The Independent Government Estimator must:
Review the change documents and become familiar with the requirements of the
changed work.
Determine the status of construction and how the changed work will fit into the
construction schedule.
Use methods, capabilities, and labor rates matching those of the contractor performing
the work.
Price each item at rates in effect at the time the changed work will be done.
Attempt to agree with the contractor on scope and estimate structure before preparing
the IGE.
Unless otherwise agreed, use MasterFormat with a level of detail used in the contract
documents.
Use the same level of detail the Government would use if it were competing for the
award.
Compute the net cost or credit by subtracting the total of the original work from the
total of the revised work.
Clearly and adequately describe and identify schedule-related and impact-related
costs as a separate part of each estimate.
Prepare the estimate in a timely manner.
impact cost considerations
When a modification is directed, settlement includes not only the cost and time change of
the work directly affected but also the cost and time impact on the unmodified work.
Generally the contractor first presents impact costs as part of the proposal's "claimed"
impact costs. The Independent Government Estimator looks for offsetting costs to reduce
the impact to the Government. The contractor is required to submit documentation to
support the claimed cost, such as narrative calculations and planned rescheduling. To
determine the extent of the impact, the approved cost and resource-loaded schedule
furnished by the contractor must be developed to reflect actual construction as accurately
as possible. The modification work is superimposed on the original schedule so as to
project estimating requirements P-120
44
section 2.2
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