40. Estimating System Infrastructure

Comment: A respondent stated that contractors must have the latitude to establish their own effective and efficient infrastructure to achieve specific "performance objectives." Contractors must be judged by the quality of outcome rather than on externally imposed processes and policies. The respondent suggested replacing the phrase "Estimating system means the Contractor's policies, procedures, and practices for budgeting and planning controls * * *" with "Estimating system means the Contractor's infrastructure for budgeting and planning controls * * *."

Response: Effective internal control systems are process oriented rather than focused on outcomes alone. Effective policies, procedures, and practices are the foundation for all organizations to achieve their operational, financial, and compliance objectives on a consistent basis.