Richter & Company’s wrapRATER – a wrap rate calculator product – is intended to provide an estimate of a targeted company’s likely current wrap rate (burden rate) before fee.
Wrap Rates are the indirect burdens covering Fringe Benefit, Overhead and General & Administrative costs which are applied to direct labor costs to derive the true cost of labor. Development of wrap rates is a key component of the pricing models within Richter & Company’s current Analysis of Competitor Solutions and Pricing offering.
*Note: at their most effective, wrap rate results reflect specific circumstances of an opportunity – for example, the actual bidding unit (not just the company as a whole), work location (for both contractor and government site effort), and capture strategy (for example, whether the bidder plans to create a new cost center for the program or will use an existing pool). Richter & Company identifies these factors – and many more – as part of Analysis of Competitor Solutions and Pricing engagements. The client is responsible for providing this information when wrap rates (burden rates) are purchased as standalone products.*