A05 Attachment 02 SOW (Draft) Alaska.docx

The Statement of Work (SOW) 2025 Facility Budget Estimating System Establish Accurate Construction Cost Data Special Location Factors (within the State of Alaska)

1.0 Purpose

1.1 The purpose of this SOW is to establish accurate Construction Cost Data Special Location Factors within the State of Alaska for use in the Indian Health Service’s (IHS) Facility Budget Estimating System (FBES) in FY 2025.

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 within the State of Alaska. Each Alaskan 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 Alaskan locations for which Special Location Factors shall be developed via this Statement of Work (SOW) are included herein below.

2.3 Development of these 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 within the State of Alaska 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

4.1 The Contractor shall conduct the necessary market research for development of Special Location Factors within the State of Alaska.

4.2 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.

4.3 Provide a complete listing of previous Special Location Factors within the State of Alaska 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.

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

5.0 Special Location Factors

5.1 Develop Special Location Factors within the State of Alaska by comparing overall costs, materials, mobilization, heavy equipment transportation and rental, site preparation, utilities, fire protection, weather & seasonal impacts, and labor of projects in a specific location to National Average Costs. To the maximum extent possible, costs should be based on actual constructed projects from a specific area and should include differences in material and labor costs, specific design and construction problems of a location, and features common to that area. Create a table which quantifies the cost impacts for locations listed. Use the following assumptions unless contradicted by actual construction costs:

Base cost on an appropriately sized facility for the Alaskan community. Create a table that lists type and size of typical facilities for each location.

Energy costs in Alaska are typically significantly higher than national averages. Adjust building envelope, mechanical system and electrical system costs to reflect levels of nsulation, efficiency and performance required for sustainable facilities.

Alaskan Communities not on road system: Equipment such as cranes, loaders, dump trucks, pile drivers etc. are typically not available locally. Include in mobilization costs shipping to the community, lease costs which reflect the seasonal shipping window for the community, and delays related to no locally available parts or service facilities.

Alaskan Communities in locations with discontinuous or continuous permafrost: Include costs associated with active cooling of foundation system or other climate change related foundation stabilization requirements. Address other typical building construction costs associated with constructing on permafrost, including arctic water & sewer service, elevated building entrance, heated utility space under 1st floor, managing storm water run-off, etc.

Many locations in Alaska do not have access to a reliable public water supply. In communities which cannot provide piped water and sewer to the facility, include costs for establishing a water source, water treatment and sewage treatment facilities. See paragraph 5.2 for additional guidance.

Small community water utilities which do not serve the majority of the population with piped water and sewer typically do not have the capacity to reliably deliver a large fire flow. For Alaskan communities of less than 10,000 people and without majority of the community on piped water and sewer, assume fire sprinkler service will require a fire water storage tank and associated appurtenances such as insulated/elevated foundation, fire pump, yard piping, and so forth. See paragraph 5.2 for additional guidance.

Freight impact: Some Alaskan communities are “fly in” only, and some communities have seasonal barge service. Both situations impose additional costs associated with logistics. Develop freight costs which address freight shipping impacts.

Cost of room & board: The majority of rural communities in Alaska do not have sufficient locally available skilled tradesmen. Include room and board costs for construction crews, inspectors, technicians, engineers, and managers. See paragraph 5.2 for additional guidance.

Cost of travel: Identify and include costs associated with moving construction crews, inspectors, technicians, engineers, managers etc. to the project location. Include travel time & cost of transportation.

Weather related costs: Alaska has a very short summer construction season. Adjust labor costs to reflect work performed at low temperature and during inclement weather. Include mitigation work such as temporary work enclosures, heating of work spaces during construction, and impacts on shipping and storage.

Local Hire related costs: A necessary element of rural Alaskan construction is to prepare the community with the necessary skills to perform maintenance and repairs to the maximum extent possible. Where possible, local workers are trained and employed. Develop cost associated with local hire recruitment, training and deployment.

General Contractor Overhead & Profit, bond and Insurance: Because of significant employee turnover, weather and logistics related risks, projects in rural Alaska typically have significantly higher margins. Include location relevant GC O&P, bonding & Insurance.

5.2 Assumptions (5), (6), and (8) in paragraph 5.1 might be best addressed as a line item cost when generating a facility budget estimate with the FBES, rather than rolled into locality factors which are used to adjust base unit costs. Therefore, the Contractor, in one of the Interim Status Update Reports, shall make a recommendation to IHS whether they should be included in the development of Special Location Factors.

5.3 Compare the Anchorage Special Location Factor developed under Section 5.1 to the published MVS Standard Location Factor for Anchorage. Analyze any difference. Based upon the analysis, normalize the Alaska Special Location Factors to MVS Anchorage Standard Location Factor.

Table 1: Alaskan Location Factor Communities & Facility Size

5.4 Deliverables include a matrix for each location which shows the base construction cost and location adjustments for materials, mobilization, heavy equipment transportation and rental, site preparation, utility connections, fire protection, weather and seasonal impacts, and labor.

5.5 Provide a complete listing of previous location and size factors used by the IHS and comparison to new factors, as well as an explanation for significant discrepancies (over 15% difference). IHS historic location factors within the State of Alaska are provided in the attachment.

5.6 Unless prior approval is obtained, the scope shall be limited to examination of existing and reported data with no field trips or onsite inspections. Wherever available, building plans, record drawings, and specifications will be provided for the Contractor's review.

6.0 Acceptance Standards

6.1

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.

7.2 Special Location Factors Report (Alaska). Provide Draft and Final Submittal according to Section 8.0. Include the following:

(1) Cover Sheet including:

· IHS Logo

· Title "Size and Location Factor Assessment of IHS Facilities (Alaska Location Factors)”

· Submittal type (i.e. "Draft" or "Final")

· Date

· Contractor(s) name and logo.

(2) Table of Contents indicating major sections, short title and page number for each section.

(3) Narrative, approximately four to ten pages, including but not limited to the following items:

· Date of report.

· Identify team members and key personnel.

· Purpose of report.

· Basis for analysis and location of facilities.

(4) Base Cost Description

· General description of how base costs are estimated, including what elements are incorporated and excluded, etc. Building descriptions with their sizes, number of stories, general construction type, and listing of typical programs housed within each building.

(5) Complete Facility Cost Survey Forms, one for each facility used to establish location costs. The following guidelines for completing the form follow the format of the form:

· Survey Type:

· Building Location and nearest logistics hub community (if not a hub community)

· Building: Building description

· Building Base Cost

· Building size:

· Building age:

· Estimating Method:

· Estimated Individual costs as described in Section 5.1

· Estimated total cost:

· Actual reported cost with source.

· Inflation adjusted actual cost.

· Remark: Provide any additional comments that will clarify the costs data.

(6) Table listing estimated construction cost for each location identified in Table 1. Break cost down per Section 5.1, items 1 through 12. Include total cost and calculated location factors. Where possible, compare actual cost to estimated cost.

(7) Table listing previous location factors and proposed new location factors.

(8) Table listing previous size factors and proposed new size factors.

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 Locations Factors Report (Alaska) October 15, 2024

FINAL

Special Locations Factors Report (Alaska) November 15, 2024

9.0 Attachments

2024 FBES Alaska Area Factors Final Report (dated 12 December 2023)

End of Scope of Work