Construction of Facilities Estimation

Construction of Facilities (CofF) cost estimating is different in discipline and methodology than space cost or research and development of technology (R&T) estimating. In contrast to most space cost and R&T estimating, which is guided by NPR 7120.5, NPR 8820.2C is the guidance for most CofF design and implementation estimating. However, NPR 7120.5 guides major CofF projects (i.e., greater than approximately $15 million).

Most CofF estimators have little in common with space system cost or R&T estimators; except in offices that have oversight into all NASA functions. CofF estimators generally use the tool, RS Means, published lists of tables and regional metrics for CofF cost estimating.

“Success Cost Estimator” is a tool developed for KSC that is used for estimating the cost of construction. The CofF process is based on a five-year cycle and is summarized below.

Yearly, a budget call is initiated to determine the priority of CofF projects for the next five fiscal years. Approved projects are prioritized and assigned a year of execution. This information is included in the 5-year budget submitted by each Center on a yearly basis.

At a Center, the Facilities Division is responsible for CofF projects, which are directed by a project manager, with a facility project manager assigned to each project. Project managers have cradle to grave responsibility for each project, however no one on the facilities division staff is a cost estimator. If needed, a support contractor does ICEs. In addition, the center’s independent assessment team may be asked for additional support.

Tips

CofF Lessons Learned

by Dan Tweed, KSC

1. During the estimate, remember that construction will sometimes have to coordinate with other schedules. Build those interruptions and associated costs into the estimate and schedule by adding money and additional contingencies for schedule integration needs. In KSC’s launch processing environment, we have to coordinate implementation schedules with shuttle operations schedules and payload processing schedules or space station element processing. Sometimes we have to start and stop construction around launches.

2. Remember to estimate for support costs during construction. For example, if during construction a utility service has to be taken offline, then temporary facilities must be provided and paid for that out of the construction budget.

3. Estimate and plan to spend more money initially on soil borings to get enough of a distribution on a building’s footprint and find any unsuitable materials. During a building construction, KSC received a unpleasant surprise with a muck layer that was in between soil borings we took; the resulting fix cost a lot more money.

4. When estimating maintenance, rehabilitation, or revitalization for older structures, be aware of human safety needs and special handling requirements for components like lead paint or asbestos. Identify and estimate for these additional costs.

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Overview of the CofF Process

1. The Center’s facilities project manager requests input from individual divisions. Either division directors or contractors prepare a list of required CofF projects, including a parametric estimate for each. In addition to the parametric estimate, the engineering staff will prepare a ROM estimate.

2. The Facilities Division collects and prioritizes the input received. The Center Director and his team prioritize and approve those projects that will be submitted for budget inclusion. The CoF portion of the budget request is sent additionally to HQ (Code JX/Facilities Engineering Division) for final review and recommendations.

3. CofF cost estimating, project planning and design begins two years out, when HQ Code JX authorizes design money based on 2-year out project approved budget. (For example, in FY04, the centers will receive FY04 construction money and FY06 design money.) Cost estimating, project planning and design are paid for by design allocations.

4. After design money is received, the Facilities Division project manager issues a SOW for the design of each project. This SOW identifies project budget, scope and an estimated construction price based on approved budget amount (current cost estimate or CCE). The CCE includes construction contract award budget, approximately 10% for contingency, and 10% for supervision, inspection, and engineering services. This CCE also includes funds for field inspection services and engineering services during the construction.

5. Architecture/Engineering or Civil, Structural, Mechanical, and Electrical firms may hold on-call design services contracts. The SOW includes the target cost available to the firm for the effort. The firm will estimate and design to this budgeted amount. The project is competitively awarded through procurement with advice from facilities.

6. Following the design contract award to a firm, the Facilities Division project manager will hold a kickoff meeting –which includes the design firm, Facilities Division office representatives and other stakeholders and start a process for establishing the detailed scope. Reviews follow at 30, 60 and 90% design and cost milestones.

7. Typically, a design firm prepares detailed ground-up estimate, initially based on square foot estimates (at the 30% review). Then, the contractor creates detailed estimates, incorporating material take-offs and linear square foot costs against each system and vendor quotes for different building components. Information is gathered from tools like RS Means and local vendors estimates, and estimates include calculations for present year cost versus future year costs and expected inflation. Each project estimate is always separated into both CofF funded and non-CofF funded estimates. (Non-CofF funded examples include outfitting an office building and activation activities after facility construction.)

8. At the 100% design and cost milestone, the facilities division project manager will review the contracted firm’s cost estimate, giving input on design and tracking changes. When reviewing the cost estimate, the project manager looks for anything out of the ordinary, such as costs higher than those budgeted, and what elements are CofF funded and what elements are non-CofF funded. Then the project packaged is stored until the construction year.

Prior to contract award, the design firm will refresh the design and cost estimate (i.e., update codes, conduct a budget sanity check etc.) in the year prior to construction. In the construction year, the facilities division awards the contract and fixes the contraction budget at the updated cost estimate amount plus 10% (covers new requirements or unforeseen sight conditions/design deficiencies). CofF contracts are always a fixed-price contract, to eliminate overrun issues. During construction, the design firm prepares engineering and cost estimates for any change orders.