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Independent Government Cost Estimate

The Independent Government Cost Estimate (IGCE) is a tool used by Contracting Officers to evaluate proposals in a Standard Competition. The IGCE is an estimate of what the private sector would bid to perform the work identified in the Performance Work Statement (PWS). The IGCE is based on market research and an understanding of how the private sector develops its business proposals (i.e., its bid/offer price) for the work. The IGCE is prepared independently from the Agency Cost Estimate (ACE) and Baseline Cost Estimate.

MAI is able to provide support in all areas of IGCE development including:

  • Outputs and Costs. Identify Performance Work Statement (PWS) outputs and track to cost elements.
  • Hourly Rates. Develop average hourly rates for labor categories based on market research.
  • Cost Estimates:
    • Direct labor hours by labor category estimates, task, or location (contractor site vs. Government facilities)
    • Indirect rates analysis and estimates
    • Other direct costs (equipment, travel, IT, other)
    • Subcontractor costs
    • Program or project management costs
    • Overhead costs
    • General and Administrative costs (G&A)
    • Profit (fee)
    • Option year inflation cost estimates for multi-year acquisitions

A project example includes: