Discussion: Independent Government Cost Estimate (IGCE)
a From the e-Activity, determine the three primary purposes of cost estimates. Predict two issues that could arise if a cost estimate is not conducted properly or at all. (Dr. Vic’s Tips, spend some time discussing whyIndependent Government Cost Estimates should be based on several factors including, past government purchases as well as current reasonable market prices. Then discuss the three primary purposes of cost estimate as listed on p.p. 19-20 of our Compton textbook. Please do not just list the three purposes, you will need to list and explain them. Also, list and explain two problems that could arise from improper cost estimating or no cost estimate at all. Plan to reach at least 350 words on this portion of the DB. Again, see Feldman and Keys textbook p.p. 268-271 for more on Price and Cost Evaluation, and review all of Chapter 2 of our Compton textbook as well for information specific to IGCEs). Also, as the e-Activity and instructions above state, you will need to visit the FBO and GSA Advantage websites – please do so and make it evident within your DB response.
b) Examine the history of the FAR and analyze some of the events that contributed to the current structure. Determine the types of national events that have improved the FAR. Then, provide one recommendation to further improve the FAR that benefits the collective business community. (Dr. Vic’s Tips, here you will want to focus specifically on material from our Feldman and Keys textbook, chapter 1, sec. 1.1 to 1.7, p.p. 1-10, you will see that the roots of FAR extend as far back as the post WWII era and were formally adopted in 1984. Please discuss this information in your own words from material in this section of Feldman. You should also be able to list at least two types of national events that have influenced FAR from the Feldman information as well. Finally, discuss improvement to FAR, I offer one example – but the choice is your; you may want to discuss why constant and formal revision is necessary in order to avoid escalating “Class Deviations” as discussed in p. 9, sec. 1-6 FAR – Feldman. Or you could argue another point made in Ch. 1, the choice is yours – please respond appropriately.