Key Points
FEMA’s Cost Estimating Format (CEF) is a uniform methodology that is applied when determining the cost of eligible permanent work for large construction projects. Skilled FEMA specialists partner with grant applicants to develop clear damage descriptions and scopes of work that capture the work needed to repair, restore or replace facilities damaged as a result of a declared disaster.
Applicants benefit from using the CEF because:
- Administrative costs are reduced
- The project’s budget will reflect an upfront calculation
- Large projects can be managed with a greater degree of confidence
Detailed Discussion
The Cost Estimating Format Tool
CEF is comprised of eight parts that reflect the proposed costs associated with each large project. The structure of the tool mirrors the applicant-general contractor-subcontractor relationship for eligible work.
- Part A - Base construction cost for labor, equipment and materials required to perform eligible work.
- Part B – Costs associated with work execution such as temporary services and utilities, safety and security measures, field supervision, quality control and administrative submittals.
- Part C – Construction cost contingencies such as project unknowns and complexities, and the degree of difficulty for site access, storage, and staging.
- Part D – Applies to contracted work for the general (or prime) contractor's home office overhead, insurance, bonds, and profit.
- Part E – Accounts for cost escalation at certain points over the duration of the project.
- Part F – Fees for building permits, plan checks and special reviews.
- Part G – Owner's reserve for change orders and differing site conditions.
- Part H – The applicant's project management and design costs.
- An overview of using the CEF tool and reporting requirements are located in the Cost Estimating Format Standard Operating Procedure.
- In-depth guidance on using the CEF can be located in the Cost Estimating Format for Large Projects Instructional Guide, Version 2.1 (September 2009).
- The CEF Spreadsheet is a Microsoft Excel-based template designed to promote consistency in documenting estimates for large projects. This user-friendly application conforms to industry standards in accordance with Public Assistance Program requirements.
- The Cost Estimating Tool for Engineering and Design Services provides cost curves to determine appropriate estimates associated with complex projects.
Appendix A - FEMA's Comparative Analysis (PDF 50KB) >> https://www.fema.gov/pdf/government/grant/pa/cefm2app.pdf
Applicants should independently estimate project costs or prices prior to receiving bids or proposals.
A cost analysis is required if:
- An Applicant is required to submit the elements of an estimated cost
- Adequate price competition is lacking
- It is a sole source procurement, including contract modifications and change orders, unless price reasonableness can be established
- There is a cost overrun
The requirement for a cost price analysis can be met by conducting an independent validation of the estimate. The Cost Estimating Format tool should be used to conduct a cost or price analysis. The process is outlined in the CEF Instructional Guide V2.1 and will also be discussed later in this course.