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 LANTNAVFACENGCOM A&E GUIDE
4/17/93
B. Final estimate must accurately reflect the final plans and specifications.
Negotiation will require a comparison of the contractor's estimate and the A&E
estimate. Field overhead must be itemized as System 001. Where conflicts exist, the
A&E may be required to provide prompt validation of items in question.
C. Should conflicts between plans and specifications occur, the A&E will
promptly clarify intent and prepare a draft "as negotiated" amendment;
7.4
ESTIMATES FOR PROTECTS LOCATED OUTSIDE CONUS
In addition to the provisions set forth above, reduction of the foreign exchange
costs (FEC) requires special attention. The project shall be designed to utilize material
which will reduce the FEC in all areas not in conflict with local construction methods or
country-to-country agreements.
Estimates prepared for work outside the CONUS will be based on prices
prevailing in the area in which work is to be performed. Unusual conditions peculiar
to the project under design shall be considered. The blanket use of geographical factors
will not be permitted.
Back-up estimates for overseas areas may be prepared in local currency or in
U. S. dollars depending on the country (contact the Cost Engineering Branch, telephone
804-444-9907). A second summary sheet in dollars must be shown and used as a cover
sheet. When estimates are prepared in a foreign currency, two summary sheets shall be
used in the back-up estimate. The foreign exchange rate used shall be indicated on the
cost summary. This rate will vary from year-to-year and differ between MCON and
Non-Appropriated Fund Projects. Contact the Cost Engineering Branch for the correct
rate. Quantity take-off may be in metric or English units, however, one summary sheet
must be in English units.
In overseas countries where labor and material escalation is allowed and
compensated during construction, the estimate escalation must be prepared in the
following manner:
When construction contractor pricing will be based upon local bid prices at
the time of bidding without any consideration of escalation: the designer of record will
escalate to the 1/3 point of construction. The assumed bid date shall be established by
the PM; escalate from that point to the 1/3 point of construction. The estimate
summary shall indicate date escalated to and % escalation.
United States material purchases and shipping to overseas projects should
be escalated using U. S. escalation/rates and bid date formula.
7-5
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