What are the elements to the independent government estimate?

January 21, 2021 Off By idswater

What are the elements to the independent government estimate?

This means the estimate should include (1) the direct costs incident to the construction; (2) an allowance for indirect or overhead costs; and (3) an allowance for a reasonable amount of profit. Once the IGE is developed, CE and the CO ensure that the cost estimate is fully funded. 2. Types of Independent Estimates.

What is an independent government cost estimate Igce )?

What is Independent Government Cost Estimate (IGCE)? Along with the Statement of Work (SOW), the IGCE is an important document that has direct influence on how long it may take to execute an acquisition and, ultimately, the estimated cost of performance.

What is the purpose of an independent government cost estimate?

The Independent Government Cost Estimate (IGCE ) is used to assist in the determination of the acquisition strategy, as well as an estimated cost for the proposed effort.

What is an independent government estimate CLC 222?

What is an independent government estimate CLC 222? An independent detailed assessment developed by a government team member, which includes the cost to the government for services and supplies to be acquired.

What are the two types of independent government estimates?

Round table and comparison are the two types of lump sum cost estimating. estimate based on their technical expertise and knowledge of the market.

What are the two basic contract types?

There are two fundamental types of contracts: Fixed-price and cost-reimbursement. Performance risk is higher for the U.S. Government under a firm fixed-price contract, while cost-reimbursable contracts place a higher cost risk on the U.S. Government.

Who prepares the Igce?

contracting officer’s representative
14 FAH-2 H-350 INDEPENDENT GOVERNMENT COST ESTIMATE. (3) To serve as an objective basis for determining price reasonableness. b. The contracting officer’s representative (COR) prepares the IGCE.

What are the only exceptions to final acceptance?

The FAR Inspection of Construction clause states that “Acceptance shall be final and conclusive except for latent defects, fraud, gross mistakes amounting to fraud, or the government’s right under any warranty or guarantee.”

What contract type puts the most risk on the contractor?

fixed price contract
The most common type of contract is the fixed price contract, also known as the lump sum or stipulated sum contract. Fixed price contracts carry more risk to contractors than owners.

Who prepares an independent government estimate?

(3) To serve as an objective basis for determining price reasonableness. b. The contracting officer’s representative (COR) prepares the IGCE. The estimate remains confidential between the COR and the contracting officer.

What do you mean by independent government estimate?

g. Independent Government Estimate (IGE). The Government’s estimate of resources and cost of resources a prudent contractor will incur in the performance of a contract. h. Indirect cost. Any cost not directly identified with a single final cost objective but identified with two or more final cost objectives. Also referred to as overhead. i.

Can a contractor contribute to an independent government cost estimate?

It is important to note that the Independent Government Cost Estimate must be developed without any assistance or input from a contractor. It is totally inappropriate to develop the IGCE using input from a contractor since the IGCE may be the basis for the government’s negotiation position relative to the contractor’s cost proposal.

Why is the independent government cost estimate ( igce ) important?

Along with the Statement of Work (SOW), the IGCE is an important document that has direct influence on how long it may take to execute an acquisition and, ultimately, the estimated cost of performance. It is not expected that individuals assigned as CORs will be expert cost estimators.

When do I not need an independent cost estimate?

By “change order” we mean any contract action that calls for the negotiation of a cost or price proposal arising out of a change in the contract requirements. If there is a direction to the contractor that does not result in a price adjustment to the contract, then an independent cost estimate is not required.

g. Independent Government Estimate (IGE). The Government’s estimate of resources and cost of resources a prudent contractor will incur in the performance of a contract. h. Indirect cost. Any cost not directly identified with a single final cost objective but identified with two or more final cost objectives. Also referred to as overhead. i.

It is important to note that the Independent Government Cost Estimate must be developed without any assistance or input from a contractor. It is totally inappropriate to develop the IGCE using input from a contractor since the IGCE may be the basis for the government’s negotiation position relative to the contractor’s cost proposal.

Along with the Statement of Work (SOW), the IGCE is an important document that has direct influence on how long it may take to execute an acquisition and, ultimately, the estimated cost of performance. It is not expected that individuals assigned as CORs will be expert cost estimators.

By “change order” we mean any contract action that calls for the negotiation of a cost or price proposal arising out of a change in the contract requirements. If there is a direction to the contractor that does not result in a price adjustment to the contract, then an independent cost estimate is not required.