Introductions Mike Dement Multi Management Services

BIO –Worked with over 400 Businesses in the Government Gov’t Sector –Written over 200 Teaming Agreements –Closed business in over 25 federal agencies – Write over 200 proposals per year

Methods of Contract Pricing Firm Fixed Price (FFP) Time & Materials/Labor Hrs.' (T&M/LH) Cost-Plus-Fixed-F(CPFF, CPIF, CPAF) Performance-based contracts

Fixed Price Deliverable required. Not Required to track actual incurred costs. Bill Client based on Milestones met/Deliverables accepted.

Flexible Price Deliverable not required Required to track actual incurred costs Bill client based on hours and / or costs incurred.

Firm Fixed Price (FFP) Fixed price quoted to provide goods and /or services Once items delivered and accepted or milestone is reached, contractor is paid a fixed price. Contractor assumes risk, since it must perform efficiently and control costs to make a profit.

Cost plus Fixed Fee (CPFF) Estimated materials, total estimated costs of labor and other direct costs Certain indirect rates are included, such as G&A. Fixed fee (by law, cannot exceed 10% of estimated costs ) Total estimated CPFF

Direct Costs Any cost specifically identified with a particular cost objective (FAR ) “ Allocable” to a specific contract Includes labor, materials, Travel expenses, and other expenses incurred specifically for a contract during the performance of that contract.

Indirect Costs An indirect cost is one not directly identified with a single final cost objective Any Costs that cannot be allocated to a Specific contract Most common indirect cost types are overhead and General & Administrative (G&A)

Overhead Costs Costs incurred to support a business unit or an operating location that can’t be allocated to one specific contract: Rent, utilities, or other facilities costs Phone, Fax, Copier office equipment and supplies Support personnel

Actions Costs allocated to a business unit or Operating location for general management i.e. Corporate expenses Compensation of Corp Executives Expenses associated with Corp Office Costs of internal functions for entire company

Time & Materials/Labor Hours (T&M/LH) Sets fixed, loaded hourly rates for various personnel labor categories. Contractor paid fixed rate for actual hours incurred by each labor category plus reimbursed for allowable materials and / or expenses at cost Work done on best efforts

CPFF Proposal Estimated Direct Labor: Show buildup of “loaded” hourly rates for each person proposed Show loaded rate times the number of hours per person Show estimated hours by labor category and totals

LPTA (FAR ), that weight non- cost/price evaluation factors and significant sub factors collectively as equal to or more important than price and which involve “tradeoffs” between non-cost factors and price/cost factors (allowing for selection of other than the lowest priced offered or highest.

LPTA Yet, use of LPTA remains high as the government seeks the lowest price for needed supplies and services, in the face of tight budgets and the depletion of funds. Successful LPTA proposals require a different approach than source selection processes that place less emphasis on the bottom line

How can you find Competitors Labor rates GSA Schedules of your competitors You can se what your competition charges for their Labor rates. /home.dohttp:// /home.do

Use GSA to find your Competitors Type in Keyword in Search engine See the list of GSA Schedule Holders Click on view Catalog See labor rates Note firms do not have to post Catalog online

How does the Government review pricing Price quotations received form other proposals responding to solicitations Prior questions and contract prices with current quotes for same/similar items Measurements to highlight significant inconsistencies that warrant additional pricing inquires

Other Price Analysis Comparisons Competitive price lists, published market prices of other labor rates Other independent government cost estimates Other companies that the Government has done business with

Summary Get out and meet with the agencies before you bid on any contracts Develop a relationship with the Program Managers and Contracting Officers Know the Competition before you bid Have a great Capabilities Statement

Sample Capabilities Statement Sa

Approach to Marketing

Summary Thank You Questions Mike Dement Multimanagement Services