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From page 9... ...
prepared with the use of private architect-engineer firms Once PCE's are finalized. Headquarters of the Facilities Procurement Agents review and modify a l l estimates to reflect inflationary trends and to ensure comparability of unit costs between field offices and the military Departments Final budget estimates are then made and the programs forwarded to the Office of the Assistant Secretary of Defense (Installations and Logistics)
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From page 10... ...
the installation and from the point of stibmission of the form by the installation commander to appropriation of funds by Congress, the size of the project has l i t t le relevance to the review procedures executed An exception is the truly large projects which receive more scrutiny as to justification of need and cost est i mates The Committee feels that i f the extent of evaluations and review procedures were more in proportion to the size and importance of a project, considerable savings of both time and money could be achieved 2 4 2 1 Cost Estimates - Ini t ia l cost estimates are made at the beginning of the annual planning and programming cycle It was recommended m Section 2 4 1, Responsibility for and Quality of Init ia l Estimates, that cost estimating activity be centralized and that the quality of estimates be upgraded so that they could serve without modification to the extent feasible throughout the planning and programming cycle With this upgrading of quality and centralization of the process, estimates made for small projects of a routine nature ( i e , those costing less than $500,000) should be sufficient not only for purposes of planning and programming but also for purposes of funding Accordingly, i t has been recommended that the init ia l cost estimates formulated for DD Form 1391 serve as the sole cost information to be generated for projects considered to be routine in nature and costing less than $500,000 each, during the annual planning, programming and funding cycle It I S recognized that the word "routine" is broad in meaning but the Committee believes that the Facilities Procurement Agents are best qualified to decide which projects costing less than $500,000 can be considered routine 2 4 2 2 Review of Small Projects of Routine Nature 2 4 2 2 1 Review by the Military Departments Presently, with the exception of a limited nimiber of projects that must be introduced annually as a result of mission changes for installations durxng the year in question, each project to be included m an annual military facilities program, whether large or small, generally is reflected m the construction annex of the Five Year Defense Plan The military Departments have, therefore, usually reviewed and approved each project prior to its inclusion in the annual military facilities prociirement program In this light and coupled with the recommendation that in i t ia l estimates of construction costs be iqjgraded, i t appears quite reasonable to relax the detailed examination of the small routine projects at each approving command level 51
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From page 11... ...
Accordingly, i t has been recommended that a l l projects considered to be routine in nature and estimated to cost less than $500,000 each, be aggregated during the annual planning and programming cycle at each approving military command level and presented to each successive approving command level as a single-line item, delineated only by the total dollar amount and a l i s t of projects by facility classification (e g , operational facil ity, maintenance facility)
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From page 12... ...
2 4 2 2 2 Department of Defense Reviews - Personnel requirements and paper work associated with the processing of small projects could be further reduced and project processing accelerated, i f the Office of the Assistant Secretary of Defense (Installations and Logistics) would accept the packages of such projects as a single-line item for each military Department and limit examination of content to that necessary to ensure compliance with policy While i t is recognized that certain projects, even though of a routine nature, wil l be of unusual importance and that the mechanism for proper review will be to examine the DD Form 1391 and attendant sijpporting information, such practice by the Office of the Assistant Secretary of Defense (Installations and Logistics)
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