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Building Acquisition and Ownership Costs

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Provide Planning - Conceptual Architectural and Engineering Services - and ... Lighting, Stripping, Pavement, Curb and Gutter. Site Clearance and Demolition ... – PowerPoint PPT presentation

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Title: Building Acquisition and Ownership Costs


1
Building Acquisition and Ownership Costs
  • Bob Smoot
  • 202-565-6400
  • bob.smoot_at_hq.med.va.gov

2
Building Acquisition and Ownership Costs
  • Planning Issues
  • Data Sources
  • Identifying All Costs Elements
  • Documentation and Backup
  • Industry Standards and Guidelines
  • VISN vs. HQ Estimates
  • Assistance Available

3
Planning Issues
  • Office of Facilities Management
  • Method of Accomplishment of Acquisition
  • Appropriate Life Span of Asset
  • Provide Planning - Conceptual Architectural and
    Engineering Services - and Estimating
  • IDQ A/Es

4
Method of Accomplishment of Acquisition
  • Buy, Leasing and Enhanced Use Leasing
  • New VA Construction
  • Renovate Existing VAMC Building or Portion
  • State Home Grant - Long Term Care Solution - VA
    Pays 65 of Costs
  • Homeless Grant - VA Pays 65 of Costs

5
Appropriate Life Span of Asset
  • Partnering with VAMC and VISN, FM Assists in
    Determining Expected Need Requirement -
    Increasing Customer Base or Is It Declining and
    At What Rate
  • This Drives Whether to Lease, Renovate, Build New
    or ???
  • If New, Determine if Standard VA Quality is
    Required or if Going Lite Makes Sense, etc.

6
Provide Planning and Estimating
  • Consulting Support Service
  • Facility Assessment
  • Conceptual Architectural and Engineering
    Assistance
  • Asset Enterprise Development Service
  • Innovative Financing and Develop Alternatives
  • Facilities Quality Service
  • Estimating and Analysis of Alternatives

7
Data Sources
  • Office of Facilities Management
  • 10N
  • GSA
  • BOMA
  • R.S. Means, Marshall and Swift, Dodge, and et al

8
Office of Facilities Management
  • VA/PACES
  • New, Renovation, and Sitework Costs
  • User Definable Program Areas - by Department
    H-18-08 or Building Type, i.e. NHCU or OPC
  • FY 2002 VISN Strategic Costing Guide
  • 13 Building Types - New and renovation
  • State Home Cost Guide
  • New and Renovations
  • IDQ A/E

9
10N
  • Energy Costs
  • Janitorial Costs
  • Historical Costs - Minor and NRM

10
GSA
  • Local Rental Rates
  • Maintenance Costs
  • Janitorial Costs
  • Energy Costs

11
BOMA
  • Janitorial
  • Repair and Maintenance (Minor RA)
  • Utilities
  • Roads, Grounds, and Security
  • Administrative
  • Fixed Expenses - Insurance, Real Estate and
    Personal Property Taxes

12
R.S, Means, Marshall and Swift, Dodge, et al
  • Building Unit Costs Are Suspect
  • Small and Unknown Sampling
  • Building Cost Does Not Reflect Regulatory, Policy
    and Mandated Considerations
  • Excellent CSI Unit Costs - i.e. Concrete Cost in
    Place for columns, 24 RCP CL3 Cost in Place,
    etc.
  • R.S. Means is VA/PACES Database

13
Acquisition Costs
  • Design Procurement and Costs
  • Total Base Construction Costs - CIB Construction
    Contract Cost
  • Equipment Costs

14
Design Procurement
  • FM Lead Selection
  • CBD Ad
  • Selection Board Composed of Technical and Program
    Experts
  • Evaluation of Qualification
  • Short-listing Process
  • Interview, Rank, Final Selection, and Negotiation
    of Fee

15
Design Costs
  • Application Engineering and Estimating
  • Design Programs and Special Studies
  • Schematic and Design Development
  • Up to 1-1/2 of Construction Costs
  • Construction Documents
  • Up to 6 of Construction Costs
  • Pre/Construction Management
  • Up to 3 for Pre-Construction Services

16
Total Base Construction Cost - New or Renovation
  • Bricks and Mortar
  • Sitework Components
  • Specialized Equipment
  • Cabling
  • Significant Construction Components
  • Hazardous Material Abatement

17
Bricks Mortar
  • New Construction
  • Building Shell Foundation, Sub and Super
    Structures, Exterior Closure, and Roof
  • Back-Bone Systems Conveying, Mechanical, and
    Electrical
  • Architectural Build-out Interior Construction,
    and Equipment
  • Renovation of Existing Space or Building
  • Demolition
  • Replacement of Any Major System
  • Architectural Build-out

18
Sitework Components
  • Utilities
  • Storm, Sanitary, Gas, Electric, and Water
  • Sitework
  • Roads, Walks, Landscaping
  • Parking
  • Lighting, Stripping, Pavement, Curb and Gutter
  • Site Clearance and Demolition

19
Specialized Equipment
  • An Allowance to Take Into Account Changing Design
    and Installation of Diagnostic, and Surgical VA
    Uses 1/2 of 1 for These Changes From Budget to
    Actual Completion

20
Cabling Costs
  • Cabling Includes Telephone and LAN - Class 5 or
    Fiber Optic
  • For Intensive Clinical Space the Cost Can Range
    up to 6.00/GSF Depending on Project Location
  • VBA Regional Office Building Cabling on Average
    Runs 1.50/GSF

21
Significant Construction Components
  • Atriums
  • Elevated Bridges
  • Canopies
  • Natural Disaster Structural Strengthening
  • Hazardous Material Abatement
  • Abatement is Funded Separately

22
Equipment Costs
  • Examples
  • Food Service, Laboratory, Medical, and Pharmacy
  • VA National Contracts - 90
  • A/Es, Equipment Consultants/Specialists,
  • FMs IDQ A/Es
  • Manufactures and their Representatives

23
Items to Consider for a Construction Project
  • Utility Systems - Existing Capacity
  • Boilers, Chillers, Feed and Return Piping,
    Utility Tunnels, Emergency Generators, Primary
    Feeders, Transformers, etc..
  • Site Utilities - Existing Capacity
  • Sanitary, Storm,Water, Gas, Phone and Electrical
    Ductbanks
  • Parking, Historical, and Site Topography

24
Activation Costs
  • Current Operating Cost
  • Future Operating Cost
  • Additional FTEE Required
  • Service Contract
  • Movable Equipment
  • Moving Cost
  • Initial Furnishings - Office Furniture, IT
    Equipment, and Patient Care Equipment

25
Life Cycle Costs Distribution - Typical New Acute
Care Facility
26
Actions Effecting Life Cycle Cost Distribution
  • Operating Costs Are Not the Same for All
    Buildings on /GSF Basis
  • Small Initial Increase in MEP Costs During Design
    That Significantly Reduces Energy Consumption
    Usually Pay for Themselves Within 10 years
  • EO 13123 Mandates Use of Sustainable Design -
    Which Lowers Operating Costs

27
Operating Costs
  • It Is Imperative That Energy, Supplies and
    Staffing Costs Be Accurately Projected for each
    Alternative
  • In New Construction and Total Renovation, Energy
    Costs Should Be Significantly Less - Especially
    for VA Construction
  • New and Renovation Construction, If Ideally
    Located to Adjacent Departments and Services,
    Will Have Lower Staffing Costs - New will Be the
    Lowest

28
Maintenance Costs
  • Work Items
  • Interior
  • Exterior
  • Grounds
  • Need to Determine Frequency of Maintenance -
    /GSF/YR
  • Need to Determine Frequency of Replacement and
    Include in Economic Analysis

29
Distribution of Maintenance Costs
30
Interior Work Items
  • Wall Finishes
  • Floor Coverings
  • Ceiling Finishes
  • Mechanical
  • Electrical
  • Equipment - Maintenance and Periodical
    Replacement
  • Medical Gases, Nurse Call, etc.

31
Exterior Work Items
  • Roof
  • Windows and Doors
  • Skin
  • Foundation
  • Security

32
Janitorial Grounds
  • Cost to Clean Space
  • Contract or In-house Staff in /SF/YR
  • Cost to Maintain Grounds Attributable to Space in
    Question - /SF/YR
  • Maintaining Lawn
  • Landscaping
  • Snow Removal
  • Policing Parking Lots

33
Industry Standards and Guidelines
  • VA Circular 00-91-2
  • AHA - Estimated Useful Lives of Depreciable
    Hospital Assets
  • IRS Code - Depreciation Tables
  • Manufactures - Literature, Test Results, etc.
  • NIBS

34
VA Predicted Life Spans
  • Plumbing Fixtures - 20 Years
  • Fire Protection Systems - 25 Years
  • HVAC System - 5 to 15 tons - 10 Years
  • Radiators - Fin Type - 18 Years
  • Electrical Fixtures - 10 Years
  • Elevator - Passenger High Speed - 20 Years

35
AHAs Estimated Useful Lives and Depreciable
Hospital Assets
  • Landscaping - 10 Years
  • Floor Finishes - Carpet - 5 Years
  • Floor Finishes - Vinyl - 10 Years
  • Floor Finishes - Ceramic - 20 Years
  • Wall Covering - Paint Wallpaper - 5 Years
  • Nurse Call System - 10 Years

36
Documentation and Backup
  • Space Program
  • Source of Unit Cost Used to Generate Facility
    Cost Estimate
  • Verify All Line Items Priced
  • H-18-6227 - Construction Project Cost Estimate
  • Available on FMs WebPages

37
VISN vs. HQ Estimates
  • VISN Estimates Do Not Need to Include All Markups
    Required for Budget Request - HQs Estimates Do
  • VISN Estimate Should Distribute Dollars Over
    Project Using S Curve
  • VISN Should Develop All Construction Cost Using
    FMs VA/PACES, Web Base Guidelines, IDQ A/Es, or
    HQ Staff VISN/VAMC A/E Firm - Cost Consultant

38
Budget Estimates - New or Renovation Alternatives
  • Congressional Budget Funding Request - VAs
    Estimated Total Project Cost (ETPC)
  • Total Base Construction Costs
  • Mark-ups
  • Pre-Design Allowance and Escalation
  • Contingency Reserves and Technical Services
  • Additional Other Costs
  • Other Costs, Construction Management, and Market
    Condition Allowance

39
Total Base Construction Cost
  • CIB Submission is Basis
  • Review By HQ Estimating Staff
  • Scope of Work Envisioned and Reasonableness of
    Costs
  • Consult VAMC/VISN Explaining Any Observed
    Differences
  • Reconcile and Come to an Agreement of What Costs
    Will Be Use in The Budget Request
  • Forward a Copy of 6227 and Project Summary Sheet
    to VAMC/VISN

40
Markups
  • Pre-design Design Allowance
  • Takes in to Account Minor Changes in Required
    Programs Over Time
  • Allows for Variations in Subsoil Conditions -
    Sink Holes, Caissons, Grade Beams, etc.
  • Escalation - OMB Mandated Rates
  • Some VISNs/VAMCs Include this in their CIB
    Construction Costs - Some Do Not
  • Available on FMs WebPages - Updated
    Periodically

41
Markups - Continued
  • Contingency Reserves - New 5 and Renovation
    7-1/2
  • This pays for Construction Period Changes
  • Technical Services - 10
  • Pays for A/E Prepared Construct Documents
  • Reproduction of Drawings and Specifications
  • Surveys, Subsoil Investigations, Testing,
    Dedications, et al

42
Additional Other Costs
  • Other Costs
  • Site Acquisition
  • Utility and Other Agreements
  • Impact Costs
  • Construction Management - 3
  • Pays for On-Site Management and Inspection
  • Market Condition Allowance - 5
  • This Take Care of Local Market Variations Not
    Covered By OMBs Rates for Escalation

43
Assistance Available
  • FM Can Provide Up Front Estimating During The
    Preparation of the CIB Application
  • FM Can Provide Assistance in Developing
    Alternatives
  • FM Can Provide Guidance in Reducing Operating
    Costs
  • Contact Bob Smoot (202) 565-6400
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