Many folks don’t realize that Predictive Bidding has recently become ‘in vogue’ based on the publication of the Defense Contract Audit Agency (DCAA) Audit Manual (last updated June, 2018). In this manual, DCAA devotes an entire section (9-1000) to the Audit of Parametric Cost Estimates, acknowledging that predictive bidding with prescriptive models is a viable, and sometimes preferred method for performing cost estimates.
The PRICE Cost Analytics® method of Predictive Bidding leverages the rich history of predictive CERs and models developed and refined over 40 years at PRICE, with the ability to calibrate these CERs to a business’s historical data, thereby not just basing an analogous estimate on one ‘similar too’ historical program, but a set of the business’s historical programs.
A well-constructed predictive bidding system can automatically produce Basis of Estimates (BOEs) and interface directly with a business’s pricing system.
An automated predictive bidding system has been shown to save tens of thousands of estimating labor hours or millions of dollars per year, allowing for more bids and/or freeing up valuable engineering resources to concentrate on design and development work.
Predictive Bidding – the time is now!