Quantcast Section 6: Cost Estimates - aeg_ch0067

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SECTION 6: COST ESTIMATES
6.1
General
Cost estimates submitted for review, that do not conform to the following, will not be reviewed by the
government and will be returned for compliance.
6.2
Objective
The objective of the Cost Engineer is to develop an estimate to reflect the lowest possible price at which the
project can be awarded. The lowest possible price is defined as the lowest price at which a responsible
Contractor is willing and able to perform the work defined by the contract documents. This requires accurate
pricing, experienced judgement and accurate assessment of market conditions. "Padding" of the estimate in
either pricing or quantities to be safe shall be avoided. It is expected that the final estimate will approximate the
low responsive bid within + or - 10%. Estimates that exceed + or - 15% of the low responsive bid will require an
immediate bid analysis by the A/E to determine the reason(s) for the variance. A written explanation listing
specific areas of difference between the Government estimate and the bidding contractors shall be provided to
Cost Engineering not later than seven calendar days following notification that a bid analysis is necessary. The
response shall include an award/reject recommendation based on the findings with full rationale to support the
recommendation. The bidders for the contract should be contacted by the A/E during the bid analysis. The
project AIC/EIC will provide a list of bidders to be contacted along with POCs and phone numbers.
6.2.1 General Requirements
All estimates shall be organized using the Work Breakdown Structure (WBS) Systems Descriptions. All projects
with an Estimated Construction Cost (ECC) over $100,000 require that the estimate be prepared using the
Success Estimating and Cost Management System (Success) computer program, which is available on CCB.
The A/E is required to run the estimate on his computer equipment using the Success program and to provide
hard copies of the estimates with each submittal. If the A/E is unfamiliar with the Success program, he is
encouraged to install the software and become familiar with the program well before the estimate is due to be
prepared. If the A/E has trouble installing, running or understanding the Success program, he should call the
program's Customer Support and/or EFA Chesapeake Cost Estimating. A floppy disk containing the complete
estimate shall be submitted with the final submittal. To obtain a copy of the Success program and price file, the
A/E must have a current contract with EFA CHES. Contact should be made with the AIC/EIC prior to each
submission to reconfirm programmed construction costs for the contract.
Where the A/E estimate exceeds 90% of the authorized "Design-to" costs, recommendations for cost reductions,
or proposed bid items should be provided.
With each submittal the A/E shall provide a brief narrative explanation for the rationale that went into the
preparation of the Cost Estimate. The rationale shall explain the basis of the estimate and shall address all factors
that have a significant impact on the estimate and the various sources of cost data used in the estimate.
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