Which statement describes the IGCE's role in the source selection process?

• A. It is used solely to determine the final award decision.
• B. It is prepared by the contractor to propose a price.
• C. It is used to calibrate evaluation and guide negotiation, while also helping assess reasonableness.
• D. It is irrelevant to the negotiation process.

Answer: (C)

The IGCE, or Independent Government Cost Estimate, provides a government-derived cost baseline used during source selection and negotiation. It is prepared by the government, not the contractor, and serves several purposes: it calibrates how proposals will be evaluated, guides the negotiation by establishing a reasonable cost target, and helps assess the reasonableness and cost realism of proposed prices. It’s not just for deciding the award at the end; it informs evaluation and bargaining throughout the process. By comparing proposals to the IGCE, evaluators can see whether costs are within a reasonable range and better understand the tradeoffs between price and non-price factors.