State’s Cost Proposal

The State's cost proposal, like the consultant's cost proposal, outlines the work to be done, staffing requirements and wage details, as well as any needed supporting documentation. The detailed state estimate is required by Department Regulation 21 CCR 1520.4.

To develop the State's cost proposal:

1. Functional manager (FM) estimates the effort (in hours) that is needed to complete the tasks.
2. Contract manager (CM) translates the effort estimate to a confidential cost estimate that can be used to compare with the consultant's cost proposal
3. CM compares consultant cost proposal against the cost estimate developed by the State. When comparing the proposed estimates, the CM looks for assumptions, language differences, and omissions of details.
   • Does the consultant's estimate include assumptions?
   • Are assumptions clearly stated?
   • Are definitions and descriptions used in the same way?
   • Are differences in cost estimates due to things that one party maybe did not think of?
   • Do job classifications on the consultant's estimate match State's estimate?
   • Do the job classifications in the estimates match what was written into the task order?
4. CM discusses any difference with FM, PM or both, as appropriate, to develop a negotiating position on the task order. The specific points of negotiation may include scope, schedule, effort level, job classifications, and other direct costs. If cost is a constraining factor in the project, the FM and PM may consider revising some terms of the task order to cut costs.