15.404-1  Proposal analysis techniques.

(c)

(2)

(iii)

(D)   Independent Government Cost Estimates (IGCEs).

(S-90) Definitions.

IGCE is a cost estimate developed by Government technical personnel, based on the PWS/SOO/SOW (without the influence of potential contractors).

Resource Managers ensure and verify that resources are available in the budget/POM, and manage resources accordingly.

(S-91) Policy.

(1)  IGCEs are part of the required documentation for HCA review. The DISA IGCE Deskbook contains procedures/guidance for developing IGCEs.

(2)  IGCEs must contain details for estimates. IGCEs are not valid and are not acceptable for HCA review or for contracting action without the backup details to demonstrate how the estimates were developed.

(3)  Use "Fully burdened" labor (hour) rates unless more recent information is available or other sources of information (e.g., wage rate determinations from the Department of Labor).

(4)  Resource Managers shall coordinate on IGCEs, prior to HCA review or submission of procurement requests to contracts.

(5)  Contracting officers shall notify AMs of appropriate remedial action on contract price/IGCE deviations greater than 25 percent, or of any other indication of discrepancy between proposal and the basis for the IGCE (e.g., significant variation in labor mix). Remedial action may include changes to the PWS/SOO/SOW, formal discussions, resource reprogramming, amendment or cancellation, but does not include unjustified revision of the IGCE.

(S-92) DITCO contracting officers, communications specialists, contract specialists, and contract negotiators assigned to DITCO field offices shall initiate action to obtain cost and price analyses in accordance with the following procedures.

(1)  The contracting officer, exercising sole responsibility for the final pricing decision shall, in accordance with FAR 15.404-1, coordinate with, request, and evaluate the advice of the contract pricing specialist at PL4 and tariff specialists at PL82. Contracting officers shall request a cost/price analysis, or Request For Proposal (RFP) review before negotiating any contract or modification with a contract value in excess of $550,000, unless information available to the contracting officer is considered adequate to determine the reasonableness of the proposed cost or price. Cost/price analyses for contract awards or modifications of a lesser value shall also be requested if considered necessary by the contracting officer in order to determine price reasonableness.

(2)  PL82 assistance related to tariff interpretation, tariff rate establishment/update and other tariff issues shall be requested as required.

(3)  PL4 or PL82, with the concurrence of the contracting officer, shall be responsible for:

(i)  Obtaining cost or pricing data or information other than cost or pricing data and auditing contractor's records.

(ii)  Performing contract audit follow-up reporting tasks in accordance with DoD Directive 7640.2 and DARS 42.1-90.

(iii)  Conducting cost or price analyses and tariff reviews in accordance with FAR 15.404-1, as appropriate. Cost analyses shall incorporate audit findings, technical analysis and tariff review results, and all relevant cost driver information.

(iv)  Consolidating cost or pricing data, information other than cost or pricing data, audit results, tariff reviews and other pertinent information; and developing pre-negotiation objectives.

(v)  Participating in negotiations with contractors which require the use of information, computations, or data developed during the cost or price analysis.

(vi)  Reviewing all major RFPs for competitive and noncompetitive services, supplies, and equipment to ensure adequate cost or pricing data and tariff provisions are included and that detailed evaluation criteria are developed and tailored for each acquisition.

(vii)  Assisting contracting officers in documenting the contract files by providing detailed cost/price analysis memoranda, supporting schedules, automated spreadsheets, discussion items, pre- and post-negotiation business clearance memorandums input, DD Forms 1547, Tariff Change Notices, Tariff Contract File Conflict Notices, and other items as required.

(viii)  Participating in conferences, briefings, debriefings, and other meetings where pricing and/or tariff support is required.

(S-93) To initiate a request for cost/price analysis support, the contracting officer shall submit an Interoffice Memorandum (IM) to applicable Cost Analyst containing detailed instructions. RFP reviews must be requested early in the acquisition stage so that a detailed review may be accomplished prior to submitting the RFP to industry. Acquisition plans and timelines must recognize the need for effective pricing/tariff reviews and analyses and must contain reasonable periods for conducting these tasks.