EXHIBIT "K"

Exhibit "K" is divided into two parts:

a. The chart is the relation between the average cost of housing
construction in thousand dollars (vertical axis "Y") and a
ten-year time span starting in 1968 to 1978. The national and
Indian lines passing through the points representing pairs of
values indicate the direction of the relation and also a means
of comparison. The unit being compared is a 3-bedroom unit.
The national line represents the national trend in non-Indian
housing. The Indian line represents 75-80 Indian housing pro-
jects (7500 units). The comparison clearly indicates that
Indian housing construction costs are less than the national
housing cost trend.

b. The forty-year life-cycle cost chart indicates a 25% increase in
prototype cost will increase the total project by only 6% at the
end of the forty-year cycle.

EXHIBIT "L"

Exhibit "L" is a Davis-Bacon Wate Rate/Prototype Comparison on all reservations adjoining Navajo. The U. S. Department of Labor sets the Davis-Bacon wage rate. There is a relationship between the cost of labor and the cost of construction on a project. If the Davis-Bacon wage rate on the Navajo Reservation is, for example, $15.00 per hour and the prototype is $30,000.00, then the relationship between the Davis-Bacon wage rate for a carpenter and the prototype is 2000 to 1. By definition labor is a percent of the total construction dollar. The Davis-Bacon wage rates are enough higher than any adjoining reservation that the comparison shows Navajo to have a 30% higher factor, which means that the prototype is at least 30% out of alignment from the adjoining reservations in terms of labor only. Therefore, in order to work within the published wage rates, an adjustment should be made in prototype cost for the Navajo Reservation.

The wage rates shown on the chart were all for 1979 projects.