Determining the Probable Cost

Abstract

Your organization has just issued a Request for Proposal (RFP), and, in response, you have received several proposals. In your RFP, you stated that the government was contemplating the award of a cost-reimbursement contract. You are preparing to perform your analysis. Before starting, you go to the Federal Acquisition Regulation (FAR), specifically FAR Part 15.404-1(d), and realize that the FAR requires you to perform cost realism analysis to determine the probable cost of performance for each offeror. You start asking yourself a series of questions such as: What is cost realism analysis? When does cost realism need to be done? How do I determine the probable cost? What resources are available to assist me in developing a probable cost? Does the government get many protests regarding cost realism analysis? It is hoped that this article will help answer these questions and more.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jun 01, 2013
Accession Number
ADA608662

Entities

People

  • Anthony J. Nicolella

Organizations

  • Defense Acquisition University

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Contracts
  • Cost Estimates
  • Cost Reimbursement Contracts
  • Costs
  • Engineering
  • Engineers
  • Governments
  • Indirect Costs
  • Information Operations
  • Law
  • Materials
  • Military Acquisition
  • Personnel Management
  • Regression Analysis
  • Specialists

Fields of Study

  • Business

Readers

  • Government Contracting/Procurement.
  • Systems Analysis and Design