What kind of information is typically included in a BES?

A BES usually includes a breakdown of labor costs, material costs, travel expenses, overhead, and any other direct costs. It should also include a description of the contractor's technical approach and management plan.

Is a BES a binding commitment?

No, a BES is not a binding commitment. It is merely an estimate. However, it is important to be as accurate as possible, as significant discrepancies between the BES and a later proposal could raise concerns.

BES (Budget Estimate Submission) | GovCon Glossary

BES (Budget Estimate Submission)

What is BES (Budget Estimate Submission)?

A Budget Estimate Submission (BES) is a document prepared by a government contractor in response to an agency's request for preliminary cost information. It is typically submitted before a formal solicitation or Request for Proposal (RFP) is released, providing the agency with early visibility into potential project costs. The BES helps inform the agency's budget planning and acquisition strategy.

Definition

A BES is a contractor's preliminary, non-binding cost estimate provided to a government agency. It outlines the projected costs for a specific project or requirement. Agencies may request a BES to gauge the potential costs of a project, assess market capabilities, and refine their budget requests before releasing a formal solicitation. While not legally binding like a proposal submitted under an RFP, the accuracy and completeness of a BES can influence the agency's perception of the contractor's capabilities and pricing strategy. The BES process is often initiated via a Request for Information (RFI) or a similar pre-solicitation communication.

Key Points

Early Cost Visibility: The BES provides the government with early insight into potential costs, enabling informed budget planning and decision-making.
Market Research Tool: Agencies use BESs to understand the range of costs and capabilities available in the market.
Non-Binding Estimate: A BES is not a formal proposal and does not create a contractual obligation.
Informational Document: The BES is used solely for planning purposes and does not guarantee the contractor will be invited to bid on the project.

Practical Examples

Agency Market Survey: A government agency is considering a new IT modernization project. They issue a Request for Information (RFI) requesting potential contractors to submit a BES outlining the estimated costs for the project. This helps the agency understand the budget required for the project and refine its acquisition strategy.
Pre-Solicitation Planning: Before releasing an RFP for a construction project, an agency requests a BES from several contractors to determine the feasibility of the project within its allocated budget.
Independent Government Cost Estimate (IGCE) Development: The government uses BES submissions from multiple contractors to develop an IGCE to compare against proposals received after the RFP is released, helping ensure fair and reasonable pricing.

Frequently Asked Questions

The primary purpose of a BES is to provide the government with a detailed estimate of the costs associated with a proposed project. This allows the agency to determine the affordability and feasibility of the project before a formal solicitation is released.