Accession Number : ADA214266


Title :   Cost Realism Handbook for Assuring More Realistic Contractor Cost Proposals


Descriptive Note : Final rept. May 1984-Jun 1985


Corporate Author : SCIENCE APPLICATIONS INTERNATIONAL CORP ARLINGTON VA


Personal Author(s) : Trapp, Donald L.


Report Date : MAY 1985


Pagination or Media Count : 228


Abstract : This Cost Realism Handbook provides the Defense acquisition community with a methodology for evaluating contractor cost proposals, with particular emphasis on assuring more realistic cost proposals. This should be of particular interest to source selection cost evaluation teams, as well as to contracting officers and program managers. The methodology is applicable mainly to competitive, cost reimbursable contracts. The Handbook explains the various steps of methodology in detail, provides an illustrative example, and describes computer models which may be useful in establishing scoring rules and evaluation factor weights. The methodology includes four interrelated steps: 1) Evaluation Factors: Determination of cost evaluation factors; 2) Solicitation: Preparation of instructions to be included in the solicitation concerning the cost evaluation factors; 3) Government Estimate: Preparation of a Government estimated cost for each contractor; and 4) Evaluation: Rating or scoring each contractor for Government estimated cost and cost realism. The methodology involves the best techniques and procedures currently being used in source selection cost evaluation. In addition this Handbook introduces several improvements to the current techniques, especially in the area of numerical scoring.


Descriptors :   *CONTRACT PROPOSALS , *COST ANALYSIS , SOURCES , DEPARTMENT OF DEFENSE , PREPARATION , NUMERICAL ANALYSIS , CONTRACTORS , COST ESTIMATES , COSTS , WEIGHT , INSTRUCTIONS , MILITARY PROCUREMENT , HANDBOOKS , SELECTION , SCORING , TEST AND EVALUATION , COMPUTERIZED SIMULATION


Subject Categories : ADMINISTRATION AND MANAGEMENT
      ECONOMICS AND COST ANALYSIS


Distribution Statement : APPROVED FOR PUBLIC RELEASE