Cost Estimating Format (CEF)

FEMA uses a cost estimating methodology  called the Cost Estimating Format (CEF) to better estimate the total cost of projects for which the  base cost of labor, materials, and equipment meets or exceeds the large  project threshold (see Large Projects). The CEF is a forward-pricing model that allows FEMA to  account for all possible costs associated with a large project. FEMA uses  experienced program specialists to apply the CEF. The CEF should only be used  on large projects for which the permanent restorative work is 90% or less  complete.
   The CEF relies on the development of a clear  definition of the scope of work that is eligible for public assistance. Once  this scope of work has been developed, the CEF is applied in eight parts. Part A represents the base cost of  completing the project; it includes the labor, materials, and equipment  necessary to complete each item of the scope of work. Parts B through H  contain job-specific factors that may be added to the base cost determined in  Part A. These factors  are described below.
   Part B includes  construction costs not typically itemized in Part A, such as the general  contractor’s supervision costs.
   Part C reflects  construction cost contingencies and addresses budgetary risks associated with  project complexity during the design process.
   Part   D  accounts  for the contractor’s overhead, insurance, bonds and profit.
   Part E accounts for  cost escalation over the life of the project.
   Part F includes fees  for special reviews, plan checks, and permits.
   Part G is the  applicant’s reserve for change orders, hidden damages, and differing site  conditions discovered after construction starts.
   Part H accounts for  the applicant’s cost to manage the design and construction of the  project.
   Reference:     Public Assistance Guide, FEMA 322, pages 105-106

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