UFC 1 -300-08
30 JUNE 2004
total project cost as well as costs assigned to each facility that is part of the project. Only
one cost per item number (facility) is allowed in column 19. All costs of a multi-purpose
facility should be shown against the primary category code for that facility, and the other
categories of the multi-purpose facility should be annotated as N/A in column 19. The
construction agent must provide distinct break out costs for each different building, utility,
and structure constructed as part of this project. For example, if the project consists of two
buildings, parking, sidewalks, water supply branch lines, sewer branch lines, and exterior
lighting, you need different costs for the seven items in block 10. Each building and
structure (parking and sidewalks) and each utility would have a cost in block 19.
2-4.19.1 The real property accounting system should record only capital costs in the
general ledger Plant, Property, and Equipment (PP&E) account for financial statements.
Therefore, for capital improvements to existing facilities, preparers should only record the
capital costs for the capital improvements to the existing facility. Do not enter any repair
work costs on the 1354 since repair costs are not capitalized.
2-4.19.2 If demolition is within the footprint of a new construction project, then demolition
costs are considered site preparation costs and included as part of the individual new
facility costs. If demolition is not in the footprint of new construction, the demolition cost is
expensed and does NOT get included as part of the capitalized cost of the project.
2-4.19.3 Costs provided in a DD Form 1354 can be either preliminary or final. Costs on
the draft (if any) and interim version DD Forms 1354 are preliminary costs. Costs on a
final version DD Form 1354 are the final costs. The office preparing an interim 1354 must
maintain a suspense file to ensure that the accepting RPAO is furnished an updated DD
Form 1354 with the final construction costs upon financial closeout. Final costs are
generally available in several months or, if legal claims are involved, one or more years
after physical completion and facility transfer. Use estimated costs only for real property
assets found on post, or for other existing facilities with unknown original construction
costs. In these cases, the estimates are the final costs.
2-4.19.4 To comply with the CFOA, the preparer should place the total project cost in
Project Remarks (block 28) broken out in four components of total project cost as: (1)
planning and design (P&D) including project management costs (pre-award), (2)
construction contract supervision and administration (S&A) (also known as supervision,
inspection, and overhead (SIOH) and including post-award project management costs); (3)
the construction costs (including site preparation which also includes demolition of footprint
facilities), and (4) project funded equipment costs. The sum of these four cost components
is the total project cost and should equal the sum of the individual facility costs shown in
column 19 on the front of the 1354 plus the equipment-in-place costs that are transferred as
personal property and shown only in Project Remarks (block 28). The construction agent
prorates P&D and S&A costs among the facilities comprising the project and includes the
prorated P&D and S&A costs in the facility costs in column 19 for each facility. Estimated
costs may be used to prorate P&D and S&A costs to the individual Item Number in column
10.
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