What Should My Bid Price be on a Government Contract Requirement?

You are pondering what price to bid a government contract. You want to be competitive, but you don’t want to lose money on the contract. Losing a bid is disheartening, but winning a bid that brings your company a loss can be a financial disaster. Unlike the commercial world, you are entitled to know what the government has paid for its products or services. 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, make sure you include all costs of material, labor, overhead, packaging, and transportation.

What are some of the sources you can use to help you develop your bid price?

Pricing History

The procuring contracting office can provide you with the prices of current contracts for identical or similar items.  Check for the contact point noted on the Standard Form 33 or the point of contact noted in the FBO notice. You can contact your local PTAC counselor to see if they can use their market research data base sources for prices.

GSA eLibrary and GSA Advantage provides you with the negotiated government rates of numerous services and the prices of millions of products. This huge data base is available to the general public 24/7. You can find a range of prices from low to high and based on a variety of labor categories to help you determine the competitiveness of your rates or prices.

Your local PTAC counselor can show you how to use these two sources.

An another source for finding the cost of a particular government contract requirement is the Federal Procurement Data System – Next Generation. This is the repository of all federal contracting data for contracts in excess of $25,000. With this system, you can learn the following about federal contracting opportunities and increase your market capability:

  • Name of the business receiving the award
  • Amount of the award

In addition, there are over 50 standard reports you can run, as well as specialized reports that allow you to request information using over 160 customized fields.

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