Federal Contracting Glossary
Independent Government Cost Estimate (IGCE)
The government's own internal estimate of what a requirement should cost, used to budget, gauge price reasonableness, and benchmark offers.
Definition
An Independent Government Cost Estimate (IGCE) is the government's internal, detailed estimate of what a requirement should cost, prepared before solicitation. It supports budgeting, helps select the acquisition strategy, and gives the contracting officer a baseline for assessing whether proposed prices are fair and reasonable.
The IGCE is generally not disclosed to offerors, but it heavily influences the competition: an offer far above it may be judged unaffordable, while one far below may raise cost-realism concerns. Capture and pricing teams try to triangulate the likely IGCE — from historical awards, market research, and scope — as a key input to price-to-win.
How this affects your proposal
Estimate the likely IGCE during capture and pricing — it anchors what "competitive" means. Too far above and you look unaffordable; too far below and you may fail a cost-realism check.
Common questions about independent government cost estimate (igce)
Is the IGCE shared with offerors?
Usually not. The IGCE is an internal government estimate and is generally nonpublic. Offerors typically infer it from market research and historical award data.
What happens if my price is far from the IGCE?
A price well above can be judged unaffordable; well below can trigger a cost-realism concern that you don't understand the work. Either can hurt your evaluation.
Related terms
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