Cost Strategy & Pricing

cost strategy pricing

With the commoditization of many aspects of contracted tasks in recent years, especially with the use of Low Price – Technically Acceptable (LPTA) evaluations, your solution’s price is more important than ever. OST provides assistance in all aspects of your cost and price strategy and development to best position your solution to win, including identifying potential modifications to recommend to the Government.

Competitive Analysis and Price to Win

Our Price Strategist helps you arrive at the right price to the Government that enables you to win the bid Price to Win (PTW) and perform successfully and profitably on the contract.

Working individually or in conjunction with your staff, OST will investigate your customer’s price considerations and incorporate those traits into your overall Win Strategy. Additionally, such information, in collaboration with the list of your potential competitors, forms the foundation to start a PTW determination to identify a price range you need to meet to win based upon the customer’s traits and the potential bid prices of your competitors.  These investigations may reveal the need to create new indirect structures within your organization or changes to your technical solution to meet the PTW goal.  In either case, OST is prepared to work with your technical or financial teams to achieve those goals.

The basis of Estimate (BOE) Development

The determination and justification of your costs are critical in creating a winning price for your Task Order proposal.  OST will work closely with your technical and managerial teams on a comprehensive identification of your solutions cost, using established methods to estimate those costs (such as factored analogies, parametric models, Monte Carlo estimates, etc.), documenting this information within a BOE.  BOEs convey to the client that you understand the work requested, that you understand the costs surrounding accomplishing that work and that the cost you propose is the lowest possible credible cost.  Also, we will show you how to further justify your management and technical solutions within the BOEs to better position your solution to win.  With OST’s BOE approach, cost information is easily formatted is a manner that facilitates the financial team to quickly create the overall proposal’s price.  Our BOE Development Experts are adept at capture (solution development), estimating, and pricing.

Price/Cost Volume Leadership through Cost Strategy Pricing

OST will work independently or in conjunction with your financial team to develop the Cost or Price Volume and the related proposal price to meet the requirements given by the client and facilitate the evaluation of the volume.  We will develop price volume specific win themes and discriminators that work in conjunction with your overall win strategy, weaving these throughout the Price Volume to include the volume’s Executive Summary.  We ensure that your subcontractors receive target labor category rates and work costs in a timely fashion and that you receive their price input in time for incorporation into your price.

Our comprehensive approach to costing and pricing ensures a smooth, streamlined interface between the technical BOEs and the finance team, reduction in mathematical and categorization errors, and timely and comprehensive review of the volume’s text and pricing spreadsheets.

Contact us at or 301-384-3350 to help with your Cost Strategy and Pricing.

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.