Removal Cost Management System (RCMS) Version 4.2

Prepared by:

Roy F. Weston Inc.

Prepared for:

USEPA Emergency Response Division

Application:

Financial analysis:
Environmental impact analysis:	---
Waste management/P2:
Environmental cost listing/database:	---
Cost estimation:	---
Alternative product/process comparison:	---

Cost accounting tool for Superfund sites. The system is designed to record conventional and hidden cost information for projects at Superfund sites. Contingent and less-tangible costs cannot be estimated. The system does not facilitate project scheduling nor does it allow project definition using a WBS. However, site costs can be estimated using historical and rate data. Archived cost information can be used to compare projected site costs with existing site costs. Archived information is not factored in only for on-going projections. The system functions more as a passive cost control system, through recording and monitoring of real time costs.

Elements of control:

Cost control	---
Resource control	---
Estimating control
Schedule control	---
Scope control	---
Risk control	---

Development date and updates:

Developed ~ 1986. Updated periodically, latest version is 4.2.

Public availability:

Available

Purpose and current use:

Developed by Roy F. Weston Inc., for the USEPA, as a cost management tool for Federal On-Scene Coordinators (OSCs). It is designed for government and contractor sites.

Cost information:

Available free of charge

System requirements:

Runs on a standard IBM PC and requires 640 K RAM with 560 K free. A rates disk (personnel and equipment cost information) for a site is required to run cost tracking.

Software summary

Size and complexity of projects:

The system could possibly support any project size. Incorporation of project complexities could be limited. The system is specifically designed to handle projects at Superfund sites.

Other compatible systems offered:

The system has four modules: cost tracking, cost projection, invoice certification, and site summary. The cost tracking module can be used alone. The other modules require input from the cost tracking module to run.

Nonquantifiable information:

There is a general comments submenu item in the 1900-55 menu item in cost tracking that can be used for writing memos pertaining to the site. Comments on personnel, equipment, and other field items can also be entered.

Software summary

The system is used to track costs on a real-time basis while on-site and minimize unnecessary expenditures. Users track costs by entering known data inputs. RCMS comprises four modules:

1. Cost tracking: an accounting system to track personnel, equipment, and other direct costs.
   
2. Cost projection: an estimating system to project future costs based on information entered in cost tracking.
   
3. Invoice certification: for verification of contractor invoices
   
4. Site summary: for preparing contractor and USEPA/TAT reports using archived information.
   

Users begin by adding a contractor or a government site, along with corresponding rate and related information for personnel, equipment, and other field costs. Rate information will appear automatically, if present in the rates disk, or else users have to enter it themselves. The cost tracking module uses cost codes and task codes. Cost codes show the cost types for each activity performed on-site and only appear in the "other costs" area. Task codes are defined by operation.

The transfer option allows the day's transactions to be transferred to another computer. Daily cost summaries under the three predefined categories(personnel, equipment, other) can be generated. Items that are first purchased need to be entered in the inventory status and do not appear in the daily report unless they are used. There are predefined reports in cost tracking, including1900-55 Form, contractor cost log (site costs summary), and preview reports. The site summary module allows users various options to select categories and items for reporting purposes. For example, personnel summaries can be generated by category, individual, by task, etc. The invoicing module is designed for certifying contractor invoices by using archived information.

Life-cycle stages covered

Raw material acquisition	---
Manufacturing stage	---
Use/reuse/maintenance
Recycle/waste management

The system is primarily designed to monitor remediation jobs. Since costs are monitored on a real-time basis, use/reuse and maintenance are taken into account. For example, health and safety costs and materials and supplies are accounted for. Equipment costs are tracked in monthly cycles.

Type of costs considered

Conventional
Potentially hidden
Contingent
External	---

RCMS is designed primarily to include information on conventional costs including labor, material, and equipment. Since the system is designed for remediation work, these costs will include some upfront hidden costs such as site preparation, engineering, and procurement, etc. There are pre-existing task codes for activities such as sampling, disposal, health and safety, and others. The first-level task codes cannot be chosen by users: they can only further define the task codes through a second-level code. The cost codes have to be used to enter cost information for these different tasks. Costs information is entered using the unit cost method. If the correct units are chosen, it may be possible to enter information on some other hidden costs as well. There is no framework to enter information on all contingent or external costs, unless they can in some way be linked with a suitable cost driver. However, the complexity of these costs may make this difficult. The cost projection module allows users to enter a percentage figure for site and contractor contingency. These figures are input by users and may or may not include contingent environmental costs. The system does not assist in the choice of these figures. Contingent costs cannot be broken down. Additionally, users have to choose from a list of pre-defined units (they cannot choose any unit). In any case, separate categories cannot be defined for these costs. Fields cannot be changed, and costs have to be detailed in predefined formats.

Method of cost estimation

The RCMS cost projection module estimates future site costs for both initial and on-going site efforts by using contractor and government rate information and historical cost data from the cost tracking module. The initial projection will use only the rate information and is primarily intended for estimating costs of a new site start-up. Archived site cost information can be used for comparison purposes. Projected costs for on-going sites are calculated using rates and archived information. The projection separates the contractor from government expenses.

Generation of financial indicators

Net present value (NPV)	---
Payback period	---
Internal rate of return (IRR)	---
Benefits cost ratio	---
Other	---

Ability to include environmental costs

User friendliness and flexibility

The system is menu driven and methods of data entry are similar from one menu to another. There is an on-line help function. Cost tracking personnel, equipment, and other field cost entries can be marked as disputed and further flagged in the site summary and invoice modules.

User support

There is an RCMS support hotline to assist with user queries and problems.

Limitations

Users need to be familiar with DOS commands and coding used throughout the system. The system does not have the Windows structure and has no mouse support. Installation of RCMS can at times present problems. Initial site information (name, location, number, etc.) cannot be changed once it is entered. The system uses traditional methods of accounting and does not encourage users to break down activities to a significant level.

Users cannot add additional fields, and costs have to be detailed in predefined formats. Contingent and less-tangible costs cannot be estimated or detailed. A percentage figure for contingency can be factored in cost projections, and this may or may not include contingent environmental costs. The system is specifically designed for government/contractor operations at Superfund sites. It may not be suitable for use in unrelated projects or by private companies. RCMS functions more as a passive cost control device and does not have functions that facilitate cost minimization. That is, it does not function to evaluate different scenarios and choices through viewing the effects on total costs. It can only indirectly foster cost control by providing better cost records and by estimating site costs. It is not meant for life-cycle cost estimation.

Basis for evaluation:

Based on information from RCMS version 4.2 user's guide.

Contact information:

Available to private and government agencies upon request to USEPA Emergency Response division.

USEPA Emergency Response Division

Washington, DC 20460

Bob Cibulskis

USEPA/ERT, M/S 101

2890 Woodbridge Avenue

Edison, NJ 08837

908-321-6746

Melissa Bryant, R.O.W Sciences

(RCMS Support Line)

800-999-6990

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