CHAPTER 7Developing Cost Estimates for Proposals
In preparing to negotiate reasonable contract prices, contractors will need to estimate costs. These cost estimates must be developed using good techniques and, when available, sound historical data. In addition, contractors must comply with unique government rules and regulations.
THE ESTIMATING PROCESS
The development of a cost proposal is usually a team effort, with staff from various disciplines such as marketing, engineering, manufacturing, quality control, and finance collaborating. If a proposed product or service is similar or identical to other products or services the company has produced, historical cost data may be valuable in developing the proposed cost.
Cost estimating techniques ...
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