Webinar: Preparing for Software Negotiations: Adding Value Through the IGCE Process by Department of Homeland Security/OCFO

About This Webinar

Independent Government Cost Estimates (IGCEs) are crucial to determining fair and reasonable pricing of vendor proposals, but their implementation during IT Acquisitions are not always straightforward.

Reliance on vendors to define requirements, lack of traceability to requirement drivers, and the subjective value of capabilities are just some of the many challenges that limit a cost analyst’s ability to determine and document reasonable pricing within an IGCE. Contracting offices require a well-established IGCE to ensure traceability to requirements, identify trade space, and maximize the value in an awarded contract.

Using a sample IGCE based on commercially available software license cost information we will illustrate how to estimate fair and reasonable pricing, explore what constitutes a “quality” IGCE, propose additional steps to develop an IGCE in the context of IT Acquisitions, and demonstrate how the IGCE can be used to maximize value for the Government. Starting from the PMO’s understanding of a requirement, our analysis will begin with compiling data and identifying the cost drivers relevant to the requirement. We will go through a step-by-step analysis of the compiled data and use the findings as the basis of a fair and reasonable independent estimate considering the observed pricing models, the requirement, and vendor incentives. We will then use details in the IGCE and a vendor proposal to identify negotiating/trade space between the two and identify paths toward a best-value contract award for the Government. Finally, we will show how this example demonstrates best practices relevant to all IGCEs.

Presenters

Stephen Koellner

Stephen Koellner is a Cost Analyst Lead at Augur Consulting with experience performing detailed data analysis, developing risk-adjusted Life Cycle Cost Estimates (LCCE), Program Office Estimates (POE), Independent Government Cost Estimates (IGCE), and cost evaluations of proposals for DoD IT Projects. Stephen has supported DoD IT Programs covering technologies such as: predeployed/mobile networks, cloud-based data hosting, cybersecurity, Agile SW application development, and enterprise level commercial SW acquisitions. He is also a contributor to the GAO Cost Guidebook, a graduate from the Pennsylvania State University with a degree in Mathematics, and a published author in the Earth and Planetary Science Letters journal (mathematical modeling).

Martha Ann Spurlock

Martha Ann Spurlock has worked in government cost estimation and education for over 20 years. For the last 10 years Martha has supported and managed cost efforts for Army IT acquisition and sustainment efforts of various ACAT level. For the last 5 years she has served as the cost lead for Army PEO-EIS, with prior positions supporting IT PMOs in the form of Cost and Business Management. Additionally, she has experience as a professor of cost estimation at Defense Acquisition University (DAU) and as department chair for the Army Logistics University. She holds Masters degrees in both Systems Engineering and Mathematics Education. She is a certified defense financial manager (CDMA), ORSA MAC, DAWIA III BFM, and previously held ICEAA certifications.

Ryan Webster

Ryan Webster has worked in the field of DoD cost estimation for over 10 years. The majority of his career has been in support of IT acquisitions for the Army and Navy. He is the IT Portfolio Manager for Augur Consulting which provides Cost, Schedule, and EVM support to various DoD programs and technologies including Network Modernization, Cyber Security, ERP Systems, Physical and Virtual Data Centers, Biometrics, Application Development, and Deployable Electronics. In addition to supporting vendor negotiations and IGCEs, Ryan has developed numerous LCCEs, C-BAs, and other integrated program management products in aid in analytical decision making. products in support of making economic decisions in the IT trade space. Ryan is a contributor to the GAO Estimating and Assessment Guide, received a BS in Finance, and holds a CCE/A through ICEAA.