Transcription of COST ESTIMATING AND ASSESSMENT GUIDE
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COST ESTIMATING AND ASSESSMENT GUIDE
March 2020 GAO-20-195 GCOST ESTIMATING AND ASSESSMENT GUIDEBest Practices for Developing and Managing Program Costs Page i GAO-20-195G cost ESTIMATING and ASSESSMENT GUIDE Preface 1 Introduction 3 Chapter 1 Why Government Programs Need cost Estimates and the Challenges in Developing Them 8 cost ESTIMATING Challenges 9 Chapter 2 cost Analysis and cost Estimates 17 Types of cost Estimates 17 Significance of cost Estimates 22 cost Estimates in Acquisition 22 The Importance of cost Estimates in Establishing Budgets 24 cost Estimates and Affordability 25 Chapter 3 The Characteristics of Credible cost Estimates and a Reliable Process for Creating Them 31 The Four Characteristics of a Reliable cost Estimate 31 Best Practices Related to Developing and Maintaining a Reliable cost Estimate 32 cost ESTIMATING Best Practices and the ESTIMATING Process 33 Chapter 4 Step 1: Define the Estimate s Purpose 38 Scope 38 Including All Costs in a life cycle cost Estimate 39 Survey of Step 1 40 Chapter 5 Step 2: Developing the ESTIMATING Plan 41 Team Composition and Organi
Page vi GAO-20-195G Cost Estimating and Assessment Guide . Appendix XIII GAO Contacts and Staff Acknowledgments 427 Glossary 428 References 436 Image Sources 462 Tables Table 1: Life Cycle Cost Estimates 20 Table 2: Other Types of Cost Estimates 20 Table 3: The Twelve Steps and their Best Practices 36
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