STATEMENT_OF_WORK-Final.docx

Industrial Building Model Development and Updates Statement of Work Bureau of Labor Statistics Draft

PROJECT DESCRIPTION

Purpose:

The Bureau of Labor Statistics’ Producer Price Index (PPI) program requires data and services to aid in updating four regional (Northeast, South, Midwest, and West) industrial building cost models and the sample of contractors used in the calculation of PPIR 236211. In addition, a methodology to update the costs included in each of the regional cost models on a quarterly basis must be developed. The methodology should adjust the costs for each component of the model to reflect actual market price movement observed within the region for which the model was designed.

Objectives:

1. Obtain from the vendor a reasonably comprehensive list of all new industrial building projects that were bid, under construction, or completed construction in the United States during the period of June 1, 2012 to June 1, 2015.

2. Identify a specific project (one for each major Census region) that best reflects the ‘average’ industrial project within that region.

3. Develop four fully detailed regional industrial building cost models. Each model should reflect the known characteristics of the project selected as the ‘average’ for the region.

4. Create a sample of industrial building contractors (general and subcontractors) by identifying contractors that worked on the projects listed in #1 above.

5. Initiate the contractors and subcontractors into the survey for PPIR 236211.

6. Develop and implement a methodology to update the input costs for the four regional models.

SCOPE OF WORK

The data and services covered by this statement of work include everything necessary to re-specify the industrial building models for the four major Census regions (Northeast, South, Midwest, and West) and maintain continuous calculation of PPIR 236211. This specifically includes:

BASE YEAR WORK (See specific due datesunder “Performance Measure” for “Base Year” and “Option Year” Deliverables.)

1. Delivery of a list of all new industrial (see definition of ‘new’ and ‘industrial’ in attachment A) buildings bid on or built in the United States between June 1, 2012 and June 1, 2015.

2. Development of four (1 per major Census region) industrial building cost models.

3. Development of a methodology to update the costs in the four regional industrial models on a quarterly basis reflecting market price movement within each of the regions. This methodology must also allow BLS the option to select up to four assemblies in each region for which specific research will be performed by the vendor.

4. Provide assistance to BLS on an ‘as needed’ basis to understand the make-up of the industrial cost models and to evaluate any future updates to the models due to significant changes in ‘typical’ construction practices.

OPTION YEAR WORK (See specific due dates in section B-3)

5. Delivery of cost updates on a quarterly basis for each of the four regional industrial cost models.

All of these activities are necessary for continuous publication of PPIR 236211.

DATA AVAILABILITY

Please be advised that the selected vendor may not use the Bureau of Labor Statistics name in connection with any collection of data that is being purchased under this contract. The data being purchased should be commercially available and not collected exclusively on behalf of the BLS.

DELIVERABLES

BASE YEAR

1. “Project List.” A reasonably comprehensive list of all new industrial building projects in the United States that were either: (1) bid, (2) under construction, or (3) completed construction during the period of June 1, 2012 to June 1, 2015. In preparing the list of new industrial building projects it is very important that the project meet the definition of a ‘new’ ‘industrial’ building. A definition of these terms is provided in attachment A.

The information desired for each project includes:

· Project bid date

· Construction start date

· Construction completion date

· Physical address (including city and state) where the project will be or is being constructed

· Total square footage of the building

· Total cost for construction of the building excluding land cost, architectural fees, permitting fees, and any other cost not directly associated with the construction of the building itself. Construction costs should include material cost, labor cost, and installation costs.

· Cost per square foot for the building.

· Total number of floors in the building above and/or below grade

· Building frame material

· Roof covering material

· Exterior wall material

· An indicator as to whether or not building plans/specifications are available to the vendor for use in developing the cost model. It would be desirable if there was also an indicator of the amount of plan/specification information

· LEED rating

· Performance Measure: The project list is 20 working days after award. The project list will be judged based largely (but not solely) on the accuracy of the: (1) Project total cost information; (2) Square footage information; (3) Cost per square foot information; and (4) Completeness of the project list. The accuracy of the first three measures will be evaluated by comparing the figures in the project file to publicly available internet information for a random sample of 50 projects in each region. The completeness of the list will be evaluated by BLS independently identifying 30 of “high profile” industrial projects in each region and checking to see if those “high profile” projects are included on the project list. The project list does not have to contain every “high profile” project but should contain a reasonable number of them.

a) Is the “total cost” figure listed in the project file within plus/minus 30 percent of the “total cost” figure listed on publicly available internet sites?

b) Have unusually small or large “cost per square foot” figures been reviewed for accuracy?

c) Have unusually small or large “total cost” and “square footage” been reviewed for accuracy?

d) Do 70 percent of the “high profile” projects independently identified by BLS in any one region appear on the project list?

2. “Models.” Develop a cost model of the industrial building project selected by BLS for each of the four Census regions. The cost model must go down to a level of detail such that all tasks necessary to complete the building are specified. (See attachment B at the end of this document for an example.) All building systems (plumbing, heating, and air conditioning, electrical, roofing, siding, and substructure) must be included in the model submission. The cost models must include appropriate column headers. All assembly level cost information must accurately reflect the aggregation of the lower level cost information. Similarly, the total cost (both with and without overhead and profit) for each line in the model must accurately aggregate the material and installation costs for that line. The cost information for the assemblies and components must reflect market costs for the region that the model is for. NOTE: No partial quantities should be listed for items which are not divisible into partial quantities. For example, ‘1.5 toilets’ is not acceptable. Please round the quantity as appropriate.

· Performance Measure: One completed regional cost model is due by each of the following dates: (1) December 7, 2015 (2) January11, 2016 (3) February15, 2016 and (4) March21, 2016. These dates are firm unless different dates are mutually agreed upon or additional time is granted by BLS due to various circumstances. The models are to be delivered in an Excel format and meet the criteria specified above. This deliverable will be rated as ‘Satisfactory’ if each of the models are received by BLS by the specified due date and require only a minimal amount of editing. A rating above satisfactory can be achieved by delivering at least one of the models four working days prior to the specified due date with no negative impact on the quality of the model.

3. “Contractor List.” The vendor will provide a list of contractors (see the numbers in the table below) for each of the four regions (Northeast, South, Midwest, and West). The list must consist only of contractors that had bid or worked on a new industrial building project between June 1, 2012 and June 1, 2015.

· Performance Measure: The contractor list is due February 12, 2016 unless another date is mutually agreed upon between BLS and the vendor. The list of contractors (general, roofing, concrete, electrical, plumbing, and mechanical) for each of the four Census region and contractor type must meet the minimum required number as specified in the table above unless another mutually agreed upon number is arrived at between BLS and the vendor. A rating of ‘Satisfactory’ will be given for a list of contractors that meet either the numbers listed in the table or the agreed upon numbers between BLS and the vendor. A rating higher than ‘Satisfactory’ will be given when, in at least five cases, the number of contractors names within a region exceeds the minimum required number by ten percent.

4. “Cost Update Methodology.” Develop and document the methodology to be used to update the costs in the model.

The methodology should:

a) reflect actual costs observed in the marketplace since the previous cost update.

b) be based on a sufficient sample of companies providing cost information.

c) only use cost information for the region that the model encompasses.

d) attempt to incorporate all of the various costs (material, labor, equipment, fuel, general conditions, etc) which are an included in the total cost of building a industrial building.

e) allow BLS the option to select four assemblies in each of the four regions for which direct surveying will be performed by the vendor to obtain all cost information (material, labor, equipment, etc) for the selected assemblies.

The document written by the vendor should explain the methods that will be employed by the vendor to update the costs in the models such that they reflect actual costs observed in the market.

a) fully detail all survey methods to be employed to collect information used to update the model costs.

b) state the average number of companies to be contacted as part of the survey process.

c) explicitly state what types of costs (material, labor, equipment, fuel, general conditions) are and are not incorporated by the update methodology.

d) fully explain how the costs in the model are moved via the update methodology.

e) indicate any costs that will not be updated in every period due to not collecting information for that type of cost in every period or for some other reason.

· Performance Measure: The methodology documentation is due on May 30, 2016. A ‘Satisfactory’ rating will be give if the documentation is received by the specified date and clearly explains the methods that will be employed to update the cost models. A rating higher than ‘Satisfactory’ will be given if the documentation is received before the specified due date and clearly explains the methods that will be employed to update the cost models.

5. Ongoing support regarding contents of the regional models and any quality adjustment information required by BLS due to changes in the regional models. BLS may also request additional information for cost changes that it deems noteworthy or for cost information to make adjustments when the models or cost update process change.

· Performance Measure: The vendor assists BLS in understanding how the cost models were developed and answers specific questions concerning the selection of various materials and building systems for inclusion in the model.

FOUR OPTION YEARS

6. Four Option Year “Quarterly Cost Updates.” One year of quarterly cost updates for the four industrial building models. The cost updates for each option year are due: June 10, September 10 , December 10, and March 10. Each option year begins June 1 and concludes on May 31 of the following year.

· Performance Measure: Cost updates for each of the industrial building models are delivered by the 10th of June, September, December, and March for the relevant option year unless an extension is granted by BLS. This first month of each option year will be June. The quarterly cost updates will reflect actual changes in costs for material, installation, and fuel observable in the market place since the previous cost update for each particular region.

7. One year of ongoing support of quarterly cost changes for the regional models and any quality adjustment information required by BLS due to changes in the regional models. Along with the delivery of the quarterly cost updates the vendor provides an explanation for any significant cost changes due to the quarterly updates. BLS may also request additional information for cost changes that it deems noteworthy or for cost information to make adjustments when the models or cost update process change.

· Performance Measure: The vendor provides written explanations of significant cost changes along with the model updates. Any additional information requested by BLS concerning price changes or changes in the model or cost update process is provided in writing within five business days.

PERIOD OF PERFORMANCE

The period of performance under this purchase order will be:

LOCATION OF PERFORMANCE

All work will be performed at the contractor’s site

SCHEDULE OF “BASE YEAR” DELIVERABLES:

Award Contract

Receive Region 1 Model

12/7/2015

Receive Region 2 Model

1/11/2016

Receive Region 3 Model

2/15/2016

Receive Region 4 Model

3/21/2016

Receive Contractor List

2/12/2016

Documentation of Methodology

5/30/2015

BLS requires delivery to be made according to the following schedule:

1. List of industrial projects

20 working days from award

2. Four regional models

A model for any one region is due by the following dates: December 7, 2015; January11, 2016; February 15, 2016; and March 21, 2016.

3. List of contractors

February 12, 2016.

5. Ongoing Support

During the “base year” and any subsequent “option” years on an “as needed” basis.

6. “Option year” cost updates

Cost updates are provided in the “option years” on a quarterly basis for the industrial building models. “Option year” cost updates are to be delivered by the 10th of June, September, December, and March in each option year unless an extension is granted by BLS. The “option years” will be as follows:

(Option year I is June 1, 2016 to May 31, 2017) (Option year II is June 1, 2017 to May 31, 2018) (Option year III is June 1, 2018 to May 31, 2019) (Option year IV is June 1, 2019 to May 31, 2020)

Attachment A – Definitions

Term: Assembly Definition: A discrete job completed by a single type of trade contractor. Every job necessary to construct a building should be encompassed by a unique assembly Example: Concrete slab on grade, 5" thick, heavy industrial, reinforced.

Term: Component Definition: A unique subset of an assembly. A specific material or labor used in the completion of an assembly. A group of components are all the materials and labor necessary to complete the assembly.

Example: Ready mix, regular weight, 3500 psi. 1500 c.y. concrete for $11,500.

Term: LEED Rating Definition: The Leadership in Energy and Environmental Design (LEED) Green Building Rating Systemtm is a third-party certification program which encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria. For more information go to www.usgbc.org.

Term: Manufacturing or Industrial Building Definition: A single structure used primarily to house production or assembly activities. The building may also include office and/or warehouse space, but it is predominantly used for industrial, commercial assembly, and/or manufacturing space. Structure types that shall not be considered manufacturing or industrial buildings include: refineries, petrochemical plants, water treatment plants, sewage treatment plants, pumping stations for water and sewer systems, power generation plants, industrial warehouses, ovens, kilns, cement plants, industrial incinerators, nuclear containment structures, and other non-building structures.

Term: Midwest (Census Region) Definition: A region of the United States consisting of the following states- Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

Term: New Construction Definition: An entirely new structure that is not attached to, or a modification of, any previously existing structure. New construction includes erecting a building on a location where the previous building was demolished. Construction of the building must be done primarily on-site. Any reference to ‘new’ in the SOW is referring to new construction.

Term: Northeast (Census Region) Definition: A region of the United States consisting of the following states- Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

Term: South (Census Region) Definition: A region of the United States consisting of the following states- Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.

Term: West (Census Region) Definition: A region of the United States consisting of the following states- Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.