Tag: pricing
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Fixed prices are only as reliable as the costs behind them. Economic price adjustment clauses let certain prices move with markets, costs or indexes. Here is how the three main types work.
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Service contracts and task orders are priced and staffed by labor category. Mapping employees to the government’s categories accurately, before fourth-quarter orders arrive, prevents pricing and compliance trouble.
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Some agencies use reverse auctions, in which sellers bid prices down in real time, for commodities and simple services. Knowing the rules and your own floor keeps the format from pushing you below cost.
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The difference between a salary and a wrap rate is indirect cost. Here is how fringe, overhead and G&A pools work, how they stack into a billing rate and why the government cares about the structure.
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A price without an explanation is just a number. A basis of estimate shows evaluators how you built your figures, proves they match your technical approach and protects you from a realism finding.
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A federal price proposal must be competitive, realistic and consistent with the technical approach. Here are general principles and mistakes to avoid.
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The contract type determines who bears cost risk and how you get paid. Here is a plain overview of the main federal contract types and what each means for you.