The Application and Utility of Independent Government Cost Estimates.

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Abstract:

This report concerns the policy and usage of Independent Government Cost Estimates IGCEs throughout the US Army Materiel Commands AMC major subordinate commands. A statistical analysis of a representative sample of production contracts is made comparing IGCEs, contractors estimates, Governments price objectives and negotiated prices. The study objectives are to determine the influence of IGCEs on the price analysiscost analysis estimates which are used to determine the Governments initial price objective assess the relationship between the IGCEs and the contractors proposed price and determine the most effective method of using the IGCE in the contract cost estimating process. Based upon the analysis and interview with preparers and users of IGCEs, recommendations are made concerning policy and use of IGCEs within AMC. Author

Author(s):
Correia, Charles A.
Author Organization(s):
ARMY PROCUREMENT RESEARCH OFFICE FORT LEE VA
Descriptive Note:
Final rept.,
Pagination:
0053

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release

RECORD

Collection: TR
Identifying Numbers
Report Number(s):
APRO-103-4
 Subject Terms
Joint Capability Areas:
JCA_5_Command and Control; JCA_5.3_Planning; JCA_5.3.3_Develop Strategy; JCA_5.3.4_Develop Courses of Action; JCA_5.3.5_Analyze Courses of Action; JCA_5.6.3_Assess Achievement of Objectives; JCA_5.6_Monitor
Communities of Interest:
No COI(s) Identified
Descriptor(s):
*CONTRACTS, *COST ESTIMATES, *ARMY PROCUREMENT, DEPARTMENT OF DEFENSE, POLICIES, COST ANALYSIS, STATISTICAL ANALYSIS
Field(s)/Group(s):
Economics and Cost Analysis, Logistics, Military Facilities and Supplies
Keyword(s):
IGCE s(Independent government cost estimates), *Independent government cost estimates, Contractor estimates, Government price objectives, Negotiated price, Contracting officers
Report Date:
1974 Oct 01