[5.3. to 5.4.]

5.3. Where to Start? The starting point is with the independent government estimate, or IGE (see Chapter 1). The research performed in developing the IGE should be documented and the documentation provided to the contracting officer (CO) along with the requirement for purchase action. Keep in mind that during the evaluation process, the Government may need to revisit both the quantities and usage of some of the items described in the research. In a strong competitive environment, a detailed evaluation will nearly always expose questionably high or low prices. It will also bring to light gross miscalculations in the Government's estimate and/or errors or misunderstandings regarding project requirements or the project specifications.

5.4. What Is A Unit Price Evaluation Tool. It is a decision tool to help the CO thoroughly and expeditiously analyze prices and decide which items to discuss with which offerors. The attached Excel spreadsheet is an example of a Unit Price Evaluation Tool. Formulas have been embedded throughout the spreadsheet to aid in this analysis. Using this tool, the CO can compare every offeror's price to both the IGE and the prices of other offerors. All prices are then displayed graphically clearly revealing variances or similarities between proposed prices and the IGE.