FTA Oversight Procedures - Federal Transit Administration - U.S. ...

APPENDIX D
Sample Report
TABLE OF CONTENTS
Etc.
METHODOLOGY
The PMOC received the detailed cost estimates that sponsor had completed on the project as of [date].
The cost values in this report are based on this version of the cost estimate, and a summary by FTA
Standard Cost Category is provided as Exhibit D-1.
This cost estimate reflects the level of design completed through [project stage]. This estimate includes
the cost build-up at the [item or element] level of detail. The individual item cost estimates were
calculated from a corresponding quantity and unit cost estimate based on the level of project definition or
design to date. There are also lump sum and cost estimating relationship line items for additional
individual line items. The reviewer found that there was a sufficient amount of documentation included
in the cost estimate to determine its development and to incorporate that data into the review process and
analysis results. The PMOC utilized a population stratification and sampling technique to select the
individual cost items from this cost estimate to effectively achieve the objectives of this risk assessment.
The purpose of the proposed cost item sampling plan is two-fold: 1) to assure that the estimate is based on
readily identifiable assumptions and reliable data, and 2) to use the results of the sample review to identify
potential risk factors, and subsequently, their potential cost impact. The required criteria will include
completeness, unit cost basis, and unit cost and quantity reasonableness. Potential cost escalation within
each cost item will require some response from the sponsor from re-estimation or redesign, to mitigation
of unique project development aspects.
For the cost estimate analysis, the sample size ( the number of cost items reviewed) was based on the
sampling plan described in the PMOC’s Implementation Plan and adapted to these specific characteristics
of the cost estimate. A representative sample, or number of cost items, was selected for detailed cost
review based on several factors, including such considerations as population size, document category, cost
and schedule risk involved, dollar value, and the relative importance of the item.
The sponsor cost estimate was provided in contract packages representing each of the 5 Line Segments
and the 11 individual stations within the Stations Contract. In addition, there are 6 Breakout Contract
packages that were included in the cost estimate at the same level of detail and definition as the Line
Segment and Stations Contract packages. These individual cost estimates were combined into a single
spreadsheet that represents the entire project cost estimate by the consistent line item definitions. The
Sponsor also provided a corresponding cost estimate that cross-walked the contract package estimates into
the FTA Standard Cost Categories (SCC). The cost items within the contract package estimate were
examined to stratify the cost item population into 6 distinct subgroups for the detailed analysis of the cost
estimate, as described in Table IV-I. The number of cost items in the contract package, the sampling rate
or percent, and the sample size of each subgroup are also presented in this table also.
OP 33 Capital Cost Estimate Review
Revision 0, June 2008
Page D-1