Cost Anylsis for T&M Contract
Started by flitzer · Feb 3, 2018 · 5 replies
- fOriginal post
flitzer
Feb 3, 2018 · 8y ago
I'm completely lost. I have administer a T&M contract and the unit I am administering this contract has requested repair for an item. The unit has submitted an estimate and a SOW for the services and the contractor has submitted a proposal. So, my first question is regarding the labor hours: What cost evaluation method should I use? Can I use the labor hours from the ICG only? What justification do I have if I only use the ICG?
- R
Retreadfed
Feb 3, 2018 · 8y ago
Flitzer, your post is confusing. Have you already awarded the contract? If so, does it contain labor rates? Is your question about the number of hours or the rate per hour?
- n
napolik
Feb 3, 2018 · 8y ago
Use your customer's estimates of labor categories and labor hours.
If you have issued an order for the same task, compare the current estimate to the historical figure. If they don't coincide, ask your customer to explain why they do not.
What is an ICG?
- j
joel hoffman
Feb 3, 2018 · 8y ago
napolik is describing is what I would call a “technical analysis” (see 15.404-1 (e) Technical Analysis) as part of a cost analysis. Why not have the customer’s technical personnel who provided the estimate perform the analysis and justify their basis of estimate or otherwise advise you?
- f
flitzer
Feb 3, 2018 · 8y ago
ICG is a mistake. I meant to write ICGE.
- f
flitzer
Feb 3, 2018 · 8y ago
joel hoffman said:
napolik is describing is what I would call a “technical analysis” (see 15.404-1 (e) Technical Analysis) as part of a cost analysis. Why not have the customer’s technical personnel who provided the estimate perform the analysis and justify their basis of estimate or otherwise advise you?
This what I was looking for. Thanks.