ACE Team Lessons

Practical Cost Estimating and Validation: Lessons Learned Workshop

A hands-on workshop using "real life" DOE examples to help you understand and practice the fundamentals of estimating and validating costs for environmental restoration projects.

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Workshop Objectives

A hands-on introduction for Field and Headquarters program and project managers, and scientists and engineers participating in DOE environmental restoration programs to cost estimating and validating principles and practices to enable better management and control of EM projects.

Why You Should Attend

Cost baselines form the basis for all EM activities from contracting, life-cycle baselines, and progress tracking to budget formulation and execution. Therefore, accurate and defensible cost estimates are key to successful execution of EM projects. As a participant in DOE EM projects, you are responsible for ensuring development and validation of project cost baselines. At this workshop, you will gain a practical understanding of cost estimating principles and practices that can be applied to better enable you to increase managerial and fiscal control of ER program and projects.

What You Will Learn

• Estimating and validation terminology and DOE practices
• Estimating methods and techniques
• How to prepare a cost estimate
• How to review and validate cost estimates
• How to validate a budget request
• How to integrate the cost estimating process into DOE's budget cycle
• Cost estimating tools and resources

Workshop Topics

DAY 1

• Cost Estimating Concepts
  • Overview of Cost Estimating
  • Types of Estimates
  • Life-Cycle of EM Projects and Associated Cost Components
  • Components of a Cost Estimate
  • Cost Estimating Documentation
  • Cost Estimating Tools

DAY 2

• How to Prepare an Estimate
  • Order of Magnitude Estimating Methods
  • Development of a Definitive Estimate
  • Establish Estimate Structure (WBS, reporting structure, integration into control system)

DAY 3

• How to Validate an Estimate
  • Development of a Validation Checklist
  • Background Data and Conditions
  • Direct Costs (labor, Material, Equipment, Supplies, Subcontractors)
  • Indirect Costs (Job Indirects, Overhead)
  • Other Costs (Taxes, Escalation, Risk)
  • Estimate Analysis
  • Obtain and Review of Estimates and Supporting Documentation
  • Interview as Required and Obtain Answers to Checklist Questions
  • Provide Recommendations for Improvement