How to Cost and Price Competitive Bids
- 4h 15m
- James C. Taylor
- Management Concepts
- 2000
Most companies--even those with years of experience--are overwhelmed by the complexities of the government's proposal and contract award process. Often, no one on staff is trained in costing and pricing a job accurately and realistically. So while great time and energy are spent on the technical proposal, the pressure to win the contract leads to a rush job on one of the most important parts of the bid - the cost proposal. How to Cost and Price Competitive Bids is the first-ever guide to developing and submitting a complete, accurate cost proposal. This practical handbook takes the difficulty and mystery out of costing and pricing a bid. From deciding whether to bid to submitting your cost proposal, How to Cost and Price Competitive Bids walks you step-by-step through the process. Written in an easy-reading, jargon-free style, this reference is a must for all staff members involved with bidding for government contracts.
You'll learn how to:
- Conduct analyses to make sound bid/no bid decisions
- Select the costing approach that's right for your company type and size
- Determine your competitors' cost and price factors
- Build a database of competitive analysis information
- Use historical data as an all-important tool
- Control indirect costs as a way to lower bid prices
- Prepare your cost proposal to meet the expectations of your customer
- Submit your cost proposal with the supporting material needed to justify your bid
Most companies develop pricing methods through trial and error. Avoid this costly, long, and frustrating process by using the proven methods outlined in this new step-by-step handbook.
About the Author
James C. Taylor is a certified project manager with more than 30 years of experience in project and program management, contract negotiations and management, new business development, and proposal and cost preparation in both the private and public sectors. He has held senior positions in several companies, principally in the aircraft simulation and information technology industries. Currently, he is a management consultant specializing in project management and proposal preparation. He also regularly teaches courses in Schedule and Cost Control, Risk Management, and Contracts for Project Management.
In this Book
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Why Companies Lose the Bidding War
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Introduction to Competitive Bids
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Structuring the Cost Proposal
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Elements of Cost Accounting
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Direct and Indirect Costs
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Estimating Bid Costs
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Cost or Price Data Requirements for Competitive Bids
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Benefit-to-Cost, Trade-Off, and Should-Cost Analyses
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Understanding Project Risks and Their Impact on Costing
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The Cost Proposal
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Cost Proposal Models
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Attachments to the Cost Proposal
