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This document contains instructions for preparing labor and materials cost estimates.
This type of cost estimating is also referred to as grass-roots or bottoms-up estimating.
The forms that are used are available as two Microsoft Excel worksheets:
DIRECT LABOR COSTS
Complete one of these forms for each WBS item requiring direct labor
- WBS NUMBER
- Identify the WBS number for the element being estimated.
- WBS TITLE
- Identify the name of the WBS element that corresponds to the WBS number.
SUPPORT CONTRACTOR DIRECT LABOR
- DIRECT LABOR - EPs
- Estimate the number of support contractors (in terms of equivalent personnel) that are
required for this WBS element. Breakout the estimate by category (engineering,
manufacturing, etc.). Phase the estimate by fiscal year.
- DIRECT LABOR RATE
- Use the loaded annual cost of an EP for each of the categories for
which there are direct labor EPs identified. "Loaded" means that the annual cost
should include contractor direct and indirect costs, G&A, overhead, fee, etc. Include
the appropriate inflation factors to insure these these costs are expressed in terms of
real year dollars. The Code B New Start Inflation Index should be used for this purpose.
- DIRECT LABOR COST
- Labor rate times the number of direct labor EPs.
- CIVIL SERVICE DIRECT LABOR REQUIREMENTS
- Estimate the number of civil service personnel (in terms of equivalent personnel) that
would be required for this WBS element. Phase the estimate by fiscal year.
MATERIALS COST
Complete one of these forms for each WBS item requiring the purchase of materials
- WBS NUMBER
- Identify the WBS number for the element being estimated.
- WBS TITLE
- Identify the name of the WBS element that corresponds to the WBS number.
- COMPONENT
- Identify each component of the total WBS element.
- PROPOSED SOURCE
- Identify the proposed source (vendor) for the component.
- UNIT COST
- The cost per unit for the component (i.e., cost per square foot or cost per pound for
raw materials; item cost for assembled components).
- QUANTITY
- The total number (or amount) of the component required.
- SUBTOTAL
- The product of the Unit Cost times the Quantity.
- PROCUREMENT FACTOR
- Materials burden, logistics surcharge, or other overhead factor charged by the procuring
organization. This factor accounts for shipping, handling, and storage costs. For example,
Orbiter components procured through the KSC logistics system incur a 50% to 100% markup
over the vendor's unit cost. If the Unit Cost above already includes this wrap, set this
factor to one.
- TOTAL COST
- Procurement Factor times the Subtotal.
Estimate how the materials costs would be phased by fiscal year. |
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