UFC 3-701-06
30 March 2006
CHAPTER 4 COMMON COST ADJUSTMENT FACTORS
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LOCATION ADJUSTMENTS
Table 4A provides area cost factors (ACFs) and locality indices (LI) to be used
for adjusting "bare" unit costs to location-specific costs. For military construction
projects, use the MILCON ACFs with the primary facility unit costs from Chapter
2 or approved Air Force, Army, and Navy MILCON Pricing Guide. For calculating
Plant Replacement Value, use the MILCON ACFs with the appropriate
replacement unit costs from Chapter 3. For calculating sustainment costs, use
the sustainment ACFs with the appropriate sustainment unit costs from Chapter
3. For calculating operation costs, use the appropriate operation function LI with
the corresponding operation cost from Chapter 3.
The overall adjustment factor for the state/country should be used when there is
no specific factor for a location within the state/country. The factor for the closest
location should be used only when market conditions (e.g. material prices, labor
rates, labor availability, bidding climate) are similar.
MILCON and sustainment ACFs were developed using the Tri-Service Cost
Engineering ACF software program. Operation LIs were developed by
Whitestone Research Corporation specifically for application in the DoD Facilities
Operations Model.
Do not use the MILCON ACFs to modify parametric cost estimates, detailed
quantity-take-offs, unit price book (UPB) line items, commercial cost data, or
user-generated unit costs. These other cost estimating systems and databases
have their own processes and factors for adjusting costs to different locations.
There is no easy correlation between the MILCON ACFs and previous
construction ACFs for specific locations. No common benchmarks exist because
both the Base City average and the relationships between cities change for each
two-year cycle. It is possible, however, to compare differences between several
locations in this database with differences between the same locations in
previous databases.
MILCON ACFs for some locations have been updated from previous list based
on the latest data input from the services' and field offices. In general, the area
cost factors are developed based on the construction market condition of local
costs for a market basket of 8 labor crafts, 17 construction materials, and 4
equipment items. These labor, materials, and equipment (LME) items are
representative of the types of products and services used to construct most
military facilities. In 2004, the market survey covered a list of 202 locations that
includes 96 Base Cities (two per state in the continental US), 106 additional
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