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D SERP Los! Plo jenliolis: R Suenatio for The Proof of-Lolluep! Period n order to facilitate discussion, the committee believes it is important to provide very rough, ball-park fig- ures for the cost of a SERP start-up. The problem, of course, is that the pace of start-up the number of initial research and development initiatives, the number of ini- tial field sites, and the growth rate for each organizational activ- ity will be determined by the available resources, the rate at which quality personnel can be recruited, and by critical deci- sions made by the early management team. This, then, should be viewed as no more than a single scenario for cost projections under a set of assumptions that may differ in any number of respects from those that characterize an actual SERP launch. The assumptions are clearly specified so that a reader can judge the general impact of alternative assumptions. The cost estimates were developed by a consultant under parameters provided by the committee with regard to costs for personnel with the expertise and training required for the SERP program, and for data collection and other aspects of research. Rates for fringe benefits, overhead, and general and administra- tive costs (G&A) were assumed for purposes of estimation, but the actual costs in this category will depend on the institutional setting in which the SERP enterprise is launched. Not included in these estimates is the cost of an initial two- year "launch" period, during which an effort to build support for the enterprise and to recruit key personnel would be under- taken. Year one costs, then, are estimates for the first year of a functioning research and development enterprise, but the third year into SERP launch (see Table B.1~. A P P E N D I X B - 127

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PRICING AND FREQUENCY ASSUMPTIONS YEARS ~ - 7 Core Staffing Load factors Fringe benefits: Overhead: 26% of salaries 30% of salaries & fringes General & administrative: 19% of all costs For example: The full load on a S100,000 salary would be computed as follows: [(S100,000 ~ 0.26) ~ 1.30] ~ 1.19 = (S126~000 ~ 1.63) ~ 1.19 = S163,800 ~ 1.19 = S194,922 Therefore, the full Toad factor is 1.949 (S194,922/S100,000) Base Salaries Senior Professional Staff Core Assumption A: Director's salary is set at S300~000 in Year 1, plus 2 senior adminis- trative persons at S60,000 each. Assumption B: 2 deputies' salaries are set at S150,000 each in Year 1, plus 1 senior administrative person per deputy at S60,000 each. Assumption C: Senior planning officer, senior communications officer, and senior development officer salaries are set at S150,000 each in Year 1, plus 1 senior administrative person per officer at S60~000 each Assumption D: 12 senior program officers (expert researchers and practitioners) and 2 web site design specialists salaries are set at S128~700 in Year 1, plus 1 administrative support person per program officer and design specialist at S50,000 each for ~ positions and S40,000 each for the other 6 positions. Assumption E: 2 professional staff a financial officer and a grants manager. The financial officer is needed for the full term of Year 1; the grants manager will come on halfway through Year 1. Salaries for both positions are set at S100,000 in Year 1, plus 1 administrative sup- port person for each of the positions at S30,000 each. The full-Ioad factor of 1.949 is applied to these base salaries to project costs of each fully loaded core staff person (director, deputies, senior planning officer, senior communi- cations officer, senior development officer, senior program officers, design specialists, ]28 STRATEGIC EDUCATION RESEARCH PARTNERSHIP

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finance officer, and grants manager). For example, the fully loaded costs for each of the following positions for Year 1 would be: Director's base salary: 2 senior administrative persons' base salary: Total base salaries: Applying full Toad factor (1.949 ~ total base) Deputy's base salary 1 senior administrative person's salary Total base salaries: Applying full load factor (1.949 ~ total base) Planning officer's base salary 1 senior administrative person's salary Total base salaries: Applying full load factor (1.949 ~ total base) Senior program officer's base salary: Administrative support person base salary: Total base salaries: Applying full Toad factor (1.949 ~ total base) Finance officer's base salary: 1 administrative support person's salary: Total base salaries: Applying full load factor (1.949 ~ total base) Staffing Numbers S300,000 120,000 420,000 S818,580 S150,000 60,000 210,000 S409,290 S150,000 60,000 210,000 S409,290 S128,700 45,715 173,700 S338,541 S100,000 30,000 130,000 S253,370 In the years subsequent to Year 1, there will be the following additions to the core staff: As each network comes on line (e.g., learning and instruction in Year 2 and schools as organizations in Year 3), 2 fully loaded core program staff are added. For each additional 3 projects in a Network, an additional 2 fully loaded core program staff also are added. In Year 3, there are added 1 additional administrative support person to each of the financial officer and grants manager positions (i.e., 2 administrative support persons for each in Year 3~. In Year 4, there is added another additional administrative support person to the grants manager position (for a total of 3 administrative support persons for the grants manager in Year 4~. In Year 5, there is added another additional adminis- ~ 545,715 is the mean, i.e., 8 ~ 550,000 and 6 ~ 540,000. A P P E N D I X B 129

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trative support person to the financial officer position (for a total of 3 administrative support persons for both the grants manager and financial officer in Year 5 and subsequent years). Annual Salary Increases A 5% factor has been used to increase base salaries in Year 2, and a 5% factor to increase base salaries from Year 2 to Year 3, and the same 5% factor for subsequent years. Honoraria for Advisory Board Members No honoraria are included for members of the governing board. For the members of the advisory boards, an honorarium of S500 per day is assumed; a total of S120,000 in Year 1. A 5% factor has been used to increase honoraria in Year 2 and in subsequent years through Year 7. Network Staffing Start Year Year 2 is the start year. There is no network staffing projected for Year 1. Load Factors The load factors applied to network staff positions (researchers, master teachers, senior fellows, junior fellows) are as follows: Fringe benefits: Offsite overhead: General & administration: 26% of salaries 30/O of salaries & fringes 19% of all costs Resulting is a load factor of 1.949 The load factors applied to field site teachers are: Fringe benefits: Pass through: General & administration: The resulting load factor is 1.54. '30 26% of salaries 3o/o 19% of all costs STRATEGIC EDUCATION RESEARCH PARTNERSHIP

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Base Salaries The following base salaries for Year 2 are used: Researcher: Master teacher: Senior fellow: Junior fellow: Field site teachers: Annual Salary Increases S125,000 100,000 100,000 75,000 42,000 (60% of S70,000) A 5% factor has been used to increase base salaries in Year 3, and a 5% factor to increase base salaries from Year 3 to Year 4, and the same 5% factor for Year 5. Teacher Training Stipends Teacher training stipends for teachers receiving training and/or involved in train- ing are set at S125 per day with no Toad. For example, in Year 2 the assumption is that summer training courses for teachers will involve 25 teachers for 15 days at S125 per day. Thus, the full stipend cost for this example would be: (S125 ~ 15 days) ~ 25 teachers = S1~875 ~ 25 = S46~875 The 5% inflation factor also has been applied to the stipends. Travel Professional Staff Core and Network Four types of travel trips are used: (1) three-day trip, (2) two-day trip, (3) one-day trip, and (4) three-day weekend trip. In the latter case, the costs of the three-day weekend trip are estimated to be appreciably Tower than the regular three-day trip (1) because of a reduction in rates for "stay-over Saturday night" airfares and, to a lesser extent, reductions in hotel/mote! rates. The costs included are air and/or ground travel, lodging, and meals. The estimated costs of each type of trip are as follows: Three-day trip: Two-day trip: One-day trip: Three-day weekend trip: A P P E N D I X B S1,250 1,100 850 900 '3'

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Teachers Professional Development The majority of travel costs for professional development will be limited to mileage reimbursement for one-way travel in excess of 10 miles; reimbursement will be at the federal rate of 34.5 cents/mile. In instances in which one-way travel exceeds 50 miles, the estimates identified above are used. Governing Board and Advisory Boards The Professional Staff Core and Network cost assumptions for travel have been used for travel of members of the governing board and advisory boards, namely: Four types of travel trips are used: (1) three-day trip, (2) two-day trip, (3) one-day trip, and (4) three-day weekend trip. In the latter case, the costs of the three-day weekend trip are estimated to be appreciably lower than the regular three-day trip (1) because of a reduction in rates for "stay-over Saturday night" airfares and, to a lesser extent, reductions in hotel/mote! rates. The costs included are air and/or ground travel, lodging, and meals. The estimated costs of each type of trip are as follows: Three-day trip: Two-day trip: One-day trip: S1,250 1,100 850 Three-day weekend trip: 900 The assumptions are that the governing board will be comprised of 20 members, will meet three times a year, the meetings will be a full two days each during the week and thus require three-day trips. In addition, there may be need for one one-day meeting and thus require one additional two-day trip. The assumptions are that each of the advisory boards will be comprised of 10 members, will meet three times a year, and the meetings will be one day during the week and thus require two-day trips. In addition, each advisory board may have need for an additional three one-day meetings and thus require an additional three two-day trips. Annual Inflation Factor A 5/O annual inflation factor has been applied to travel costs from Year 1 to Year 2, and so on through Year 7. Database Systems The amount of S10 million is included in core operations in Year 1 to address the technical, logistical, and legal issues of setting up databases in participating states/ school systems to be used by networks for their research. This amount has been increased annually by a 5/O inflation factor. '32 STRATEGIC EDUCATION RESEARCH PARTNERSHIP

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Web-Basec' Communications The amount of S250,000 has been included in core operations in Year 1 to support the development of a web-based communication system. This amount has been in- creased annually by a factor of 1.25 through Year 7. Contracts Network Operations It is likely that there may be need for contracted services for competitively bid research and development contractors, technical assistance groups, technology con- tractors, and additional studies. Consequently, and quite arbitrarily, the fixed amount of S300,000 has been in- cluded in Year 2, and through Year 7 with a 5/O annual inflator, for each research project under way in each of the networks operating in those years. In addition, S14,000/year for office rental space has been included for each of the field-based projects. The initial office rental space figure for a specific network field- based project is set at the year the project comes online at S14,000, adjusted for 5/O annual inflation from Year 1. C o n s u ~ ta n ts There may be need for professional and consultant services by persons who are members of a particular profession or who possess a special skill, including regularly engaged classroom teachers and other local district and school practitioners (as sepa- rate from teachers receiving training and/or otherwise involved in training sessions; these would receive stipends in keeping with the assumptions set forth in network staffing under Teacher Professional Development Stipends). Consequently, the fixed amount of S50,000 has been included in Year 2, and through Year 7 with a 5/O annual inflator, for each research project under way in each of the networks operating in those years. Other Relatec! Costs All other related costs including legal and auditing, equipment, postage, publica- tions/printing, and the like are assumed to be covered by the 30/O overhead and 19% general and administrative Toads. A P P E N D I X B 133

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NETWORK PROGRAM ASSUMPTIONS YEARS ~ - 7 Incliviclual Pro ject Costs There are two separate fixed amounts, adjusted annually for 5/O inflation, for the costs of each of 10 projects. One cost is for a regular project. The other cost is for a field- based project. The amount, unadjusted in Year 2 (the start year for network activity), for a regular project is S7,073,571 and is shown in Table B.2. The amount, unadjusted in Year 2 (the Start Year for Network activity), for a field-based project is S9,593,571. This number reflects the costs shown in Table B-2 plus additional costs, shown in Table B.3. In summary: Total for regular: Total for the field-based add-on: Total Cost for Field-Based: $9,593,571 S7,073,571 $2,520,000 One assumption underlying the projected amounts of S7,073,571 and S9,593,571 is that each project, whether regular or field-based, will require the same or similar staffing and travel as do the initial regular and field-based projects in the Learning and Instruction Network in Year 2 (the start year for the networks). The S7,073,571 and S9,593,571 numbers are judgment-based estimates; still, they would appear to be reasonable beginnings for projecting costs of the network projects, both regular and field-based. These amounts in reality, of course, will vary considerably some higher, some lower. PHASING OF NETWORKS AND NETWORK PROJECTS The assumption for the seven-year proof-of-concept period is that two networks will be operating. By Year 7, the first and second networks will have 10 projects under way 5 field-based and 5 regular. The first network in operation is Learning and Instruction. The second network is schools as organizations. Table B.1 presents the year each network (2) and each network project is phased in. The field-based projects are identified with an asterisk. For example, Project 1 in the Learning and Instruction Network, a field-based project, begins in Year 2 and runs through Year 7. Project 3 in the schools as organizations network, a field-based project, begins in Year 6 and runs through Year 7, and so on. Just as the fixed amount, adjusted annually for 5/O inflation, for the costs of each of the network projects is for illustrative purposes, so is the phasing-in scheme used for networks and network projects. ]34 STRATEGIC EDUCATION RESEARCH PARTNERSHIP

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TABLE B.2 Individual Project Costs L & I Network Position Base Number Load factor Fully loaded cost Regular Researchers $ 125,000 8 1.949 $ 1,949,000 Admin support $45,000 4 1.949 $701,640 Master teachers $ 100,000 2 1.949 $389,800 Admin support $45,000 1 1.949 $87,705 Senior fellows $ 100,000 8 1.949 $ 1,559,200 Junior fellows $75,000 8 1.949 $ I, 169,400 Admin support $45,000 2 1.949 $701,640 $6,558,385 Contracts Basic $300~00o $300~00o Consultants $50,000 $50,000 Travel Network Staff Position Cost Number Total Researcher Three-day $ I ,313 8 $ 10,504 Two-day $ 1,155 40 $46,200 One-day $893 16 $ 14,288 Three-day weekend $945 8 $7,560 Master teacher Three-day Two-day One-day $893 Three-day weekend $945 Senior fellow Three-day Two-day One-day $893 Three-day weekend $945 $ 1,313 2 $2,626 $1,155 10 $11,550 $3,572 $ 1.890 $ 1,313 $1,155 2 $2,626 22 $25,410 $3,572 $ 1.890 Junior fellow Three-day $ 1,313 2 $2,626 Two-day $1,155 22 $25,410 One-day $893 4 $3,572 Three-day weekend $945 2 $ 1,890 $78,552 $ 19,638 $33,498 Field site leaders Two-day $1,155 16 $18,480 $51,978 Total $7,073,571 136 STRATEGIC EDUCATION RESEARCH PARTNERSHIP

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TABLE B.3 Additional Costs for a Field-Based Project Add-on for field-based Field site administrator $ 125,000 1 1.949 $243,625 Admin support $50,000 1 1.949 $97,450 Teacher coordinator $60,000 0.5 1.949 $58,470 Field site teachers $42,000 30 1.54 $ I ,940,400 Stipends for teachers in summer training $ 1,875 25 0 $46,875 Travel Field-site leaders Two-day Contracts Field-based data systems Space rental field-based Total add-on A P P E N D I X B $1,155 16 $2,386,820 $ 18,480 $ 1 00,000 $ 14,700 $ 18,480 $114,700 $2,520,000 137