For government contractors pursuing higher‑value Department of Defense contracts, a strong cost estimating system is essential. Under DFARS 252.215‑7002, an estimating system includes the policies, procedures, and practices used to develop proposal cost estimates — and it must be consistent, well‑documented, and integrated with accounting and purchasing systems. While the formal requirement applies to larger contractors meeting specific revenue thresholds, even smaller contractors should prepare early if growth is part of their strategy.
To help, we’ve created a guide titled Contractor Business Systems: Cost Estimating System Requirements. You’ll get insights into what an estimating system is, when contractors should consider a cost estimating system, areas evaluated during a DCAA estimating system audit and how to prepare, and what to do if your estimating system has been disapproved.
