Independent Estimates

In response to RFQ and RFB it is required for the performance organization to see is the bidding prices from the seller is matching with our pricing or not. This gap can be known from the technique called Independent Estimates. It can be done by performing organization on their own or can get it done from 3rd party. This technique helps in bridging the gap if any between the seller and the buyer in terms of scope, assumptions, and ambiguities.

For example if the bidding price is $20K and our estimation is $15k, this is a considerable gap. The reasons can be either the scope understanding from the seller side is incorrect or the buyer has not done his estimate properly.

Independent Estimates techniques is used the process Conduct Procurements.