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8 I I I I I I I I I I I I I I I I I I I In addition, a $28 million increase is associated with relocation of parts of gas pipelines and County Road 211 from within the Ridges Basin reservoir site. Much ofthis increase was due to increased excavation requirements and directional drilling to accommodate newly selected relocation routes (see Appendix 4 for details of estimate). Reclamation's decision to relocate the gas pipelines along the Northern Route further increased the cost estimate for the Inlet Conduit because of additional excavation requirements at the interface between the gas pipelines and the Inlet Conduit alignments. Another cause for the increase in the 2003 PCE was the addition of a newly developed factor to account for potential costs allowed for under the ISDEA contracting process. Reclamation construction staff were concerned that these costs were not envisioned when preparing the 1999 PCE. As a result, in addition to normal factors used by Reclamation for unlisted items and contingencies, the 2003 PCE includes a 30 percent Estimating Difference Factor (EDF) that would be applied to future Project contracts. The EDF factor was developed by Reclamation to compare the IGCE (a tool used by the contracting officer in contract negotiations) to the actual amount of contract award on the initial contracts for the1Project. The intent of using the EDF was to try to more accurately estimate and account for Reclamation and Contractor administrative and other costs likely to occur in negotiating future ISDEA contracts. In developing the 2003 PCE Reclamation identified the potential cost of the EDF to be $43 million. The ISDEA contracting process is covered in more detail in Section III E of this report. The 2003 PCE used final designs where available. Estimates for the Navajo Nation Municipal Pipeline (NNMP) and Ridges Basin Inlet Conduit have been refined since the 1999 PCE. However, a;tditional investigations, design data, and design work are planned to finalize these estimates. The non-contract costs use labor estimates planned for the remainder of the project as shown in Appendix 4, rather than the 30 percent of construction costs used in the 2000 FSEIS. The 30 percent non-contract costs were divided in the 2000 FSEIS as follows: investigations design/specifications construction inspection legal and administration environmental compliance 4 percent; 8 percent; 12 percent; 2 percent; 4 percent. Appendices 4 and 6 provide cost comparisons between the 1999 and 2003 PCE' s. Tracking the various cost estimates was somewhat difficult because numerous versions of the document were updated with different indexing dates. In addition, the pre-fiscal year 1998 "sunk" costs (those costs already expended in previous project related work) included both contract and non-contract costs. The analysis in Appendices 4 and 6 considers the sunk costs as "below the line" and not