Who performs Independent Cost Estimates (ICE) for major DoD acquisitions?

Who performs Independent Cost Estimates (ICE) for major DoD acquisitions?

• A. Internal Cost Estimate by the Auditor
• B. Integrated Cost Estimate by the Program Office
• C. Independent Cost Estimate performed by OSD CAIG or Cost Analysis Improvement Group
• D. Incremental Cost Estimate by the Contractor

Answer: (D)

Independent cost estimates for major DoD acquisitions come from an objective government cost-analysis function—the Office of the Secretary of Defense Cost Analysis and Improvement Group (CAIG). The ICE is produced independently of the program office and the contractor, providing an unbiased, authoritative estimate of program costs that supports decision-making, budgeting, and program oversight. The program office may prepare its own cost estimate, but that is not considered the ICE; contractor incremental estimates are not ICE either. In practice, the ICE is performed by OSD CAIG or an equivalent Cost Analysis Improvement Group, which is why this option best fits how major DoD acquisitions are evaluated.

Independent cost estimates for major DoD acquisitions come from an objective government cost-analysis function—the Office of the Secretary of Defense Cost Analysis and Improvement Group (CAIG). The ICE is produced independently of the program office and the contractor, providing an unbiased, authoritative estimate of program costs that supports decision-making, budgeting, and program oversight. The program office may prepare its own cost estimate, but that is not considered the ICE; contractor incremental estimates are not ICE either. In practice, the ICE is performed by OSD CAIG or an equivalent Cost Analysis Improvement Group, which is why this option best fits how major DoD acquisitions are evaluated.