Cost Realism Analysis

Cost Realism Analysis is a process used to evaluate the accuracy and reasonableness of proposed costs in project bids or contract proposals. It examines whether the costs estimated by bidders accurately reflect the resources, time, and labor needed to complete the project. This analysis ensures that the government or organization does not overpay for services or products and helps identify any unrealistic pricing that could lead to project failures or added expenses. Ultimately, it aims to find a balance between cost efficiency and successful project execution.