Government Contracting Pricing Guide for Beginners

Added:

Staffing Pricing
Wrap Rate Formula
Finding Staff
Market Rate Tools
Alternative Models
Markup Variances
Pricing Research
Strategy Adjustments
Specialized Pricing
Final Strategies

Staffing Pricing

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Playing Section
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    Breaks down a staffing pricing example, revealing a 1% profit margin for a winning bid.

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    Emphasizes that profit percentage is dictated by evaluation criteria, not fixed rules.

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    Illustrates how billable rates and wrap rates are calculated from employee costs.

Basic business accounting principles, specifically the distinction between direct costs (e.g., direct labor) and indirect costs (e.g., overhead, G&A).
An understanding of the federal procurement lifecycle, including how Requests for Proposals (RFPs) and solicitations are issued and evaluated.
Familiarity with standard labor cost components, such as base salary, fringe benefits, and payroll taxes.
The fundamental distinction between a prime contractor and a subcontractor in government projects.
In-depth study of the Federal Acquisition Regulation (FAR), specifically FAR Part 31, which governs Contract Cost Principles and Procedures.
Formulating pricing strategies across different contract types, such as Firm-Fixed-Price (FFP), Cost-Plus-Fixed-Fee (CPFF), and Time and Materials (T&M).
Establishing and maintaining a DCAA-compliant (Defense Contract Audit Agency) accounting system to track and justify indirect rate structures.
Implementing Advanced Price-to-Win (PTW) analysis and competitive intelligence techniques to successfully capture high-value contracts.
39.8K views1.6Klikes2:04:14@KizzyParksOriginal Release: 2024-04-08

Government contracting pricing requires calculating all expenses (workers' compensation, benefits, payroll, overhead) and applying a profit margin that aligns with the contract's evaluation criteria, typically ranging from 1% for lowest-cost technically acceptable contracts to higher margins for specialized services; the wrap rate formula (billing rate ÷ direct labor cost) simplifies this calculation, and contractors should research market rates through resources like the GSA Schedule while maintaining flexibility to adjust based on competition and agency requirements.