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7.2.2.9 Vendor Bid Analysis
Cost estimating methods may include analysis of what the project should cost, based on the responsive bids from
qualified vendors. When projects are awarded to a vendor under competitive processes, additional cost estimating
work may be required of the project team to examine the price of individual deliverables and to derive a cost that
supports the final total project cost.
7.2.2.10 Group decision-Making techniques
Team-based approaches, such as brainstorming, the Delphi or nominal group techniques, are useful for engaging
team members to improve estimate accuracy and commitment to the emerging estimates. By involving a structured
group of people who are close to the technical execution of work in the estimation process, additional information is
gained and more accurate estimates are obtained. Additionally, when people are involved in the estimation process,
their commitment towards meeting the resulting estimates increases.
7.2.3.2 Basis of Estimates
The amount and type of additional details supporting the cost estimate vary by application area. Regardless of
the level of detail, the supporting documentation should provide a clear and complete understanding of how the
cost estimate was derived.
Supporting detail for activity cost estimates may include:
• Documentation of the basis of the estimate (i.e., how it was developed),
• Documentation of all assumptions made,
• Documentation of any known constraints,
• Indication of the range of possible estimates (e.g., €10,000 (±10%) to indicate that the item is expected
to cost between a range of values), and
• Indication of the confidence level of the final estimate.
7.2.2.9 Vendor Bid Analysis
Cost estimating methods may include analysis of what the project should cost, based on the responsive bids from
qualified vendors. When projects are awarded to a vendor under competitive processes, additional cost estimating
work may be required of the project team to examine the price of individual deliverables and to derive a cost that
supports the final total project cost.
7.2.2.10 Group decision-Making techniques
Team-based approaches, such as brainstorming, the Delphi or nominal group techniques, are useful for engaging
team members to improve estimate accuracy and commitment to the emerging estimates. By involving a structured
group of people who are close to the technical execution of work in the estimation process, additional information is
gained and more accurate estimates are obtained. Additionally, when people are involved in the estimation process,
their commitment towards meeting the resulting estimates increases.
7.2.3.2 Basis of Estimates
The amount and type of additional details supporting the cost estimate vary by application area. Regardless of
the level of detail, the supporting documentation should provide a clear and complete understanding of how the
cost estimate was derived.
Supporting detail for activity cost estimates may include:
• Documentation of the basis of the estimate (i.e., how it was developed),
• Documentation of all assumptions made,
• Documentation of any known constraints,
• Indication of the range of possible estimates (e.g., €10,000 (±10%) to indicate that the item is expected
to cost between a range of values), and
• Indication of the confidence level of the final estimate.