solved Respond to at least two of your classmates. Each response

Respond to at least two of your classmates. Each response should:Be at least 150 words; must include more than one’s agreement or disagreement with another student’s post.Be reacting to classmate’s post and demonstrate higher order thinking (challenge, connect, suggest, question, or expand the post of peers).Use proper spelling, grammar, and punctuation, reply to 2 responses below.Kaitlyn House Jul 27, 2021Jul 27 at 1:59pmManage Discussion EntryThe Independent Government Cost Estimate (IGCE) is an important assessment tool used to assist in the determination of the acquisition strategy and ultimately, the estimated cost of the performance. They are required to be submitted as part of a requisition package for new requirements, actions that cause a change in cost, or a change in a contract that realigns budget/reallocation of funds. The factors involved in developing an IGCE include obtaining historical rates, estimating the level of effort required, and estimating material, labor, travel and other direct costs. A contractor must provide a detailed justification of how they came to their basis of estimates and what assumptions they made to create their estimates.I am regularly involved in Engineering Change Proposals (ECPs) at my work and assist in building these estimates. In our estimates, we provide details such as formulas that we use, historical data, subcontractor pricing proposals for their portions of the work (if applicable), the rates we used, and where the basis of information was obtained from (like Fedbizopps). Having a detailed justification on how a contractor comes up with their estimate is essential to a successful evaluation and award selection. If the government cannot see the rationale behind the proposal to see that it is in fact fair and reasonable, they will most likely have some red flags. I am new to government contracts and being a key player in proposals so this topic benefits me professionally and provides some background as to why such a large amount of detail and rationale is critical in IGCEs.Cost control and contract management apply to the acquisition of goods and services in both public and private sectors by assisting with planning and controlling costs (as wells as cash flows) to ensure financial obligations of the contract are met. Cost control can make or break a project’s budget. Making sure that the budget stays consistent with actual spending is how public & private sectors control their costs. They can easily go over budget if they are not carefully tracking the costs of all goods and services. Cost management keeps operations in check and makes sure financial goals are met, reducing the amount of risk on the project. Without proper contract management, it may be hard to track progress, there may be project delays, and there could be compliance issues.
Farzad FarzamFarzad Farzam MondayAug 2 at 3:03pmManage Discussion EntryFarzad FarzamEach IGCE should address the below-listed cost elements. Along with each portion of the cost breakdown there should be an explanation of the rationale used to formulate the estimate.Labor Mix/Hours- The IGCE should clearly indicate the labor categories and associated hours at each level to perform each task identified in the Statement of Work. For ease of evaluation and comparison, each task shall be listed in order in which it appears in the body of the SOW. In some cases where a particular task involves multiple functions; the preparer may want to further break down the IGCE according to these separate functions. Needless to say, if the SOW is broken down into subtasks, then there should be a separate analysis of each. One commonly overlooked consideration is in the area of overall management or direction. The preparer should include a reasonable number of hours for this function. The preparer of the IGCE should consider the skills required for task order accomplishments, not individuals. The Government is not bound to provide full-time employment for any Contractor employee. Show only the number of hours that will be productively utilized.Subcontracting – For the purposes of developing the IGCE, the preparer should assume all work under the SOW will be done by the prime Contractor even if the preparer knows or assumes the Contractor will propose subcontracting a portion of the requirement. It is the Contractor’s responsibility to identify and propose work which it intends to subcontract.Travel – The IGCE should be consistent with travel requirements identified in the SOW. The IGCE should clearly indicate the anticipated destinations, number of trips, number of personnel involved with each trip, and trip duration. (NOTE: Travel time should be considered when calculating the trip duration, e.g., if the Contractor is required to travel on Sunday for a Monday to Friday trip, the trip would be six days, not five. And, travel hours should be included in compensable labor hour estimates.) All rates utilized in the IGCE should be consistent with those specified in the federal Travel Regulations.Other Direct Costs (ODC) – The IGCE should identify all estimated costs other than labor and travel as ODC cost elements. The preparer of the IGCE should not include any cost element, whether it be a material or ODC, for general or miscellaneous office supplies. Such supplies are part of the Contractor’s normal business operations cost and should not be included as direct cost unless such supplies are unique to requirements.Major risks or consequences stemming for being unable to estimate the cost of a contract span the procurement life cycle. For example, an impact during the pre-contract award phase is the inability to sufficiently resource a requirement. Resource mangers can’t plan or budget confidently without reasonable assurance of cost.During the contact award phase, the cost estimate is uses as a baseline for cost/price proposal evaluation. If it’s lacking decision, it can adversely impact the source selection decisions. For example, it can weaken negotiation positioning, preventing a good deal. Further, it may lead the source selection team to select the wring offeror. For example, a contractor may understate its cost proposal intentionally to “Buy in, “with the Motive of “getting well “through future change orders. If the contractor has a faulty cost estimate, it may be unapparent until irreparable damage (e.g., cost overruns) occurs during contract administration.The source selection team relies on cost estimates to assess proposal cot/price reasonableness. If a vendor loses a competition and protests the decision, the government’s cost estimate supports its defense.To meet the mission expeditiously, program offices are typically eager to acquire capability rapidly. Some view procurement request documentation, such as the contract cost estimate, as unnecessary. The temptation is to cut corners. However, what may result is the need for significant rework to ensure compliance, which may stretch the schedule significantly. The irony is not lost that patiently performing due diligence early in the acquisition process (even if it seems time consuming) can pay dividends in overall cycle time. In fact, in some cases a solid cost estimate may even expedite contract award.During contract administration, contacting officers’ technical representatives monitor contract cost/budget, schedule, and performance. Changes in scope may occur during a contract’s period of performance, requiring contract modifications. With an updated estimate based on sound actual cost record keeping, the COTR is able to estimate reasonable cost/price of the contract modification.