2
minimize delay under the given requirements. GSA reviews and accepts, or requests
modifications to, the revised schedule.
The Independent Government Estimator classifies each impact cost claimed as either
factual or judgmental. Factual costs are fixed and established and can be determined
directly from records, such as rental or wage rate agreements or purchase documents.
Once the item has been determined valid as a factual impact, the item cost may be directly
calculated. The amount of cost change is either stated on the certification document or can
be determined from the scheduled time change of the construction progress plan.
Examples of factual impact costs are:
Escalation of material prices.
Escalation of labor wage rates.
Change in equipment rates.
Increase for extending the storage period for materials and equipment.
Increase for extending the contract for labor and subsistence.
Increase for a longer period of direct onsite overhead personnel, materials, and
utilities.
Increase for a longer period of overhead and project office services.
The Independent Government Estimator identifies judgmental impact costs, which include
those that are dependent on variable factors such as performance, efficiency, or methodology
and cannot be stated factually prior to actual accomplishment. The contractor's proposal
must provide clear and credible support for all judgmental impact costs.
Examples of judgmental impact costs are:
Change of efficiency resulting from rescheduling.
Loss of labor efficiency resulting from longer work hours.
Loss of efficiency caused by disruption of existing orderly processes and
procedures.
Loss of efficiency during rescheduling of manpower.
Inefficiency incurred from resubmittal of shop drawings, sample materials, etc.
prospectus product / deliverable P-120
45
section 2.2
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