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 LANTNAVFACENGCOM A&E GUIDE
4/17/93
COST ESTIMATES
SECTION 7.
7.1
GENERAL
A detailed cost estimate is required with each submittal. All estimates shall be
prepared in the Cost Engineering System (CES) format whether manually or computer
prepared. Scan all computer disks submitted for viruses using a commercial virus
scanning program. The estimate detail for each submittal shall be consistent with the
level of design required for that submittal. Accurate quantity take-off, inclusion of all
appropriate CES systems, and accurate unit prices for the project's geographic location
are fundamental to the development of a good cost estimate.
The A&E's objective is to develop a final estimate that will be within 10% () of
the lowest responsible bid. This requires responsible pricing, experienced judgment
and an accurate assessment of the market conditions. When this objective is not met, it
is necessary for bid evaluation that the A&E submit a comparison of cost between the
low bid and the final A&E estimate. Reasons for major differences, sorted by
specification division, must be stated with a recommendation to award or reject. This
bid analysis must be received within one week after notification that it is required and
is to be provided at no additional cost to the Government.
Properly prepared cost estimates provide a check of plans and specifications
for constructability, coordination conflicts, discrepancies, omissions and cost control.
They are used by the Government to establish/verify budgets (verification of contract
bid prices) and to develop historical data for future budget estimating.
Prior to fee negotiations for ALL PROJECTS, the A&E shall contact the Cost
Engineering Branch, telephone 804-444-9907, to discuss cost estimating requirements.
Criteria for geographic location, multi-buildings process, MCON, O&MN, may be
discussed. MIL-HDBK-1010 illustrates basic CES estimating.
Final Government estimates are to be marked by the A&E with "For Official
Use Only." Access to or disclosure of information within the estimate is limited to
those personnel whose official duties require knowledge of the estimate.
7.2
PROTECT DESIGN ESTIMATES
The estimate at each submittal is expected to reflect the A&E's best information
and experience. Expected bid opening date shall be established by the
LANTNAVFACENGCOM PM. Pricing must reflect all requirements of the contract
plans and specifications. The individual preparing the estimate should verify that all
7-1
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