Example Procurement Buying Tech Services

U.S. Digital Service: Agile Task Order FFP Independent Government Cost Estimate (IGCE) Example

A practical example showing how to estimate and structure firm-fixed-price costs for agile software development task orders using iteration-based pricing and performance metrics.

Organization: U.S. Digital Service (USDS)

Published Year: 2026

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This resource explains how to create an Independent Government Cost Estimate (IGCE) for agile projects by pricing iterations (e.g., sprints) rather than fixed feature sets, reflecting agile delivery’s focus on continuous value delivery rather than predetermined scope (pp. 1–2).

It outlines key pricing factors such as team size and composition, number of teams, iteration length, estimation methods (e.g., story points), performance metrics, and incentives, and shows how these inputs roll up into a firm-fixed-price structure with defined CLINs and per-iteration pricing (pp. 1–3). The example IGCE illustrates how agencies can align procurement, invoicing, and performance management with agile practices while preserving flexibility for vendor innovation and delivery tradeoffs.