The Pricing Game (2/11/19)

February 11, 2019 - In the world of government contracting, pricing can be complex and confusing but it’s the part of your business you need to know - particularly for the must win contract. Maybe you have rates that were dictated by the Prime, or self created based on some random guessing, or industry averages and public websites like https://calc.gsa.gov; but can you demonstrate how your indirect rates support your bid? Government contractors should have a pricing model and methodology for their indirect rates that includes annual escalation and percentages for overhead and G&A. This formula is not rock science but once you understand the recipe, it may eventually be your “easy button” for helping with budgeting and forecasting years out. Stay profitable, contractors. 


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