How to Price a Contract

(f) Review submissions to ensure that the data necessary to make Supplier`s proposal accurate, complete and up-to-date has not been submitted or identified in writing. If such data is available, the contractor should try to obtain it. If it is not possible to obtain it, a satisfactory examination of the incomplete data must be negotiated. A contract price is a total amount agreed by two parties, with the project owner or the client, called the client, paying the contractor if he complies with the terms of the contract. This corresponds to the terms of the contract and any other changes. The contract price is the amount of money a person receives after providing a service or good described in the contract. Study similar contracts awarded with public financial information to measure direct labor rates, average rate per hour, loaded labor rates, and total order value. Do your homework in the United States. General Service Administration (GSA) and other reputable sources for rate plans, work categories, and overloaded work rates in your area. Compare your results to salary surveys and calculate charges for different job categories to help you determine competitors` packaging rates and bidding strategies. (ii) the nature and amount of contingencies included in the proposed price. (g) Inclusion of manufacturing or purchasing programmes in contracts.

The contract agent may include the manufacturing or purchasing programme in contracts negotiated for: (2) Unless an exception in Article 15.403-1(b) prohibits it, the head of the contractual activity without delegating authority may authorise the public representative to obtain certified cost or price data for pricing measures below the threshold referred to in point (a)(1) of this Subsection. if the measure exceeds the simplified acquisition threshold. The public procurement officer justifies the request for certified cost or price data. The documentation must include a written statement that certified cost or price data is required to determine whether the price is fair and reasonable, as well as the facts supporting this conclusion. (a) The pre-negotiation objectives determine the Government`s initial negotiating position. They help to determine the fair and reasonable price by the customer. They should be based on the results of the contracting authority`s analysis of the tenderer`s tender, taking into account all relevant information, including on-site tariff assistance, audit reports and technical analyses, results of factual investigations, independent estimates of general government costs and price trends. (b) evaluate each contract individually and independently and disregard price reductions, proposed profits or losses from other contracts; and (ii) on the basis of market research or other evaluation, it could reasonably be expected that two or more independently competitive responsible suppliers would make price-based bids in response to the explicit request of the tender, even if only one tender is received from a responsible supplier and – (vi) independent development. Under this factor, additional profit opportunities may be granted to the Contractor in recognition of independent development efforts relevant to the termination of the contract without government support.

The customer must verify whether the development costs have been covered directly or indirectly by government sources. (d) the comparison of the prices offered with the prices appearing in the published catalogues or lists, market prices, indices and discount or rebate agreements. Why, then, is pricing one of the hardest parts of the job? Charge too little and you feel cheated. Charge too much and you can exclude yourself from the market. a) If the Contractor becomes aware prior to the price agreement that the cost or certified price data transmitted is inaccurate, incomplete or not up-to-date, the Contractor must immediately draw the attention of the potential Contractor to the matter, whether the incorrect data increases or decreases the contract price. The contracting authority shall take into account any new data submitted to remedy the deficiency or take into account the inaccuracy, incompleteness or incurrence of the data when negotiating the contract price. The price negotiation memorandum reflects adjustments to the corrected data or data used to negotiate the contract price. Footnote 1. There is a clear distinction between the transmission of certified cost or price data and the mere provision of books, records and other documents without identification.

The obligation to provide certified cost or price data shall be fulfilled where all the exact data on costs or certified prices reasonably available to the tenderer have been submitted, either effectively or by specific identification, to the contract agent or an agent. If data subsequently comes into your possession, it must be transmitted to the contract agent without undue delay in a way that clearly shows how the data relates to the supplier`s price offer. The obligation to provide certified cost or price data exists until the time of the price agreement or, where applicable, at an earlier date agreed between the parties. This document provides instructions for creating a contract price proposal when certified cost or price data is required. (2) The technical analysis should at least examine the nature and quantity of the proposed material and the need for the types and quantities of working hours and the combination of work. Any other data that may be relevant for an assessment of the supplier`s ability to meet the technical requirements or for the analysis of the costs or prices of the service offered or the proposed product should also be included in the analysis. A) Price data (e.B. fixed catalogue or market price, sales to non-governmental and governmental organizations), initially on the basis of data available within the government; second, data obtained from sources other than the supplier; and, where applicable, on the data received from the supplier. Where it is necessary to obtain data from the tenderer, such data provided by the supplier must contain at least appropriate data on the prices at which the identical or similar items have previously been sold, except in the case of 15.403-1 (b) (1) (2), unless there is an exception under 15.403-1 (b) (1) or (2), such data provided by the supplier must contain at least appropriate price data, for which identical or similar items have already been sold which are reasonable for the assessment of the relevance of the price. (c) Excluding amounts for certain contingencies in contracts where they provide for price adjustments on the basis of contingencies. (i) the contract agent shall limit the request for sales data of commercial articles to data relating to identical or similar articles for a relevant period; B.

When submitting your proposal, you must provide an appropriately referenced index of all certified cost or price data and information attached or identified in the offer. In addition, you must comment on any future addition and/or revision of an additional index prior to the date of the price agreement or an earlier date agreed upon by the parties. At the other end of the spectrum, a construction contract has a final completion date and irregular expenses. The contract price will be different in this case, as there are often continuous payments, a down payment and an advance when the final construction is completed. The final price of the contract depends on many factors, including the amount paid by the artist per tour or concert, the amount he is paid for each album, the cost of accommodation and travel, and its cost of living. Brad knows that even small differences in the contract can have a big impact in the end. If he had forgotten to include the cost of living, the artist might not have been able to show anything for all his work in the end. Brad must be constantly aware to ensure that nothing important is excluded from the contract. For any professional who negotiates contracts as part of their job, the consequences can be devastating if they are not done right.

(e) Comparison of proposed prices with independent cost estimates for the postal service (see 2.1.3.b). (3) Contract agents shall use the government`s pre-trading cost targets as the basis for calculating the pre-trading profit or fee target. Before applying any profit or fee factors, the Contractor must exclude from the pre-negotiation cost targets the cost of acquiring goods purchased by the Contractor that are classified as equipment within the meaning of FAR 45.101 and in which such equipment is to be invoiced directly to the Contract. Before applying profit or royalty factors, the contracting entity shall exclude all capital costs of the entities included in the amounts of the cost target. If the potential contractor fails to identify or propose the cost of capital of entities in a proposed contract subject to the cost principles for contracts with commercial organizations (see subsection 31.2), the cost of capital of facilities is not an eligible cost in a resulting contract (see 15.408(i)). (i) the contractor or subcontractor was a sole source supplier or was otherwise in a better negotiating position; (a) the contracting entity is responsible for setting a reasonable and reasonable price for the main contract, including the costs of subcontracting; In determining the appropriateness of the main contract price, the procuring entity should verify whether a contractor or subcontractor has an approved purchasing system, has carried out an analysis of the costs or prices proposed by the subcontractor or has negotiated the prices of subcontracts before negotiating the main contract. . . .