Cost proposals are often times the deciding factor in determining the winner – “It all comes down to price.” So why are cost volumes typically finished at the end of the proposal process and treated as an afterthought?
Many companies treat cost proposals as an administrative task that requires no creativity. They figure out what they need to price, assemble the spreadsheet, and then cut and paste some language from other proposals to “justify” the numbers.
But this is a flawed way of thinking. Cost proposals present a great opportunity to convince the Government that yours is the only realistic and reasonable pricing. There’s a lot of nuance when it comes to realism vs. reasonableness price evaluations that the Government performs, but we’re talking generalities here.
Cost proposals need to have win themes and ghost your competition by describing how you derive your rates. For example, is this a difficult market in which to find qualified job candidates? Are you paying people for specific and unusual skills that the Government requires for this job? Do not assume that the person evaluating your proposal knows the ins and outs of the program. Spell it all out.
For cost volumes, there are many different creative ways to explaining different concepts to your Government customer. But to succeed, you need more than one green team that’s happening towards the end of the whole proposal lifecycle. You must treat your cost like the technical volumes that follow the same lifecycle as your technical proposal.
OST likes to have a cost proposal pink team, a cost proposal red team, and a cost proposal gold team. Read aloud reviews can make sure the whole proposal to make sure it’s perfect. Cost people will notice your errors because they pay attention to detail.
My challenge to you: during your next proposal, think of your cost volume as a key piece of the proposal that you track and review thoroughly from the beginning of the process. Don’t put it off till the very end.
If you need help with cost proposals, call us at OST Global Solutions. We will make sure that you start on time, finish on time, and do a great job.
OST Global Solutions is a professional business development consulting firm. We provide capture and proposal teams to develop winning proposals. Or we can provide consultants on a case-by-case basis to fill gaps on your business development team, including running your color team reviews. Our services consist of capture management, proposal management, orals coaching, proposal writing, graphics support, editing, desktop publishing, and cost volume development.
Reach out to us to discuss how we can help you develop a winning proposal.
Upcoming Bid & Proposal Academy Classes
Events
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Webinar: Turning Customer Insights Into Win Strategy
Contracts are still won the old-fashioned way: through human relationships and hard-earned customer intelligence during capture. The problem generally isn’t getting the intel — it’s what happens next. Too often, […]
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Winning Government Cost Proposals Including AI Essentials
OST Global Solutions Virtual Classroom MD, United StatesDeveloping a Winning Cost Volume course helps increase federal contract win probability by strengthening cost proposal development skills. Updated for 2026, this course incorporates AI-assisted tools to support pricing analysis, cost modeling, and documentation efficiency. The course covers Government contract evaluation, pricing fundamentals such as cost buildup and cost volume elements, price strategy, Basis of Estimate development, assumptions, Work Breakdown Structure creation, cost volume narratives, and strategies for winning lowest price technically acceptable proposals, while demonstrating how AI can be used responsibly to improve accuracy, consistency, and proposal readiness.
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Proposal Graphics Conceptualization & Design Including AI Essentials
OST Global Solutions Virtual Classroom MD, United StatesThis course provides the skills necessary to conceptualize proposal graphics that clearly convey a winning solution to Government customers. Updated for 2026, the course includes the use of AI-assisted tools to enhance idea generation, visual storytelling, and graphic refinement. Participants will learn how to brainstorm strong graphic concepts, create effective action captions, sketch and structure visuals, and apply professional design principles while responsibly leveraging AI to improve clarity, consistency, and efficiency in proposal graphics.
