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 3. "IBOP ANALYSIS" must be done using the Cost Estimate Sheet
1 1 0 1 3 / 7 (1-78).
4 . Execution of IBOP ANALYSIS
a. A format of IBOP analysis
IBOP
CHANGE
NORMAL PROCEDURE
PLANNED PROCEDURE
A
B
C
CWE
E
FEC
F
D
b. The amount of the total p r o j e c t cost using normal procedure
w i l l be put in "A" column.
T h e amount of the total project cost using planned procedure will
be put in "B" column.
The difference between the amounts in columns "A" and "B" will be
put in "C" column.
D e l e t e the costs of all U.S. materials from the amount of "A"
column and put it in "D" column (Materials marked "US"),
D e l e t e the costs of all U.S. materials and all parenthesized
material costs from the amount of "B" column and put it in "E"
column (Materials marked "US" + "*CONUS").
The difference between the amounts in column " D " and "E" will be
put in "F" column.
c. On the "IBOP ANALYSIS FORMAT", CWE (current working
estimate) means-a simple comparison of costs between planned
p r o c e d u r e and normal procedure (total project cost of planned
p r o c e d u r e is higher).
On the other band, FEC (foreign exchange cost) means that a simple
c o m p a r i s o n of costs of all Japanese materials and labor between
planned procedure and normal procedure.
d. T h e last step of IBOP analysis procedure is to compare
amount in "C" and 50% of amount in "F" columns.
The amount in " C " column is the increased U.S. Dollars caused by
u s i n g CONUS materials in lieu of the Japanese materials for
m a t e r i a l s marked "*".
The amount in column "F" is considered as the U.S. dollar to be
p a i d by foreign currency by using Japanese materials for materials
m a r k e d "*".
E n c l o s u r e (3)
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