Bechtel National, Inc.’s Cost Proposal Estimates for Baseline Change Proposal 02 and Its Contract Modification 384 Counterpart for the Waste Treatment and Immobilization Plant

Determine whether Bechtel is compliant with CAS 401, Consistency in Estimating, Accumulating and Reporting Costs.

"We recommend that the Manager, River Protection, direct the Department Contracting Officers
to: 1. Ensure all Hanford Site contractors have an adequate estimating system, including:
• Establish specific local policies and procedures that address estimating techniques such as Monte Carlo, CERs, and unit rate development.
• Require personnel to have sufficient training, experience, and guidance with regards to the contractor’s established estimating procedures.
• Identify and document the sources of data and the estimating methods and rationale used in developing cost estimates. (Verify that contractors submit proposals that allow for detection and correction of errors in a timely manner.)
• Ensure proposals document and utilize historical experience to the extent possible in the development of its estimates.
• Implement a formal process to select the most reasonable CER cost drivers through a process that documents, tests, and monitors its CERs so the most appropriate CERs are developed.
• Compare projected results to actual results including an analysis of any differences."