McDermott Aviation provides comprehensive Independent Fee Estimating services to small, medium, and large non-hub, and hub airports nationwide. Leveraging our 40 years of experience preparing consultant agreements and managing complex planning, environmental and design projects, we are able to provide fee estimating services that will exceed your expectations. 

According to FAA Advisory Circular 150/5400-14, a Sponsor must perform a price or cost analysis for every A/E contract (2 CFR § 200.323). The method and degree of analysis is dependent on the facts surrounding the contract. To properly evaluate the cost of professional services an independent fee estimate (IFE) is required, prior to receiving the consultant’s proposal, as part of the cost analysis for all A/E contracts and contract modifications. The IFE is intended to be used as a negotiation tool by the Sponsor. 

For negotiated professional services (such as consultant costs of contact modifications to a professional services contract) the sponsor must perform a cost analysis according to FAA Order 5100.38 D, Change 1 Airport Improvement Program Handbook. Chapter 3, Section 14, Table 3-67 Sponsor Requirements for Cost Reasonableness.

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The cost Analysis must include:​

• Independent fee estimate

• A statement signed by the sponsor that the cost analysis was performed that includes the sponsor’s recommendation that the FAA accept the statement and analysis as evidence of cost reasonableness

• Amount of contract

• Copy of the signed contract only if requested by the ADO.

• Any other supporting documentation requested by the ADO.