1. IGCE & Technical Evaluation
UNCLASSIFIED
UNCLASSIFIED
Program Executive Office Special Operations Forces Support Activity (PEO SOFSA)
Trusted Experts for SOF Logistics
IGCE & Technical Evaluation
Chris Groves
Cost/Price Analyst
Special Operations Forces Support Activity
Gary Brown
Program Manager/Project Officer
Special Operations Forces Support Activity

2. Independent Government Cost Estimate

3. What is an IGCE? Independent Government Cost Estimate:
Is the government’s best estimate of a contract’s potential costs
Correlates with outcomes and task described in the SOO/SOW/PWS
Is developed by the government without bias and typically without contractor input
Is tied to market research and / or other analysis
Will vary in accordance with complexity and value of the requirement
Procurement sensitive document, handled as FOUO

4. Purpose of an IGCE The IGCE:
Provides a baseline for evaluating an offeror’s proposal in terms of cost and understanding of the requirement
Is used in conjunction with the technical evaluation by the KO to help determine fair and reasonableness of proposal as required by statute
Supplements the Technical Evaluation to validate proposal meets USG SOO/SOW/PWS requirements
Provides KO with necessary information to develop USG position in negotiation with contractor
Also used to:
Determine if assumptions in a cost proposal are based on the same or similar assumptions as used by the Government
Assist in decisions related to project viability, structure, and resource requirements;
Conduct an Analysis of Alternatives;
Inform design trade-off decisions;
Conduct in-process reviews of projects; and
Satisfy public law and oversight requirements.

5. Process Overview

6. Process Overview

7. IGCE Required For: The IGCE is prepared:
For every new services acquisition in excess of the SAT
Prior to Request for Proposal (RFP), Request for Quotation (RFQ), and Invitation for Bids (IFB) for new fixed-price contracts and cost-reimbursement contracts
To cover the contract period of performance to include transition and multi-year periods
When requested for some individual projects under an existing contract
When requested (by the Contracting Officer) for any contract less than the SAT
When there is a change to the PWS that impacts the contract cost.

8. IGCE Not Required IGCE is typically not required when:
Modifying a contract to exercise priced options or to provide incremental funding; or when
Placing relatively small dollar task/delivery orders under an indefinite-delivery contract for fixed-price services or supplies.

9. Cost Estimation Methods
Analogy – “top down”
Based on historical data for similar efforts
Adjust by adding or subtracting for know changes in labor, material etc.
Actual Costs – Extrapolation
Use previous or existing same efforts, adjusting for inflation, efficiencies, etc.
Parametric - Statistical
modeling mathematic relationships between known costs etc.
Engineering – “bottom up”
Separate individual tasks to a very specific level of detail, build up

10. Costs Cost Categories Labor by category (Prime, sub)
Burden (calculated using the SOFSA IGCE template)
Other Direct Costs (Material, equipment, travel)
Indirect / Overhead – (calculated using the SOFSA IGCE template)
General and Administrative (calculated using the SOFSA IGCE template)
Profit and Fee (7% is typically the upper limit for routine cost-reimbursement)
Escalation Considerations
Option years – based on inflation rates / CPI, market trends etc. (2%-4%)
Also adjusted for efficiencies and/or learning curves

11. SOFSA IGCE Template
SOFSA simplified IGCE template can be found in the online Customer Guidebook:
Accurately models the burden process but…..
Excludes contractors proprietary rate data due to online open access
IGCE template with proprietary rate data is available USG to USG only, and can be obtained by contacting your project officer

12. How to use the IGCE Template
Input estimates for Labor and ODCs:
Prime Labor
Sub-Labor
Material
Travel
Other ODCs

13. References and Links OSD Handbook for Services Acquisition - IGCE
OSD COR Handbook, IGCE overview pg
PEO-SOFS Customer Handbook pg. 21, attachment 3

14. Technical Evaluation

15. Technical Evaluations
Why we do Technical Evaluations
Know Your Requirement
Proposal Elements and Responsibilities
Understand the Proposal
Technical Proposal Analysis
The Technical Evaluation Report
Examples

16. Why do a Technical Evaluation?
Required IAW FAR
At a minimum, the technical analysis should:
Examine the types and quantities of material proposed
Asses the labor mix and number of labor hours proposed
Address any other data that may be pertinent (e.g., amount of required travel, duration, and number of people required) to an assessment of the offeror’s ability to accomplish the technical requirements
Evaluate Other Direct Costs (ODCs), if applicable
It provides an in-depth assessment of a contractor’s proposal
Helps ensure that the final agreed-to-price is fair and reasonable

17. Why do a Technical Evaluation?
PCOs Need Effective Technical Evaluations:
Key to successful negotiations with contractors
Provide a sound basis for the Government’s objective
Uncover deficiencies in contractor proposals
Prevent poor proposals from being awarded
Enlist the expertise of the requirements experts
Ensure success of contracts awarded

18. Know Your Requirement
Make certain that you have a full understanding of the SOO/SOW
Make sure that the SOO/SOW is realistic
Review IGCE for accuracy and completeness
Does the IGCE capture all anticipated costs (Labor, material, travel, ODC’s, etc.)?
If not, submit a revised IGCE BEFORE the proposal is received!

19. Proposal Elements & Responsibilities
Responsibility
Inputs
Labor Hours/Resources used
Material (Type & Quantities)
Travel (#People, #Trips, Duration)
ODC (e.g. OCONUS rqmts, Visas, PPE, etc.)
Rates & Costs
Overhead /G&A Rates
Labor Rates
Material Costs
Profit
Negotiations
Technical Evaluator
DCAA/DCMA KO
PCO / BUYER
PRICE ANALYST

20. Understand the Proposal
Attain the overall perspective of proposal
Basis of Estimate (BOE)
Consolidated Bill of Materials (CBOM)
Compare the SOO/SOW/PWS
For sufficiency
In the evaluator’s opinion is the work plan sound?
Determine if direct resources are properly applied with no duplications such as the same SOW paragraph being priced in more than one task or labor category

21. Technical Proposal Analysis
Compare SOW/PWS/Government requirements vs Proposal
Does it meet the overall requirement?
Is the proposal in scope and technically sufficient?
Does the proposal have duplications, such as the same effort included in more than one place in the SOW?
Address any disconnects/deficiencies/areas of excess
Evaluate detailed estimates, calculations, factor applications, etc.
Ask questions of your SOFSA Team and identify areas that require additional support

22. The Technical Evaluation Report
The report should be prepared with clarity, traceability, and thoroughness
Provide a brief summary for each area of the proposal:
Work proposed and any unique cost or technical aspects
Proposed hours/labor resources evaluated
Your recommended hours/labor resources, if different
Assess risks, technical performance and management/cost-controls, as applicable
Address divergence for the IGCE
Work closely with your SOFSA Team to reduce/prevent re-work of the TE and help ensure timely award of your task order

23. Summary An effective technical evaluation: Meets FAR requirements
Addresses labor hours/mix, materials, travel, ODCs, etc.
Provides a complete picture of the proposal received
Increases probability of successful contract performance

24. Questions?