CEMP-E/CECW-E
EI 01D010
1 September 1997
and disposal (LERRD), mitigation requirements, and
CHAPTER 13
other items as delineated in the CWBS, along with
OTHER COSTS
the appropriate contingencies and escalation.
13-1. General
(2) Engineering and design. Costs will be
included for all activities associated with the
This Chapter provides guidance regarding other
planning, engineering, and design effort necessary
costs not specifically identified in previous
for preparation of each construction contract and for
Chapters, but costs that must be included in the
support during construction through project
preparation of detailed project cost estimates.
completion. This includes all in-house labor based
upon work-hour requirements, material and facility
13-2. Contractor Competition and
account costs, AE contracts, additional studies,
Market Analysis
travel and overhead, along with appropriate
contingencies and escalation. Costs will be
a. Each Government estimate for procurement
developed in detail in accordance with the
will reflect the fair and reasonable cost to a prudent
established CWBS.
contractor for performing the scope specified.
Although contractor bids will reflect the anticipated
(3) Construction management. Costs will be
competitiveness, the Government estimate must
included for all construction management activities
remain the "yardstick" against which cost
from pre-award requirements through final contract
reasonableness is judged. Therefore, Government
close-out, including in-house labor based upon work-
estimates can contain adjustments due to quotations
hour requirements, materials, facility costs, support
on direct and indirect costs, but no separate
contracts, travel, and overhead along with the
adjustment due to competitiveness or bid strategies.
appropriate contingencies and inflation. Costs will
be developed in detail in accordance with the
b. During development of the design-stage
established CWBS.
CWE, market competitiveness may be considered for
funding and design alternatives. When competition
b. Military. The CWE for military projects
is included in the CWE, it should be clearly defined
include the sum of the costs for construction, other
and made known to the program manager.
allowable direct projects costs such as
communications, plus contingencies, S&A, and
13-3. Other Project Costs
EDC.
(1) Construction S&A. An allowance or
a. Civil Works. The total CWE includes all
cost calculation for construction management is
Federal and authorized non-Federal costs. Specific
normally included in each CWE. Planning
components of the TOTAL CWE include lands and
estimates may include S&A, a factor expressed as a
damages; construction features; planning,
percentage applied to the subtotal of the construction
engineering and design; construction management
contract. The rate of S & A and its application is
and the appropriate contingencies and escalation
further discussed in the specific program regulation.
through completion of construction. The specific
The current authorized S&A percentages for
other costs not previously discussed are addressed in
MILCON projects are 6 percent for CONUS and 6.5
the following paragraphs:
percent for OCONUS. For operation and
maintenance projects the current authorized S&A
(1) Lands and damages. Costs will be
percentages are 8 percent for CONUS and 8.5
included for all Federal and non-Federal real estate
percent for OCONUS.
activities necessary for implementation of the project
after completion of the feasibility study for land
(2) In order that a total project estimate be
acquisition, construction, and completion of
prepared, other project costs identified in project
crediting lands, easements, right-of-way, relocation,
requirements and in Corps procedures need to be
13-1
Previous Page
