Development of subcontractor indirect cost and other direct cost at the DOE Fernald Site

Conference · Fri Nov 18 04:00:00 EST 1994

OSTI ID:10104457

Cossman, R L ^[1]

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1. Jacobs Engineering Group, Inc., Pasadena, CA (United States)

The Fernald Environmental Restoration Management Corporation (FERMCO) took great strides in the development of cost estimates at Fernald. There have been many opportunities to improve on how the policies and procedures pertaining to cost estimates were to be implemented. As FERMCO took over the existing Fernald facility, the Project Controls Division began to format the estimating procedures and tools to do business at Fernald. The Estimating Department looked at the problems that pre-existed at the site. One of the key problems that FERMCO encountered was how to summarized the direct and indirect accounts of each subcontracted estimate. Direct costs were broken down by prime and sub-prime accounts. This presented a level of detail that had not been experienced at the site before; it also created many issues concerning accounts and definitions to be applied to ``all other accounts associated with a project.`` Existing subcontract indirect cost accounts were reviewed from existing historical estimates. It was found that some were very detailed and some were not. The Estimating Department was given the task of standardizing the accounts and percentages for each of the subcontractor indirect costs. Then, as the project progressed, the percentages could be revised with actual estimates, subcontract comparisons, or with level of effort (LOE) accounts, which would represent qualified people assigned a task for the completion of each project. The approach is to assign particular employees to perform a specific task within a project from start to finish, and then to reassign the individual(s) to a new project (if it was available) integrating the expertise available with the skills required by the other operable units.

• Research Organization: Fernald Environmental Restoration Management Corp., Cincinnati, OH (United States). Fernald Environmental Management Project
• Sponsoring Organization: USDOE, Washington, DC (United States)
• DOE Contract Number: AC24-92OR21972
• OSTI ID: 10104457
• Report Number(s): FEMP--2390; CONF-941246--1; ON: DE95003966; BR: 35EW00000/35EW20100
• Country of Publication: United States
• Language: English

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