APMP Cost Task Force: Improving Cost as Part of Proposals to Government

Author: · October 6, 2011 · Filed Under Conferences, Thoughts  - 0 Comment(s)

I have recently accepted the chair position with  Association of Proposal Management Professionals (APMP) cost task force.  I will be starting up the regular telecons in a few weeks.  I must admit when I was first drafted onto this task force a couple years ago I had never heard of APMP.  But having worked with them and attended their last two conferences I must say I am very impressed with the organization.

For those already on the task force I will be contacting you in the next few days.  For those that would like to help improve the ability for costs to reflect actuals please send me an email and get on this task force.

The charter of this task force follows:

  1. 1. Statement of the Issue.

There are often large differences between an offeror’s proposed cost and the Government’s realistic or Most Probable Cost. This task force will involve Government and Industry Cost experts to discuss/brainstorm possible reasons.  It may require discussing or mapping each other’s processes to determine where these disconnects may be.

  1. 2. Goal of the Task Force Effort.
  • To identify disconnects between offerors’ approaches in developing cost proposals and the Government’s approach to evaluating cost proposals (including performing realism analysis and developing Most Probable Cost).
  • To minimize differences between the proposed cost and the Government’s Most Probable Cost that is due analysis approach differences (e.g., Government point estimate or a 50% probability approach vs. an offeror’s 10% best case approach.)

 

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This post was written by

Dan Galorath – who has written posts on Project Planning & Estimation.
Dan Galorath is the President and CEO of Galorath Incorporated and the chief architect of SEER-SEM, an algorithmic project management software application. He is a recognized expert in the fields of software estimation and sizing and the author of Software Sizing, Estimation, and Risk Management.

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