1.4.1.  Tips and Best Practices.

The following tips and "best practices" may be useful in developing the IGE:

1.4.1.1.  Team Approach. It is be wise to assemble a team made up of the project stakeholders (i.e., facility users, contracting, resource managers, design engineers, price analyst, and other technical experts) to go over the estimate during the acquisition-planning phase. This will help answer the who, what, where, and when regarding development of the estimate and it can help flush out the "gray" areas that may affect price. Besides providing functional expertise, the right mix of team members can be a valuable source of historical data.

1.4.1.2.  Structure. Define and document a structured approach to size your acquisition [Work Breakdown Structure (WBS), Cost Element Structure (CES), models, analogies with other acquisitions, market survey plans, etc., or combinations of these]. This structure provides the baseline for many acquisition decisions. Statements of Work (SOW), IGEs, tradeoff decisions, funds reallocations, contract negotiations, value engineering change proposals (VECP), and spend plans will all rely on this structure and related cost elements.

1.4.1.3.  Format. The emphasis is on information, not format. Most construction projects do not call for a unique combination of skills, materials, and equipment. Therefore, a logical approach and standard spreadsheets or common application software allow IGEs to be easily developed and transferred electronically. Information that should always be included is:

1.4.1.3.1.  Standard program information and coordination:

1.4.1.3.1.1.  Program Title

1.4.1.3.1.2.  Action Officer (Acquisition Manager)

1.4.1.3.1.3.  Phone/E-mail address

1.4.1.3.1.4.  Activity Code (Organization)

1.4.1.31.5.  IGE Preparer/Phone/Signature/Date

1.4.1.3.1.6.  Resource Manager/Phone/Signature/Date

1.4.1.3.1.7.  Construction Project Number(s)

1.4.1.3.1.8.  Description of Project (short)

1.4.1.3.2.  Use standard cost elements (tailored to fit the acquisition):

1.4.1.3.2.1.  Direct Labor Cost (DLC)

1.4.1.3.2.2.  Other Direct Costs (ODC): Materials & Supplies, Equipment, Travel, IT

1.4.1.3.2.3.  Overhead Costs (OVHD)

1.4.1.3.2.4.  General & Administrative Costs (G&A)

1.4.1.3.2.5.  Profit

1.4.1.3.3.  AF IMT 3052 is obsolete. However, a Construction Cost Estimate Breakdown template is available for your use. In addition, an excellent alternate source is the Navy form NAVFAC4330/43.

1.4.1.4.  Market Research. Using cost/price data from a single source, without scrutiny, invalidates the "independence" that makes the IGE useful in price analysis or contract negotiations. This is a serious problem if competition is limited to one or only a few contractors. Refer to FAR Part 10 for Market Research techniques.

1.4.1.5.  Currency of Data. Validate a cost estimate more than two years old to reflect the current design, requirements of the end user, and schedule.