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

Although a unit cost of $8.00 per square foot (sf) was used in project cost estimate for the concrete
sidewalks, Grantee’s Weighted Unit Price Report indicates a historical range from $5.40/sf to $15.45/sf,
with an average unit cost of $10.80/sf for concrete sidewalks.
Consequently, by employing a $15.45/sf unit cost, a potential cost impact of up to approximately
$985,600 [($15.45/lf - $8.00/lf) x total quantity] is computed when considering the estimated concrete
sidewalk quantity of 132,300 sf.
Additional discussion for this item is provided in Appendix [XX].
SCC-50.02 Traffic Signals and Crossing Protection
Approximately 15 new traffic signals were used on the project. Specifically, two signals were priced at
$120,000 and thirteen were priced at $90,0000, thus totaling $1,410,000. According to sponsor’s
Preliminary Cost Estimating Guidelines, a new signal can range from $70,000 to $100,000 per
intersection. Furthermore, [commercial cost index] 2006 Heavy Construction Cost Data shows
completely installed traffic signal systems ranging from $164,350 ($157,500 x 1.0435) to $219,150
($210,000 x 1.0435) depending if the system has right or left lane controls. The value of 1.0435
represents the [commercial cost index] 02 – Site Construction Average City Cost Index for [locality].
Although, the $90,000 traffic signal unit cost falls within the acceptable cost range, it is 11% less than the
maximum recommended by Grantee’s Guidelines. More importantly, the $90,000 traffic signal unit cost
is 83% to 144% less than the … signal systems’ costs (with [locality] cost indices applied).
It should also be noted that the Grantee’s traffic signal unit costs (from their Preliminary Cost Estimating
Guidelines) are burdened with the General Conditions costs. By contrast, the [commercial cost index]
unit costs do not include general conditions mark-ups, but do consider a location index factor for
[locality]. Therefore, the percentage variance of the Grantee’s and [commercial cost index] traffic signal
unit costs will be greater than the 83% to 144% mentioned previously if any general condition costs are
included for the [commercial cost index] unit costs.
Given the above discussion and considering a high-end benchmark cost of $219,150 for all the 15 traffic
signals used on this contract, the potential cost impact could be as high as $1,877,250 [(15 @ $219,150) -
$1,410,000] plus the appropriate general conditions mark-ups, if any.
REVIEW AND ANALYSIS OF CORRELATION IN PROJECT QUANTITIES
The PMOC has reviewed the cost estimates based on the current project scope. Certain scope items
having specific cost increase risks are identified below.
Currently, there are no support facilities planned for this project. The scope review identifies the potential
for cost increases due to the need to provide support facilities (SCC-30). An allowance of $1.5 million is
suggested, which would allow for procurement of special and additional tools, and/or the addition of a bus
maintenance bay. [Note that in this example, the PMOC should indicate its opinion of the adequacy of
this suggested allowance.]
The scope review also identifies the potential that the current cost allowance for systems (SCC-50)
underestimates the scope necessary for communications, and that no cost is budgeted for control center or
fare collection provisions. An increased communications allowance of $1.5 million is suggested, with a
further $1.5 million allowance for the other scope items noted.
OP 33 Capital Cost Estimate Review
Revision 0, June 2008
Page D-7