What Is an Independent Cost Estimate?

For many procurement matters, the procuring organization is able to independently estimate its cost to check the quote in the seller's proposal. If the quotation is significantly different from the estimated cost, it may indicate that the contract statement of work is inappropriate, or that the potential seller has misunderstood or failed to fully understand and respond to the contract statement of work, or that the market has changed. Independent estimates are often referred to as "reasonable cost" estimates.

Independent estimates

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For many procurement matters, the purchasing organization is able to make independent estimates of its costs to check the quotes in the seller's proposal. If the quotation is significantly different from the estimated cost, it may indicate that the contract statement of work is inappropriate, or that the potential seller has misunderstood or failed to fully understand and respond to the contract statement of work, or that the market has changed. Independent estimates are often referred to as "reasonable cost" estimates.