Plant Replacement Value Analysis for Fiscal Year 1997
Abstract
This report of the US Army Plant Replacement Value (PRV) is provided to Major Army Commands and Department of the Army staff elements to be used for budget preparation, management of real property, maintenance and construction. Prior to Fiscal Year (FY) 1993, the Army used Current Plant Value (CPV) to show current replacement costs for its facilities. CPV was calculated by taking the original costs forward to the current FY using Office of Management and Budget (OMB) inflation factors. To convert PRV to CPV, multiply PRV by 1.18. The PRV is calculated from the September 1997 Army real property inventory (RPI). A unit cost factor is applied to each facility area or capacity or to each facility as determined by the facility category code. Land is not included in the PRV. The result is then multiplied by a local cost factor. When preparing the FY 1996 PRV, we discovered that Office of the Secretary of Defense (OSD) has permitted the other services to add 20 percent to PRV to account for contingency (supervision, inspection, and overhead (SIOH) costs) to the design costs. To bring the Army's PRV in line with the other services, since FY 1996 PRV has been multiplied by 20 percent. For comparison purposes, PRV prior to FY96 must also be inflated by 20 percent. Overall PRV increased by 4 Billion dollars from last year for the following reasons: (a) unit cost factors were increased by an average of 9 percent across the board (some increased significantly; others did not increase at all), (b) degree of accuracy of unit and area cost factors were changed to 2 decimal places , (c) method of calculating PRV for railroad bridges was changed from using cost of capitalization factor method to unit cost factor method, and (d) approximately 1 million square feet of leases were added to the Headquaraters Integrated Facilities System (HQIFS) Executive Information System (EIS) database.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1997
- Accession Number
- ADA351623