Overview
This section mandates the preparation of an Independent Government Estimate (IGE) for architect-engineer services and establishes strict protocols for maintaining the confidentiality of that estimate during the procurement process.
Key Rules
- Mandatory IGE: An independent estimate must be prepared for any architect-engineer contract or modification expected to exceed the Simplified Acquisition Threshold (SAT).
- Timing: The estimate must be furnished to the Contracting Officer (CO) before negotiations commence.
- Preparation Methodology: The estimate must be based on a detailed analysis of the work, prepared as if the government were a contractor submitting a proposal.
- Access Restrictions: Access to the estimate is strictly limited to government personnel whose official duties require knowledge of the figures.
- Limited Disclosure during Negotiations: The CO may disclose specific cost breakdown figures for specialized tasks—but not the total estimate—if necessary to reach a fair and reasonable price.
- Non-Disclosure of Total Amount: The overall government estimate amount must not be revealed unless specifically permitted by agency regulations.
Practical Implications
- This rule ensures the government has a data-driven "should-cost" benchmark to evaluate the reasonableness of an A-E firm's price proposal without the firm being influenced by the government's budget.
- Contracting Officers must maintain tight administrative control over the IGE document to prevent unauthorized disclosure, which could compromise the integrity of the negotiation process.