Cost Analysis

In business transactions an analysis is necessary to evaluate the reasonableness of a proposed price. This analysis ranges from a comparison of competitive quotes, market, or catalog prices to evaluation of individual cost elements in a cost proposal. UMI has staff available with the experience to assist with the most complex cost proposals.

Price analysis which involves evaluation of price based on a comparison market or catalog prices or competitive bids is the simplest method of determining a price reasonable.

Cost analysis involves evaluation of the individual elements making up the proposed cost/price.

It includes an evaluation of:

  • The overall proposed approach to meeting the requirement.
  • The Bill of Materials (especially the high dollar items).
  • Labor hours and adjustments.
  • Rates and factors applied.
  • Detailed justification for all cost elements.
  • Technical (engineering) aspects.

UMI's experienced cost analysts are available to support short term projects such as analysis of vendor proposals in support of a prime proposal effort to longer term staff augmentation.