(upbeat music)
- [Narrator] The government pays private sector contractors
to provide a variety of equipment for fire suppression
and all hazard incidents.
This includes everything from logging equipment, dozers,
engines, tenders and other heavy equipment
to refrigerated trailers, potable and gray water trucks,
and trailer-mounted hand washing units.
In most cases, contractors are paid a daily rate
for supplying equipment.
(gears squeaking)
When equipment breaks down,
or is unavailable for a work assignment,
the government makes a pay adjustment to the daily rate.
This training shows how employees in Finance,
such as Equipment Time Recorders
and Procurement Unit Leaders,
shall calculate and document for any time
the equipment is unavailable during its assigned shift.
Contractors operate under the terms of a government awarded
Incident Blanket Purchase Agreement
or Emergency Equipment Rental Agreement.
The authority for adjusting payments is contained
in Clauses D.21.83
and D.21.8.4
along with EERA Clause 7.
Three items are needed to calculate the rate adjustment:
The shift ticket,
the daily rate from the agreement or the EERA,
and, finally, the Incident Action Plan.
Any time a resource is out of service,
it should be noted on the shift ticket.
In this example, a dozer was out of service
from 1000 to 1400 for a total of four hours.
The agreement shows the daily rate for the Dozer at $1,575.
The IAP shows the operational shift was from 0600 to 1800,
which is a total of 12 hours.
Make sure the dates on the shift ticket and the IAP match.
For example, if the breakdown occurred on October 30th,
use the hours on the cover of the October 30th IAP.
Once you have the shift hours, as noted on the IAP,
convert the daily rate to an hourly rate.
In this example, $1,575 is divided by 12,
which calculates to $131.25 per hour.
Next, multiply the hourly rate
by the number of hours the resource was unavailable
or broken down.
$131.25 multiplied by the four hours
while out of service is $525.
This is the amount to deduct
from the daily rate on the invoice.
Calculating the deductions for transport is the same
as calculating the deductions for equipment.
Here is another example using an EERA
instead of a IBPA agreement.
The EERA was written for a forklift.
The daily rate on the EERA is found under block 11, Rate.
The shift ticket shows the forklift was out of service
from 1400 to 1600 for a total of two hours.
The IAP shows the operational shift was 12 hours.
Use the same formula as before to calculate the hourly rate.
The daily rate of $250 divided
by the operation shift of 12 hours is $20.83.
Multiply the hourly rate by the number of hours
the forklift was out of service to get the amount to deduct.
In this example, we would multiply $20.83 by two hours
for a total deduction of $41.66.
Once the calculation is complete,
enter the information in e-ISuite.
Post the full daily rate like normal.
Then enter the deduction under the Post Adjustment tab.
In our first example,
a deduction of $525 would be entered.
In our second example,
a deduction of $41.66 would be entered.
The information can also be entered
on the Emergency Equipment - Use Invoice
in block 26 for deductions.
Also make a note in the remarks section in e-ISuite,
or block 22 of the Use Invoice, that a break down occurred.
While there are many ways to perform the calculations
and post them to the Use Invoice,
this is the preferred method because it allows anyone
in Finance to properly post these adjustments.
Following the formula also provides consistency
on all incidents for any equipment that is out of service.
This ensures payments to contractors adhere
to government regulations and contractual agreements,
and that payments are posted accurately
and consistently across all incidents.