BOE

A Basis of Estimate is a document that explains and supports the rationale, assumptions, methodology, and data sources used to develop a cost or price estimate. BOEs provide transparency into how estimated values were derived and are essential for proposal credibility and cost realism evaluation.

Strong BOEs include labor hour calculations, productivity assumptions, historical data references, vendor quotes, and risk considerations. Government evaluators review BOEs to assess whether proposed costs are realistic and achievable. Well-documented BOEs demonstrate estimating rigor and help defend proposed prices during negotiations and audits.