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Appendix A: The Views of Agency Representatives on the Nature and Causes of Budget-Related Problems in Federal Construction Programs
Pages 23-28

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From page 23...
... The agencies represented were the Anny, Navy, Air Force, Veterans A~ninis~tion, Asian Heals Service, and National institutes of Health. The participants pro vided infonnation primarily on the basis of their personal experience and knowledge.
From page 24...
... Agency officials are embarrassed, and subject to criticism, when the low bid on a project is far below the budgeted amount. There are many competitors for federal funds, and when funds allocated to one project are not used, managers and sponsors of other programs are annoyed because they view the unspent funds as wasted.
From page 25...
... the participants were asked to estimate the percentage of problems that are caused by: · inexperienced or inadequately trained agency estimators, · inexperienced or inadequately trained estimators employed by private A-E funs (which actually prepare a large percentage of government budget estimates) , · inadequate budget estimating procedures and methods, Redesign Value Engineering Alternate Bid Items Reprogramming Increased Appropriation 25 · arbitrary reduction in budget estimates in order to conform to general cost limits or guidelines (such as the Cost Estimating Guidance for Military Cons~uction)
From page 26...
... .. i/// 1W~7///~/////~//~7/~ :..,.-...: Figure AN Agency estimates of percentages (shown as ranges and overall averages)
From page 27...
... of low bids that are within various percentages of budget estimates for projects.


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