The general rule for calculating UPS requirements is:
Sum of VA of components of the computer, where VA = V * A = approximately 1.4 * W.
Using the A*V max of the actual PS, or using the Wattage max of the actual power supply, doesn't give you the real draw, only the max draw of the power supply. What you need is the real maximum draw of the equipment the power supply drives. Since we know that the max draw of a Mac Pro is 980W with it maxed out spec wise, and we know that max spec includes 2 150W draw processors, we can say that the actual draw of a 2.8GHz Mac Pro cannot draw more than 840W since they do not change the PS between 2.8GHz and 3.2GHz. Similarly, less on the PCI-E bus will require less draw.
As for the 1.4 multiplier, I have found reference to it in multiple sources. For one reference, take a look here:
http://www.wrecc.com/formulas.aspx
The number changes based on the voltage being supplied as I recall, but I don't have time to sit down and calculate it out right now. The power factors I've seen run about 0.67 - 0.69 for 110-120V.
Besides, if it really is 0.6, then you will get 980/.6 = 1633VA, but we know that 12A * 120V = 1400VA. Can't both be accurate.