Certified Government Financial Manager (CGFM) Practice Exam

In the Competitive Source Analysis process, projecting in-house and contract costs is crucial because it involves evaluating the financial aspects of services or products sourced either internally or externally. Understanding these costs enables organizations to analyze where they can achieve the most value, make better procurement decisions, and budget effectively. By projecting both in-house and contracted costs, decision-makers gain insights into potential savings or expenditures, allowing for a comprehensive comparison between different sourcing options. This financial analysis supports strategic planning by ensuring that resources are allocated efficiently and that organizations remain competitive.

Contextually, projecting employee promotion opportunities, in-house and contract benefits, or overall budget expenditures, while important, does not directly align with the core objectives of the Competitive Source Analysis process, which focuses specifically on cost considerations for sourcing strategies.