Costs must be estimated as if BLM were hiring a contractor to perform all required reclamation [43 CFR 3809.552(a)]. 

Costs must include the use of off-site equipment as if the project area was vacated, and they must include all associated mobilization and demobilization costs {43 CFR 3809.554(a)]. 

The estimate must include when applicable, all interim maintenance to maintain compliance with applicable environmental requirements while contracts are developed and executed [43 CFR 3809.552(a)]. 

The operator’s estimate must cover all reclamation requirements in Notices and approved Plans of Operation [43 CFR 3809.301(b), .401(d), .552(a), and 43 CFR 3809.1-3(d) for extended Notices]  The estimate must be accompanied by a worksheet explaining how these costs were calculated.  Use actual disturbance dimensions, cubic feet of material, length of time to complete the job, etc. 

The operator’s estimate must identify the relevant Operating and Maintenance cost relating to reclamation including:

            a. Equipment rental or acquisition costs

            b.  Equipment operation costs

            c. Equipment maintenance costs

            d. Cost of operating supplies

            e.  Labor costs for operations maintenance and supervision

            f.  Reclamation materials acquisition costs. 

The operator’s estimate must include the Add-on costs as explained in the footnotes of the Cost Estimate Summary Sheet.  These include: 

1.  Where appropriate, the cost to BLM to develop an Engineering, Design and Construction Plan for reclamation should the operator not reclaim. (Implementation of the reclamation plan) 

2.  A contingency fund to cover unforeseen circumstances related to the Engineering, Design and Construction Plan. 

3.  The prime contractor’s profit of approximately 10 percent of the estimated operation and maintenance costs. 

4. The contractor’s liability insurance premium equal to 1.5 percent of the estimated labor costs for the project with estimated contract costs over $100,000. 

5.  A set amount equal to 3 percent of the estimated operation and maintenance costs for the payment of premiums for both a performance bond and a payment bond as required by the Miller Act with estimated contract costs over $100,000 (40 U.S.C. 270 et seq.). 

6.  BLM’s labor and operations cost for the Field and State offices to administer the contract. 

7.  BLM’s indirect costs (building rental electricity, telephone, etc.)  Required by Washington Office IM 2003-011, October 8, 2002)