Overview
This section prescribes the requirements for preparing an Independent Government Estimate (IGE) for construction projects, ensuring the government has a detailed benchmark to evaluate price reasonableness and maintain procurement integrity.
Key Rules
- Mandatory Threshold: An IGE must be prepared for every proposed contract and modification expected to exceed the Simplified Acquisition Threshold (SAT).
- Discretionary Estimates: The Contracting Officer (CO) has the authority to require an IGE for requirements below the SAT.
- Level of Detail: The estimate must be prepared with the same level of granular detail as if the Government were a private contractor competing for the award.
- Timing for Two-Step Bidding: For two-step sealed bidding, the IGE is prepared once the contract requirements are finalized (definitized).
- Confidentiality: Access is strictly limited to Government personnel with a "need to know."
- Disclosure Restrictions: The total estimated amount must not be disclosed to offerors (subject to agency regs); however, specific task breakdowns may be shared during negotiations to resolve price discrepancies and reach a fair and reasonable price.
Practical Implications
- The IGE serves as the primary tool for the Contracting Officer to determine if a contractor's proposal is realistic, fair, and reasonable.
- By restricting access to the total estimate, the government prevents "buying in" or price matching, forcing contractors to submit independent bids based on their own cost structures.