Pursuit's Take
Independent government cost estimates help the government understand the potential cost of a contract. They’re an important planning tool, especially for service contracts.
Some of the agencies that spend the most on service contracts may not be taking advantage of this tool: GAO found uneven guidance on when to use estimates.
GAO also found different levels of detail in the estimates themselves, which can affect how useful they are to contracting officers. The details help officers determine, for example, how reasonable a contractor’s price is.