UFC 1 -300-08
30 JUNE 2004
PROJECT COST VERSUS FACILITIES COSTS
PROJECT COSTS. This chapter provides guidance to the construction agent
project manager on how to determine the capitalization costs which are accrued against
the facilities described on the DD Form 1354. Facility acquisition and capital
improvement data in the real property accounting system must be substantiated by the
costs on DD Forms 1354, and the costs on the 1354 must be reconcilable to the overall
project costs. This chapter provides a methodology to ensure that DoD uses a consistent
method of calculating these costs and to ensure correlation between costs recorded in the
real property database for real property and 1354-documented project costs. The
preparer of the DD Form 1354 must allocate or prorate P&D and S&A costs among the
facilities in the project. Only facility costs appear as items in column 10 of the 1354.
Indicate P&D, S&A, construction, equipment-in-place (EIP) costs, and total project costs in
Project Remarks (block 28). The total project cost must equal the sum of the costs of
individual facilities plus project-funded EIP costs. The preparer must explain any
Depending on the method of item pricing on the construction contract, some
facility costs may translate directly from the contractor's facility cost. Other costs, such as
total project P&D and S&A may have to be prorated or allocated among several facilities.
COST METHODOLOGY. The following step-by-step procedure is
Identify all the facilities on the DD Form 1354 and their associated construction
costs, i.e., within the 5-foot line of the facility.
Identify any site preparation costs including footprint demolition, equipment (if
project funded), or other costs that roll up with the costs directly attributable to those
Identify costs associated with those facilities that should be rolled up to existing
consolidated facility records, such as utility lines or pavements.
Allocate the total planning and design (P&D) and supervision and administration
(S&A) costs (including project management costs) among the facilities listed on the 1354.
If P&D and S&A costs are known for the entire project but are not known for individual
facilities, prorate total P&D and S&A costs among the different facilities. Prorate based
on either individual area of the facility or individual facility construction working estimates.
Annotate in Project Remarks (block 28) which basis you used to prorate or allocate P&D
and S&A costs to individual facilities.
Compute the individual facility and incremental consolidated facility costs by
summing the actual and allocated costs computed in steps one through four.