Government cost estimate for architect-engineer work
An independent, confidential Government cost estimate is mandatory before negotiating architect-engineer contracts or modifications above the simplified acquisition threshold, and its details must be tightly controlled.
Overview
FAR 36.605 requires that an independent Government cost estimate be prepared for architect-engineer (A-E) contracts or contract modifications expected to exceed the simplified acquisition threshold. This estimate must be completed before negotiations begin and should be based on a detailed analysis of the work as if the Government were a competing offeror. The regulation also strictly limits access to the estimate, allowing only those Government personnel whose duties require such knowledge to view it. During negotiations, the contracting officer may disclose specific cost breakdowns for specialized tasks if necessary to reach a fair and reasonable price, but the overall estimate amount should not be revealed except as allowed by agency regulations.