CER

A Cost Estimating Relationship is a mathematical expression that relates cost to one or more independent variables such as weight, complexity, or performance parameters. CERs enable parametric cost estimation by applying historical cost data to new programs with similar characteristics.

CERs are developed through statistical analysis of historical cost data and are validated against actual program outcomes. Understanding CER development and application helps contractors prepare credible parametric estimates and respond to government cost realism evaluations. Well-documented CERs support price reasonableness determinations.