B-1
TABLE B: AREA COST FACTORS
Use the area cost factors (ACFs) only with the primary facility unit costs from Table A.
Area cost factors for some locations have been updated from previous list based on the latest data input from the services' and field
offices. In general, the area cost factors are developed based on the construction market condition of local costs for a market basket of
8 labor crafts, 18 construction materials, and 4 equipment items. These labor, materials, and equipment (LME) items are
representative of the types of products and services used to construct most military facilities. In 2002, the market survey covered a list
of 222 locations that includes 96 Base Cities (two per state in the continental US), 106 additional locations in the U.S., and 20
Overseas locations. A new construction market survey will be conducted in 2004.
Each of the LME costs is normalized and weighted to represent its contribution to the total cost of a typical facility. The normalized
LME is then modified by seven matrix factors that cover local conditions affecting construction costs. These matrix factors include
weather, seismic, climatic (frost zone, wind loads, and HVAC systems), labor availability, contractor overhead and profit, life support
and mobilization, and labor productivity versus the U.S. standard. The resultant ACF for each location is normalized again by
dividing by the Base City average to provide a final ACF that reflects the relative relationship of construction costs between that
location and the Base City average as 1.00.
There is no easy correlation between these ACFs and previous ACFs for specific locations. No common benchmarks exist because
both the Base City average and the relationships between cities change for each two-year cycle. It is possible, however, to compare
differences between several locations in this database with differences between the same locations in previous databases.
Do not use these ACFs to modify parametric cost estimates, detailed quantity-take-offs, unit price book (UPB) line items, or
commercial cost data. These other cost estimating systems and databases have their own processes and factors for adjusting costs to
different locations.
The overall ACF for the state/country should be used when there is no specific ACF for a location within the state/country. The ACF
for the closest location should be used only when market conditions (e.g. material prices, labor rates, labor availability, bidding
climate) are similar.
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