# Residential Cost Estimating Budget by pxg20930

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```									  Indian Health Service
Facilities Budget Estimating
System

Department of Health and Human Services
Public Health Service
Indian Health Service
Data Sources

Unit Costs---R.S. Means by Building Type

Escalation Factors---DRI-McGraw Hill
for Building Types (A unit of Standard & Poor's & a
leading provider of economic consulting & international services for
business, financial & government decision makers worldwide).

Location Factors---Marshall & Swift
(Derived from special studies of local market conditions, materials, labor, etc.)
Location Factor
to reflect local conditions.
Compares overall costs including
material and labor costs for each
specific location.
Marshall Valuation Service used for
most locations. Special factors
calculated with assistance of
Estimate Types
Hospital – 2/3 cost figure for
Hospitals from R.S. Means Building
Construction Cost Data
Clinic – Median Cost Figure for
Hospital
Housing – Means Residential Cost
Data
Substance abuse – ¾ Cost Figure
for Nursing Homes
How the System Works
 It uses Unit Costs established by RS Means
for each building type.
 First, the unit costs are:
 adjusted by the gross building size
 escalated to the current estimate date
 adjusted for the project specific department sizes
established in the POR
 The result is the Total Base Building Cost.

 (Escalation factors are established by DRI-McGraw Hill for each building type.)
How the System Works
 Second, the Total Base Building Cost is adjusted to
include specific project requirements by including:
   special equipment
   special programs requirements
   demolition/abatement requirements of existing buildings
   site requirements
   utilities requirements
 Costs are then adjusted to the project’s location and
escalated to the Mid-Point of Construction.
 The location factors are established by Marshall Valuation.
 Escalation factors are established by DRI_McGraw Hill for
each building type.

 The result is the Total       Construction Cost.
How the System Works
 Third, the Total Construction Cost is used to
establish the cost for:
 Other Construction Costs, including Contingencies
 Design Cost
 Other Budgeted Costs, including Equipment Costs,
Land Cost, Cultural Arts, Commissioning
 Tribal TERO Fees
 State, local, and tribal taxes
 Then the anticipated funding schedule is
applied.
 The result is the Total Project Budget.
Total Project Budget

Other
Budgeted
Cost

Total
Const.
Cost
Future Improvements
 Improve the accuracy of the Location Factor
 Improve the report capability
 Update and improve the Equipment Budgets
 Include a cost for ‘Sustainability’
 Convert the system to a Web-Based
application
 Incorporate a connection between FBE into
the HSP system
Points to Remember
 The System has been in use for over 20 years
 The Unit Costs are updated on a yearly basis
 The system accuracy is continually being
improved to meet changing requirements
 Current industry standards are used for unit
costs, cost location, and escalation factors are
used
 Experience indicates sufficient funds are
budgeted to Design and Construct facilities
Indian Health Service
Construction Programs

Department of Health and Human Services
Public Health Service
Indian Health Service
Indian Health Service
Construction Programs
New Facilities
Hospitals
Clinics
Housing
Youth Alcohol Treatment Facilities
Joint Venture Demonstration
Program
Small Ambulatory Program
Indian Health Service Construction
Programs
New Dental Clinics
Medicare/Medicaid
Maintenance and Repair Program
• Environmental Compliance and
Remediation
• Demolition
• Quarters Return
Sanitation Facilities Construction
Indian Health Service
Budget Formulation

Department of Health and Human Services
Public Health Service
Indian Health Service
FY 2006 DHHS Budget Cycle
OPDIV Budget Activity            Timeframe
OPDIV Prepares Preliminary
Program Priorities               Begins as early as Jan 04
OMB and DHHS Budget
Guidance                         Mar/April 04
OPDIV Submits Budget Request
to DHHS                          May 04
Project List
Five-Year-Plan ***             Feb 04
Exhibit 300 and/or 300B
DHHS Reviews OPDIV Budget
Request                          Jun/Jul 04
Capital Invest Review Board***
Pre-Project Planning & PDRI    Jun 04
Secretary’s Budget Council       Jul 04
FY 2006 DHHS Budget Cycle
OPDIV Budget Activity                 Timeframe
DHHS Secretarial Final Decisions to   Aug 04
OPDIV
OPDIV Finalizes Budget Submission     Aug 04
DHHS Budget Submitted to OMB          Sep 04
OMB Reviews DHHS Budget               Sep/Nov 04
OMB Passback and Appeal               Thanksgiving
OMB/DHHS Negotiations and             Dec 04
President Decisions
Congressional Justifications          Jan 05
Prepared
President’s Budget Submitted to       1st Monday in Feb 05
Congress
Congressional Budget Reviews ***      Feb/Mar 05
FY 2006 DHHS Budget Cycle

• Five-Year-Plan
• Capital Invest Review Board
Pre-Project Planning & PDRI
• Congressional Budget Reviews
• Hearings & Conference Report
• Rescission
• OMB Freezes Project Budget
Breakdown of Project
Budget

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