Federal
Emergency
Management
Agency
9570.8 SOP
November 1998
Cost Estimating Format
for Large Projects
Public Assistance
Program
Standard Operating
Procedure
CEF STANDARD OPERATING PROCEDURE
(All documents referenced below can be located on the FEMA Public Assistance Website at
http://www.fema.gov/r-n-r/tool.htm).
What information exists for the Cost Estimating Format (CEF) for Large Projects and what is it
for?
•
The CEF Information Update (November 1998) provides an overview of FEMA's cost
estimating methodology for large projects.
•
The Applicant Handbook (FEMA Publication 323, September 1998) - Chapter 6, Handling
Large Projects describes a subgrantees large project roles and responsibilities in developing
large projects.
•
The Cost Estimating Format for Large Projects Instructional Guide, Version 2 (November
1998) provides application guidance to users responsible for developing a large project cost
estimate.
•
An excel-based template, referred to as the CEF for Large Projects Spreadsheet, has been
designed to provide more uniformity in estimating costs for large projects, and to make it
user friendly and flexible enough to respond to individual project conditions for all types of
permanent restorative work.
•
The CEF may be revised periodically as data from completed projects becomes available. A
standard report has been developed to collect this data. The CEF - Large Project Report is a
word-based spreadsheet that is completed by the Public Assistance Officer for each large
project that was estimated using the CEF.
This Standard Operating Procedure provides an overview of the CEF for Large Projects, and is
intended for the users responsible for procuring component factor information, and for
developing large projects and their estimate of costs. The procedure also discusses FEMA
Headquarters large project reporting requirements.
The Public Assistance
Program
Cost Estimating Format
(CEF) for Large Projects
November 1998
COST ESTIMATING FORMAT FOR LARGE PROJECTS -
STANDARD OPERATING PROCEDURE
2
Which Large Projects will the CEF be used on?
• The CEF should only be used on large projects for which the permanent restorative work
(Categories C, D, E, F, and G) is less than 50% complete, or will take four or more months to
reach 90% project completion (pre-punch list/contractor retainage stage). CEF should not be
used for large projects that are either greater than 50% complete, or will be 90% complete
within four months (use actual eligible costs). Percent complete is derived from the
approved design and/or construction timeline for eligible work, using the start and
completion dates of the project to determine project duration.
What is the process for preparing an estimate for a Large Project using the CEF?
• Project Officers (POs) are responsible for determining which local factors to use in the
development of the project cost estimate. Specific items are unit price sources, city cost
indices (if applicable), and local costs for plan checks, building permits, or special reviews.
This information will be collected and evaluated at the beginning of each disaster and used
uniformly for all CEF analyses. Prepare the CEF for large project as follows:
• Determine the eligible scope of work and base costs (Part A of the CEF), including Special
Considerations and Section 406 Hazard Mitigation for large projects that meet the criteria
noted in the previous bullet. Part A of the CEF should be completed in accordance with the
guidance provided in the Cost Estimating Format for Large Projects Instructional Guide. All
work activities needed to perform the eligible scope of work will include a written
description of the scope of work, the cost item reference (Construction Specifications
Institute [CSI] based), cost code reference (if FEMA cost codes are used), the unit [linear
foot (LF), square foot (SF), each (EA), cubic yard (CY), etc. - do not use lump-sum (LS)],
the quantity (or measurement), the unit cost and the quantity cost. Each line item's unit
price/subtotal cost will be adjusted to reflect the city cost index where the work will take
place.
• Document the eligible scope of work on the CEF Fact Sheet. Detailed supporting backup
documentation such as site maps (or location plan), photographs, sketches, calculations,
measurements, insurance declarations page, anticipated or actual insurance settlement,
Section 406 HMP proposal(s), construction permits and clearances, force account (F/A)
summary sheets, codes and standards identified in the CEF Notes sheet; and for major
construction activities such as water control facilities and large buildings, to include
schematic drawings; a set of plans preferably reduced to 11" x 17" containing basic
information such as elevations, floor plans, site plan, structural plans and sections, etc., as
applicable, are required from the applicant during the large project formulation process.
Source documents such as invoices, vouchers, timesheets, purchase orders, item slips, weight
slips, plans and specifications, insurance policy, etc. reside with the applicant.
• After the eligible scope of work and its base costs are completed in Part A, the PO will
complete Parts B through H (the factors applied to the base cost) of the CEF. Separate
summaries will be developed for completed and uncompleted work. Assumptions used in
defining factors B through H will be documented in the CEF Notes Sheet.
COST ESTIMATING FORMAT FOR LARGE PROJECTS -
STANDARD OPERATING PROCEDURE
3
• The PO will use the CEF for large projects estimate to prepare the project worksheet (PW)
and for cost reconciliation (as applicable) using the large project guidelines noted in the
Public Assistance Guide.
•
Funding for improved projects will be based on the approved federal share of the CEF
estimate, rather than actual costs, because the work actually accomplished on the project
will normally be quite different from the work described on the PW. The CEF estimate is
based upon the costs that would be associated with repairing the damaged facility to its
pre-disaster condition. The improved facility must have the same function and capacity
as that of the pre-disaster facility. Also, if the improved project involves a replacement
facility, at the same or new site, funding for Section 406 hazard mitigation work will not
be eligible.
•
FEMA approved alternate projects will be funded at either 90 percent of the Federal
share of the approved CEF estimate for the eligible work, without any added Section 406
hazard mitigation measures, or the actual cost of the completed approved alternate
project, whichever is less.
• The PW is completed as follows: under the Project Cost section of the PW, the PO will print
the following information: use Item #1; use Code #9999; add in the Narrative block this
statement "See attached CEF spreadsheet for itemized unit-price estimate particulars"; add
1/LS (lump sum) for the Quantity/Unit; and use the total estimate value from the CEF
calculation to fill-in the Unit Price and Cost blocks. Appropriate cost adjustments to the
CEF line-item #1 may then be applied (e.g. a deduction for anticipated or actual insurance
proceeds, or salvage value/depreciation, etc.). The Total Cost block will reflect the final
eligible cost (100%) after any cost adjustments. The following steps will then be performed:
1. After the PO completes the PW, the excel file containing the CEF estimate will be printed
in its entirety and attached to the PW. Also, all applicable supporting back-up
documentation noted above must be attached behind the CEF spreadsheet (that is in turn
attached to the PW). When the PW has been completed, the PO will submit the PW and
the diskette containing the electronic CEF spreadsheet to the Public Assistance
Coordinator (PAC).
2. When the PAC approves the project, subsequent to Special Considerations clearance, the
PAC will submit the diskette containing the completed CEF spreadsheet, along with the
entire PW package to the Data Coordinator for NEMIS entry. The CEF spreadsheet will
then be attached electronically within the National Emergency Management Information
System (NEMIS) to the electronic copy of the PW. The back-up documentation will also
be scanned into the Case Management File (CMF).
3. When the electronic NEMIS and CMF functions have been completed, the Data
Coordinator will continue processing the PW, including necessary filing operations.
4. The Total Cost block of the PW will be used as the basis for obligating the Federal share
of the large project cost.
• As large projects are completed and project documentation is submitted to FEMA by the
State, actual eligible costs will be reconciled against estimated costs (resulting in an
COST ESTIMATING FORMAT FOR LARGE PROJECTS -
STANDARD OPERATING PROCEDURE
4
obligation or deobligation of funds for eligible work). Please reference the exceptions for
improved and alternate projects noted previously.
• If the PO requires assistance with any part of the CEF, the PO will request a Technical
Specialist (a cost estimator or engineer) or a Program Specialist (e.g. environmental, historic,
insurance, etc.) from the Resource Coordinator (RC). Reference the CEF for Large Projects
Instructional Guide for more detail.
What is the process for preparing an estimate for a Large Project if CEF is not used?
• Prepare the eligible scope of work and quantitative estimate for work completed and work-
to-be-completed using the standard damage survey and inspection process. Reference the
Public Assistance Guide.
• The supporting backup documentation and source documentation requirements for large
projects formulated without CEF are the same as for those that are formulated using CEF
(see previous question).
• After the PO completes the PW and it has been entered in NEMIS, all applicable supporting
back-up documentation will be scanned into the CMF as discussed previously.
• If the PO requires assistance with any part of the large project formulation process, the PO
will request a Technical Specialist (a cost estimator or engineer) or a Program Specialist (e.g.
environmental, historic, insurance, etc.) from the RC.
What are the appropriate references for unit prices in preparing Part A base costs?
• POs will request average weighted unit prices (local costs derived from actual contract
history) from the applicant or relevant State/regional agency (Department of Transportation-
DOT, etc.) in order to prepare the eligible scope of work with the applicant. The average
weighted unit price information should be evaluated for compatibility with the eligible scope
of work and consistency over a reasonable time period. Use R.S. Means Cost Data (the most
current editions available) if the applicant does not have appropriate average weighted unit
price data. FEMA Cost Codes or other commercial cost-data estimating resources are a last
source of reference for unit prices in preparing Part A base costs. [One copy each of the
following R.S. Means Cost Data books (at a minimum) should be available for reference at
the Disaster Field Office]:
•
ADA Pricing Guide
•
Building Construction
•
Concrete and Masonry
•
Electrical
•
Facilities
•
Heavy Construction
•
Mechanical
•
Plumbing
•
Repair and Remodeling
•
Site Work and Landscape
•
Square Foot Costs
COST ESTIMATING FORMAT FOR LARGE PROJECTS -
STANDARD OPERATING PROCEDURE
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If R.S. Means Cost Data are used in Part A, City Cost indices are to be applied to
adjust the R.S. Means unit prices to the nearest City for the declared Counties. The
Public Assistance Officer (PAO) or designee, will identify the zip codes included in
the declared area, research R.S. Means for the appropriate city cost factors and
tabulate them for use by the PO's.
County Zip Code City Reference City Index
How are local costs for Plan Review and Construction Permits (Part F) determined?
• The PAO or designee is responsible for requesting documentation related to Plan
Review and Construction Permit costs from the Grantee and for the distribution of the
costs in tabular form to the POs for their use (see example below). Alternatively, the
PO may request this documentation from the subgrantee. These costs will be
determined directly from the controlling jurisdiction in which the subject project is
located for the declared counties (e.g. City Building Department, or Office of State
Architect, etc., as appropriate). Key items of information include:
•
How is the plan review or construction permitting cost defined?
•
What cost item (construction cost, total project cost, etc.) serves as the basis for
calculation of plan review/construction permit costs?
•
What percentage is applied to the base cost?
•
Are these percentages on a sliding scale?
•
Are these fees ever waived in post-disaster situations?
The PAO or designee is responsible for checking the appropriateness of individual
factors and ranges (Parts B through H), and for uniform application of these factors
during large project formulation. This is especially important with regard to force
account efforts, use of contingencies, time frames for escalation, post-disaster
inflation adjustments (e.g., when local costs are used in Part A, etc.), and the need for
engineering design and construction phase services.
The type of damage experienced will dictate how range selections are made for many of
the factors. For example, visual identification of damage may be less difficult after a
flood (once floodwaters have receded) than after an earthquake. The PAO may decide
that the contingency factors in Part C should therefore be at the higher end of the range
for an earthquake than for flooding. The PAO will be responsible for justifying range
selections in writing
.
County Zip Code Plan Review and
Construction Permit Costs
COST ESTIMATING FORMAT FOR LARGE PROJECTS -
STANDARD OPERATING PROCEDURE
6
How are completed costs included when the CEF is used for estimating the total cost of a
Large Project that is less than 50% complete, or will take four or more months to reach
90% completion?
• The PO will prepare a Part A estimate using the CEF for Large Projects spreadsheet
for the entire project. It is the responsibility of the PO to separate eligible work from
ineligible work. If the applicant had an estimate prepared before the work was
completed, compare the actual costs against that estimate, and if reasonable, reconcile
the cost differences. Enter the result in Part A "Summary for Completed Work." If
no applicant estimate exists, the PO will prepare a CEF Part A estimate of the eligible
completed work activities and compare the actual costs against it, and if reasonable,
reconcile the cost differences. Enter the result in Part A "Summary for Completed
Work." In both instances, the PO will also prepare a Part A CEF estimate for the
uncompleted work portion using either average weighted unit prices or R.S. Means.
The PO is also responsible for completing Parts B through H, as appropriate, for both
the completed and uncompleted work.
What are the CEF large project reporting requirements?
• For every large project estimated by CEF, the PAO (or designee) will prepare a CEF -
Large Project Report consisting of:
•
Disaster Number (and preparer's name)
•
Declaration Date (and date prepared)
•
Applicant Name
•
PA ID Number
•
PW Number
•
Category of Work
•
CEF Estimated Cost
•
CEF Actual Post-Construction Cost
•
Dollar Amount of Obligation or Deobligation
•
Reason for Cost Reconciliation
•
Primary Function of the Facility
The report is a word-based spreadsheet that is distributed with the CEF excel-based
spreadsheet. Both spreadsheets are located on a diskette attached to the inside-back
cover of the Cost Estimating Format for Large Projects Instructional Guide, Version 2
(November 1998).
• Once all large projects that have been estimated by CEF are completed, and the final
costs reconciled, the PAO will forward the CEF - Large Project Report (including the
reasons for cost adjustments between estimated and post-construction actual costs, as
applicable) to the attention of James D. Duffer, RR-IS:
Federal Emergency Management Agency
500 “C” Street, S.W. - Room 713
Washington, D.C. 20472
