Parameters are used in cost estimating relationships or parametric formula in your company to calculate estimates - for both labor hours and material costs - which are dependent on other inputs. These inputs are called parameters and can be:

• Base parameters which are calculated on the basis of other estimates, as explained here
• Fixed or pre-defined parameters such as company-wide or project, WBS or task specific parameters
• Escalation factors

To create or edit a parameter open or create a formula which uses the parameter in question and click on the pencil link next to that parameter to open its detail in a popup. The screen shot below shows the formula set-up with a table or list of parameters in that formula's expression.

1. Once you edit or create your parameter check that the Parameter Type (see (1) above) is a "base parameter". This means you are editing a specific type of parameter which is set by other estimates. Other parameter types such as company-wide factors are explained here
2. Select what output type of value will be assigned to this parameter for example is it an effort or a cost. Base parameters can only calculate efforts (for example 2% of software_engineering) or costs (for example 10% of subcontract_costs)
3. You can also enter or edit the description of your parameter, making it short enough to quickly read but long enough to describe your parameter in full and avoid it getting mixed up with any other parameter. Keep the description unique and put in your group or department name if this parameter is only for use by your group or department or company
4. The parameter ID is generated automatically however feel free to edit this code or ID to make it shorter or more meaningful. It is the parameter code or ID which appears in the formula expression so pay attention to this field. If you do edit it, only use letters, numbers, hyphen and underscore and keep it unique
5. Optionally enter a full explanation of your parameter in the remarks box, a verbal description of the criteria or filters below in (6)
6. Base parameters essentially add up the values of a series of estimates defined by the criteria below (6, below). It is very important to select what to sum when calculating your base parameter. You have the option of summing up:
   • If the value type is duration of effort you can only sum labor hours or effort from your labor estimate
   • If the value type is a cost you can sum:
     • Labor cost from your original estimate, in either the local estimate, or your company currency. Note that labor costs in your estimate may not be accurate because they do not consider labor rates varying over multiple fiscal years or escalation factors
     • Material cost from your original estimate, again not including the impact of escalation factors
     • Other direct costs
     • Summarized cost (any direct or indirect cost) from the generated cost model. This gives a more accurate result but delays the calculation of formulas using this parameter while the cost model is generated. It is the only option if your parameter is being used in an indirect cost formula
   • You can only chose estimated labor hours if your base parameter calculates hours, while you have four choices for base parameters calculating a cost
7. Base parameters for direct costs or summarized indirect cost parameters are defined by what gets summed up, i.e. the criteria for selecting what estimates are included. These estimates can be selected on the basis of almost any field in your estimate, including custom fields or tags you have defined in your proposal. Think of these criteria as a series of rules, filters or SQL-like where conditions, to control what estimating records to include in this base
   • In the example below the "Commercial DE" labor resource group is part of this base parameter. The value of this parameter is literally the sum of all labor hours for the "Commercial DE" resource group
   • Select one or more values for each filter, to include base efforts or costs for more than one estimate
   • If you select multiple criteria or filters then all the criteria must be met simultaneously for a base effort or cost to be included in this parameter
8. The parameter result varies-by is an advanced concept. Even though base parameters are calculated automatically (you are not maintaining base parameter values manually), the system can still sum up the base costs or efforts to a single grand-total for your entire proposal or into sub-totals within your project or proposal by:
   • Sub-total the hours or costs for each WBS within your proposal to calculate a unique base parameter value for each BOE-WBS. Use this scope if the formula which contains your base parameter is assigned to several BOE's and you need to compute a separate or distinct resulting formulaic cost for each BOE-WBS
   • Sub-total the hours or costs for each company within your proposal to calculate unique base parameter values for each company which is contributing resources or materials, travel or other direct costs to the bid. Use this scope if the formula is in a separate special WBS such as "other costs" or "financial costs" and you need to maintain different rates or factors within the formula, for each company
   • Do not use other varies-by options here, they are for manually input parameter values.

Another example of a base parameter, this time for indirect cost calculation, is shown below. In this example the parameter is the sum of all costs booked to cost element 950421 across your project or proposal, with a separate sub-total and therefore indirect cost for each BOE-WBS or estimate. Indirect costs are calculated for each labor, material, travel or other direct cost estimate separately.