EP 1110-1-8
(Vol. 5)
31 July 03
SECTION VIII. NEGOTIATED PROCUREMENT
4.16
Rates
The calculated dredging plant rates based on the methodology presented in this
chapter should be used for preparing a reasonable contract estimate. When adequate
cost or pricing data is available and submitted by the contractor for negotiated
procurement, the rates may be adjusted in accordance with the methodology in this
chapter. Cost or pricing data is defined in FAR 15.4, Contract Pricing.
4.17
Allowance for Additional Capital Improvements
Allowance for additional capital improvements shall be calculated in accordance
with accepted general accounting principles. When adequate cost or pricing data is not
available, factors for a similar unit of equipment may be used for determining the
ownership rate for overage equipment and plant.
4.18
Overage Plant
When the plant has exceeded the useful life given in table 4-1, it is considered
overage. The ownership rate for overage plant should be determined with the same
methodology described in section V.
a. When actual cost or pricing data is available to adjust the operating rate, the
data must be accurate, complete, and established in accordance with accepted general
accounting principles.
b. When actual cost or pricing data is not available, the total hourly operating
rate for overage equipment shall be computed on the basis that the equipment is equal
to the useful life as shown in table 4-1.
4.19
Dredging Plant Purchased Used
For plant purchased used, the ownership and operating rate must be calculated
on an individual case, due to the varying conditions. When actual cost or pricing data is
not available, the methodology from this chapter shall be used and values for life and
salvage from table 4-1 can be adjusted. Support for adjustments can be obtained by
calling the Chief, Cost Engineering Branch, Engineering Division, Walla Walla District,
U.S. Army Corps of Engineers (CENWW-ED-C), telephone 509-527-7511 or 509-527-
7510.
4-7
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