CEMP-E/CECW-E
EI 01D010
1 September 1997
Decision (COD) in the form of a (letter) memorandum
Government. Even when the scope may be in
of denial of the protest unless the protestor withdraws
general agreement, the cost may be in dispute.
the bid protest.
The Contracting Officer may issue a unilateral
modification establishing the cost and the
(3) Meetings may be held with the apparent
modification may result in litigation. The pro-
low bidder or contractor prior to issuance of the COD
cedure upon encountering an impasse, generally
memoranda to ensure that both the Government and
results in the Government issuing a COD, and the
the protestor have the opportunity to review the proj-
process is the same as previously discussed for a
ect and agree to the scope of work as specified by the
bid protest.
plans and specifications. Meetings will also allow
discussion whether there are unusual conditions or
(2) It is possible that not all of the facts of
circumstances that may affect or complicate the work.
a claim, change, or major overrun of quantities
If a meeting reveals an error or omission in the
have been provided or verified by the cost engi-
Government estimate, it may be revised as previously
neer. In those cases where the cost engineer has
discussed.
prepared a Government estimate, but due to cir-
cumstances has not met with the contractor, and if
(4) The protest/dispute may take several
additional facts are revealed, the cost engineer may
months to resolve. The Government's position may be
revise the Government estimate as appropriate.
reviewed and evaluated at the district, MSC, and
The revised Government estimate requires the
HQUSACE, as well as by the General Accounting
same approval authority as the original Govern-
Office, a court, or a board of contract appeals. During
ment estimate. Upon revising the Government
each of these reviews, questions will arise, and the cost
estimate and mutual agreement by the contractor
engineer will be called on to support the estimate. The
and Government, a modification is processed.
cost engineer(s) responsible for preparing the
Government estimate are most familiar with the
(3) In May 1995, EFAR was revised as
estimate, and as such, should be prepared to assist
follows, "When the Government estimate is
counsel, contracting, and other staff to resolve the
changed during or subsequent to conferences or
issue; and be prepared to testify in court and certify the
negotiation, the basis for the revision or changes in
validity of the estimate.
price shall be fully explained and documented in
the price negotiation memorandum or Business
b. Contract modifications/change orders. The
Clearance Memorandum (EFARS 36.203.102).
cost engineer may also be required to prepare cost
Judgment in making this type of decision should be
estimates for major or complex changes; or design
based on the circumstances of a particular issue,
change orders for on-going construction projects;
not all encompassing, and recommendations
major or extensive quantity overrun bid items; or even
should be made to the Contracting Officer. For
assisting in evaluating claims occurring during
major differences in cost, disputes or claims not
construction whereby an Government estimate is
resolved, a revised Government estimate is
required.
recommended, supported by a technical and cost
analysis of the dispute in litigation.
(1) Prior to the cost engineer finalizing the
Government estimate, it is important to meet with the
16-4. Security and Disclosure of
contractor to agree on the scope of work concerning
Government Estimates
change orders for on-going construction. The cost
engineer will prepare the cost estimate as detailed in
Security and disclosure of the revised Government
chapter 14. On occasion, disputes arise between the
estimate should be handled in the same manner as
Government and the contractor, primarily due to a
the original Government estimate. Procedures for
very wide variance between the value of work
handling the Government estimate are described in
estimated by the contractor and the Government
chapter 2.
estimate being on the low side. When a dispute
arises, meetings are necessary in an attempt to resolve
the difference in cost between the contractor and the
16-2
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