Cost Engineering Branch


* COST ESTIMATES: The Section prepares a wide range of construction cost estimates that vary from Budget Estimates to formal Independent Government Estimates. Project types include MCA, MCP, MCN, OMA, OMAF, DECA, DODDS, NAF, AFH, Republic of Korea Funded Construction (ROKFC), and Combined Defense Improvement Program (CDIP).

* JOB ORDER CONTRACTS: The Section also prepares and updates the Unit Price Books for three different Job Order Contracts: Areas I & II, Areas III & IV, and Air Force. The UPB contains over 6,000 work items.

* REQUIREMENTS CONTRACTS: The Section prepares and updates line items for several different requirements contracts including; asbestos, waterlines, fencing, asphalt paving, airfield paving, and insulation.

* COST ANALYSES: Decision makers often request cost estimates based on several different scenarios. An example is the Army Community Services Building that was destroyed by fire. Estimates were prepared for the cost for repairing the facility, replacing it in kind, replacing it with a pre-manufactured building, and replacing it with a pre-engineered building. USFK and the DPW based their decisions on the cost data provided by FED.

* CONSULTING: Engineers from companies, such as Exxon Oil and Construction Cost Systems, have come to FED to inquire about local cost data and construction practices in Korea. The Section often receives calls from DPWs and Field Offices requesting unit prices.

* TRAINING: The Section has provided training to the Yongsan DPW Cost Estimators in budget estimate preparation.

* REPORTING DATA: The Branch reports Korea cost data directly to US Army Corps of Engineers Headquarters and assists in developing regional cost factors, such as, Korea Area Cost Factors (ACF) and inflation rates.

* TECHNICAL EVALUATIONS: The Section conducts Technical Evaluations (TE) when the independent government estimate (IGE) and contractors proposals vary substantially. This often requires a detailed breakdown of both the IGE and contractor proposal to analyze the differences. The findings are a valuable tool in negotiating contracts and contract modifications.

* ASSISTS WITH CONTRACT AND MODIFICATION NEGOTIATIONS: Following a TE, the Cost Engineer is the person most knowledgeable of the IGE and contractors proposals. For this reason, the Cost Engineer often assists in negotiating contract modifications.

* NEGOTIATING BAFOs: After proposals are opened for new contracts, a TE is requested when the contractors proposals are not in line with the IGE. Negotiations occur using the TE and the contractors are then asked to submit Best and Final Offers (BAFOs). Again, the Cost Engineer is asked to assist with negotiations.

* DD Form 1391 (Budget) and 3086 (Parametric Estimates): The Section normally validates unit prices used in DD Form 1391s for MCA, MCP, and Major NAF programs that are submitted for Congressional Approval. The Section also prepares parametric estimates using PC-Cost Software from a 10% limited design package. When completed, the 3086 report is submitted electronically to HQUSACE using the 1391 Processor System.

* CDIP MND ESTIMATES: The Section currently uses the ROKG's

 EMS-1234 System which is an estimating software and database used to create MND formatted estimates.

* MASTER PLANNING ESTIMATES: The Section has supported planning estimates for the Hialeah Relocation Master Planning effort.

* IBOP ANALYSES: International Balance of Payments (IBOP) analyses are done in two parts. One for all local materials and the other for all U.S. materials including shipping and handling. 50% is added to the local material estimate and is compared to the U.S. material estimate. If it is lower than the U.S. materials estimate then local materials may be used. If not, all materials must be purchased from the US with a few exceptions. All determinations thus far have concluded we use local materials. Local materials must meet the USACE guide specifications. If not, they are purchased from the U.S.

* NETWORK ANALYSIS SYSTEMS: Network Analysis Systems (NAS) using MS Project are completed by the Section for all projects. This is required to provide our customers an idea of when the project will be completed.

* FEMA ESTIMATES: When the situation arises, the Section is asked to take part in Federal Emergency Management (FEMA) missions across the Pacific. This includes conducting site visits to generate preliminary damage (PD) and damage survey report (DSR) estimates.