What is an independent cost estimate?

What is an independent cost estimate?

The independent cost estimate is a tool to assist in determining the reasonableness or unreasonableness of the bid or proposal being evaluated and is required for all procurements regardless of dollar amount.

Which agency is responsible for conducting independent cost estimates for all ACAT ID?

The responsibility for the ICE for: ACAT 1C: Service Cost Center or Defense Agency equivalent. ACAT 1D: Director of Cost Assessment & Program Evaluation (DCAPE)

Which one of the following organizations is responsible for preparing independent cost estimates for all ACAT ID programs?

Which of the following organizations is most often responsible for preparing the CARD? For ACAT ID programs, the ICE is prepared by the DCAPE. Which of the following is a function of the DCAPE? estimating and review process for acquisition programs?

When would an independent cost estimate ICE be required?

DETERMINING WHEN TO PERFORM AN INDEPENEDENT COST ESTIMATE An ICE is required for all procurement exceeding the federal micro purchase threshold, currently established at $3,500.00, except for construction contracts over $2,000.00. Small purchases are between $3,500.00 and $150,000.00.

How are independent estimates used?

Part of the tools used in conduct procurement is the independent estimates. It is a project management process that uses the third party to collect as well as analyze information. The information is then used to predict the cost and schedule of the project.

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 the purpose of Lcce?

The purpose of a Life Cycle Cost Estimate is to provide a financial accounting of all costs that will be associated and required to develop, produce, deploy, sustain and dispose of a project or program to allow the program manager and stakeholder to acquire the right amount of funding.

What is prepared as part of the cost estimating review process?

The review consists of the preparation of an independent life-cycle cost estimate, as well as an assessment of the DoD Component Cost Estimate. A comprehensive description of the Cost Assessment review process is found in DoD 5000.04-M, “DoD Cost Analysis Guidance and Procedures,” Section 2.

What is the purpose of a Lcce?

What cost estimating technique would be?

The four major analytical methods or cost estimation techniques used to develop cost estimates for acquisition programs are Analogy, Parametric (Statistical), Engineering (Bottoms Up), and Actual Costs.

What is and independent cost analysis?

An independent cost estimate refers to the process of engaging the services of professionals who are in no way affiliated to an organization or project to conduct a detailed estimate as to the cost of a proposed project.

What is ice in procurement?

An ICE is required for each procurement action!* Estimate of goods/services to be acquired under a contract or a modification. Purposes: As a yardstick measure in determining price/cost reasonableness.

What is independent cost estimate in project management?

Definition. A cost estimate, prepared by an organization independent of the project sponsor, using the same detailed technical and procurement information to make the project estimate. It is used to validate the project estimate to determine whether it is accurate and reasonable.

What is an independent estimate in project management?

What are the two types of independent government estimates?

Types of Independent Estimates. Here, we discuss three of the most common estimates – parametric cost estimates, engineering cost estimates, and construction cost estimates.

What is the difference between sow and PWS?

A Statement of Work (SOW) is typically used when the task is well-known and can be described in specific terms. Statement of Objective (SOO) and Performance Work Statement (PWS) emphasize performance-based concepts such as desired service outcomes and performance standards.

Who creates a life cycle cost estimate?

The CCE, if required, is prepared by the component’s cost analysis agency, if one exists, or by some other office independent of the acquisition and development chain of command.

What goes into a life cycle cost?

Life cycle cost (LCC) is an approach that assesses the total cost of an asset over its life cycle including initial capital costs, maintenance costs, operating costs and the asset’s residual value at the end of its life.

What cost estimating technique?

How do you estimate the cost of a review?

Identify completeness of estimate and make sure that there is no missing scope or inconsistencies. Confirm if the estimate assumptions and basis are appropriate. Assess the correctness of quantities (at least for major items) Validate unit rates, and make certain the markups applied are adequate and reasonable.