EP 1110-1-8
(Vol. 5)
31 July 03
Where:
Total Plant Value = Acquisition price plus Initial capital improvements.
RPR = Repair Factor from table 4-1.
EAF = Economic Index (present year)/ Economic Index (acquisition year).
LAF = Labor Adjustment Factor from appendix B.
Life in hrs = Physical Life from table 4-1.
It should be noted that the repair allowance does not include the following
estimated additive items:
a. Excessive dredge wear for parts (e.g., cutter teeth and main suction pumps)
is not included due to the wide variety of materials being dredged. The original cost of
the bucket and normal wear are typically included in the plant value covered in the plant
rate. Excessive bucket wear for mechanical dredges is estimated as an additive item or
treated as a separate unit of equipment from table 2-1. Allowances for wear due to
abrasive material should only be included as an additive item if it is warranted and is not
considered elsewhere in the estimate.
b. Dry docking costs, which represent an allowance for rental of the dry dock
facility, are not included because they vary greatly depending on the facilities available.
Repairs incurred while in dry dock, which occur periodically, are in the repairs. Dry
docking costs will be allocated on an average annual basis over the years between
such occurrences (in accordance with FAR 31.205-24, Maintenance and Repair Costs).
c. There is no predetermined allowance in the dredging plant methodology for
jobsite yard costs, mobilization, or demobilization. All of these cost elements must be
separately estimated to match each project's construction conditions.
SECTION VII. STANDBY
4.15
Standby Rate
The standby rate is computed by allowing the full ownership cost. In addition to
the standby ownership rate, it may be necessary on dredges to include operating costs.
Examples of allowable operating cost are as follows: a generator fuel allowance to
account for operation of a diesel engine generator for power to operate pumps;
navigation lights; minimum crew; etc.
a. Standby is a directed delay by the Government and will not be allowed
during periods when the plant would have otherwise been in idle status, such as
noneffective working time. Since ownership is calculated based on life in years
computed monthly, standby should be paid only when additional time has been directed
by the Government. Standby is to be paid on a 24-hour basis.
b. Standby for pipeline and accessories shall be based on pumping mud in
determining values from table 4-1.
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