CHAPTER 12,1 GENERAL The Estimating Department of Holmes & Narver in the latter part of 1948, functioned within the Engineering Division in close coordination with all departments of engineering design which were in a position to supply design criteria, quantity take-off, and detailed specifications for bills of material. This organizational arrangement was also important in enabling the Estimating Department, through the preparation of cost analyses and estimates, to assist the engineering design departments in their study of, and economical application to the AEC's specific requirements. Upon completion of the design of any particular feature and transmittal of this design to the AEC for approval, the Estimating Department was required to supply a cost analysis for further engineering investigation; and, upon design approval by the AEC, a final and revised cost estimate was in every case necessary to determine the dollar effect which the final and approved design would have on the Contract estimated cost of each particular feature of the Contract. During the early stages of design work, upon completion and approval of design features it was the Estimating Department's responsibility to prepare, in conjunction with the engineering design groups,camplete bills of material and requisitions of this material for transmittal, and action by the Procurement Department. By January 1950, as the expanding scope of construction and the supplementary duties of the Estimating Department required closer ties with construction functions, the department was transferred to the Operations Division. Carried over in the transfer were the responsibilities for the preparation of all estimates required in connection with the design work being performed under the Contract, the develop- ment of cost estimates for new work contemplated for additions to the Contract scope, and the collation of progress reports. Additional functions of the Estimating Department and the preportigm-ef-the total time (35,000 man hours to June 30, 1951) spent on each are shown in Table 12,1-1, All cost estimates in connection with Contract No, AT-(29-1)-507 were prepared on a uniform basis under four general headings: material, labor, equipment and transportation. During the entire period of the Contract, all cost estimates were based on the going stateside costs at the time the estimate was prepared; at no time during the period of the Contract were the overseas construction factors changed from the factors applied in the Reconnaissance Report of January 1949. The basic thinking in the application of cost to these four features was as follows: