Integrate Company Planning With Proposal Objectives For Service Contract Pricing Success
“SMALL TO FEDS” By Ken Larson
“Take the long and the short view of your business by integrating company strategy with short term proposal objectives. Pricing should be a natural outgrowth of the organization structure, market strategy, competitive analysis, business system design and long range planning.”
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“Small businesses entering or growing into federal contacting often struggle with developing a pricing approach. They must design a pricing structure to pass an audit and win competitively. A winning strategy for federal services contracting must involve a view of the horizon as well as the instant bid on the table.
If you are a small enterprise selling off-the-shelf commercial items under FAR Part 12 or marketing commercial products on a GSA schedule, you may be initially challenged by the government contracting venue. With persistence you will establish selling relationships through agencies and prime contractors. Your pricing challenge is minimal.
A service contractor faces a far greater challenge in understanding the nature of government contact pricing and winning at it.
Strategic thinking must therefore be applied to structuring a government service contracting cost center in your company. It must involve long term planning and designing a business system as well as establishing rates and factors to bid new work.”
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