Estimated
Feature
Total Cost
JOB 4: CAMP OPERATION,
MAINTENANCE AND
MANAGEMENT
6,894,685 5,844,512.10
JOB 5; SUPPORT AND
ROLL-—UP
.
-
2, 382,847.58
Plus: Radio Back-up
System
Total Job 5
|
Total
~Ineurred Cost it~”
Direct
Indirect
-
-
-
-
-
-
31 724,62
3,172,900
2,414,572.20
As pointed out in Chapter 12.1, cost estimates in connection with the
construction at Eniwetok Atoll were first developed for inclusion in the
Reconnaissance Report. The procedure used at that time was based upon the
determination of domestic unit costs for each feature of construction, material, labor, equipment, and transportation. To the domestic costs thus
determined, there were added the costs attendant upon the performance of
services at Eniwetok Atoll.
Upon the completion of the Reconnaissance Re~
port Estimate it was found that the cost of construction at Eniwetok was a
factor of 1.96 greater than the costs of performing comparable services on
the West Coast of the United States, and this multiplier was used in the
development of subsequent cost estimates.
The total estimated cost of construction, including costs of design
engineering and fees, was $32,466,371.
From this total, deductions were
‘made for government-furnished water transportation, government—furnished
equipment, and government—furnished labor for construction on Eniwetok
Atoll, in the amounts of $1,819,196, $1,819,000, and $2,390,765 respec-
tively.
Thus, the net total estimated construction cost (including engi-
neering costs and fees) was $26,437,410. The actual cost of construction
performed by H & N at Eniwetok Atoll as of June 30, 1951 was $24,714,932,
including the cost of all engineering services and allocahle fees.
If one divides the net estimate as given above by the factor 1.966,
thus reversing the estimating process used in developing estimated con-
struction costs at Eniwetok, to arrive at an estimated domestic cost of
construction for comparable facilities constructed in a comparable manner,
(i.e,, using the same proportions of government-furnished equipment,
transportation, and labor), the resultant estimated domestic cost is
$13,442,523,
Division of the actual. cost of construction at Eniwetok by
the estimated domestic cost thus arrived at ($24,714,932 divided by
$13,442,523) results in a factor of 1.838.
An alternative miltiplying factor can be arrived at by assuming that
the contingency factor used in the preparation of those estimates which
12-27