Aids in Validating a Contractor's Cost Estimate,

Abstract

One method that a government reviewer can use in validating a contractor's cost estimate is to motivate the contractor to generate the cost estimate properly, and to forward the entire analysis, including all of the data used, to the government for review. If the analysis has been done properly, the government's effort is reduced to one of checking, rather than independent cost estimating. Furthermore, if several contractors are providing estimates, the government review team can check corresponding parts of the analysis against one another, draw their own conclusions of what the CER input values should be (including the range of uncertainty of each input characteristic), and obtain a good bounded range of the estimated cost. This paper describes and illustrates the type of instructions which can be given to the contractors to provide such motivations, and how the government can use the contractor's data to obtain its own estimate.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1985
Accession Number
ADA161871

Entities

People

  • Bernard H. Rudwick

Organizations

  • Defense Systems Management College

Tags

Communities of Interest

  • Human Systems
  • Space

DTIC Thesaurus Topics

  • Accuracy
  • Application Software
  • Computer Programming
  • Computers
  • Contractors
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Databases
  • Estimators
  • Probability
  • Probability Distributions
  • Regression Analysis
  • Reliability
  • Software Development
  • Statistical Analysis
  • Systems Management

Readers

  • Computational Modeling and Simulation
  • Defense Financial Management and Audit.
  • Life Cycle Cost Analysis