Competitive Analysis of Labor Rates

Price is key to winning Federal bids. The Federal Government has been awarding to the lowest bidder, or to a slightly higher cost bidder with an outstanding solution. This means you need to have the information at your fingertips to develop winning pricing strategies for your regular requirements proposal, an Indefinite Delivery/Indefinite Quantity (IDIQ) bid, and accompanying sample Task Order, if applicable.

We will perform for you the Competitive Labor Rate Analysis by reverse-engineering, analyzing, and comparing your company’s and your competitors’ labor rates.

Our Labor Rate Analysis approach includes researching predecessors’ FOIAed rates, IDIQ rates, and GSA schedule rates, with labor categories and burdened labor rates for the specific contractor or IDIQ vehicle service areas. We map these labor categories to salary surveys and calculate the burden for each labor category. We identify and discard gamed or unused labor rates and then average remaining rates into competitive wrap rates.

You May Need More than Competitive Analysis of Labor Rates

In certain situations, especially when there is a live task order, we recommend also addressing the other components of determining the “Price to Win” which help position your company to submit successful, competitive bid (and win the project you can successfully execute):

  • Available Funds: Government’s budget for a specific contract (also applicable to a “live” Task Order)
  • Customer’s Price/Award History: A history of how this customer treats price in relation to the value they receive
  • Should Cost: An estimate based on past performance and future-influencing factors, which emulates the Government’s Independent Cost Estimate
  • Price Competitiveness: An analysis of whether your current cost pools and bidding practices are competitive in your target markets
  • Pricing Analysis: An analysis meant to determine the price you will need to propose to win. It entails reverse engineering prices on contracts using open source financial information to determine burdened labor rates, direct labor rates, the average rate per hour, and total contract value. This will provide data to assist in determining whether to bid on a re-compete or similar contract and if so, what the competition, including the incumbent, might bid.

This analysis results in insight into the wrap rates and bidding strategies of competitors. On highly competitive bids, the hard work has been proven to make a difference between winning and losing.

Contact us at 301-384-3350 to help you with the cost strategy.

Ready to Win More Government Contracts?

Schedule a FREE 45-minute Business Development Consultation with one of our experts or call 301-384-3350.  We’ll discuss actionable ways you can grow in the Federal market and tell you exactly how we can help you reach your goals.

Contact OST Global Solutions, Inc.