EP 1110-1-18
24 Apr 00
3-10. Estimating. This section presents an overview of the resources available and requirements
for estimating the cost of an OE response action.
a. Cost Estimating Tools. In preparing cost estimates for the OE program, the government
cost estimator or project engineer must first consider the intent of the cost estimate in order to
select the best cost estimating tool.
(1) Parametric Estimating.
(a) If the objective is to estimate an order of magnitude cost for budgetary purposes, then a
parametric model is used to provide costs for various phases of the project. The recommended
USACE software program is the Remedial Action Cost Engineering and Requirements System
(RACER) 99.
(b) There are eight RACER OE parametric models, each applicable to different phases or
purposes within an OE response project. These models are parametric in design (i.e., a top down
system with equations or algorithms that model the conditions entered). The models calculate
quantities of equipment, materials, and labor needed for the project by associating user inputs
with the required and secondary parameters presented by the models. A detailed cost estimate
can be produced by inputting the required and secondary parameters.
(2) Detailed Estimates.
(a) The OE program requires detailed contract procurement cost estimates for EE/CAs and
Removal Actions. The recommended USACE software programs for detailed estimates are
Micro Computer Aided Cost Engineering System (MCACES) Gold Version 5.3, MCACES for
Windows, Lotus 123TM spreadsheets or ExcelTM spreadsheets.
(b) The detailed cost estimate is the independent government estimate (IGE) to be used as
the basis for negotiation on individual task orders under a particular IDO contract. The structure
of the cost estimate should vary depending on the contract type, which for OE removal actions
may include T&M, CPFF, Cost-Plus-Incentive Fee, or Fixed-Price.
(c) The cost estimator or project engineer may develop crew and productivity sheets for the
various field activities or tasks in the SOW to determine the duration or number of hours for the
various labor categories needed to support each task. The labor rates are burdened rates and
reflect all contractor mark-ups.
(d) Materials and travel and per diem are duration driven and totaled separately from the
labor. The materials estimated can be purchased, rented, or allocated to overhead.
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