From: "Palazzolo, Michael A." <Michael.Palazzolo@alcoa.com>

To: Rochelle Boyd/RTP/USEPA/US@EPA

Cc: "Mitchell, John N." <John.Mitchell@alcoa.com>, Paul Sohi <psohi@aluminum.org>, "Charles D. Johnson" 

<cjohnson@aluminum.org>

Date: 08/22/2012 03:58 PM

Subject: Costs for Temporary Capture Hoods

Rochelle,

Alcoa received a budgetary equipment cost estimate for temporary capture 

hoods on two different furnaces at the Alcoa Davenport facility in Iowa: a 

tilting holder and a reverb melter. The supplier provided equipment cost, but 

did not conduct a site-specific assessment or provide a cost for 

installation, electrical, etc. We had expected a second supplier to provide 

site-specific installation costs by August 17, but this effort has fallen 

through.

We have therefore estimated the installation costs using the EPA Cost Manual. 

Direct installation costs and indirect capital costs were estimated based on 

Cost Manual factors for a baghouse installation. These factors are 

appropriate because of the need to install an ID fan and sampling platforms 

in addition to just the hood and ducting. Some factors were adjusted per 

engineering recommendations to account for installation on an existing 

furnace, rather than a new furnace, and to add costs for removal of the 

temporary hood, ductwork and fan.

The estimated total capital costs (equipment plus installation) are $238,000 

for the tilting holder and $208,000 for the reverb melter. So, installation 

of the hood would increase the cost of a compliance test by five or six fold.

Please let me know if you have any questions or need additional information.

Regards,

Mike

Michael Palazzolo

Alcoa Inc.

201 Isabella Street

Pittsburgh, PA 15212-5858

Ph: 412-553-4832
Estimate of Hooding Cost-Tilting holder

Value Notes/References

Capital Investment Costs

Direct Capital Costs (DCC)

Purchased Equipment Costs (PEC)

Hoods and ductwork $88,300 Based on vendor quotation Davenport Tilting Holder (Gillespie & 

Powers, Inc. 2012)

Hood over front door with manual damper Included

Hood over side door for snort fluxer with manua Included

Hood over pouring spout with manual damper Included

Included (4) 3” dia. Test ports Included

60’-0” Linear Feet of 18” diameter unlined duct Included

40,000 CFM Exhaust Fan Included

 Necessary platforms Included

Subtotal (EC) $88,300

Instrumentation $0

Sales tax $4,415 State sales tax rate for Iowa is 5.0%

Freight $4,415 USEPA 2002, Section 6, Chapter 1, Table 1.9 (5% of EC)

Total Purchased Equipment Costs (PEC) $97,130

Direct Installation Costs (DIC)

Foundations and supports $3,885 USEPA 2002, Section 6, Chapter 1, Table 1.9 (4% of EC)

Hood Handling, Erection and Fan installation $77,704 USEPA 2002, Section 6, Chapter 1, Table 1.9 (80% of EC) Increased 

from 50% for retrofit installation.

Equipment removal after testing $23,311 Assume 30% of handling and erection

Electrical $7,770 USEPA 2002, Section 6, Chapter 1, Table 1.9 (8% of EC)

Piping $0

Insulation $0

Painting $0

Total Direct Installation Costs (DIC) $112,671

Total Direct Capital Costs $209,801 Sum of PEC and DIC

Indirect Capital Costs (ICC)

Engineering $4,900 Based on vendor quotation for two furnaces (Gillespie & Powers, Inc. 

2012) Assume 50% for each furnace

Construction and field expenses $19,426 USEPA 2002, Section 6, Chapter 1, Table 1.9 (20% of EC)

Contractor fees $0

Start-up $971 USEPA 2002, Section 6, Chapter 1, Table 1.9 (1% of EC)

Performance test $0

Contingencies $2,914 USEPA 2002, Section 6, Chapter 1, Table 1.9 (3% of EC)

Total Indirect Capital Costs $28,211

Total Capital Investment Costs (TCIC) $238,012 Sum of DCC and ICC

References:

USEPA. 2002. EPA Air Pollution Control Cost Manual , Sixth Edition. EPA/452/B-02-001. January.

Estimated Captial Investment Cost Analysis for Hood on Tilting Holder
Value Notes/References

Capital Investment Costs

Direct Capital Costs (DCC)

Purchased Equipment Costs (PEC)

Hoods and ductwork $79,300 Based on vendor quotation Davenport Tilting Holder (Gillespie & 

Powers, Inc. 2012)

Hood over front door with manual damper Included

Included (4) 3” dia. Test ports Included

50’-0” Linear Feet of 18” diameter unlined ductwor Included

40,000 CFM Exhaust Fan Included

 Necessary platforms Included

Subtotal (EC) $79,300

Instrumentation $0

Sales tax $3,965 State sales tax rate for Iowa is 5.0%

Freight $3,965 USEPA 2002, Section 6, Chapter 1, Table 1.9 (5% of EC)

Total Purchased Equipment Costs (PEC) $87,230

Direct Installation Costs (DIC)

Foundations and supports $3,489 USEPA 2002, Section 6, Chapter 1, Table 1.9 (4% of EC)

Hood Handling and erection $69,784 USEPA 2002, Section 6, Chapter 1, Table 1.9 (80% of EC) Increased 

from 50% for retrofit installation.

Hood removal $20,935 Assume 30% of handling and erection

Electrical $872 USEPA 2002, Section 6, Chapter 1, Table 1.9 (8% of EC)

Piping $0

Insulation $0

Painting $0

Total Direct Installation Costs (DIC) $95,081

Total Direct Capital Costs $182,311 Sum of PEC and DIC

Indirect Capital Costs (ICC)

Engineering $4,900 Based on vendor quotation for two furnaces (Gillespie & Powers, Inc. 

2012) Assume 50% for each furnace

Construction and field expenses $17,446 USEPA 2002, Section 6, Chapter 1, Table 1.9 (20% of EC)

Contractor fees $0

Start-up $872 USEPA 2002, Section 6, Chapter 1, Table 1.9 (1% of EC)

Performance test $0

Contingencies $2,617 USEPA 2002, Section 6, Chapter 1, Table 1.9 (3% of EC)

Total Indirect Capital Costs $25,835

Total Capital Investment Costs (TCIC) $208,146 Sum of DCC and ICC

References:

USEPA. 2002. EPA Air Pollution Control Cost Manual , Sixth Edition. EPA/452/B-02-001. January.

Estimated Captial Investment Cost Analysis for Hood on Reverb Melter
Page 1 of 2

 Document by:RAN 8/7/2012 2:39 PM

E-MAIL 

Delwyn.Forrest@alcoa.com 

 

 August 7, 2012 

Mr. Delwyn Forrest 

Alcoa 

300 North Hall Road, Bldg 75 

Alcoa, TN 37701 

 

 Re: BUDGETARY QUOTE- EXHAUST HOODS AND DUCTWORK 

 GP BID NO. BC-6419 

Dear Mr. Forrest, 

We are pleased to summit the following budgetary quote for the preliminary engineering 

and for the supply of the Exhaust Hoods and Ductwork that would be needed to meet 

your needs at Alcoa- Davenport, IA. 

Preliminary Engineering 

Gillespie & Powers will provide a site visit to the plant location in Davenport, IA to 

evaluate both furnaces and make necessary recommendations along with preliminary 

drawing layouts and equipment requirements for estimated purposes. This would 

include a feasibility study of the facility logistics along with flow calculations of the 

ductwork to meet ACGIH standards. 

 

Our Lump Sum Price for the Above Scope of Work is: ..............................$ 9,800 

SUPPLY- Exhaust Hoods and Ductwork #2 TILTING HOLDER 

 Hood over front door with manual damper 

 Hood over side door for snort fluxer with manual damper 

 Hood over pouring spout with manual damper 

 Included (4) 3” dia. Test ports 

 60’-0” Linear Feet of 18” diameter unlined ductwork 

 40,000 CFM Exhaust Fan 

 Necessary platforms

Our Budgetary Price for the Above Scope of Work is: ............................$ 88,300 

(F.O.B St. Louis, MO) 

9550 True Drive 

St. Louis, Missouri 63132 

314-423-9460 Main Office 

800-325-7075 Toll Free Line 

314-428-4431 Facsimile 

General Information: 

 info@gillespiepowers.com

Additional information on the Web: 

www.gillespiepowers.com 

Gillespie & Powers, Inc.
Page 2 of 2

 Document by:RAN 8/7/2012 2:39 PM

SUPPLY- Exhaust Hoods and Ductwork #16 MELTER 

 Hood over front door with manual damper 

 Included (4) 3” dia. Test ports 

 50’-0” Linear Feet of 18” diameter unlined ductwork 

 40,000 CFM Exhaust Fan 

 Necessary platforms

Our Budgetary Price for the Above Scope of Work is: ............................$ 79,300 

(F.O.B St. Louis, MO

NOTE: All Installations of supplied equipment is by others. 

Safety is of primary importance for Gillespie & Powers, Inc. We recognize this 

responsibility and are committed to providing a safe and healthy working environment. 

We take a proactive approach toward safety as we are continually striving to improve 

safety as a whole including our written programs, awareness, education, incident rate, 

and overall attitude. 

Thank you for the opportunity of submitting this quotation and we look forward to the 

opportunity to earn your business on this and other repairs in the future. 

 Regards, 

 GILLESPIE & POWERS, INC. 

 Jon Gillespie 

RAN:JRG Jon R Gillespie 

 Jong@gillespiepowers.com