If any assumptions are determined to be invalid, this determination and the anticipated cost impact should be included in the analyst s report. The proposal notes may contain a variety of information, such as errors in the proposal, definitions of terms, the general organization of the proposal, and cost options or alternatives. These notes may clarify issues raised when the proposal was validated. They may also contain data that will aid the analyst in understanding some of the price data presented in the proposal. In a competitive procurement, the results of the proposal review will be a factor in determining which offeror is awarded the contract.
Cost drivers are the largest components of cost within an offeror s proposal.
For example, in a research and development contract the cost driver will probably be engineering labor. Cost discriminators are the components of cost that distinguish one offeror s proposal from the proposals of other offerors. Cost discriminators are often related to technical discriminators and reveal areas for cost trade offs. For example, one offeror proposes to use a computer that is twice as expensive as what the other offerors have proposed. The cost of the computer is a cost discriminator.