Increasingly, during Richter & Company’s pricing assignments, a “Dark Horse” or “Notional Bidder” is named as a target for analysis. As the federal marketplace becomes more cutthroat, companies are increasingly concerned about the creative pricing strategies that have been offered on recent contracts.
Small businesses are becoming more sophisticated, investing in experienced business development people to bid creatively and expand their business. Large businesses are creating cost pools to keep G&A down, and bidding zero fee to “buy into” programs. A recent Grant Thornton study showed that federal contractor profit rates are plummeting, with 60% of survey respondents reporting no profit or profit in the one to five percent range. And 38% of respondents said their revenue from government contracts declined in the past year. It’s an uncertain world out there for federal contractors.
Let Richter & Company help your company beat the Dark Horse. Our consultants are up to date on market trends, providing actionable intelligence that will allow you to offer the best value to the Government. We have a large number of connections within industry, and considerable insight as to what the government is actually seeking. Once you have insight to that worst case notional bidder, you can position yourself to win. Contact Richter & Company today for more information.