Cost Realism: Assuring more Realistic Contractor Cost Proposals
Abstract
Unrealism in Defense contractors' cost proposals, especially for RDT&E programs, often contributes to cost growth as well as to other problems. The Defense Department is therefore concerned with achieving greater cost realism. A methodology has been developed for achieving greater realism of contractor cost proposals. This methodology defines cost realism as an evaluation criterion stated in the solicitation which compares the offeror's proposed cost with a detailed Government estimate for each contractor and then scores of the degree of realism. The methodology constitutes a source selection cost evaluation process involving determination of cost evaluation factors; preparation of instructions to be included in the solicitation concerning the cost evaluation factors; preparation of Government estimates for each offeror; and scoring each offeror for cost realism and Government estimated cost. The methodology is a synthesis and improvement of the best techniques and procedures currently being used in source selection cost evaluation (especially those of NAVELEX).
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1983
- Accession Number
- ADP002800
Entities
People
- D. L. Trapp