Final Site Information Package for National Remedy Review Board ...

14. Cost Information
This section summarizes the cost estimates, as well as the methodology and assumptions
used to develop the cost estimates, for the remedial alternatives defined for OU 2 and the
Upper Basin portion of OU 3 as well as for the remedy protection alternatives. Costs were
developed based upon principles outlined in A Guide to Developing and Documenting Cost
Estimates during the Feasibility Study (USEPA, 2000b).
Cost estimates for each of the remedial alternatives and remedy protection alternatives are
summarized in following sections. Table B14-1 provides an overall summary of the costs for
each remedial alternative and remedy protection alternative. For the remedial alternatives,
Alternative 3+ estimated costs range from $1,280 million for Alternative 3+(c) to $1,520
million for Alternative 3+(e); and Alternative 4+ estimated costs range from $1,930 million
for Alternatives 4+(b) and (c) to $2,160 million for Alternative 4+(e).
These costs are presented as total capital cost, annual average and 30-year NPV O&M costs,
and total 30-year NPV cost for each alternative. (For detailed cost breakdowns and
assumptions, see Appendix D of the FFS Report, which is included as File 14-1 on the
Supplemental CD provided with this Site Information Package.) NPV costs are based on a
30-year planning period and a discount rate of 7 percent. The costs listed in Table B14-1 are
in 2009 dollars, do not include future escalation, and assume that all construction occurs in
year 1. The nominal accuracy of these estimates is –30 percent to +50 percent.
14.1 Remedial Alternative Costs
As described in Part B, Section 8, multiple combinations of remedial alternatives were
developed and evaluated to define a comprehensive cleanup approach for Upper Basin
surface water. The costs for the remedial alternatives were based on the development of
TCDs (see Table B8-1 for descriptions of the TCDs).
Table B14-2 summarizes the unit cost estimates for each TCD. Direct capital costs were
calculated for each individual action, characterized by a TCD, on a source material. The
direct capital cost was calculated using the TCD unit cost and an appropriate measurement
that is specific to the site and source material. The indirect capital costs were assumed to be
70 percent of the direct capital costs for all the TCDs except WT01, active treatment at the
CTP. This assumption was based on information provided in USEPA (2000b). O&M costs,
varied by TCD, but some examples of O&M activities included repairs, sampling and
analysis, and replacement of media. For TCDs retained from the 2001 FS Report (USEPA,
2001d), costs were escalated to 2009 dollars assuming an escalation factor of 1.358. This
value was developed from the Engineering News Record Construction and Building Cost
Index (2008). For new TCDs, costs were developed by calculating unit costs for materials,
labor, and equipment. These values were then summed to determine the direct capital unit
cost for the TCD.
B14-1