Draft Appendix D. Cost Engineering. Rahway River Basin, New Jersey Flood Risk Management Feasibility Study. November 2016

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1 Draft Appendix D Cost Engineering Rahway River Basin, New Jersey Flood Risk Management Feasibility Study New Jersey Department of Environmental Protection U.S. Army Corps of Engineers New York District Appendix D - Cost Engineering C-i

2 APPENDIX D COST ENGINEERING Table of Contents Project Background... C1 Basis of Cost... C2 Contingencies... C2 Planning, Engineering and Design... C3 Construction Management... C3 Interest During Construction... C4 Operation and Maintenance... C4 Estimated Annual Charges... C4 Cost Summary... C6 List of Tables Table C1 First Cost Table for Alternative 4a... C1 Table C2 First Cost Table for 10-Year Nonstructural Alternative... C2 Table C3 Alternative 4a Contingency Factors... C3 Table C4 10-Year Nonstructural Contingency Factors... C3 Table C5 Estimated Alternative 4a Annual Charges... C5 Table C6 Estimated 10-Year Nonstructural Annual Charges... C5 List of Figures Figure C1 Total Project Cost Summary for Alternative 4a... C7 Figure C2 Total Project Cost Summary for 10-Year Nonstructural Alternative... C9 Figure C3 Construction Schedule for Alterative 4a... C11 Figure C4 Construction Schedule for 10-Year Nonstructural Alternative... C12 Figure C5 Abbreviated Risk Analysis: Alternative 4a... C13 Figure C6 Abbreviated Risk Analysis: 10-Year Nonstructural... C20 Appendix D - Cost Engineering C-ii

3 List of Figures Attachment C1 MII Reports Attachment C2 District Quality Control (DQC) Appendix D - Cost Engineering C-iii

4 COST ENGINEERING PROECT BACKGROUND C1. This appendix presents the detail cost estimates for Alternative 4a and the 10-Year Nonstructural treatment in the Robinsons Branch located in northeastern New Jersey. Alternative 4a encompasses portions of Cranford/Upstream area. It consists of modification of dam to ensure it meets Corps dam safety standards. It also includes the 8,930 LF of channel improvement. The first cost for alternative 4a and the 10-Year Nonstructural alternative is presented in Table C1 and C2. Note that the real estate cost for both alternatives are currently a placeholder. Table C1 First Cost Table for Alternative 4a Appendix D - Cost Engineering C-1

5 Table C2 First Cost Table for 10-Year Nonstructural Alternative BASIS OF COST C2. The construction cost estimate was developed in MCACES, Second Generation (MII) using the appropriate Work Breakdown Structure (WBS) and based on current estimated quantities provided by the Hydraulics & Hydrology, Civil, and Structural Engineers. The cost estimate was developed from these quantities using cost resources such as RSMeans, historical data from similar construction features, and MII Cost Libraries. The contingencies were developed based on input to the Abbreviated Cost Schedule Risk Analysis (ARA) (template provided by the Cost Mandatory Center of Expertise, MCX, Walla Walla District). These contingencies were applied to the construction cost estimates to develop the Total Project First Cost. The construction duration for alternative 4a and the 10-Year nonstructural alternative was estimated at 42 months and 9 months respectively, as shown in Figure C3 and C4 on page C11 and C12. The construction schedule was developed based on the crew outputs referenced from RSMeans with the assumption that multiple crews would work simultaneously. CONTINGENCIES C3. As stated in ER , the goal in contingency development is to identify the uncertainty associated with an item of work or task to an acceptable degree of confidence. Consideration must be given to Appendix D - Cost Engineering C-2

6 the detail available at each stage of planning, design, or construction for which a cost estimate is being prepared. Contingency may vary throughout the cost estimate and could constitute a significant portion of the overall costs when data or design details are unavailable. Final contingency development and assessment of the potential for cost growth is included in this cost estimate. To develop the Total Project First Cost, contingencies developed in the ARA were applied. The contingency factors used in alternative 4a and the 10-year nonstructural alternative are summarized in Table C3 and C4. Table C3 Alternative 4a Contingency Factors Element Contingency Factor Reservoirs 48.05% Fish and Wildlife Facilities 29.62% Channels 25.93% Cultural Resource Preservation 26.09% Total Construction Contingency 45.18% Lands & Damages 15.54% Planning, Engineering, and Design 18.50% Construction Management 13.64% Table C4 10-Year Nonstructural Contingency Factors Element Contingency Factor Cultural Resource Preservation 26.47% Buildings, Grounds & Utilities 30.94% Total Construction Contingency 30.14% Lands & Damages 20.00% Planning, Engineering, and Design 10.00% Construction Management 10.00% PLANNING, ENGINEERING AND DESIGN C4. The costs were developed for all activities associated with the planning, engineering and design effort. The cost for this account includes the preparation of Design Documentation Reports and plans and specifications for each construction contract and engineering support during construction through project completion. It includes all the in-house labor based upon work-hour requirements, material and facility costs, travel and overhead. The percentage breakout in the Total Project Cost Summary (TPCS), as show in Figure C1 and C2, was developed based on input from respective offices in accordance with the CWBS. CONSTRUCTION MANAGEMENT C5. The costs were developed for all construction management activities from pre-award requirements through final contract closeout. These costs include the in-house labor based upon work-hour requirements, materials, facility costs, support contracts, travel and overhead. Costs were developed based on the input from the construction division in accordance with the CWBS and include but are not limited to anticipated items such Appendix D - Cost Engineering C-3

7 as the salaries of the resident engineer and staff, survey men, inspectors, draftsmen, clerical, and custodial personnel; operation, maintenance and fixed charges for transportation and for other field equipment; field supplies; construction management, general construction supervision; project office administration, distributive cost of area office and general overhead charged to the project. The work items and activities would include, but not be limited to: the salaries of all supervisory, engineering (including resident geologist and geological staff), office and safety field personnel; all on site expenses. INTEREST DURING CONSTRUCTION C6. Interest during construction (IDC) is the cost of construction money invested before the beginning of the period of economic analysis and before the accumulation of benefits by the project. IDC costs have been added to the project cost to determine investment costs. Average annual costs were determined based on investment costs which include IDC. The pre-base year costs were estimated using the Federal interest rate of percent (FY16). OPERATION AND MAINTENANCE C7. The Operation and Maintenance (O&M) costs were estimated to represent the anticipated annual costs necessary to maintain the project at full operating efficiency throughout the project life. Following completion of the project, operation and maintenance of project facilities would be performed by the local cooperating agency in accordance with federal regulations and operations manual. ESTIMATED ANNUAL CHARGES C8. Annualized costs are based on an economic project life of 50 years and an interest rate of 3.125%. The annual charges include the annualized investment costs along with annual operation and maintenance costs. A detailed breakdown of annual costs for alternative 4a and the 10-Year Nonstructural alternative is presented in Table C5 and Table C6 respectively. Appendix D - Cost Engineering C-4

8 Table C5 Estimated Alternative 4a Annual Charges Table C6 Estimated 10-Year Nonstructural Annual Charges Appendix D - Cost Engineering C-5

9 COST SUMMARY The Total Fully Funded Project cost for Alternative 4a and the 10-Year Nonstructural alternative is $78,157,000 and $10,997,000 respectively. This cost is 65% federally funded and 35% non-federally funded. Appendix D - Cost Engineering C-6

10 Figure C1 Total Project Cost Summary for Alternative 4a Appendix D - Cost Engineering C-7

11 Figure C2 Total Project Cost Summary for 10-Year Nonstructural Alternative Appendix D - Cost Engineering C-8

12 Appendix D - Cost Engineering C-9

13 Appendix D - Cost Engineering C-10

14 Figure C3 Construction Schedule for Alternative 4A Figure C4 Construction Schedule for 10-Year Nonstructural Alternative Appendix D - Cost Engineering C-11

15 Figure C5 Abbreviated Risk Analysis: Alternative 4a Appendix D - Cost Engineering C-12