EP 1165-2-1
30 Jul 99
replacement that reflects the current traffic count and current
standards of the owner. (ER 1165-2-117, ER 405-1-12, EFARS)
(g) Historical and Archaeological Salvage Operation Costs.
These are project costs associated with salvaging artifacts that have
historical or archaeological values as described in Public Law 86-523
as amended. (See paragraph 3-4)
(h) Land, Water and Mineral Rights Costs. These costs include
all costs of acquiring the land, water and mineral rights required for
installing, operating, maintaining and replacing project measures.
These costs are estimated based on current market values and the
actual costs incurred for carrying out similar acquisitions. The
value of easements is based on the difference in market value of the
land with and without the easement.
(i) Operation, Maintenance, Repair, Replacement and
Rehabilitation Costs (OMRR&R). These costs represent the current
value of materials, equipment, services, and facilities needed to
operate the project and make repairs, replacements, and
rehabilitations necessary to maintain project measures in sound
operating condition during the period of analysis. Estimates are
based on actual current costs incurred for carrying out these
activities for similar projects and project measures. For those
projects currently in Preconstruction Engineering and Design (PED),
and those with Project Cooperation Agreements (PCAs) yet to be
submitted to HQUSACE as of 7 February 1991, estimates of OMRR&R costs
and schedules will need to be individually set out in the technical
document that accompanies the PCA and addressed in the non-Federal
sponsor's financing plan. In particular, estimates for Operation and
Maintenance and for future Repair and Rehabilitation must be
emphasized. Non-Federal sponsors need to specifically show their
capability to fund such costs in their financing plans accompanying
PCA packages. For projects in the initial stages of development, the
Project Management Plan is to include procedures for developing
detailed OMRR&R costs.
(3) Associated Costs. These are costs other than those
involved directly in establishing, maintaining, and operating the
project, but necessary for realization of certain benefits of the
project. An example is the cost of on-farm drainage systems required
to produce the increased outputs on which benefit computations are
based.
(4) Other Direct Costs. These are the costs of resources
directly required for a project or plan, but for which no financial
outlays are made. Consequently, they are included in the economic
costs of a plan but not in the financial costs. Other direct costs
also include uncompensated NED losses caused by the installation,
operation, maintenance, or replacement of project or plan measures.
An example would be increased downstream flood damages caused by
channel modification.
d. Benefit Estimating Procedures. Beneficial effects in the
NED account are increases in the economic value of the national output
of goods and services. These beneficial effects include: the direct
value of goods and services resulting from implementation of a plan;
increases in external economies caused by implementation of a plan;
and the value associated with the use of otherwise unemployed or
underemployed labor resources. (P&G 1.2 and 1.7.2)
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