Duration 3 days – 21 hrs
Overview
This 3-day training course is designed to provide DND personnel with the foundational knowledge and practical skills required for accurate cost estimation in procurement processes. Participants will gain an understanding of key cost estimation techniques applicable to defense procurement projects, focusing on goods, infrastructure, and consulting services.
Objectives
- Grasp the basics of cost estimating in defense procurement.
- Learn and apply various cost estimation techniques for different procurement types.
- Identify and incorporate risk factors into cost estimates.
- Ensure compliance with procurement regulations (e.g., R.A. 9184).
- Improve decision-making in procurement by developing accurate project cost estimates.
Audience
- Project Managers – DND personnel managing defense projects requiring cost estimation for efficient resource allocation and decision-making.
- Financial Analysts and Budget Officers – Individuals in charge of preparing budgets and analyzing financial proposals in defense projects.
- Logistics Officers – Those involved in logistics management and ensuring accurate cost estimates for the transportation and acquisition of goods and services.
- Contract Administrators – Personnel overseeing the drafting and execution of contracts, ensuring that cost estimates align with contractual obligations.
- Legal Officers – Staff responsible for ensuring that procurement activities comply with R.A. 9184 and other relevant defense procurement regulations.
- Consultants and Advisors – External consultants involved in defense procurement, providing advisory services in cost estimation.
Pre-requisites
- Basic knowledge of project management and budgeting is recommended but not required.
Course Content
Day 1: Introduction to Cost Estimating in Procurement
- Overview of Cost Estimating:
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- Importance of cost estimation in defense procurement.
- Types of costs: direct, indirect, fixed, and variable.
- Government procurement regulations (R.A. 9184).
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- Cost Estimation Methods:
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- Overview of key techniques (bottom-up, top-down, parametric, and analogous).
- Application of techniques to defense procurement.
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- Case Study: Developing a basic cost estimate for goods procurement.
Day 2: Cost Estimation for Goods and Infrastructure
- Cost Estimation for Procurement of Goods:
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- Factors affecting the cost of goods (market analysis, life cycle costing).
- Vendor analysis and benchmarking.
- Case Study: Estimating the cost of military supplies procurement.
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- Cost Estimation for Infrastructure:
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- Specific challenges in infrastructure costing (risk analysis, direct vs. indirect costs).
- Developing accurate estimates for construction projects.
- Practical exercise: Estimating infrastructure project costs (construction and maintenance).
Day 3: Cost Estimation for Consultative Services and Risk Management
- Cost Estimation for Consultancy and Services:
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- Pricing models for services (fixed-price, time-and-materials).
- Estimating the cost of advisory and consultancy services for defense projects.
- Case Study: Costing for a defense consultancy project.
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- Risk Management in Cost Estimation:
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- Identifying and managing risks in project cost estimates.
- Contingency planning and budget adjustments.
- Wrap-Up Exercise: Participants work in groups to develop a comprehensive cost estimate for a defense procurement project (goods, infrastructure, and services).
