Cost Estimate and the State Of Work - Assignment Example

The Independent Government Cost Estimate and the of Work Cost Estimate and the Of Work Introduction The IGCE (Independent government cost estimate) is a very important document that validates on the financial use during contracts offered by the government. It is a document that should be maintained well so as to give the government the rim light of the contract proceedings and the costs of each step that takes place during the contract. The IGCE document is to have the following information; the name of the preparer, the preparer information (i.e. telephone and E-mail), the signature of the preparer (original hand signed signature), a statement to certify the IGCE and a form of a spread sheet that shows the actual amounts of costs, the reason, procedures used to prepare the document and the conclusion of the person who prepared the IGCE. Importance of IGCE The IGCE is very wide scope of importance in contracting activities such as the fifty two tower contract. The IGCE will give the government the prices and quotes of previously or the current catalogs of the requirements of the contract. This will help the government to fund the project and give the expected amounts of finances that will lead to the completion of the projects without any shortages (Schwalbe, 2011). The labor costs of the projects are also shown in the document which gives the contractors and the casual the morale and motivation to work hence leading to excellent results after all. Workers being the most crucial requirements after the materials they are to be respected and cared for in the most appropriate manner so that they can work to complete the work within the specified timeline (Schwalbe, 2011). This brings about other motivational factors for the workers such as workers compensation, retirement and pensions and past time pay offs that will motivate the workers to work tirelessly in order to complete the project. In the IGCE there direct costs that affect directly the final cost of objectives. These direct costs are transport, vehicles, computers and also equipments that have been leased by the contractors. In the direct costs the IGCE preparer should indicate the descriptions of the items, the price quotes and other important information that is required in the IGCE statement (Kinzie, 2010). The IGCE document is very important because through it the market survey is conducted and this gives the actual cost of the direct costs and requirements that gives the government a very confidential and truthful report on the amount of finance that is used throughout the project. The IGCE statement is also very important in government reference and file keeping. It is a document when well kept can give the future generation the way the projects were carried and the amount of cash that they utilized for project completion (Federal government, 2009). It is also very important in countrymen taxation and government budget making for the year of the project. It also helps the government in the revenue allocation and in implementation of the governments’ strategic plans (Kinzie, 2010). This will lead to job creation, growth and expansion of the countries industrialization. Therefore a well documented IGCE statement safeguards the government’s properties through internal controls and audit trials for the government’s final project price. Reasons for Confidentiality The reasons why the IGCE should be kept a major secret is because the countries ethics and integrity must be retained and should be above reproach in business dealings with the government (Schwalbe, 2011). This will build the people’s confidentiality in the government hence creating harmony in the country (Federal government, 2009). The contracting officers must go to an agreement with the contracting officer representatives on the confidential financial disclosure report. This report is very crucial in avoiding conflicts between the official duties and the private affiliations. This report is also very vital in curbing away bribery from the public sector. It helps because in the contracting process certain procedures are followed which will be reviewed to ascertain whether the contractor hired was the best choice according to the project being offered the contract (Compton, 2008). The IGCE document serves as a confidential report to the government and also the contracting agents because they all require secrecy in performance of their duties so as not to cause any violation of the rule of law and to maintain better relationship between the government officers and the private associates. There are factors that the government should put in place so as to improve on the way of keeping confidentiality of the documents. These factors are implementing acts about contracting such as the Anti-kick back act. This will prohibit any anti-kick back doings that might inhibit the security and confidentiality of the IGCE (Compton, 2008). This will enact laws that will trigger unlawful doings that will have no favors to anyone through any back door ways that might lead to disclosure of the IGCE document content. The disclosure of this report may lead to conflicts between the government officials and the contracting persons. The second factor that will increase the confidentiality of the IGCE document will be through the Confidential Financial Disclosure Report. This report gives the contractors and the government officers in charge of offering the contracts to keep good relationship between them therefore avoiding wrangles that would grow due to unfair deals (Federal government, 2009). This gives warnings to the persons involved in the deals that they should keep off from bribery, gratuities and other unlawful deals that will make one receive something of value although the qualifications are not met by the contender (Correia, 2010). Due to these two factors anyone got with such misconduct must face the full force of the rule of law, imprisonment, fine or both so as to maintain the sovereignty of the report. Detailed Cost Estimate INDEPENDENT GOVERNMENT COST ESTIMATE (IGCE) Project title: CONSTRUCTION OF TOWERS WITH CAMERAS AND RADAR. Project manager: PERIOD OF PERFORMANCE FROM TO 2013 2023 DESCRIPTION OF COST ELEMENTS 1.DIRECT LABOUR ESTIMATED HOURS RATE PER HOUR ESTIMATED COST ESTIMATED TOTAL COST Remuneration 6 $60 $60 $1,126,800 pension $375,600 TOTAL DIRECT LABOUR $1,512,400 2. OVERHEAD (%) RATE TOTAL LABOR ESTIMATED COST TOTAL ESTIMATED COST 2% $1,126,800 $225,360 3. MATERIAL SERVICES ESTIMATED COST TOTAL ESTIMATED COST $120,000 $120,000 4. INFORMATION TECHNOLOGY SUPPORT ESTIMATED COST TOTAL ESTIMAED COST $10,000 $10,000 TOTAL IT SUPPORT $10,000 5. TRAVEL ESTIMATED COST TOTAL ESTIMATED COST $12,000 $12,000 SUBCONTRACTORS IF ANY ESTIMATED COST TOTAL ESTIMATED COST $100,000 $100,000 TOTAL SUBCONTRACTORS COST OTHER DIRECT COSTS ESTIMATED COST TOTAL ASTIMATED COST Training of camera operators $100,000 $100,000 Other costs $25,600 $25,600 TOTAL DIRECT COSTS $125600 NAME AND TITTLE SIGNATURE OFFICE/ BRANCH DATE Statements of Work A statement of work is any formal document that defines the work in terms of activities, the materials delivered and the timeline that is required to perform the contract. The areas that are mostly addressed are the purpose of the project, the scope of work the project which gives the overview of the work to be undertaken in the project, the location of the specific place where the project is located (Correia, 2010). The time of performance which gives the real time that is to be taken for the project, the type of contract and states the real design and gives the blue print of the project, special requirements, acceptance criteria which gives the process of goods quality and viability while at last it must include the deliverables schedule and applicable standards that describe any industrial requirements that need to be adhered to due to the rule of law (Federal government, 2009). In the statements there should also be a statement that gives the amount of miscillineouses which are very important to the main project. Therefore in order to get the real time that is required to complete the construction of the fifty two towers the government has to order to get the work plan statements so that they can have the real time required to end the contract. This will help maintain the pace for construction of the towers so that the timely budget can be carried for their construction. Most Appropriate Statement The document on the scope of work is very important because the amount required for the contract is available. The scope of work should incorporate the plan on how the activities will be carried, by whom, through what means and the time duration for each task. Therefore there would rather be a plan on the scope of work before all the other statement because it gives the way through the project. This document will improve on the speed at which the work will be performed and ensuring that there will be nothing to waste during the construction. This will keep the contractors on a pace that will lead to better results than if there was no scope of work statements. The fifty two towers are meant to be completed in ten years where within the ten years there should be a frame of work and steps to be followed in order to complete the construction in the specified duration of time. . References Charles A. Correia (2010). The Application and Utility of Independent Government Cost Estimates. Canada: Defense Technical Information Center. Federal government (2009). Military Operations DODs Extensive use of Logistics Support contracts. New York: Diane Publishing. Kathy Schwalbe (2011). Information Technology Project Management. London: Cengage Learning. Paula B. Compton (2008). Federal Acquisition Key Issues and Guidance. London: Green Lion Press. Steven Mc Kinzie (2010). Guide to Independent Government Cost Estimating. New York: Government Training Incorporated. Read More