USFCR Academy: Price Proposals on Government Contracts

May 20, 2020 6:12:11 PM / by USFCR Academy

USFCR Academy: Price Proposals on Government Contracts

Understanding how to price your products or services for government contracts is key to landing lucrative deals. Your price proposal, and a clear breakdown of your costs, is crucial in securing these contracts. Here's what you need to know:

Competitive Pricing Through Market Research

Use market research to understand your competition and set a competitive price for your bid or offer. This data helps ensure your price is attractive to the government and profitable.

Advanced Procurement Portal's Contract Catalog

Utilize the Advanced Procurement Portal's Contract Catalog to study past contracts. It provides historical data to help you formulate a more effective pricing strategy.

SAM's Data Bank (FPDS) and GSA Advantage

Use SAM's Federal Procurement Data System (FPDS) to access valuable contract data. Similarly, GSA Advantage can provide insight into the pricing on current GSA Schedule contracts.

Structuring Your Price Proposal on a Spreadsheet

To help the government understand your pricing, present your costs in a clear, organized manner. A spreadsheet is an excellent tool for this purpose. List your line items and costs for each service year, including optional future years.

Reading and Responding to Contract Line Item Numbers (CLINs)

CLINs define the deliverables in a government contract. To respond effectively, you need to understand them and price each line item accordingly.

Adjusting Pricing for Option Years

Consider the potential for inflation and increased costs over time. When pricing for option years, include reasonable price increases to cover these future costs.

Yearly Price Increases on Long-term Contracts

You might wonder how much to raise your yearly prices for contracts that last up to five years. Standard practice is to increase prices by 2-3% annually, but this can vary based on market conditions and the nature of your services or products.

If you're interested in learning more, consider joining the Proposal Writing Workshop Series to understand how to structure your price proposal effectively.

To speak with a Registration and Contracting Specialist, Call: (866) 216-5343

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USFCR Academy

Written by USFCR Academy

USFCR Academy is the learning and training resource of US Federal Contractor Registration (USFCR). The Academy educates current and future clients of USFCR on government contracting, federal registrations and certifications, and provides contract bid training so they can qualify and sell to the federal government.