Appendix A-B

Appendix A - Glossary of Terms

ABC:: Activity-based costing. ABC techniques associate costs and profits with products, product families, product mix, and business and manufacturing processes. The important activities in the manufacturing process that consume costs and resources are determined. Cost models then compute the cost of performing each activity and the consumption of activities for each product(Dragoo and Letendre, 1994). ABC techniques can often serve to make many environmental costs, previously hidden in overhead accounts, visible.

Activity:: A self-contained unit of work within a project (Welcome Software Technology, 1993).

Activity base:: A measure of volume of business activity that is highly correlated with the amount of cost incurred (Schall and Haley, 1986).

Activity splitting:: A method to resolve resource conflicts wherein an activity that has been started is put on hold and another shorter activity utilizes the resource in conflict, after which work on the first activity is completed. Software packages differ in how many activity splits they allow (Welcome Software Technology, 1993).

ADM:: See arrow diagram method.

Arrow Diagram Method: (ADM): Also known as the critical path method (CPM), ADM is a diagramming method used for project planning. It mainly involves drawing an arrow for each job, where the sequence of arrows indicate the flow of work from the beginning to the end of each project. The complete diagram has one beginning and one end point. Arrow junctions are called nodes (or events) (Spiner, 1989).

Back-end costs:: Include environmental costs that arise following the useful life of processes, products, systems, or facilities. Examples include D&D and site survey costs (ICF Inc., 1995).

Bar chart:: Data can be entered interactively though a barchart screen, which is a graphical representation of a project with horizontal bars on a time scale depicting activity information (Welcome Software Technology, 1993).

Benefit cost ratio:: The ratio of total benefits to total costs of a project. A value greater than one implies that a net profit is made. This method recommends using projects that have the highest benefit cost ratio.

Budget estimates:: These are prepared with the help of flow sheets, layouts, and equipment details. In other words, enough preliminary engineering has taken place to further define the project scope. An estimate of this type is normally expected to be accurate within +30% or -15%. They are also called "design development," "semi-detailed," "appropriation," or "control"estimates (AACE International, 1992). Also see "order-of-magnitude"and "definitive estimates."

CAA:: Clean Air Act.

Capacity restrictions:: Scheduling software. Refers to restrictions upon the maximum number of items (activities per project, resources per activity, etc.) that can be handled(Welcome Software Technology, 1993).

Capital budgeting:: The process of analyzing alternative investments and deciding whether they will be included in a firm's investment budget (White, Becker, and Goldstein,1991).

Cash Flow:: The actual cash available to a company after expenses and taxes (Winston,1995).

CER:: Cost estimating relationship (Hombach, 1995). See "parametric cost estimating."

CERCLA:: Comprehensive Environmental Response, Compensation and Liability Act.

Contingency:: An amount added to the estimate to allow for changes that experience shows will likely be required. This amount may be derived either through statistical analysis of past project costs or by applying experience gained on similar projects. Contingency usually does not include changes in scope or unforeseeable major events such as strikes or earthquakes (AACE International,1992).

Contingent costs:: Environmental costs that may occur following uncertain future events. These are also referred to as liability costs. Examples include costs of penalties, remediation, and legal expenses (ICF Inc., 1995).

Contingent pricing:: Unit prices in the contract, additional to the fixed-price elements, which can be used in lieu of or to supplement the fixed price elements of the contract as the work develops and the actual quantities become known (Selg, 1993).

Contract management:: Aspects of project management that relate to the daily interaction between the owner and contractor. This interaction includes all specific coordination roles between such parties as well as the administration of contract terms and conditions (such as payments, change orders, directions, etc.) (Selg, 1993).

Contract price:: Value of the work as established by the contract provisions. In lump-sum contracts, the contract price is firmly established. In other types of contracts the contract price is determined by quantity surveys or audits of the contractor's costs (Selg, 1993).

Conventional costs:: Costs that are usually addressed in cost accounting and capital budgeting, including raw materials, capital goods, and supplies. Some aspects of these costs, such as cost savings through decreased use of raw materials, and utility costs, are sometimes overlooked (ICF Inc., 1995).

Cost engineering:: The art and science of total cost management with broad components being cost estimating, cost analysis, cost and schedule control, and cost and value improvement (AACE International, 1992).

Cost estimate:: A compilation of all the costs of the elements of a project or effort included within an agreed-upon scope. Estimating is a process accomplished insteps that include the take-off, costing, and pricing. The components of a cost estimate include direct and indirect cost elements, including labor material, equipment (direct types) and taxes, risk, and overheads (indirect types) (AACE International, 1992).

Cost estimating:: The determination of resource and material quantities and the predicting or forecasting of associated costs, within a defined scope (AACE International,1995). It is an essentially computational process that attempts to predict the final cost of a future project, even though all the parameters and conditions are not known when the estimate is prepared. Estimating methods vary considerably, depending on the available information, nature of the project, and he time available to prepare the estimate (de la Garza and Rouhana, 1995). The accuracy of the estimate will vary, depending on the stage of the project and information with which it is prepared.

Cost index:: A number that relates the cost of an item at a specific time to the corresponding cost at some arbitrarily specified time in the past. A cost index is useful in taking known past costs and relating them to the present (AACE International, 1992).

Costing:: Using the take-off and the information presented in the scope documents to assign cost values to the elements of work previously catalogued (AACE International, 1992).

CPA:: Contemporaneous period analysis. Also known as what-if or but-for evaluations. CPA breaks the construction period into discreet time periods and examines the delays as project participants would have (Schumacher, 1995).

CPM:: Critical path method. This network technique allows the analysis of the relationship of the timing of the completion of specific work activities (and delay activities) to the completion of the project as a whole (Schumacher,1995).

Crew:: A crew is a group of trade personnel and equipment necessary for a particular task (Estimator's Notes, 1993). A crew database will contain information such as hourly rates for equipment and labor. The estimator can determine unit labor and material costs (per unit of output, for example, for each glass made) by dividing output (units per hour, for example, glasses made per hour) by crew labor or material costs. With this information, changes in labor or material costs can be incorporated into the estimate (or their effects analyzed) (Schall and Haley, 1986).

Critical path:: The sequence of activities through a network with the least float and therefore the longest path (Welcome Software Technology, 1993). The chain of interrelated activities in the schedule network having the longest duration and therefore the earliest possible completion of the project (Schumacher, 1995). Most scheduling software will (at the minimum) compute start and finish dates and critical path.

C/SCS:: Cost/schedule control system.

C/SCSC:: Cost/schedule control system criteria.

Customization:: The modification or addition of features by users as per their requirements. This can include adding new fields and generating custom reports(Welcome Software Technology, 1993).

CWA:: Clean Water Act.

D&D:: Decontamination and Decommissioning (Hombach, 1995).

Definitive estimates:: Estimates prepared from very defined engineering data. These include fairly complete plot plans and elevations, piping and instrument diagrams, single-line electrical diagrams, equipment data sheets and quotations, structural designs, etc. This includes all types of estimates, from minimum order-of-magnitude to the maximum definitive types. They are also called "check,""lumpsum," "tender," and "post-contract change"estimates. It is expected to be accurate within +15% or -5% (AACE International, 1992). Also see "order-of-magnitude" and "budget estimates."

Depreciation:: The decrease in the value of a capital asset with time. The method of depreciation is set by income tax rules that allow various rates of depreciation. The amount depreciated each year is considered an expense for tax purposes (Winston, 1995)

Direct cost:: A cost that can be economically traced to a single cost object.

Discount rate:: The time value of money or the rate of interest that a company wants to earn on its investments (Winston, 1995).

DOD:: Department of Defense.

DOE:: Department of Energy.

DOT:: Department of Transportation.

EA:: Environmental Assessment. EA is a written environmental analysis that is prepared pursuant to the National Environmental Policy Act (NEPA) to determine whether Federal action would significantly affect the environment and thus require preparation of a more detailed Environmental Impact Statement (EIS)(EPA, 1989).

EAC:: Estimate at completion.

Earned value:: The quantification of the overall progress of a project defined in dollar terms to provide a realistic yardstick for comparison with actual cost to date(Welcome Software Technology, 1993).

Economic and financial analysis:: The evaluation of economic considerations and financial requirements of a program, operation, project, process, manufactured product, or service within a specific time frame. It includes the application of fundamental techniques such as the time value of money, rate of return, break-even analysis, and profitability analysis, as well as advanced economic comparison methodologies such as cost optimization studies (AACE International, 1995).

ECT: Environmental Costing Tool

EM:: Environmental Management (Hombach, 1995).

Emission:: Pollution discharged into the atmosphere from smokestacks, other vents, and surface areas of commercial or industrial facilities; from residential chimneys; and from motor vehicle, locomotive, or aircraft exhausts (EPA, 1989).

Environmental cost accounting:: The addition of environmental cost information into existing cost accounting procedures and/or recognizing embedded environmental costs and allocating them to appropriate products and processes (ICF Inc., 1995).

EPA:: Environmental Protection Agency.

EPCRA:: Emergency Planning and Community Right-to-Know Act.

Equipment costs:: Construction: The cost of equipment that a contractor uses to perform a contract (cranes, bulldozers) and not of the equipment installed permanently as part of the contract. If the equipment is leased, the costs consist of lease costs and the costs of fuel. If the contractor owns the equipment the costs include ownership costs and operating costs (AACE International, 1992).

ER:: Environmental restoration. Measures taken to return a site to previolation conditions (EPA, 1989).

Escalation:: Provision for an increase in cost of equipment, material, labor, etc., over the costs specified in the contract, due to continuing price-level changes overtime. Escalation has the same effect on project costs as interest does on the value of a savings account: each year becomes a new base for calculating escalation for the following year (compounded) (AACE International, 1992).

ES&H:: Environmental Safety and Health.

ETC:: Estimate to complete.

External / societal / social costs:: Costs resulting from impacts on the environment and society for which firms are not held financially responsible. These include environmental degradation and adverse health impacts for which firms are not held legally liable. These costs are intangible in nature and need to be valued by nontraditional methods(ICF Inc., 1995). Some private costs can also be less tangible (see less tangible costs).

Extremely hazardous substances:: Any of 406 chemicals identified by EPA on the basis of toxicity and listed under SARA Title III. The list is subject to revision (EPA, 1989).

Facility:: Any industrial, commercial, or industrial structure, installation, or building (Selg, 1993).

Financial accounting:: Refers to the preparation of financial reports for use by investors, lenders, and others, using generally accepted accounting principles. Environmental accounting in this context refers to the estimation and public reporting of environmental liabilities and financially material environmental costs (ICF Inc., 1995).

FS:: Feasibility study. Analysis of the practicability of a proposal (e.g., a description and analysis of the potential cleanup alternatives for a site or alternatives on the National Priorities List). The feasibility study usually recommends selection of a cost-effective alternative. It usually starts as soon as the Remedial Investigation (RI) is underway. Together they are commonly referred to as the RI/FS. The term can apply to a wide variety of proposed corrective or regulatory actions(EPA, 1989)

Full cost accounting:: Accounting: In the context of management accounting, this is a method of financial and management accounting that allocates all direct and indirect historical costs to a product or process (ICF Inc., 1995).; Environment: Used in the environmental context, this refers to desirable environmental accounting practices. Full-cost environmental accounting is basically the same concept, except that it aims to highlight the environmental elements (ICF Inc., 1995).

FY:: Fiscal year

GOCO:: Government-owned contractor-operated.

Hazardous substance:: Any material that poses a threat to human health and/or the environment. Typical hazardous substances are toxic, corrosive, ignitable, explosive, or chemically reactive (EPA, 1989).

Historical costs:: Costs that were incurred in a past period.

Indirect cost:: A cost that is not directly traceable to the manufactured product is associated with manufacturing two or more units of finished product or is an immaterial cost that cannot be traced to a single unit of finished product(Schall and Haley, 1986).; In construction, it is all costs that do not become a final part of the installation. They include, but are not limited to, field administration, direct supervision, capital tools, start-up costs, contractor's fees, insurance, and taxes (AACE International, 1992).

Input controls:: Controls needed to verify that the input into the computer process is complete and accurate (Schall and Haley, 1986).

IRR:: Internal rate of return. This is the discount rate that results in NPV =0. The IRR is the rate of interest that will make the present value of the cash proceeds expected from an investment equal to the present value of cash outlays required by the investment. This method does not require any assumptions about reinvestment or discount rates (Winston, 1995). The general rule is to accept projects with an IRR greater than the cost of capital or minimum acceptable rate of return (Brown, 1994).

Labor cost:: The base salary, plus all fringe benefit costs and labor burdens associated with labor, that can be definitely assigned to one item of work, product, process area, or cost center (AACE International, 1992).

LCC:: Life Cycle Costing. The systematic process of evaluating the life-cycle costs of a product, product line, process, system, or facility by identifying life-cycle consequences and assigning measures of monetary values to those consequences (ICF Inc., 1995). LCC is also referred to as Life Cycle Cost Assessment (LCCA). However, the definition of life cycle costing traditionally used by Federal facilities does not typically encompass all life cycle stages or external costs. See the definition of Life cycle assessment for a description of the life cycle stages.

Less-tangible costs:: This refers to expenses incurred for corporate image purposes or for maintaining or enhancing relationships with regulators, customers, suppliers, host communities, investors/lenders, and the general public (ICF Inc., 1995). These are private costs, but social and environmental costs can also be less tangible. See "external / societal / social costs."

Life-cycle assessment/analysis (LCA):: A holistic approach to identifying the environmental consequences of a product, process, or activity through its entire life cycle and to identifying opportunities for achieving environmental improvements. EPA has specified four major stages in a life-cycle of a product, process, or activity: raw materials acquisition, manufacturing, consumer use/reuse maintenance, and recycle/waste management. LCA focuses on environmental impacts not costs (ICF Inc., 1995).

Life-cycle design:: An approach for designing more ecologically and environmentally sustainable product systems and integrating environmental requirements in the earliest stages of design (ICF Inc., 1995).

Lump-sum contract:: A type of contract in which the cost of the work to be performed is shown as an all-inclusive price; also known as a fixed-price contract (Selg, 1993).

Management accounting:: The process of identifying, collecting, and analyzing information primarily for internal purposes (ICF Inc., 1995). Management accounting is meant to support a businesses forward looking management decisions.

Manufacturing costs:: All costs from the acquisition of raw materials through production, until the product can be turned over to the marketing division (Schall and Haley,1986).

Material costs:: The costs for everything of a substantial nature that is essential to constructing or operating a facility, both direct and indirect. Manufactured equipment costs generally comprise a large part of material costs (AACE International, 1992).

MSDS:: Material safety data sheet. A compilation of information required under the OSHA Communication Standard on the identity of hazardous chemicals, health and physical hazards, exposure limits, and precautions. Section 311 of SARA requires facilities to submit MSDSs under certain circumstances (EPA, 1989).

Multi-project scheduling:: The ability of a software system to support more than one project at a time. However, the level of flexibility and functions performed will vary. For example, some programs allow users only to define subprojects under a master project and may or may not roll back results to the project level (Welcome Software Technology, 1993).

National Priorities List (NPL):: EPA's list of the most serious uncontrolled or abandoned hazardous waste sites identified for possible long-term remedial action under Superfund. EPA is required to update the NPL at least once a year (EPA, 1989).

Network diagram:: A graphical representation of a project depicting activity information and the relationships between activities (Welcome Software Technology, 1993). Some programs allow interactive data input and editing in network screens.

Neural network:: Computer programs loosely modeled after the biological structure of the human brain; they consist of thousands of interconnected computing units called neurons. An artificial neural network can be constructed to simulate the action of a series of neurons, the analogous word being "processing unit." A neural net is normally constructed by arranging processing units in a number of layers. In its simplest form, a neural net consists of three layers: an input layer, an output layer, and a hidden layer (de la Garza and Rouhana, 1995).

NPDES:: National Pollutant Discharge Eliminating System. A provision of the CWA, which prohibits discharge of pollutants into the waters of the United States unless a special permit is issued by EPA, a state, or (where delegated) a tribal government on an Indian reservation (EPA, 1989).

NPV:: Net present value. The algebraic sum of the discounted values of cashflows each year during the project (Winston, 1995). The general rule is to adopt all projects with NPVs greater than zero or choosing (between two mutually exclusive alternatives) projects that have the highest NPVs (Brown, 1994).

NTIS:: National Technical Information Service

Operational costs:: Costs incurred during the operating lives of processes, products, systems, and facilities. Examples include maintenance and energy costs (ICF Inc., 1995).

Order-of-magnitude estimates:: Estimates made without detailed engineering data. Examples include an estimate made from cost capacity curves, an estimate using scale-up or scale-down factors, and an approximate ratio estimate. An estimate of this type would normally be expected to be accurate within +50% or -30%. They are sometimes referred to as conceptual or "ball park" estimates. They are usually prepared using only basic criteria and as desired output, total square feet, or number of units (AACE International, 1992). Also see "budget estimates" and "definitive estimates."

Organizational breakdown structure (OBS):: A hierarchical system for organizing pools and resources to provide dataroll-up for planning, reporting, and what-if analysis (Welcome Software Technology, 1993).

OSTI:: Office of Scientific and Technical Information

Overhead/indirect costs:: All manufacturing costs other than direct materials and direct labor(Schall and Haley, 1986). A cost or expense inherent in performing an operation that is not traditionally charged to or identified with a part of the work, product, or asset and, therefore, must either be allocated on some arbitrary basis believed to be equitable or handled as a business expense independent of the volume of production (AACE International, 1992).

Parametric cost estimating:: This method of cost estimating uses statistical techniques ranging from simple graphical curve fitting to multiple correlation analysis. In either case, the objective is to find a functional relationship between changes in cost and the factor (or factors) upon which cost depends. Parametric cost-estimating techniques often lead to a mathematically fitted function called a cost-estimating relationship, which is a functional model that mathematically describes the cost of a structure, module, or system as a function of one or more independent variables (de la Garza and Rouhana, 1995).

PA/SI:: Preliminary assessment/site inspection. PA is the process of collecting and reviewing available information about a known or suspected waste site or release. SI is the collection of information from a Superfund site to determine the extent and severity of hazards posed by a site. It follows a PA and is more extensive. The purpose is to gather information to score the site, using the Hazard Ranking System and to determine if the site presents an immediate threat that requires prompt removal action (EPA, 1989).

Payback period:: The length of time it takes for future net positive cash flows to equal the initial investment. Projects are accepted if the payback period is less than some management guideline. The greatest asset of the payback is its simplicity. However, it ignores all cash flows and the time value of money. On the other hand, the discounted payback reflects the length of time it takes for the discounted future net positive cash flows to equal the initial investment(Brown, 1994).

Performance measurement:: The systematic application of methods to monitor performance against plan and to control cost and schedule as well as changes to scope, configuration, and functional/operational requirements. It also aims to measure and determine causes of variance from established baselines so that effective and timely action may be taken (AACE International, 1995).; The ability to track and calculate cost performance and schedule performance. The former is based upon a comparison of earned value and actual costs and the latter on a comparison of earned value and budgeted costs (Welcome Software Technology, 1993).

Permit:: An authorization, license, or equivalent control document issued by EPA or an approved state agency to implement the requirements of an environmental regulation (e.g., a permit to operate a wastewater treatment plant or to operate a facility that may generate harmful emissions) (EPA, 1989).

PM: Project Management

Potentially hidden costs:: Costs that are obscured in overhead accounts or overlooked in business decision-making, including costs of upfront, operational, and back-end activities undertaken to comply with environmental laws (ICF Inc., 1995).

Present value (PV):: The value today of money received in the future at a specified discount rate (Winston, 1995).

Pricing:: Determining the amount to be charged to the owner/client to fully include the direct and indirect cost items, as well as contingency and profit (AACE International, 1992).

Private costs:: Costs that directly affect firm's profits and for which firms are held financially responsible. These are costs that directly affect a firm's bottom line. Private costs are sometimes referred to as internal costs (ICF Inc.,1995).

Production department:: A department that is directly engaged in a manufacturing activity and contributes directly to the content and form of the finished product (Schall andHaley, 1986).

Profitability index (PI):: This index is the ratio of the present value of after-tax inflows to the outflows. An index greater than one indicates that a project has a yield greater than the discount rate (Winston, 1995).

Project:: A unique goal to be accomplished in a specific time frame, using a limited set of resources and characterized by a sequence of activities (Welcome Software Technology, 1993).

Project management:: In business and industry it is defined as the managing and directing of time, material, personnel, and costs to complete a project in an orderly and economical manner and meet established objectives of time, cost, and technical results. The three major phases of a project (project phases) are plan, schedule, and control (Spiner, 1989).

Our definition of project management (for the purpose of this resource guide) goes beyond the industry definition. In our definition, we include planning, cost estimation, economic and financial analysis, cost engineering, scheduling, and performance measurement.

Quality assurance/quality control:: A system of procedures, checks, audits, and corrective actions to ensure that all EPA research design and performance, environmental monitoring and sampling, and other technical and reporting activities are of the highest achievable quality (EPA, 1989).

Rate of markup:: The target rate applied against the cost of a product or service to establish a selling price for goods and services in the external market (Schalland Haley, 1986).

RCRA:: Resource Conservation and Recovery Act.

RD:: Remedial design. A phase of remedial action that follows RA/FS and includes developing engineering drawings and specifications for a site cleanup(EPA, 1989).

Regulatory/compliance costs:: Costs incurred to comply with Federal, state, or local environmental laws. Examples include costs for notification, waste management, and pollution control(ICF Inc., 1995).

Reimbursable cost contract:: A type of contract where the cost of the work is determined by actual cost incurred by the contractor. Contractors' profit and overhead costs can be a fixed amount or a percentage of the actual costs. Also commonly referred to as a time-and-materials contract (Selg, 1993).

Relational database:: A relational database is built and operated in accordance with a relational model of data that provides a simple and intuitive method for defining a database, storing and updating data in it, and submitting queries of arbitrary complexity to it. It provides a consistent foundation for all other topics that database managers commonly cover. It enables individual users to work with customized database schemas instead of all having to use the same underlying schemas (Ralston and Reilly, 1993).

Remedial response:: A long-term action that stops or substantially reduces a release or threat of a release of hazardous substances that is serious but not an immediate threat to public health (EPA, 1989).

Relevant costs:: Future costs that are different under one decision alternative than under another (Schall and Haley, 1986).

Resource:: A source of project support assigned to activities (labor, materials, facilities, etc.) (Welcome Software Technology, 1993).

RI/FS: Remedial Investigation / Feasibility Study. See FS...

Risk:: The quantification, normally through statistical methodologies, of the potential known, known-unknown, and unknown variations to the result (McDonald,1995). Construction: elements of risk include profit and contingency. The amount of profit to be added to factor in risk is very subjective and depends on considerations such as competition, the job market, local conditions, etc. Contingency is the amount added to an estimate to allow for changes or project cost growth that experience shows will likely be required. It can be derived through statistical analysis of past project costs or by applying experience gained on similar projects (AACE International, 1992).

Risk assessment:: Environment: the qualitative and quantitative evaluation performed in an effort to define the risk posed to human health and/or the environment by the presence or potential presence and/or use of specific pollutants (EPA, 1989).

SARA:: Superfund Amendments and Reauthorization Act (SARA)

Scheduling:: The assignment of the estimated duration and the desired start and finish times to each activity in a project within the overall time cycle required for completion according to plan (AACE International, 1995).

Scope:: The equipment and materials to be provided and the work to be done. Scope is documented by the contract parameters for a project to which the company is committed (AACE International, 1992).

Sensitivity/what-if analysis:: Examines the effect on the outcome for changes in one or more input values(Schall and Haley, 1986).

Evaluates various project scenarios by modifying certain data (Welcome Software Technology, 1993).

Service department:: A department that provides services or assistance to production departments(Schall and Haley, 1986).

Solid waste management:: Supervised handling of waste materials from their sources through recovery processes to disposal (EPA, 1989).

Standard cost:: The expected cost of production under normal operating conditions. A standard cost is typically a unit cost concept (Schall and Haley, 1986).

Superfund:: The program operated under the legislative authority of CERCLA and SARA that funds and carries out the EPA solid waste emergency and long-term removal activities. These activities include establishing the National Priorities List(NPL), investigating sites for inclusion in the list, determining the priority level on the list, and conducting and/or supervising the ultimately determined cleanup and other remedial actions (EPA, 1989).

Take-off:: Measuring and cataloging the quantities of work derived from the scope documents (AACE International, 1992).

Total cost accounting:: A hybrid term sometimes used as a synonym for either of the definitions given to "full cost accounting," or as a synonym for "Total Cost Assessment" (see the definitions of Total Cost Assessment and Full Cost Accounting).

Total cost assessment:: Long-term, comprehensive financial analysis of the full range of internal(i.e., private) costs and savings of an investment (White and Becker).

Total cost management:: The application of professional and technical expertise to plan and control resources, costs, profitability, and risk. It represents a systematic approach of managing costs throughout the life cycle of any enterprise, program, facility, project, product, or service (AACE International, 1995).

TRU:: Transuranic (Hombach, 1995).

TSCA:: Toxic Substances Control Act.

TSDF:: Treatment, storage, and disposal facility. Site where a hazardous substance is treated, stored, or disposed of. TSD facilities are regulated by EPA and States under RCRA (EPA, 1989).

Tracking:: The act of progressing the project status, also called updating or statusing (Welcome Software Technology, 1993).

Transferred-in-costs:: Accumulated costs of materials, labor and overhead applied in all previous processes or departments (Schall and Haley, 1986).

Unavoidable fixed costs:: Costs that cannot be reduced or eliminated by reducing the level of operations or by discontinuing some level of operations (opposite of avoidable fixed costs) (Schall and Haley, 1986).

Unit price contract:: A type of contract in which the cost of the work is shown as a schedule of unit prices to be used against a measured set of quantities (Selg, 1993).

UPB:: Unit price book

Upfront costs:: Include preacquisition and preproduction costs incurred for processes, products, systems, and facilities. Examples include site studies, R&D, and installation (ICF Inc., 1995).

USACE:: U.S. Army Corps of Engineers

Value engineering:: A technical review process in which changes to the specified facilities are considered in an effort to reduce the total cost of the project. In the case of a contractor-initiated request for value engineering changes, many contracts allow sharing of the recovered savings due to the new idea (Selg, 1993).

The objective of value engineering is to develop or design a facility or item that will yield the least life-cycle costs or provide the greatest value while satisfying all performance and other criteria established for it (AACE International, 1992).

Variable costs:: Costs that vary in total as the volume of production or sales changes(Schall and Haley, 1986).

VOC:: Volatile organic compound

Voluntary costs:: Costs that are not required for, or go beyond, compliance with environmental laws. These include among others, costs for community relations, some types of training, audits, and recycling (ICF Inc., 1995).

What-if analysis:: (Scheduling). The what-if method uses an anticipated or planned schedule that indicates key milestones, as a baseline to measure project delays(Schumacher, 1995). Also see "Sensitivity/what-if analysis"

Work breakdown structure (WBS):: A hierarchical system for organizing projects and activities to provide data roll-up for planning reporting, and what-if analysis (Welcome Software Technology, 1993).

Table of Contents

Appendix B - References

AACE International. 1992. Skills and Knowledge of Cost Engineering. 3rdEd. Morgantown, WV: AACE Inc.

AACE International. 1995. "Total Cost Management." Cost Engineering 37(2):27.

Brown, D.R. 1994. "Levelized Production Cost: An Alternative Form of Discounted Cash Flow Analysis." Cost Engineering 36(8):13-16.

Capstone Corporation. August 30, 1994. "Environmental Management Category Report for the Survey of Resources Available for Estimating the Environmental Costs of Major Defense Acquisition Programs." Alexandria, VA: Capstone Corporation.

de la Garza, J.M., and K.G. Rouhana. 1995. "Neural Networks Versus Parameter-Based Applications in Cost Estimating." Cost Engineering37(2):14-18.

Ditz, D., Ranganathan, J., and Banks, Darryl R. May, 1995. Green Ledgers: Case Studies in Corporate Environmental Accounting. World Resources Institute(WRI). Baltimore, MD: WRI Publications.

Dragoo, R.E., and R.A. Letendre. 1994. "Manage Costs in Real Time." Cost Engineering 36(2):11-18.

Estimator's Notes. Summer 1993. Composer Gold, Building Systems Design(BSD).

FitzGerald, Chris. 1994/1995. "Environmental Management Information Systems: New Tools for Measuring Performance." Total Quality Environmental Management Winter: 21-33.

Hombach, W.G. March 22, 1995. "Evaluation of Environmental ManagementCost-Estimating Capabilities for Major Defense Acquisition Programs." Communications Training Analysis Corporation (CTAC). Prepared for the Office of the Secretary for Defense (PA&E). Arlington, VA: CTAC. Richard H. Reneris the contractor's project director and can be reached at 703-683-4220. William G. Hombach is the subcontractor's principal investigator and can be reached at 703-415-7774.

ICF Inc. June 1995. An Introduction to Environmental Accounting as a Management Tool: Key Concepts and Terms. Prepared for the U.S. Environmental Protection Agency Design for the Environment, Environmental Accounting Project. EPA-742-R-95-001. Washington, DC.

Martin, Bruce. 1992. "Aspects of Cost Control." Cost Engineering 34(6):19-23.

McDonald, D.F. Jr. 1995. "Defining and Communicating Total Cost Management Principles in the Workplace." Cost Engineering 37(1):20-24.

Owen, J. (Senior Editor). 1995. "Environmental Compliance: Managing the Mandate". Manufacturing Engineering 114(3): 59-66.

Parker, D.E. 1994. "Project Budgeting for Buildings." Cost Engineering 36(12):13-18.

Ralston, A., and E.D. Reilly (eds). 1993. Encyclopedia of Computer Science. 3rd Ed. New York, NY: VN Reinhold.

Rich, G. 1995. "Software Selection." Pollution Engineering January: 31 - 41.

Schall, L.D., and C.W. Haley. 1986. An Introduction to Financial Management. 4th Ed. New York: McGraw Hill.

Schumacher, Lee. 1995. "Quantifying and Apportioning Delay on Construction Projects." Cost Engineering 37(2):11-13.

Selg, Richard A. (ed). 1993. Hazardous Waste Cost Control. New York, NY: Marcel Dekker Inc.

Society of Environmental Toxicology and Chemistry (SETAC). 1991. "ATechnical Framework for Life Cycle Assessment." January. Washington, DC.

Spinner, M. Pete. 1989. Improving Project Management Skills and Techniques. Englewood Cliffs, NJ: Prentice Hall.

Spitzer, Martin A., Robert Pojasek, Francis L. Robertaccio, and Judith Nelson. "Accounting and Capital Budgeting for Pollution Prevention." Presented at the Engineering Foundation Conference, "Pollution Prevention-Making It Pay: Creating a Sustainable Corporation for Improving Environmental Quality." San Diego, January 24 - 29, 1993.

U.S. Environmental Protection Agency, Office of Communications and Public Affairs. December 1989. A Glossary of Environmental Terms and Acronym List. (A-107). Washington, DC.

Watson, Susan. International Technology Corporation. February 1995. "1994Survey. Personal Computer-based Cost Estimating Software Survey and SoftwareUsed at DOE." Prepared for the U.S. Department of Energy, Filed Maintenance. Irving, TX: PEI Corporation.

WEC, Environmental Cost Estimating Task Group. August 1992. Westinghouse GOCO Environmental Cost Estimating Manual, Cleaning Up the DOE Complex. Pittsburgh, PA.

Weitz, K.A., J.K. Smith, B.F. Fagg, J.L. Warren (Research Triangle Institute), D. Adolphson, K. Tschritter, and B. Odegard (Sandia National Laboratories). April 1994. DOE/SNL/EPA Joint Effort to Develop Waste Minimization Techniques for DOE R&D Laboratories. Prepared for the U.S.DOE, Environmental Restoration and Waste Management, Office of Waste Management, Waste Minimization Division. Research Triangle Park: Research Triangle Institute. The project was managed by Merri Lewis (SNL).

Welcom Software Technology (WST). 1993. Evaluating Project Management Software. Houston, TX: WST Corporation.

White, A.L., M. Becker, and J. Goldstein. 1991. Total Cost Assessment: Accelerating Industrial Pollution Prevention through Innovative Project Financial Analysis. Prepared for U.S. Environmental Protection Agency, Office of Pricing Planning and Evaluation, Office of Pollution Prevention. Boston, MA: Tellus Institute.

Winston, R.E. 1995. "Rapid Method for Capital Investment Decisions." Cost Engineering 37(4):41-43.

Youngblood, Annette, and Steven Booth. June 1992. Environmental Remediation Cost and Risk Estimating Software Summary. Submitted to the U.S. Department of Energy. Los Alamos: Los Alamos National Laboratory.

Table of Contents