UFC 3-701-06
30 March 2006
locations in the U.S., and 91 Overseas locations. A new construction market
survey will be conducted in 2006.
Each of the LME costs is normalized and weighted to represent its contribution to
the total cost of a typical facility. The normalized LME is then modified by seven
matrix factors that cover local conditions affecting construction costs. These
matrix factors include weather, seismic, climatic (frost zone, wind loads, and
HVAC systems), labor availability, contractor overhead and profit, life support
and mobilization, and labor productivity versus the U.S. standard. The resultant
ACF for each location is normalized again by dividing by the Base City average
to provide a final ACF that reflects the relative relationship of construction costs
between that location and the Base City average as 1.00.
MILCON ACFs were calculated using a LME ratio of 35/63/2. Sustainment ACFs
were calculated using a LME ratio of 53/46/1.
4-2
ESCALATION
Table 4B provides escalation (inflation) factors used to adjust current unit costs
to the target program year. The unit costs in Chapter 3 are in current year dollars
and must be adjusted for future years using the appropriate OSD escalation
factor. Unit costs for military construction in Chapter 2 are already inflated to the
construction target year (base year) using the OSD escalation factor for Military
Construction.
Inflation multipliers for Military Construction through the current year are the
historical building Construction Indices published by Engineering News Record.
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