Applicants should independently estimate project costs or prices prior to receiving bids or proposals.

A cost analysis is required if:

• An Applicant is required to submit the elements of an estimated cost
• Adequate price competition is lacking
• It is a sole source procurement, including contract modifications and change orders, unless price reasonableness can be established
• There is a cost overrun

The requirement for a cost price analysis can be met by conducting an independent validation of the estimate. The Cost Estimating Format tool should be used to conduct a cost or price analysis. The process is outlined in the CEF Instructional Guide V2.1 and will also be discussed later in this course.