PLANNED PROCEDURE FOR IBOP ANALYSIS
1. Whenever CONUS material is required in a project for IBOP
a n a l y s i s (excluding materials which are regarded as exception by
the DOD-FAR and the Japan District Engineer), following procedure
shall be used.
a . G o to a local trading company for quotation; this is the
m o s t accurate price. E n s u r e the local trader understands that
r e f e r e n c e ( d ) r e q u i r e s U . S . f l a g vessels for shipping.
b. If that fails, the task is laborious, as indicated below,
a n d the result less accurate. Try Means Estimating Handbook,
MacMaSter Supply Book , PWC Code 800 or other available source to
o b t a i n the price in the United States then determine the price at
t h e construction site including the costs of transportation and
F o l l o w i n g items are considered as guides to determine the
c o n t r a c t o r ' s price of the CONUS material that is procured from the
U n i t e d States to the construction site against the price in the
U n i t e d States.
(1) Use list price, without discount, as the local
c o n t r a c t o r s in Japan will not normally qualify as preferred
( 2 ) For material cost of a line item less than $1,000, use
m a r k - u p of 300% (including contractor's overhead and profit).
( 3 ) For material cost of a line item more than $1,000, use
mark-up between 220% and 280% depending on conditions listed below;
(a) Items requiring custom made order will be more
c o s t l y ; off-the shelf items will be less costly.
(b) Fragile items requiring special handling will be
m o r e costly (for ocean/air freight, paint and oily products are
r e q u i r e d to be contained in the special containers designated and
a l s o additional charge for transportation will be required by the
r e a s o n of flammable materials).
(c) Items requiring early delivery - especially air
f r e i g h t - will be more costly.
( d ) Items requiring shop drawing, catalog cut or sample
s u b m i t t a l s , will be more costly.
( e ) Items requiring on-site adjustment will be more
c o s t l y because contingency for additional parts/lengths must be
E n c l o s u r e (1)