What is an Independent Government Cost Estimate (IGCE) and why is it used?

• A. A government-maintained bid register used for procurement forecasting.
• B. A contractor-developed estimate for pricing the proposal.
• C. A private sector benchmark used for benchmarking.
• D. A government-generated cost estimate used to guide negotiation, assess price reasonableness, and calibrate evaluation.

Answer: (D)

An Independent Government Cost Estimate (IGCE) is a government-generated estimate of what it should cost to perform the work described in the contract. It is prepared by the contracting activity independent of bidders, using market data, historical costs, and the requirements in the statement of work. This estimate serves as a benchmark to guide negotiations, assess whether proposed prices are reasonable, and calibrate the evaluation of proposals. It helps ensure a fair competition by anchoring price expectations to a realistic target and provides a baseline for both negotiation and price realism analysis during source selection. It’s not something the contractor creates, nor a private-sector benchmark or a bid register.