Independent Cost Estimate
This two-day, elective course helps to explain the importance of the Independent Cost Estimate (ICE) and its purpose and use in the transit agency setting. An ICE is the detailed estimate of the cost of the supplies or services to be acquired by an agency. The estimate is independent in that it is the transit agency’s own, in-house estimate and is not based upon information obtained from contractors or vendors from which offers (proposals or bids) will be solicited.
In effect, the ICE is the forecast of the price that a responsible, prospective contractor should propose for performing the specified work. This course will consider several factors including how accurate the ICE tool is – the fundamental understanding of the requirement, outside influences that could impact the outcome and the probability they may occur, understanding of the business environment/market conditions, and more. Participants will focus on the preparation of ICEs for proposed procurements through hands-on training.
• Identify the contract-related uses of an ICE and the concept that the ICE is “independent”
• Understand the importance of a clear, complete statement of work (SOW)
• Obtaining the sources of information available and the methods used for preparing an ICE
• Identifying the need for current labor rates, indirect cost rates, accurate computation, and the need for the SOW and the ICE to correspond