The Issues Associated with Using Location Factors and “national average” cost databases
Job Order Contracting
AUGUST 9, 2020
Their are multiple issues with using national average cost data bases, with or without associated location factors. These are described below. Properly developed locally researched detailed unit price cost data provides unparalleled cost visibility and transparency. Here are a series quotations from independently published research papers or professional articles noting the issues associated with the use of location factors. Location factors are used during preliminary project evaluations.