Effective Government Cost Proposals

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Effective Government
Cost Proposals

There are several
different types of
government contracts.
Each has advantages
and disadvantages.

Contract
Types
#1
•  Fixed Price – Set
amount for goods
or services.
•  Cost support
requirements:
Low

#2
•  Time & Material – Set rate for labor per
labor category, number of units (hours)
are variable.
•  Cost Support requi...

#3
•  Cost Plus – Direct and indirect
costs (dollars) incurred are
variable, must be reconciled
before contract closeout
t...

Proposal Management Tools
•  Compliance Matrix
•  Milestone / Timeline
•  Response Checklist

Compliance Matrix
•  Read RFP – Add
anything related to
pricing.
•  Identify questions that
you may have for
government
• ...

Identify tasks, including:
•  Due dates
•  Responsible organizations
•  Responsible parties
•  Response location
•  Pricin...

Response
Checklist
•  Identify all items that must
be included in the cost
proposal response.
•  Check off when
completed.

Defending Price – Supporting Documentation
Direct Labor:
•  Payroll Reports / Check stubs
•  Contingent Hire Agreements
• ...

Defending Price – Supporting
Documentation
Subcontractor Costs:
•  Subcontractor cost proposal
•  Subcontractor quotes
•  ...

Defending Your Pricing –
Supporting Documentation:
Travel Costs
•  Airfare Quotes
•  Joint Travel Regulations (JTR)
•  Hot...

Defending Your
Pricing –
Supporting
Documentation
Indirect Costs:
•  Annual direct and
indirect rate
budget
•  Include the...

Wrap Rates
•  AKA: Multiplier / Load / Cost Factor
•  A method of relating the mark-up over labor
•  Ideally, you would kn...

Questions?
Contact KDuncan & Company
www.kduncan.com
info@kduncan.com
301-608-3200

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