Final Report on Federal Construction Council Activities for 1977-1978 and Planned FCC Technical Program for 1978-1979 (1979)

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III. PROPOSED FCC PROGRAM FOR THE 1978-1979 OPERATING YEAR As indicated previously, during the 1977-1978 operating year the FCC reviewed its goals to ensure that they reflected the real needs of the supporting agencies and its procedures to ensure that maximum benefit was being received for the funds invested. On the basis of this review, the FCC decided to revise the thrust of its program and its method of operation as described below. A. BASIC EPT Starting with the 1978-1979 operating year, the basic program of the FCC will be built around the various standing committees currently in existence and any that might be formed in the future, rather than around a variety of specific studies and continuing programs as has been the case. All ad hoc studies requiring a substantial amount of work to complete and all continuing programs except for the Federal Construction Guide Specifications program were terminated at the end of the 1977-1978 operating year. In the future, no standing committee except the Standing Committee on Federal Construction Guide Specifications® will conduct an in-depth study or manage a continuing program in connection with the basic program of the FCC. (However, as indicated below, a standing committee might be required to undertake an in-depth study as a special, separately funded project.) Instead, FCC standing committees will function, in essence, as small professional groups devoted to identifying and addressing the problems, needs, and concerns of federal construction agencies and to promoting the development of knowledge in the various fields of interest of the committees. Under the new concept, the council will delegate to the various standing committees broad authority to develop and carry out their own programs, with minimal supervision from the FCC itself. All standing committees will meet regularly (i.e., not less than three times per year), and will be expected to work toward achieving the following basic objectives: * The Standing Committee on Federal Construction Guide Specifications will be responsible for directing the current FCGS program in accordance with the guidelines for that program set forth in FCC Technical Report No. 58-74. Unless indicated otherwise, further references to the duties and procedures of standing committees do not apply to the Standing Committee on Federal Construction Guide Specifications. 17

1. To promote an interchange of information among agencies on the activities of the various agencies in their respective fields of interest, 2. To identify problems of common concern to the agencies in their respective fields of interest and either to propose specific solutions to those problems or to recommend studies by others to develop solutions, ** 3. To respond to requests for advice from various supporting agencies, ** GQ. To promote the development of knowledge in their respective fields of interest through seminars and conferences, and 5. To serve as a point of contact with professional and trade organizations, both domestic and international, in their respective fields of interest. Committees will not prepare technical reports as part of their regular activities; however, each committee will prepare an annual synopsis of its work that will be submitted to the FCC for review, approval, and publication in an annual Transactions of the Federal Construction Council. Committee members also will be responsible for submitting material for FCC newsletters. From time to time, the FCC might undertake special, separately funded projects to study in depth some problem of particular concern to the agencies. Such projects will result in preparation of a technical report and ordinarily will be carried out by an ad hoc FCC task group; however, in some cases a project might be assigned to a standing committee. When undertaken, special studies will be conducted in accordance with the usual procedures of the National Research Council. *& Only narrow-scope problems--the solutions to which can be developed in a one-day meeting and presented in a few typewritten pages--will be addressed by the standing committees. For problems requiring greater effort anda more extensive report, committees will merely prepare a study plan indicating how the problem might be addressed by others. 18

OPERATING RULES AND PROCEDURES Described below are the operating rules and procedures that will be followed in connection with the new FCC prog ram. 1. Composition and Appointment of FCC Standing Committees Standing committees of the FCC will comprise members drawn from the staffs of the federal agencies, a chairman and a vice chairman elected by the committee members, and a liaison member from the FCC. Ae Appointment of Committee Members As is currently the case, FCC committees will be appointed by the Chairman of BRAB with the approval of the Chairman of the NRC Commission on Sociotechnical Systems and the President of the National Academy of Sciences. Potential committee menbers will be nominated by the FCC members from the various federal agencies that provide financial support for the FCC. Each agency member of the FCC may nominate up to three individuals to each committee. One of three nominees may be from an agency that does not provide financial support for the FCC. Each committee member will be appointed to a three-year term. Committee members can be nominated and appointed to serve an unlimited number of additional terms. ointment FCC Liaison Members One member of the Federal Construction Council will be appointed by the FCC Chairman to serve as an ex officio liaison member of each FCC committee. Liaison members will be appointed prior to the beginning of the operating year to serve a one-year term. FCC members may serve as the liaison member of more than one committee at a time and may serve an unlimited number of terms with a committee. 19

2. Cc. Election of Committee Chairmen and Vice Chairmen At the first meeting of a committee during the operating year (the FCC operating year beings on October 1 each year), the committee will elect a chairman and vice chairman for the year. No individual may serve more than two consecutive terms as either chairman or vice Chairman; however, an individual may serve two consecutive terms as vice chairman followed by two consecutive terms as chairman. A retiring chairman may not be elected vice chairman. FCC liaison members are not eligible for election as either chairman or vice chairman. Duties and Responsibilities of Chairman, Vice Chairman, and Liaison Members The chairman of each standing committee will be responsible for ensuring that meetings are called when required, that a program of activities is developed each year to meet the basic objectives set forth by the FCC, that the program is carried out, and that a report on the activities of the standing committee is prepared and forwarded to the FCC. The vice chairman of each standing committee is responsible for presiding at any meeting that the chairman cannot attend and, in the event the chairman must for any reason relinquish his office, for assuming the duties of the chairman until a new chairman can be elected. The FCC liaison member of each standing committee will serve as a communication link ketween the FCC and the standing committee. In this capacity the FCC liaison member will provide guidance and assistance to the committee and will act as a spokesman for the committee in the FCC; however, he will not usurp or assume any of the responsibilities of the standing committee chairman. Schedule of Committee Meetings Standing committees are required to hold at least three meetings each year and are authorized to schedule additional meetings or seminars if needed. When the participation of the BRAB members of the 20

FCC is necessary or desirable, meetings will be scheduled to coincide with meetings of BRAB or the full FCC if feasible. ae Required Meetings Each committee will hold at least three meetings each year: a fall meeting to be held during October or November, a winter meeting in February or March, and a summer meeting in June or July. b. Optional Meetings The committee chairman may call up to three additional meetings of the committee each year to complete work that cannot be completed during the required meetings. Ce Seminars Committees may hold up to two seminars each year on any subject within their purview. Such seminars may be restricted to federal employees or may include invited guests from outside the federal government. ommittee Meetin endas The agendas for the three required meetings of each committee will be as outlined below. The agendas for optional meetings and seminars will be determined by the committees themselves. a. Fall Meeting At the fall meeting, which will be called by the Executive Secretary of the FCC, each committee will: (1) Elect a chairman for the year. (2) Review the areas of concern identified by the agency members of the FCC; identify other problems and issues of concern to the various members of the committee; and determine what action can and should be taken by the committee on such problems 21

(3) (45) (5) (The and issues during the year (e.g., develop committee recommendations; hold a seminar; develop a statement of work for a study to be carried out by others). * Determine the need for and nature of liaison with other organizations (if necessary, the chairman will designate various members to establish liaison with other organizations). Receive reports from members on recent developments in their agencies that should be included in the FCC newsletters. Prepare a program plan for the year and schedule future meetings of the committee. program plans of the various committees will be submitted to the FCC for information and comment not later than 1 December each year.) b. Winter Meeting At the winter meeting, each committee will: (1) (2) (3) (4) (5) Discuss and reach tentative agreement on any committee recommendation to be made regarding problems identified at the fall meeting. Discuss and reach tentative agreement on any statements of work the committee decided to prepare. Review and approve plans for seminars to be held by the committee. Receive reports from members desiqnated to serve as liaison with other organizations. Receive reports from members on recent developments, etc. * Prior to the fall meeting, the Executive Secretary of the FCC will write to the agency members of the FCC inviting them to identify areas of concern to be addressed during the year by the various committees. 22

Cc. Summer Meeting At the summer meeting, the committee will approve material to be published in the Transactions of the FCC~--e.g., committee recommendations on problems and issues, statements of work for projects to be carried out by others, proceedings of seminars held by the committee, summaries of reports given by committee members on activities of the agencies, summary reports of members desiqnated to serve as liaison with other organizations. Publications The FCC will regularly issue four types of publications: newsletters, Transact of the Federal Construction Council, administrative reports, and Federal Construction Guide Specifications. The newsletters, Transactions, and administrative reports will be reviewed in accordance with the report review procedures of the National Research Council. Newsletters The FCC will publish a bimonthly newsletter that reports on the recent technical activities and administrative actions of federal construction agencies and the FCC itself. To the extent practicable, each issue will include material provided by the members Of each committee. Additional items thought to be of interest to federal agencies will be inserted by the BRAB staff. Transactions The FCC will publish annually in September the Transactions of the Fedeyal Construction Council. The Transactions will be a compilation of all of the work carried out by the various committees during the year. The Transactions may be published in several volumes if deemed desirable. 23

Cc. Cc. Administrative Reports The FCC will prepare an administrative report at the conclusion of each operating year. The report will be transmitted to the supporting agencies by December 31 each year. d. Federal Construction Guide Specifications Federal Construction Guide Specifications will continue to be published in accordance with the established procedures of the FCGS program. In addition, the FCC will publish as separate documents the proceedings of any seminars that are considered especially important and for which a large number of prepared papers have been received and the technical reports that result from any special, separately funded studies undertaken. IMPLEMENTATION OF THE NEW PROCEDURES AND SCHEDULED ACTIVITIES FOR 1978-1979 During the 1978-1979 operating year, the FCC expects to have 15 standing committees, as follows: Architecture and Architectural Engineering Civil Engineering Computer Technology Construction Management Cost Engineering Electrical Engineering Energy Conservation Facilities Safety Federal Construction Guide Specifications Fire Protection Materials Engineering Mechanical Engineering 24

D. Ee Procurement Policy Signage and Symbols Structural Engineering Two of these--the Standing Committee on Energy Conservation and the Standing Committee on Signage and Symbols--will be new committees, the former replacing the existing informal Energy Conservation Panel and the latter replacing the Task Group on Directional Graphics. Two standing committees currently in existence--the Standing Committee on Design Criteria and the Standing Committee on Heavy Construction Practices--will be disbanded, the former on the grounds that its function will be carried out jointly by all of the commitees and the latter because heavy construction is of only minor interest to most agencies. Of the 15 standing committees that the FCC expects to have during the 1978-1979 operating year, all except the Standing Committee on Federal Construction Guide Specifications will function in accordance with the new procedures. The schedule of activities for these 14 commitees will be as outlined in Figure 1. The planned activities of the Standing Committee on Federal Construction Guide Specificaitons are discussed in the next section. The budget for the 1978-1979 operating year is presented in section E below. FEDERAL CONSTRUCTION GUIDE SPECIFICATIONS The Standing Committee on Federal Construction Guide Specifications will continue to be responsible for coordinating the development and maintenance of a series of guide specifications for federal construction in accordance with the procedures and guidelines set forth in FCC Technical Report No. 58-74, as amended. It is hoped that during the 1978-1979 year, the rate of production of FCGS can be increased to 20 specifications per year, compared to the current rate of approximately 10 specifications per year. This increase should be possible as a result of recently implemented changes in the program that simplify the approval procedures for specifications. PROPOSED _ BUDGET The proposed budget for the 1978-1979 operating year is presented below. The budget covers both the regular 25

standing committee activities of the council and the FCGS Program. Proposed Budget 1978-1979 Operating Year Salaries and Wages* $124,080 Staff Benefits 19,050 Travel Expenses 10,550 Communications and Shipping 5,220 Material and Services , 17,850 Indirect Cost 73,290 Total $250,000 *Includes reserve for annual leave. 26

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APPENDIX A STUDY PLANS OF AD HOC STUDIES of the FEDERAL CONSTRUCTION COUNCIL

PROPOSAL/STUDY PLAN FOR A BRAB Date Prepared/Revised FEDERAL CONSTRUCTION COUNCIL PROJECT 28 May 1975 30 May 1975 17 Dec 1975 1. Title: Promoting Understanding of Life Cycle Costing 9 Feb 1976 June 1976 1 Feb 1977 2. Nature of Problem to be Solved: In these days of high first costs, high maintenance costs, and rising operating costs, government agencies are finding it increasingly difficult to procure and operate their facilities within budget limitations. Responsible government legislators, managers, and engineers are, therefore, seeking ways of ensuring that maxi- mum benefit is received for the funds expended. One currently popular method of doing this is the life cycle cost analysis. The problem is the term appears to mean different things to different people, and this has created considerable confusion and disagreement as to when and how a life cycle cost analysis should be made. 3. Objectives: (a) To promote better understanding of the life cycle cost concept, and its use in the world of federal construction, by those in the public and private sector con- cerned with such construction, by: (1) Developing a clear, precise definition of life cycle cost, such definition to indicate the relationship between a life cycle cost analy- sis and value-engineering and engineering-economic analyses; (2) identifying the benefits, limitations, and problems associated with life cycle cost analyses; (3) determining when and for what purposes life cycle cost analyses should be made during the planning-design process, and the level of detail required at the different stages in the process; (4) identifying the type of data required for life cycle cost analyses and sources of such data; (S) preparing a bibliography of documents relating to life cycle cost analysis. (6) To establish a framework and environment to facilitate the continuing exchange of life cycle cost information (e.g., on cost data, procedures, experience, computer techniques, technological advances, and applications) among federal cost specialists. 4. Scope: The study will deal only with examples of circumstances under which the life cycle cost concept is applicable to the procurement of buildings by federal agencies. 5S. Anticipated Benefits: With clarification of the meaning of the life cycle cost concept and guidelines on its application, agencies will be able to proceed with the implementation of the concept with greater confidence that their work will not be challenged. 6. Responsible Committee or Task Group: FCC Standing Committee on Cost Engineering A-1

Method of Carrying Out the Project: A conference will be held on Promoting Understandin of Life Cycle Costing at which approaches taken by the various agencies to the use of rife cycle costing will be explained. Conference participants (agency representatives or their consultants) will be asked to prepare in advance written statements that will be presented at the conference. Following the conference the Committee will prepare a general summary of the agency presentations which together with the participants’ statements will form the Committee's report. Included in the Committee's summary will be: (1) a derinition(s) or life-cycle costing, indicating the relationship between life cycle cost analysis and value- engineering and engineering-economic analyses; (2) identification of benefits, limitations, ani problecs associated with life cycle cost analyses; (3) when and ror what purposes life cycle costing, analyses are made during the planning-design process, and the level of detail required at different stages in the process; (4) the type of data required for life cycle cost analyses and sources of such data. Schedule: Actual Dace Estimated of Completion Date of (Plus revised Completion estimate) _ Conference Format and Agenda Prepared Apr 7, 1977 |April 7, 1977 Invitation to Attendees Sent May 8, 1977 |May 8, 1977 Prepared Statements from Agencies Received June 21,1977} June 21, 1977 Conference Held June 28 1977| June 28, 1977 Report Outline Developed July 7, 1977)Sept 1977 Draft Committee Summary Prepared g 31, 1977]Nov 1977 Report Draft Approved by Committee ept 30,1977|April 25, 1978 Report Draft Approved by FCC t 31, 1977|/6ept 15, 1978) Report Transmitted Dec 31, 1977} (Nov 30, 1978) 9. FCC Funds and Agency Manpower Required: 10. ll. 12. FCC Funds Required Agency Manpower Required Actual Actual (plus revised (plus revised Estimated estimate) Estimated estimate) 1975-1976 $12,000 $ 9,500 100 M.D. 100 M.D. 1976-1977 8 ,000 16,200 60 M.D. 1977-1978 0 (20,400) 0 Proposing Agency: OCE Other Agencies Having High Interest: NAVFAC, GSA, VA, NBS, ERDA, AF, NASA Comments: The study plan was revised in February 1977 in that the method carrying out the project was changed from the technical study approach to the conference approach and also_in that the schedule was modified to reflect this change. The conference approach was considered to be a better method of obtaining information on the current policies of agencies with regard to the use of life cycle costing. A-2

PROPOSAL/STUDY PLAN FOR A BRAB Date Preparcd/Revised FEDERAL CONSTRUCTION COUNCIL PROJECT S. 6. 6 June 1974 —__20 June 1975. —___2 June 1976 Title: Probabilistic Cost Est mating and Cost Analysis in 1_Nov_ 1976 She Building Process. Nature of Problem to be Solved: £ imat of futur f the process of procuring facilities (i.e., planning, programing, budgetary, design and construction) in order to evaluate alternatives, prepare requests for appropriations, and control costs. Traditionally, such estimates are presented as a single specific value; however, this is misleading since the estimates are really predictions of what contractors will bid and the estimators have no control over the bidders. Recogni.ing this fact, several owners and designers have begun to'use probabilistic methods to pre- pare and present their estimates. It would appear that this approach is better than the traditional approach since, it permits an estimator to indicate the degree of uncertainty associated with his estimate, and that federal agencies should consider adopting the __ approach. Objectives: To determine whether probabilistic analytical methodologies should be used ", to develop a computer program a instruction on its use, to be made available to all agencies through the Federal Agencies' Computer Time-Sharing System. Scope: (As part of the study, various methods of making probabilistic estimates and i h estima wi b iga d the advantages, dis- advantages relative to other probabilistic methods and to deterministic estimating termined; the means by which probabili estimating could be adopted by federal agencies also will be explored. The computer program for making probabilistic estimates would be applied to all types of construction projects, Anticipated Benefits: If the use of probabilistic estimating by federal agencies proves feasible and desirable, federal agencies will have a new and potentially far superior method than they now have for predicting and controlling construction costs and pre- senting their construction programs to the Congress. Responsible Committee or Task Group: FCC Standing Committee on Cost Engineering

7. 10. ll. 12. Method of Carrying Out the Project: The Committee will assemble pertinent information through literature searchers and informal meetings with private specialists in the field. Evaluations will be made both jointly by the Committee relative to the overall needs of the agencies and individually be each Committee member relative to the needs of his Particular agency. The program and related instructions will be developed under a sub- contract, and will be based on previous work carried out by the Massesschusetts Institute of Technology. Schedule: tua te Estimated of Completion Date of (plus revised Milestone Completion estimate) terature searc summarized ngs wit conclusions deve r approv r rt transmitt am develo am deve complet 1974 4 1974 4 l t. l Nov. t. 7s vate ec sts l ommittee to FC ent su er ontract er nar Tro e a a ommittee FCC Funds and Agency Manpower Required: Man ired Agenc r ired tual (plus revised estimate) FCC Funds tua (plus revised estimate) Operating Year Estimated Estimated 9.4 2,8 4 7 1977-1978 0 8 ,000 Proposing Agency: Standing Committee on Cost Engineering Other Agencies Having High Interest: All agencies Comments: The first phase of this project was completed with transmittal of a memorandum report to the FCC indicating that use of probabilistic estimating would be desirable. On the basis of that report FCC approved the development of the computer program.