Management Concepts

Developing the Independent Government Cost Estimate

Available dates

Feb 3—5, 2020
3 days
Washington, District of Columbia, United States
USD 889
USD 296 per day
May 26—28, 2020
3 days
Washington, District of Columbia, United States
USD 889
USD 296 per day
Jul 29—31, 2020
3 days
Washington, District of Columbia, United States
USD 889
USD 296 per day
+2 more options


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About the course

There are many approaches to achieve best value acquisitions. One of these approaches is the independent government cost estimate (IGCE), a powerful tool to support determination of cost reasonableness and realism. You will learn to develop the IGCE through step-by-step procedures—breaking the requirement into cost elements, establishing resources and restrictions, and making assumptions. You will practice collecting and projecting cost data to develop a reliable and useful cost estimate.

Note: This training course does not cover construction cost estimating.

Learning Objectives

  • Explain the purpose of the Independent Government Cost Estimate (IGCE)
  • Describe the major elements of the cost estimate
  • Discuss the steps in the cost estimating process
  • Select appropriate estimating methods
  • Develop an IGCE

Course Topics

Independent Government Cost Estimate

  • The Importance of Cost Estimating
  • Some Factors Affecting Cost Estimates
  • Regulatory Requirements that Affect Independent Government Cost Estimates

The Importance of the Requirements Document

  • Purpose of the Requirements Document
  • How the Requirements Document Affects the Estimating Process
  • Relationship of Contract Type to Estimating
  • What is Being Purchased and Its Impact on Estimating
  • Exercise: Requirements Document

Looking at Cost as an Element of the Estimate

  • Price-Volume Analysis
  • Using the Linear Price-Volume Relationship — Algebraic Analysis
  • Using the Linear Price-Volume Relationship — Graphic Analysis
  • Recurring and Nonrecurring
  • Allowable and Unallowable
  • Exercise: Describing the Requirements Document

Typical Elements of an Estimate

  • Adjustments to Material Quantities
  • Labor Costs
  • Other Direct Costs
  • Burden or Indirect Expenses
  • Facilities Capital Cost of Money
  • Profit/Fee
  • Three Major Steps in the Cost Estimating Process
  • Exercise: Looking at Costs

Using Requirements Document as Estimate Starting Point

  • Evaluate the Accuracy and Completeness of the Requirements Document
  • Choose the Appropriate Estimating Method
  • Breaking the Requirements Document into Its Constituent Cost Elements
  • Break Work into a Hierarchical Structure
  • Exercise: Preparing a Work Breakdown Structure
  • Exercise: Preparing a Detailed Estimate

Making the Estimate

  • Define the Scope of the Estimate
  • Establish Resources and Restrictions
  • Assess the Requirements Document
  • Make Assumptions
  • Collect Cost Data
  • Project the Cost Data
  • Document the Estimate
  • Summary
  • Exercise: Parametric Analysis
  • Exercise: Trend Analysis

Evaluating the Estimate

  • Reviewing Estimate
  • Assess the Scope of the Estimate
  • Evaluate the Estimate Method
  • Document the Review
  • Exercise: Preparing IGCE

Who should attend

This course is designed for technical personnel and others who are responsible for developing the IGCE.

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