Estimating Labor Hours on Price Proposals

Whenever cost or pricing data is required in connection with a Government contract or subcontract, whether certified or other than certified,  contractors (or subcontractors) are called upon to provide a significant amount of detail to back up their estimates. Then it is up to the Government – could be the Defense Contract Management Agency, the Defense Contract Audit Agency, or cost/price analysts in the buying activity – or the prime contractor to decide the level of review necessary to validate the propriety of the estimates. Today we will discuss some of the considerations that auditors might use to evaluate labor costs, and more specifically, labor hours.

Source: PNWC’s Government Contracting Update: Estimating Labor Hours on Price Proposals