Determining the Probable Cost
DEFENSE ACQUISITION UNIV FORT BELVOIR VA DAVID D ACKER LIBRARY AND KNOWLEDGE REPOSITORY
Pagination or Media Count:
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 15.404-1d, 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.
- Economics and Cost Analysis
- Statistics and Probability