UFC 3-701-06
30 March 2006
3-5
OPERATION COST FACTORS
3-5.1
Definition
Facilities Operation describes the functions associated with the use of facilities or
infrastructure: fire and emergency services, provision of energy utilities,
provision of water/wastewater utilities, pavement clearance, refuse collection and
disposal, real property leases, grounds maintenance and landscaping, pest
control, custodial services, real property management and engineering services,
energy management, and readiness engineering.
3-5.2
Use of Operation Cost Factors
Operation cost factors represent the annual average "bare" operational cost for
each FAC, and serve as the basis for calculating annual facilities operations
requirements for DoD using the following formula:
Operation requirement10 = Facility Quantity x Operation Cost Factor x Locality Index11 x
Inflation Factor
3-6
COST FACTOR HEIRARCHY
Cost factors for DoD cost models are classified by the following hierarchy of data
sources:
Source 1: Standard, easily-accessible published data. Source 1 is the most
desirable due to ease of access, wide applicability, and lack of bias. Examples
include the DoD Tri-Service Committee on Cost Engineering, Service-specific
cost guidance (USACE, USAF), commercial cost-estimating guidelines or models
(e.g., M&S or Whitestone), or other Government-published cost guidance from
federal, state, or local government agencies (e.g. Fairfax County (Virginia) Park
Authority).
Source 2: Source 1 cost factors that are applied to facilities with similar but not
identical characteristics (e.g., sewage waste treatment facilities and industrial
waste treatment facilities). Source 2 also includes unpublished government or
trade association cost data (e.g. CEAC), and Service-validated cost factors for
non-standard facilities that have no commercial counterparts (e.g. missile launch
facilities or military ranges).
Source 3: Includes unpublished project-specific data derived from Service
project documents (e.g. DD Forms 1391) or by calculating costs from reported
plant replacement value and inventory, or derived from using a ratio of
10
For each operation function
11
A geographic location adjustment for costs of labor, material, and equipment for each operational function, equivalent to
the Area Cost Factor for construction or sustainment.
9
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