Pricing A Government Contract

Unlike the commercial sector, government agencies will tell you how much they have been paying for the same product or service in the past.  But this can be a Pandora's box if your not careful.

Seeing the past prices may be good for the taxpayer because it does promote competition in the market, but it can be a snare for the contractor if you get caught up in winning the contract for a price you can't afford to win with.

Keep in mind in the government system there are thousands of fingers on the key boards, mistakes are made by data entry personnel quiet frequently.

Make sure the past price your looking at is relevant to the item and more especially the service you are currently bidding on.

Verify when, where and how (pair, lot, foot, piece etc) the previous price was entered and then use that price as a GUIDE to entering your price.

Use your pricing intelligence.

Your goal should be can I be within this price range and make money.

Please don't get caught up in winning at the lowest cost game and not making money.

I know that sounds simplistic, but it is amazing how many vendors, especially in the services area default on contracts.

BID to MAKE MONEY, there will be more contracts another day.

When looking at previous pricing for your product or service. Ask yourself: Are they soliciting the very same product or service?
Pay attention to the bid instruction, conditions of purchase, delivery and payment.
When determining the amount of the offer, be careful to include all costs of material, labor, overhead, packaging, and transportation.

Buyers are more willing to talk if you meet with them before the procurement is published.

After a contract has been published, your questions to buyers have to be answered in writing and sent to the other bidders.

The Internet is another source for pricing information.
The Defense Logistics Agency price histories show past purchases of an NSN item and the price paid for each purchase.

Again keep in Mind when pricing out your contract bid, Bid to Make Money and move on.

 

 


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