[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR15.407-5]

[Page 279]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 15--CONTRACTING BY NEGOTIATION--Table of Contents
 
                     Subpart 15.4--Contract Pricing
 
Sec. 15.407-5  Estimating systems.

    (a) Using an acceptable estimating system for proposal preparation 
benefits both the Government and the contractor by increasing the 
accuracy and reliability of individual proposals. Cognizant audit 
activities, when it is appropriate to do so, shall establish and manage 
regular programs for reviewing selected contractors' estimating systems 
or methods, in order to reduce the scope of reviews to be performed on 
individual proposals, expedite the negotiation process, and increase the 
reliability of proposals. The results of estimating system reviews shall 
be documented in survey reports.
    (b) The auditor shall send a copy of the estimating system survey 
report and a copy of the official notice of corrective action required 
to each contracting office and contract administration office having 
substantial business with that contractor. Significant deficiencies not 
corrected by the contractor shall be a consideration in subsequent 
proposal analyses and negotiations.