Pricing is often the most perplexing aspect of submitting a Government bid.
There are no pricing shortcuts, no Cliff Notes or crystal balls for pricing. To get pricing right, we have to dig deep into your books and combine that information with current research to provide your company with opportunity-specific rates for products and services.
Pricing to Win
Winning pricing is simultaneously profitable, sustainable, and competitive.
Profitable. It is important to understand not only the profitability of the contract, but even more granularly, the profitability of each position. For example on an SCA contract, the revenue generated by a position can be greatly affected by the individual in that position.
Sustainable. You put a lot of effort into getting a contract. How sustainable is that contract? If the opportunity is currently a small-business or 8(a) setaside, will it remain so? Or, more importantly, will you remain in those categories?
Competitive. Your pricing needs to be competitive. In this era of LPTA, are you pricing so that you are challenging your competitors or are you only challenging your wallet? There are some markets that are higher than others, so you may never achieve profitable and sustainable pricing against someone who has lower overhead or leaner operations than you.
How do you get this magical trifecta? You need the services of a good pricing professional who is knowledgeable in Government contracting (especially the FAR) and knowledgeable in your industry.