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Effective Government Cost Proposals

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What is the secret to building effective government cost proposals? Find out in our SlideShare, then contact KDuncan & Company at www.kduncan.com to get more information.

Published in: Government & Nonprofit
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Effective Government Cost Proposals

  1. 1. Effective Government Cost Proposals
  2. 2. There are several different types of government contracts. Each has advantages and disadvantages.
  3. 3. Contract Types #1 •  Fixed Price – Set amount for goods or services. •  Cost support requirements: Low
  4. 4. #2 •  Time & Material – Set rate for labor per labor category, number of units (hours) are variable. •  Cost Support requirements: Medium
  5. 5. #3 •  Cost Plus – Direct and indirect costs (dollars) incurred are variable, must be reconciled before contract closeout through audit, quality of records is vital •  Cost Support requirements: High
  6. 6. Proposal Management Tools •  Compliance Matrix •  Milestone / Timeline •  Response Checklist
  7. 7. Compliance Matrix •  Read RFP – Add anything related to pricing. •  Identify questions that you may have for government •  Obtain amendments, Q&As – add anything related to pricing
  8. 8. Identify tasks, including: •  Due dates •  Responsible organizations •  Responsible parties •  Response location •  Pricing strategy issues Milestone / Timeline
  9. 9. Response Checklist •  Identify all items that must be included in the cost proposal response. •  Check off when completed.
  10. 10. Defending Price – Supporting Documentation Direct Labor: •  Payroll Reports / Check stubs •  Contingent Hire Agreements •  Labor Surveys, Wage Determination •  Internal Labor Rate Matrix
  11. 11. Defending Price – Supporting Documentation Subcontractor Costs: •  Subcontractor cost proposal •  Subcontractor quotes •  May have to include a rate analysis to support reasonable subcontractor cost proposal
  12. 12. Defending Your Pricing – Supporting Documentation: Travel Costs •  Airfare Quotes •  Joint Travel Regulations (JTR) •  Hotel •  Per Diem •  Mileage
  13. 13. Defending Your Pricing – Supporting Documentation Indirect Costs: •  Annual direct and indirect rate budget •  Include the entire period of performance of contract •  Factor in the direct costs of the contract in preparing the proposal budget and calculating the proposed indirect rates
  14. 14. Wrap Rates •  AKA: Multiplier / Load / Cost Factor •  A method of relating the mark-up over labor •  Ideally, you would know what is competitive for the procurement •  Proposed wrap rate needs to be a number that is consistent with corporate strategy and you can live with.
  15. 15. Questions? Contact KDuncan & Company www.kduncan.com info@kduncan.com 301-608-3200

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