Are you following a standard process when you do your cost estimates or are you just doing your estimates willy-nilly without any direction or consistency? Following a standard process helps you make sure that you do all the things you need to do to produce a quality cost estimate. If you don’t have a standard process you need to develop one or follow one like the Government Accountability (GAO) Cost Estimating Process (Figure 1). The GAO Cost Estimating Process consists of twelve (12) steps. Each step builds upon the others to develop a comprehensive and complete cost estimate. Each of the 12 steps is important for ensuring that high-quality cost estimates are developed and delivered in time to support important program decisions.
Figure 1. 12-Step GAO Cost Estimating Process
In a series of five blogs, I will show you how PRICE Systems in general, and PRICE TruePlanning specifically, supports the 12 steps of the GAO Cost Estimating Process; or any other thorough cost estimating process.
The GAO twelve-step process is divided into four phases (Figure 1):
The goal of each PRICE TruePlanning estimate is to be accurate and supportable based on industry standards. Following a standardized process for cost estimating while using the PRICE TruePlanning tool will ensure an accurate and supportable cost estimate.