With sequestration as an ongoing threat to the federal contracting community, more companies are getting more creative in their strategies. At Richter & Company, we believe that Price = Cost + Strategy. Overall business strategy is the biggest driver in making business decisions, and the biggest factor in determining the ultimate price to win. Not cost plus fee. If a company is looking to gain an important federal customer, they may invest in the program so much that they bid zero fee. If a company is extremely aggressive in going after a specific program, they may create new overhead pools to bring down their wrap rates. Companies offering goods will often pressure their suppliers; companies offering services will get creative in hiring at specific labor percentiles. Management challenges drive down the total evaluated price. Once a strategy has been decided on, a team knows the mentality and the creativity they need to take in pursuing a specific opportunity. Richter & Company’s seasoned professionals can help you identify strategies your competitors are likely to take, and help your company determine the ultimate price to win.
- Profit & Fee Are Good Things, But They’re Not the Only Things
- Total Evaluated Price (TEP) v. Performance: What’s the Difference?
- Winning in the Federal Marketplace: Does the Incumbent Still Have the Advantage?
- Assessing the Competition with a Non-Cost Evaluation Model
- How to Assess Your Competitors Without an RFP