Pricing and Cost Analysis in Federal Contracting
There are many key points to consider when going after an RFP. One important one is pricing and cost. Understanding the RFP and analyzing the solicitation will better help you determine the value and estimate pricing of a proposal. You have to calculate indirect costs, forward pricing, budgeting for provisional items, as well as complying with the FAR.
A price analysis will help you to develop a negotiating position that allows the contracting officer and the offeror an opportunity to reach a fair and reasonable price. If your organization is committed to submitting a proposal on an RFP, remember to have data to support your price analysis and identify terms and conditions that compare with Federal cost estimates.
Handling costs and price proposals are tricky in the Federal arena. But if you're aware of some of the best practices to follow, and are knowledgeable of the terminology, then you'll have a better chance to prepare your proposal. These are just some of the many tips to help your organization obtain a better position in the Federal Procurement environment. Good luck!




