GCE

A Government Cost Estimate is the government's internal assessment of expected costs for a procurement action. GCEs inform budget planning, price reasonableness determinations, and negotiation positions. GCEs are typically procurement-sensitive and not disclosed to contractors.

Understanding that GCEs exist helps contractors appreciate the importance of well-supported pricing. GCE development uses various methodologies including parametric analysis, analogies, and engineering estimates. Contractor prices significantly above GCEs may face additional scrutiny.