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Federal Procurement

Develop the Estimating Plan

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Develop the Estimating Plan

Glossary

A glossary tracked by Bureauify. See sources and related records below.

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Why does Step 2: Develop the Estimating Plan matter?

Create a comprehensive plan that outlines the approach, schedule, and resources needed to complete the cost estimate. The estimating plan serves as the project management roadmap for the estimating effort itself, ensuring adequate time, expertise, and data sources are identified before work begins.

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Key Activities

  • 1.Define the estimating team composition and responsibilities
  • 2.Establish the schedule and milestones for completing the estimate
  • 3.Identify required data sources and collection methods
  • 4.Select estimating methodologies for each cost element (analogy, parametric, engineering build-up)
  • 5.Plan for independent reviews and cross-checks

Deliverables

Cost estimating plan documentTeam charter and responsibility matrixData collection planMethodology selection rationale

Common Pitfalls

  • !Underestimating the time required to collect and normalize data
  • !Selecting methodologies before understanding data availability
  • !Not planning for independent verification and validation

Adjacent Steps

Define the Estimate's PurposeStep 1Define Program CharacteristicsStep 3Determine the Estimating Structure (WBS)Step 4

All Other Steps

Identify Ground Rules and AssumptionsStep 5Obtain DataStep 6Develop the Point EstimateStep 7Conduct Sensitivity AnalysisStep 8Conduct Risk and Uncertainty AnalysisStep 9Document the EstimateStep 10Present Estimate for Management ApprovalStep 11Update the Estimate to Reflect Actual CostsStep 12

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Bureauify. (2026). Develop the Estimating Plan — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/develop-estimating-plan

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