What is an Independent Government Estimate (IGE)?

An Independent Government Estimate (IGE) is an essential tool prepared by the government to estimate the anticipated costs that will be incurred during the performance of a contract. This estimate is developed without the influence of contractors and helps in establishing a benchmark for evaluating the bids received from the private sector.

The IGE serves several vital purposes in the procurement process. It helps ensure that the contracting officer can assess whether the bids from contractors are fair and reasonable compared to the government’s own estimate of costs. Moreover, it provides a basis for negotiation and supports budgeting decisions, enhancing the integrity and accountability of the acquisition process.

By allowing the government to have an informed perspective on costs, the IGE plays a key role in ensuring that taxpayer money is spent efficiently and effectively in fulfilling the government’s requirements. This aligns the acquisition process with sound financial management principles and fosters a competitive bidding environment where contractors are encouraged to offer their best pricing.