Comparison of Navy and Private-Sector Construction Costs

Abstract

Each year, the Department of the Navy, through the Naval Facilities Engineering Command, contracts for military construction projects at a cost exceeding $2 billion. Congressional committees and Navy customers have expressed concern about whether the costs of facilities constructed under NAVFAC contracts are comparable to private-sector construction costs. This report compares those costs. The report includes a description of the methodology used to ensure that the comparisons were valid. The study focused on analyzing comparable types of facilities and properly accounting for the additional costs of complying with federal contracting requirements as compared with the costs of similar projects completed under typical private-sector contracts. The study found that the costs of facilities constructed under Navy contracts compare favorably to private-sector construction costs for similar facilities. Moreover, the Navy's construction costs are lower than those of other federal agencies and of state and local governments.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1997
Accession Number
ADA331781

Entities

People

  • Jordan W. Cassell
  • Paul D. Jung
  • Robert D. Campbell

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  • LMI

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  • Accounting
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  • Construction
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  • Department Of Defense
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  • Logistics Management
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  • United States Government

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  • Facility/Structural Engineering.
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