Early disclosure of quality government cost estimates provide for better alignment of industry capabilities and government requirements.
Independent Government Cost Estimates (IGCEs) are often developed during the procurement process and drive many decisions in the federal acquisition strategy even when they are done poorly. To take some of gamesmanship out of the buying process, consider releasing the Government's "affordability."
Here is sample Affordability text to include in solicitations: OFFER AFFORDABILITY The Government seeks offers (or quotes) with a total price less than $10M. Offerors (or quoters) should not interpret this figure as a ceiling (or as a floor) on offers; rather, this information is provided as a courtesy to prospective offerors. The Government may select an offer for award with a price below, at, or exceeding this figure if it finds that offer provides the best value and funds are available
- Having robust IGCEs or providing the Government's "affordability" helps level the playing field, removes some of the inherent incumbent advantages, ensures a more competitive or realistic pool of offerors, and makes the process more efficient
- Increases transparency
- Aligns proposals with real requirements
- Increases cost realism
- SMALL BUSINESS BENEFIT: Helps ensure small businesses understand the anticipated magnitude of each effort so they can decide whether to invest significant bid and proposal costs
