Quantcast Section 9. Cost Engineering

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SECTION 9.
COST ENGINEERING
9.1
INTRODUCTION:
9.1.1  Instructions and Exhibits:  MIL-HDBK-1010 and the following
instructions with exhibits provide general guidelines for preparing cost
estimates for construction projects administered by PACNAVFACENGCOM.
Submission and format requirements, estimating philosophy, detail and
accuracy expectations, and the need for post-bid follow-up are discussed.
The person responsible for preparing the estimate must contact the
Specifications and Cost Engineering Branch (CAP406) at the beginning of
each project to ascertain that his/her guidance is current.
9.1.2  Clarification:  If project requirements are such that a variance is
believed necessary or if there exists some uncertainty not covered by these
instructions, contact the Specifications and Cost Engineering Branch
(CAP406) for discussion or clarification.
9.1.3  Disclosure of Government Estimate (GE):  The GE is designated "FOR
OFFICIAL USE ONLY" and only after bids are received and the estimate made
public is this designation lifted.  As such, limit access to or disclosure
of the information concerning the GE to those personnel whose official
duties require knowledge of the estimate.
9.2  OBJECTIVE:  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 precise pricing, experienced judgment and accurate assessment of
market conditions.  Do not "fatten" the estimate in either pricing or
quantities to be safe.  The final GE should be within +10% of the low
responsive bid.
9.3
GENERAL REQUIREMENTS:
9.3.1  Preparer:  Cost estimates shall be prepared by qualified
professional cost estimators, registered professional architects or
engineers, or architects and engineers with a minimum of 5 years of cost
estimating experience.
9.3.2
Metric:
Metric units required unless directed otherwise.
9.3.3  Work Breakdown Structure (WBS): Use the Work Breakdown Structure
(WBS) System Descriptions (See Exhibit A).
9.3.4  Computer Generated Estimates: Prepare estimates using the "SUCCESS
ESTIMATING AND COST MANAGEMENT SYSTEM" computer program.  A Sample Final
Estimate prepared using the SUCCESS program with the WBS format is
furnished as Exhibit B.
9.3.5  Printed:  Printed on 8 1/2 x 11 inch, white bond paper, and bound
separate from specifications, design calculations, basis of design, etc.
9.3.6  Multiple Types of Work:  When one facility involves multiple types
of work such as: (1) a new addition, (2) alterations, (3) repair, and (4)
equipment installation, provide a separate estimate and summary sheet for
the addition work, the alteration work, the repair work, and the equipment
installation work.  A composite summary sheet is also required.  Costs from
the separate summary sheets must be directly transferable to the composite
summary sheet.  Example of composite summary sheet:
9-1





 


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