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IBOP ANALYSIS PROCEDURE
1 .  For preparations of MCON; DD 1391, Step II of Special Projects
a n d Design Stages of the locally funded projects above $25,000, we
have to execute the IBOP Analysis.  The procedure of the IBOP
A n a l y s i s is as follows.
1-a. Planning in outline
1 - b . Determination of work scope
1 - c . Preparation of rough cost estimate
1-d. Execution of IBOP Analysis
T h e following explanation is keyed to the sample cost
e s t i m a t e s on enclosures (4) and (5).  Remember cost of material is
c o s t to the contractor.
a. Whenever we have to buy CONUS materials because of U.S.
N a v y Criteria or Technical/Engineering Reasons, mark "US" next to
each item on the cost Estimate Sheet; NAVFAC 11013/7 (l-78) for
t h o s e materials, and estimate those as U.S. materials.
b. For the materials which are exempted by DOD, FAR or the
Japan District Engineer and required Japanese materials by
Technical/Engineering Reasons, mark "LOCAL" next to each item on
the estimate sheet and estimate them as Japanese materials.
c. For the materials which do not belong in the above
c a t e g o r i e s described in para. 2a. and 2b, we have to proceed as
follows:
( 1 ) If the cost of CONUS material is at or below the cost
o f acceptable Japanese material, we must buy the CONUS material,
and proceed same as 2a.
( 2 ) If the cost of CONUS material is higher than the cost
of acceptable Japanese material, mark "*" next to each item on the
estimate sheet, and put both costs with the cost of CONUS
m a t e r i a l s in parenthesis.  The materials marked "*" LOCAL are the
Foreign Exchange Cost (FEC).
d . After completion of preparation of cost estimate, we can
have t h e t w o t o t a l p r o j e c t c o s t s .  The difference between them is
c a u s e d from differences of the costs of the materials marked "*".
"Planned  procedure" project cost means buying all CONUS materials
'except those exempted from IBOP (using enclosures (4) and (5),
"US" + "*CONUS" + L).  l Normal procedure. project cost means
b u y i n g only those U.S. materials that are required by
s p e c i f i c a t i o n or are cheaper than local materials.  Everything
e l s e is local (using enclosures (4) and (5), "US" + "*LOCAL" + L).
Use only local labor costs in execution of IBOP ANALYSIS.
e.
Enclosure (3)





 


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