A05 Attachment 01 SOW (Draft) Lower 48 States.docx

The Statement of Work (SOW) 2025 Facility Budget Estimating System Establish Accurate Construction Cost Data Special Location Factors (within the “Lower 48” States)

1.0 Purpose

1.1 The purpose of this SOW is to establish accurate Construction Cost Data Special Location Factors for use in the Indian Health Service’s (IHS) Facility Budget Estimating System (FBES) in FY 2025. These Location Factors are located within the “Lower 48” States, meaning they do not include locations within the States of Hawaii or Alaska.

2.0 Background

2.1 Special Location Factors are used within the FBES to account for the variation in construction costs in different geographic locations. Each geographic location where IHS facilities are located and constructed has its own location factor and represents a deviation from a national average. When estimating the construction cost for a specific project in a specific location, the FBES adjusts the base unit construction costs (the cost per square foot to construct various kinds of IHS facilities) by multiplying them by the location factor wherein the project is located.

2.2 The required locations for which Special Location Factors shall be developed via this Statement of Work (SOW) are included herein below, as well as in the attachment.

2.3 Development of the Special Location Factors shall be performed by professional construction cost estimators with a minimum of five years’ experience in estimating health care projects and using CoreLogic Marshall Swift MVS.

2.4 The selected Contractor shall provide the Special Location Factors as stated in Section 4.1.

3.0 Standard Location Factors

3.1 The primary source of Standard Location Factors is the Marshall & Swift Valuation Service (MVS) Section 99, Local Multipliers Data. The MV factors for Class A construction are used for this purpose.

3.2 Standard Location Factors are not included within this SOW (which is developed specifically for Special Location Factors). This Section is for informational purposes only.

4.0 Special Location Factors (“Lower 48” States)

4.1 Develop Special Location Factors for the “Lower 48” states by conducting market research for each of the following locations:

4.2 The Contractor shall conduct the necessary market research for development of Special Location Factors.

4.3 As part of the response to this RFP, the Contractor shall provide a detailed description of the market research methodology they will use in the final report.

4.4 Provide a complete listing of previous Special Location Factors used by the IHS and comparison to new factors, as well as an explanation for significant discrepancies from the previous year. (over 5% difference). IHS historic Special Location Factors are provided in the attachment.

4.5 Upon review, the Contractor shall provide an explanation and resolution for Specific Location Factors that appear incongruent with other factors in similar locations.

5.0 Acceptance Standards

5.1

6.1 Acceptance of the Special Location Factors is dependent upon resolution of discrepancies as described above.

6.2 Acceptance of Special Location Factors is dependent upon resolution of other discrepancies that may become apparent when IHS uses the FBES in the preparation of the FY 2025 New Construction Facility Budget Estimates (through January 2025).

7.0 Deliverables

7.1 Interim Status Update Reports. Provide an assessment of the percentage complete and confirmation that Draft and Final Deliverables will be submitted on schedule. Provide an explanation for significant discrepancies from the previous year (over 5% difference).

7.2 Special Location Factors Report. Provide the Draft and Final Submittal according to the requirements in Section 4.0 and 8.0. Include the following:

(1) Narrative describing the methodology used to prepare the special location factors for the “Lower 48” states.

(2) Listing of Local Multipliers with Class A, B, C, D, and S construction that are similar to those in the MVS publications.

(3) Copy of Local Multiplier Form used in each location.

8.0 Milestone Schedule for Deliverables

8.1 Conference calls between the Contractor and IHS may be conducted in relation to each report. The Draft Submittal shall include the completion of all work to be performed. The Final Submittal shall incorporate any revisions required as determined by a review by IHS of the Draft Submittal.

DRAFT

Special Location Factors Report (Lower 48) October 15, 2024

FINAL

Special Location Factors Report (Lower 48) November 15, 2024

9.0 Attachments

· 2024 IHS Location Factor Lower 48 Report (dated 15 December 2023) End of Scope of Work