Start pricing with scope, not a target number
A defensible government price starts with the work. Identify deliverables, labor categories, service levels, locations, transition requirements, reporting, travel, materials, security needs, and subcontractor roles before setting a target price.
If the team starts with only what it thinks the buyer wants to pay, it can miss hidden cost drivers that make performance risky after award.
- Labor mix and hours.
- Location and travel assumptions.
- Materials, software, or equipment.
- Subcontractor and teaming costs.
- Compliance, reporting, and quality control effort.
Read the pricing instructions and evaluation language together
Some bids are lowest price technically acceptable. Others are best value, tradeoff, or technically rated. The pricing strategy should reflect how the agency says it will evaluate offers.
A low price that cannot support the technical approach creates delivery risk. A premium price with no evaluation advantage can lose competitiveness. Connect your price to the stated evaluation method.
Check wage determinations and labor constraints
For service and construction work, wage determinations can change the pricing floor. Review whether the solicitation includes SCA, DBA, CBA, or other labor requirements, then confirm the labor categories and fringe assumptions with the official attachments.
When wage documents are unclear, flag the issue early. Pricing guesses are harder to fix once the final review is underway.
- Applicable wage determination number.
- County, state, and place of performance.
- Labor category mapping.
- Fringe and benefit assumptions.
- Escalation and option-year treatment.
Use market intelligence without copying the past
Award history, incumbent information, and market trends can help frame a price, but they are not a substitute for current scope. Previous awards may include different labor, volume, risk, or contract terms.
Use market data to test whether your assumptions are plausible. Then document why your price makes sense for this solicitation.
Frequently asked questions
Should my government bid always be the lowest price?
No. It depends on the evaluation method. Some procurements emphasize low price, while others allow technical value, risk reduction, or past performance to matter.
Why do wage determinations matter for pricing?
They can establish required pay and fringe assumptions for covered work. Missing them can make a price unrealistic or noncompliant.
How can award history help pricing?
Award history can show comparable buying patterns, incumbent context, and rough market ranges, but it must be adjusted for the current scope.