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National Synchrotron Light Source II

CD-1 Cost EstimateDevelopment

Diane HattonAssociate Director for Administration and Finance

Cathy LavelleProject Controls Manager

October 27, 2006

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Rates

• Extraordinary BNL construction rate of 14.3%• Standard BNL overhead at 39.45%

• Overhead applied to first $600K of a single procurement

• BNL composite escalation rates:• 3.5% in FY2007 (standard DOE escalation at 3.2%)• 3.2% FY2008–FY2013 (standard DOE escalation at 2.3%)• 5% on construction contracts

• Contingency at 35% on TEC• Fringe at 38% • Average Salaries• One man-year = 1760 hours

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NSLS-II Critical Decision1(CD-1) Cost Estimate / Schedule

• Developed a cost/schedule estimating system• Purpose

• Generate a Cost Estimate based on project schedule• Basis for Integrated cost/schedule reporting system• Requirement for CD-1 per DOE Order 413.3-1

• System • Estimate cost based on resources• Assigned to Schedule activities• Produce resource loaded schedule

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Web basedCost

EstimatingDatabase

Web basedCost

EstimatingDatabase

Primavera 5.0Schedule

Primavera 5.0Schedule

NSLS-II CD-1

Cost Estimate/Schedule Development

WBS &WBS DictionaryResources:-Labor hours-Material/Subc. $-Travel $Schedule:-Activities-Durations Risk ID & AssessmentBOE

ResourcesActivities, Duration

•Develop Logic/dates•Timephase resources

ResourcesSchedule

•Rate Tables•Price Resources

Iterative Iterative Process to Process to develop CD-1 develop CD-1 Cost EstimateCost Estimate

CobraCost Processor

Burdened/Escalated Cost

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NSLS-II CD-1 Cost Estimate/ScheduleDevelopment Process

• Cost Estimate Database

• Developed in house, Web based• Organized by WBS w/ Dictionary & Responsibility

• Data Collection (at WBS Level 4/5)• Resources- (labor hours, material/subcontract $, travel),

Basis of estimate• Schedule - Activity definition, duration• Risk Identification and weighting - contingency• Supporting Documentation

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NSLS-II CD-1 Cost Estimate/ScheduleDevelopment Process

• Data imported to Primavera 5.0

• Schedule developed – logic network• Resources assigned to activities-timephased

• Data transferred from Primavera to Cobra• Cobra will burden, escalate resources estimate• Rate tables from Peoplesoft

• Data fed back to Cost Estimate Database for revisions

• Resulting in fully burdened & escalated cost based on Schedule

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Example of Project Schedule

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National Synchrotron Light Source II

Cost Estimate Demonstration