Original Date: 05/20/2002
Revision Date: 01/18/2007
Information : Government Estimates
The tools used at the Maintenance and Logistics Command-Pacific to prepare government estimates allow an estimator to quickly and easily pull data from existing standards, historical estimates, and actual cost history. This data is used by engineering and management personnel to determine what, when, and how routine maintenance will be done and what maintenance will be deferred. This detailed estimate also allows the contracting officer to more thoroughly evaluate bids on contracted work.
The timely and accurate preparation of government estimates is critical to the process of selecting contractor(s) for the execution of work on Specifications (Coast Guard Statement of Work) or for depot level maintenance of their fleet. These estimates are used to evaluate potential bidders’ proposals for fair and reasonable price in the execution of the desired work.
The Maintenance and Logistics Command-Pacific (MLCPAC) modernized and automated its estimating process to achieve more consistent methodologies using real standards. Prior to approximately late 1999, engineering personnel provided a one-page summary of the government estimate to the government Contracting Officer. This summary provided no supporting documentation to show how the estimate was determined or what was covered by the estimate. Consequently, the Contracting Officer often had difficulty in analyzing and justifying the government estimate.
The solution to this problem was to create an electronic government estimate workbook that allows a trained and experienced planner and estimator to prepare detailed and accurate estimates using established standards, historical estimates, actual cost history from previous contracts, and existing and new maintenance standards that were available in other databases. In developing the government estimate, the planner and estimator review the Long Range Maintenance Plan (LRMP) for a specific cutter that was to undergo drydocking or dockside maintenance, apply the pertinent work standards for the proposed maintenance items, and derive the preliminary cost estimate. Once the final specification or statement of work was negotiated and generated, the planner and estimator prepare the final government estimate based on the latest work content. This information is then reviewed by appropriate personnel to determine if sufficient funds are in the budget to perform all of the specified maintenance. The final estimate is then forwarded to the Contracting Officer for his/her use in evaluating the bidder responses.
The workbook and all of the supporting data are now available on-line. Automated specification compilers allow the estimator to review each task in detail and apply the appropriate tasks and standards. The automated workbook is compatible with other existing workbooks, and provides contracting personnel with the level of detail they need as well as an easy-to-use tool for all concerned parties. A unique feature of this tool is its ability to change the total dollar amount of the estimate by changing the regional labor rate for the geographical area or region in which the contract will be placed.
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