Before discussions or negotiations of any proposed contract or contract modification is initiated, an independent Postal Service estimate of the cost for the required A/E services must be developed, based on a detailed analysis of the costs expected to be generated by the work. Consideration must be given to the estimated value of the services and to the scope, complexity, and nature of the project. Detailed information about cost estimates is contained in Sections 1-7, Develop Preliminary TCO Estimates, and 2-7, Conduct Should-Cost Analysis.
The independent estimate must be revised as required during discussions or negotiations to reflect changes in or clarification of the scope of the work to be performed. A fee estimate based on the application of percentage factors to cost estimates for the various segments of the project may be developed for comparison purposes, but such an estimate must not be used as a substitute for the independent Postal Service estimate. To the extent necessary, the cost breakdown figures in the Postal Service estimate may be revealed during discussions or negotiations provided that the overall amount of the Postal Service estimate is not disclosed. Any change in the Postal Service estimate during or after price discussions or negotiations must be specifically but succinctly explained in the contract file.
