How to Prepare the Independent Government Cost Estimate (IGCE)

The IGCE should be prepared by the COR and provide an estimate of the total cost of completing the SOW, including labor, travel, and materials to include cost estimates for applicable insurance requirements ARO will compare the IGCE to the contractor's proposal to determine responsiveness to the SOW requirements and reasonableness of the cost elements. Therefore, the IGCE should not be forwarded to the prime contractor, subcontractor, or any potential task performer.

Labor: If it is anticipated that the work will be done by an independent consultant, estimate a consulting rate for an individual with the qualifications identified in Paragraph 6 of the SOW. The Government task sponsor should NOT negotiate rates with potential task performers at any time.

For companies and educational institutions, similar estimates should be made for the PI and any support staff or job category (e.g., Sr. Technician, Jr. Scientist), also include an estimate for overhead/indirect costs either in the rate or as a separate line item.

Using the IGCE format in the SSP SOW Template, enter the level of effort (i.e., number of hours identified in Paragraph 7) and the estimated rate for each individual or job category described in section 7. Provide a rationale for the proposed rate.

Travel: If travel is anticipated, estimate travel costs by considering the Government per diem rates for the destination(s) and also the length of travel and number of travelers as specified in Paragraph 7 of the SOW. For consistent pricing purposes, do not use "TBD". Provide reasonably expected destinations or provide a not-to-exceed amount.

Insurance: Insurance requirements will be as specified in the respective Subcontract terms & conditions and will be reflective of federal, local, and situational requirements. Current estimated costs are $1,200 to $7,500 per year.

Other Materials: Identify project materials that may be purchased by the contractor during the course of the task. For tasks where all, or the majority, of work is performed at a Government installation, the task sponsoring agency should provide all necessary materials.

Equipment: In general, the task sponsoring agency should provide all necessary equipment to complete an SSP task. The purchase of equipment will be considered on a case by case basis; however, the SSP may not be used solely to procure permanent equipment.

Please Note: The IGCE shall include:

  1. The name(s) of the preparer, approving reviewer (which is the preparer's supervisor) and position title(s)
  2. The preparer and approving reviewer organization and contact information (telephone & e-mail)
  3. A signature and date (either hand signed or Common Access Card signed) for the preparer and approving reviewer
  4. A statement certifying that the IGCE was developed independently and prior to seeking any formal proposals from contractors
  5. A narrative supporting how costs/prices were developed with sufficient analytical support, such as spreadsheet information or a word document that explains the purpose, scope, IGCE preparer conclusions, and clearly identified reference material used.
 

Last Update / Reviewed: February 21, 2012