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

APPENDIX A
Memo regarding Cost Estimating Methods
The Grantee should develop a memo regarding its cost estimating approach as part of the alternatives
analysis work and should update it with each subsequent estimating effort.
The cost estimating methods memo should explain the structure of the cost estimate, assumptions,
other projects as precedents, and reference points. The memo should describe the approach to cost
information development -- parametric, use of aggregated unit costs per lineal foot of cross-section,
use of segments to estimate similar construction conditions within a complex alignment, etc.
If multiple parties are estimating parts of the project, this memo helps to ensure consistency of
approach.
The memo should note considerations important to the estimate such as characteristics of the physical
context, site constraints, design parameters, institutional constraints, contracting and procurement
plans, project schedule, etc.
The memo should include a plan to track throughout the project life both the cost estimate in original
format (and construction contractor’s cost breakdown) and FTA’s Standard Cost Category (SCC)
format. The SCC worksheets are provided on FTA’s website for the reporting of capital costs.
OP 45 Small Starts Review
Revision 0, June 2008
Page A-1