneage

    -   Cross Sections

-   System Designs

    -   Electronic Toll Collection system

    -   Software / database requirements

    -   Variable message signage

    -   Feedback mechanisms for dynamic pricing

-   Socio-economic factors

    -   Price elasticity

    -   Equity impacts

    -   Environmental impacts

-   Public Involvement / Political Reality

    -   Political leadership

    -   Lessons learned

    -   Successful public involvement and education practices for value
        pricing

> ***Timeline:*** Six months from start of project
>
> ***Budget:*** \$57,000

-   NCDOT

-   \$20,000 NCA&T

-   \$12,000 PART

-   \$5,000 UNC-CH

-   \$20,000 Consultant

[Task Three: Develop I-40 Feasibility Analysis]{.underline}

Building upon the findings from the Baseline Body of Knowledge, the I-40
Value Pricing Assessment will examine the operational and financial
feasibility and public desirability for value pricing on I-40. A
detailed feasibility assessment is necessary in order to determine
whether a decision for proceeding with implementation should be made or
not

Specific analyses that will be conducted include:

*Subtask 3a: Existing Facility and Traffic Assessment*

> The I-40 Value Pricing Assessment will examine the existing
> characteristics of the facility and its current traffic burden.
> Specific activities that will be conducted include:

-   Examine overall travel behavior

    -   Traffic / transit counts and forecasts will be collected and
        evaluated, including volumes by hour by day, including load
        factors at interchanges.

    -   Peak period characteristics

    -   Depending upon guidance from the Project Management Team, a
        vehicle occupancy study and delay analysis may be conducted to
        fulfill any knowledge gaps regarding corridor traffic

-   Examine physical characteristics

    -   Detailed description of corridor access, laneage, available
        right-of-way, choke points, and other physical characteristics

> *Subtask 3b: Develop Managed Lanes Conceptual Alternatives*
>
> The baseline traffic counts, traffic projections, and travel behavior
> forecasts for the project will be used to identify the baseline of
> Managed Lane and toll collection alternatives. Hence, the development
> of conceptual alternatives will depend directly upon the completion of
> ***Task 2*** and ***Subtask 3a***. The conceptual alternatives build
> upon the strengths and opportunities for value pricing in the
> corridor. Furthermore, it is from the initial conceptual alternatives
> that the public education efforts can commence. Specific activities
> include:

-   Develop conceptual alternatives

    -   Laneage and conceptual design (concurrent flow, reversible
        facility, access points, and barrier types)

    -   Access control and enforcement system design.

    -   Toll collection system design

    -   Pricing policies

    -   Occupancy policies

    -   Hours of operation

> *Subtask 3c: Financial Feasibility Assessment*
>
> The ability to self-finance the Managed Lane facility will be a key
> consideration for local decision-makers. As such, a detailed financial
> feasibility assessment will be conducted to evaluate the ability of
> the conceptual alternatives to resolve its own financial requirements.
> Specific activities include:

-   Forecast Utilization and Revenue

    -   Model user response to Managed Lanes. Since a mode split model
        does not exist in either area, a model will be formulated using
        existing data and a questionnaire will be developed,
        administered, and analyzed by the research team.

-   Financial Feasibility Analysis

    -   Generalized cost and revenue estimates

    -   Amortized revenue streams for cost recovery

    -   Examination of potential public and private sector partnerships

> *Subtask 3d: Public Desirability Assessment*
>
> Arguably the most important investigation of the I-40 Value Pricing
> Assessment, public desire for Managed Lanes on I-40 will be examined.
> This is a crucial task, not only because of the volatility of value
> pricing concepts as found in other communities, but also because of
> the controversial proposal for converting an [existing]{.underline}
> general-purpose lane to Managed Lanes. In pursuit of ongoing public
> participation efforts, both for opinion-setters as well as the
> public-at-large, NCDOT proposes the following actions:

-   Develop an opinion-setter outreach program. This program will
    attempt to engage opinion-setters in both urban areas prior to the
    development of misconceptions regarding value pricing

-   Conduct an education and information campaign to gain public
    knowledge and comment on value pricing concepts for I-40.

    -   Use information from ***Tasks 2*** and ***3*** to inform the
        public about transportation financing and other value pricing
        projects elsewhere

    -   Direct the campaign to both the residential and business markets
        in the area.

-   Conduct interviews with business owners and employers in the
    Research Triangle and Piedmont Triad.

    -   Outreach will be conducted in conjunction with local participant
        agencies and other transportation interest groups.

-   Conduct focus groups with residents. Random focus groups will be
    conducted of area residents on value pricing concepts for I-40.

-   Conduct survey research for willingness to use and level of
    acceptance.

    -   Randomized survey of the general public

    -   Targeted survey and simulation of travel by current commuters

    -   Targeted survey of officials and stakeholders

-   Public information website and information clearinghouse.

> ***Timeline:*** Sixteen months from start of project
>
> ***Budget:*** \$324,000

-   NCDOT

-   \$190,000 NCA&T

-   \$59,000 PART

-   \$75,000 UNC-CH

-   \$70,000 contractors

> [Task Four: Project Determination and Recommendation]{.underline}

Following the conclusion of these analyses, a determination of whether
to proceed with implementation of value pricing or not will be sought.
If the Project Policy Committee decides in favor of recommending
implementation of Managed Lanes, additional investigation into
institutional barriers must be conducted. This includes approval
processes by both the Federal Highway Administration and the North
Carolina State Legislature.

In addition, this task involves the development of the final report and
documentation.

> ***Timeline:*** Eighteen months from start of project
>
> ***Budget:*** \$60,000

-   NCDOT

-   \$40,000 NCA&T

-   \$10,000 PART

-   \$10,000 contractors

### Potential Facilities to be Included

The proposed study area will investigate the entire I-40 corridor in the
Triangle, from the Raleigh/Wake County endpoint to its Durham Freeway
endpoint and in the Triad from the Burlington endpoint to the western
Winston-Salem endpoint.. In addition, consideration will be given to
serving destinations within the major destination attractors, as well as
maximizing the utilization of existing roadway and BRT investments.

In Raleigh-Durham, I-40 carries over 73,000-vpd at its eastern
Raleigh/Wake County endpoint, 78,000-vpd at its western Durham Freeway
endpoint, and average volumes between 81,000-vpd and 126,000 at the
midpoint in the area. Similarly, in the Piedmont Triad, I-40 carries
over 87,000 at its eastern Burlington endpoint, 55,000-vpd at its
western Winston-Salem endpoint, and average volumes between 74,000-vpd
and 144,000-vpd at the midpoint in the area.

### Timeline for Study

  ----------------------------- --- -- -- -- --- -- -- -- -- ---- -- -- -- -- ---- -- -- ----
  GANTT CHART                                                                            

  Months Elapsed Time           1            5               10               15         18

  Tasks                                                                                  

  1\. Project Administation                                                              

                                                                                         

  2\. Develop Baseline Data                                                              

                                                                                         

  3\. Develop I-40 Feasibility                                                           
  Analysis                                                                               

  3a. Existing Facility ad                                                               
  Traffic Assessment                                                                     

  3b. Develop Managed Lanes                                                              
  Concepts                                                                               

  3c. Financial feasibility                                                              
  Analysis                                                                               

  3d. Public Desirability                                                                
  Analysis                                                                               

                                                                                         

  4\. Project Determination                                                              
  ----------------------------- --- -- -- -- --- -- -- -- -- ---- -- -- -- -- ---- -- -- ----

## 

## Parties to the Cooperative Agreement with FHWA

Several partnering jurisdictions and organizations have strong interest
in working with NCDOT to obtain federal funds to initiate a study of the
I-40 corridor. Those organizations who have expressed interest and are
willing to fund the local match and additional funds for the study of
I-40 include:

-   North Carolina Department of Transportation

-   North Carolina Agricultural and Technical State University

-   The University of North Carolina at Chapel Hill

-   The Piedmont Authority for Transportation (PART)

-   PART represents:

    -   The Burlington and Graham MPO

    -   The Greensboro MPO

    -   The High Point MPO

    -   The Winston-Salem MPO.

> The following organizations have been contacted:

-   The Capital MPO

-   The Durham, Chapel Hill and Carborro MPO

Letters of support for this proposal from each of the participating
agencies is attached.

## Legal and Administrative Authority

Potential tolling authority for I-40 has not been designated. The study
will assess this issue.

Figure 1. Map of Triangle Corridor

![](media/image1.jpeg){width="6.496527777777778in"
height="4.347916666666666in"}

Figure 2. Map of Triad Corridor

![](media/image2.png){width="6.502083333333333in"
height="2.2270833333333333in"}

  ----------------- ------------------------------ ------------------ ----------------- -- ------
  **Plan and                                                                               
  Evaluate the                                                                             
  North Carolina                                                                           
  Interstate 40                                                                            
  Value Pricing                                                                            
  Project**                                                                                

  **Proposed Budget                                                                        
  for 2001-2003**                                                                          

  **Dr. Julian                                                                             
  Benjamin, PI**                                                                           

                                                                                           

  **University:**   **North Carolina A&T State                                             
                    University**                                                           

                                                                                           

                                                   **Federal Funds**  **Matching           
                                                                      Funds**              

  **Salaries:**     Faculty                        \$201,202.00       \$60,000.00          

                    Administrative Staff                                                   

                    Other Staff                                       \$20,000.00          

                    Graduate Student               \$5,000.00                              
                    Salaries/Stipends                                                      

                    Undergraduate Student          \$5,000.00                              
                    Salaries/Stipends                                                      

                    Total Salaries/Stipends        \$211,202.00       \$80,000.00          

                    Benefits                                                               

                    Faculty@ 24%, Students@7.65%   \$49,053.48                             

                    **Total Salaries and           **\$260,255.48**   **\$80,000.00**      
                    Benefits**                                                             

  **Other Direct                                                                           
  Costs:**                                                                                 

                    Permanent Equipment                                                    

                    Expendable Equipment and       \$2,000.00                              
                    Supplies                                                               

                    Computer Costs                                                         

                    Travel                         \$10,000.00                             

                                                                                           

                    Other Costs: (specify)                                                 

                    Printing / duplication                                                 

                    Postal expense                                                         

                    Communication                                                          

                    Computer Costs                                                         

                    Other miscellaneous costs:                                             

                    **Total Other Direct Costs**   \$12,000.00                             

                    **Total Direct Costs**         \$192,255.48       \$80,000.00          

                    **Sub-contract to PART**       \$83,000.00        \$30,000.00          

                    **Sub-contract to UNC-Chapel   \$78,400.00        \$20,000.00          
                    Hill**                                                                 

                    **Sub-contract to consultant** \$72,000.00                             

                                                                                           

                    **Indirect Costs at            \$78,824.75                             
                    \_41\_\_\_\_\_\_%**                                                    

                    **Sub-Contract Indirect        \$10,000.00                             
                    Costs**                                                                

  **TOTAL COSTS**                                  \$514,480.23       \$130,000.00         
  ----------------- ------------------------------ ------------------ ----------------- -- ------