Cost Estimate Development Handbook - Revision 2 - September 29, 2023

Sep 12, 2026

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Cost Estimate Development Handbook (Revision 2, September 29, 2023) provides uniform guidance and best practices for developing reliable cost estimates across the U.S. Department of Energy Office of Environmental Management. It covers recommended methods and procedures for EM programs and projects across the full life-cycle, from pre-operations through operations and final disposition. While it does not create new requirements or constitute EM policy, it aligns with GAO cost estimating guidance and incorporates directives from DOE/EM and best practices from AACE International and the EM Cost Quality Program.

LanguageEnglish

CategoryPresentations

FormatPDF

Pages61

Reading Time21 min

AccessFree to download

FORWARD

1.0 PART I: COST ESTIMATE REQUIREMENTS, GUIDANCE, AND TYPES

1.1 INTRODUCTION

1.2 LIFE-CYCLE COST (LCC)

1.3 DOE AND EM ESTIMATING REQUIREMENTS, GUIDANCE, AND USES.

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U.S. Department of Energy Office of Environmental Management
Revision (2) September 29 , 2023 | | --- | | | | Initiated by:
EMCBC OCE | TITLE PAGE Document Number: EMCBC-OOCE G 002 Document Title: Cost Estimate Development Handbook Revision: Revision 2 Publication Date: September 29, 2023 Prepared for: U. S. Department of Energy (DOE) Office of Environmental Management (EM) Prepared by: Environmental Management Consolidated Business Center (EMCBC) Office of Cost Estimating (OCE) Issued by: EM Cost Quality Program Manager CHANGE CONTROL PAGE | Starting | New | Revision | Section and | Summary of Changes |
Writer | | --- | --- | --- | --- | --- | --- | | Revision | Revision | Date | Title | | | | Number | Number | | | | | | 0 | 1 | 8/22/19 | All | Updated to include Office of
Cost Estimating name change include current EM KD process. | KJB | | 1 | 2 | 9/29/23 | All | Updated to include Office of Cost Estimating name change and remove references to the EM KD process. | KJB | The EMCBC Office of Cost Estimating is the content manager for this Guide. Any suggested changes should be submitted to: [kevin.barry@emcbc.doe.gov](kevin.barry@emcbc.doe.gov) FORWARD The purpose for this Cost Estimating Handbook (Handbook) is to provide uniform guidance and best practices for use when developing cost estimates for all work planned and executed within the Office of Environmental Management (EM) . This Handbook describes the recommended best cost estimating methods and procedures for all programs and projects at EM when preparing cost estimates. The best practices presented in this Handbook can be used to develop high quality cost estimates to support all phases of EM ’s capital asset acquisition and life-cycle management activities, operating activities, and other costs estimated to be incurred in the design, development, production, operation, maintenance, support, and final disposition of a system over its anticipated useful life span. This includes costs from pre-operations through operations to the end of the project/program life-cycle. This Handbook does not impose new requirements or constitute EM Policy, nor is it intended to instruct estimators how to prepare cost estimates, and strict conformance is not required. However, information contained in this Handbook is based on guidance from the General Accounting Office (GAO) regarding development of high quality estimates and incorporates guidance and directives from the Department of Energy (DOE) and EM, as well as best practices from the Association for the Advancement of Cost Engineering (AACE) International and those implemented under the EM Cost Quality Program. The intent of this Handbook is to provide a consistent approach, specifically tied to work completed under EM’s mission that supports the development of high quality cost estimates that provide an essential element for successful acquisition and project/program management within EM. The main objective of the Handbook is to provide guidance for estimators, Federal Project Directors (FPDs), procurement officials, or other EM officials needing cost estimates. According to the GAO,“The ability to generate reliable cost estimates is a critical function, necessary to support the Office of Management and Budget’s (OMB) capital programming process. Without this ability, agencies are at risk of experiencing cost overruns, missed deadlines, and performance shortfalls...Furthermore, cost increases often mean that the government cannot fund as many programs as intended or deliver them when promised.” As resources become scarce, competition for them will increase. It is imperative, therefore, acquisition programs deliver as promised, not only because of their value to their users but because every dollar spent on one program will mean one less available dollar to fund other efforts. The cost estimating principles and processes provided herein may be used to meet or adhere to Fe

FAQs

What is the purpose of the Cost Estimate Development Handbook?

It provides uniform guidance and best practices for developing cost estimates for work planned and executed within EM. It describes recommended methods and procedures for programs and projects.

Does the handbook impose new requirements or constitute EM policy?

No. It does not impose new requirements or constitute EM Policy, and strict conformance is not required.

How is the handbook structured?

It includes two parts: Part I describes the type, purpose, and use of EM cost estimates, while Part II presents best practices tied to the Characteristics of High Quality Estimates and specific EMCBC OCE practices.

Sep 12, 2026

Upload by Hazel