Common use of Estimating System Clause in Contracts

Estimating System. ‌ An acceptable estimating system for proposal preparation benefits both the Government and the Contractor by increasing the accuracy and reliability of individual proposals. An acceptable estimating system is maintained, reliable, and consistently applied; produces verifiable, supportable, documented, and timely cost estimates that are an acceptable basis for negotiation of fair and reasonable prices; is consistent with, and integrated with the Contractor’s related management systems; and is subject to applicable financial control systems. Adequacy, acceptability, and/or approval of a Contractor’s estimating system are determined by the Contractor’s cognizant DCMA CO, CFA CO, or DCAA office. Acceptable documentation may include current and valid approval letters from the Contractor’s cognizant DCMA or CFA CO, or DCAA audit reports.

Estimating System. ‌ An acceptable estimating system for proposal preparation benefits both the Government and the Contractor by increasing the accuracy and reliability of individual proposals. An acceptable estimating system is maintained, reliable, and consistently applied; produces verifiable, supportable, documented, and timely cost estimates that are an acceptable basis for negotiation of fair and reasonable prices; is consistent with, and integrated with the Contractor’s related management systems; and is subject to applicable financial control systems. Adequacy, acceptability, and/or approval of a Contractor’s estimating system are determined by the Contractor’s cognizant DCMA CO, CFA CO, or DCAA office. Acceptable documentation may include current and valid approval letters from the Contractor’s cognizant DCMA or CFA CO, or DCAA audit reports.