2
To arrive at this price the negotiator must at least partially rely upon an IGE based on a
detailed analysis of the change in requirements and existing job conditions. For the most part,
the estimate must be similar to, and take into account, those same conditions and elements
occurring in the contract, as each applies to the change order scope. In lieu of better data, the
IGE for bid evaluation may be used for assistance. The Independent Government Estimator
must understand the scope of the change and prepare an accurate quantity takeoff for each
direct item of change, using labor, material, and equipment costs and sequentially applying
appropriate overhead, profit, and bond costs. Since this formal, approved IGE is used to evaluate
the reasonableness of the contractor's proposal, it must be prepared on a comparable and
realistic basis by an estimator familiar with the modification and claim processes. The estimator
must review the costs presented in the contractor's proposal for accuracy, reasonableness, and
allowableness. Of those costs found allowable (see FAR 31.2), each must be further reviewed
for applicability to the requested modification.
prospectus product / deliverable P-120
43
section 2.2
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