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**********GENERAL NOTES********** 2004 Specification Book (Revised October 1, 2012) Basis of Estimate ItemDescriptionRate/AreaQuantUnit Rate/ Area Rate/ Area The Following Is For Information Only
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Basis of estimate is a document that outlines the assumptions, methodology, and rationale used to develop a cost or price estimate.
Contractors and suppliers who are submitting cost or price proposals for government contracts are typically required to file a basis of estimate.
Basis of estimate documents should be filled out by explaining the basis for each cost element in the estimate, including any assumptions made and the methodology used.
The purpose of basis of estimate is to provide transparency and justification for the cost or price estimate submitted for a contract.
Information such as labor rates, material costs, overhead costs, profit margin, and any other relevant factors that contribute to the overall estimate must be reported on basis of estimate.
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