Independent Cost Estimation

 

Level 4 has prepared more than 500 independent cost estimates covering projects with a combined value over $4B, with a combined accuracy to date better than +/-5%.  Independent cost estimates are used by government agencies as part of the feasibility/budgeting process; used to support vendor negotiations; and used to verify cost reasonableness in situations where less than three vendor bids are available as required by the Federal Acquisition Regulations.  For large procurements, independent cost proposals may be requested by a bidder to support their cost proposal development, or to perform a competitive pricing analysis.

 

A formal independent cost estimation process integrated in the change management process is particularly critical for large, long-term projects.  These projects will normally have a significant number of change requests over the life of the project, and by their nature these change requests will be non-competitive.  Without a previously agreed to estimation oversight function, there are few if any constraints on the vendor when pricing each change request.

 

Independent Cost Estimation