How to price a contract? What things to consider - Eric Coffie
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- เผยแพร่เมื่อ 11 ก.ค. 2024
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Eric, as a contracting officer/consulting marking up the price does not protect yourself or reduce fear... Yes, you are correct the shipping from miami to boston is the government way to ensure the service/product met the SOW/QASP/PWS inspection. So, the Quality Assurance Surveillance Plan (QASP) has been developed in conjunction with the Performance Work Statement (PWS) to assist the Contracting Officer’s Representative (COR) in evaluating contractor performance. This plan will serve as a guide for the COR to perform evaluations, assess performance, and ensure contract compliance. This plan is based on the premise that the contractor is responsible for delivering quality products and services to the Government.
Thanks for sharing such a valuable discussion and giving us a chance to learn from your experience.
Markups are 200-400% just like retail furniture. KO are smart people, they know the pricing. On my second contract, my KO made me double my price to them 2 times. She knows what I needed to be successful. What you need is someone who likes you and willing to bring you in. To the Government, they are looking for people they want to work with. Ones they like somehow are getting the jobs. #1 rule is, someone will win the award, and you have to be in it to win it. #2 rule, find your nitch. Not try to sell everything, find one of two things, and become the person for that item. #3 check your spam, I won a contract and my KO called me asking me why I didn't respond to the award. Her email was in my juke folder. This one of John Wayne's top issues for a good reason.
Never heard of that before but great to know
This comment was so motivating thank you for sharing your experience and knowledge. Wish ppl like you would do content 🎉
Great Content! Thx!
Very much needed
thank you!
Thanks eric!!!
Excellent! Thanks...
Very welcome
Great video
Glad you enjoyed it
I appreciate it.
You learning
@@EricCoffie yes, I'm on day 6 of 9
@@EricCoffie lesson 11 and 12 🤜🏾🤛🏾
need a video on how to price a service, contingency allowances, taxation, markup on material used, profit % on size of project....etc.....yes please....i always miss weekly live chat here in Hawaii time zone
That is a little more complicated. I'll work on something soon.
Thank for the info. When an item is imported for federal govt or an item supplied to Federal govt. do we need to include sales tax during the cost calculation? Or since it is for Fed Govt , is the item exempt from sales tax and customs duty?
The government does not pay sales tax. More importantly you should look at for the Buy USA clause in the FAR clause of your contract! That may exclude the item you're importing.
Hey eric, is there a video which you which contains a example temptlet of a goverment proposal, currently having trouble with it.
Thank you
Not sure
Very good advice how do we contact you I spent my entire day watching your videos very informative
SMH ,sooooo much information given in this video. I can do this.
Facts
Hi Eric, do you have a video on what to calculate pricing ? Is there a tool out there I can use to calculate pricing?
Yes GSA calc
@@EricCoffieThank you so much!
How would you add in exposure on a line item? The 20-40% chance exposure on a P&L might look different so it would be nice to see an example of a price breakdown with the included exposure markup.
What is exposure? Please explain.
@@EricCoffie Thanks for the response! You mentioned environmental exposure for a small business (logistical errors during delivery, price fluctuations, etc.) so more like risk exposure on a P&L or proposal. How would you calculate a 20%+ to the government on your bid?
You have to quantify the risk. What are the odds that the product gets shipped back? Is there a 1% chance, 10% chance? Then you can price that risk and determine your markup. If you price it at 100% chance you will just price yourself out of the market.
Great answer.
I really want to bid i have watched so many videos but dont know what i am waiting on. can you do a video on how to set pricing for professional svs such as administrative support
Another pricing video won’t help … you need either desperation or inspiration to get you moving. Watch my video on fear of failure. Do your best and see what happens
@@EricCoffie Thank you so much for your response.
If you normally mark a product up 40% How do you mark up a service?
Ron I don't normally mark up product 40%. We do 5% on large projects low risk. There are many factors that go into pricing a job. That was only for this example as it was a high risk transaction. The markup depends on the risk factor. Normally service the government for service allows 40% on labor (to allow for fringe benefits), but there is also overhead and material markup. I would recommend take a FREE SBA course on pricing.
Does that 40% for catering services as well?
It was just an example , every market is different. You have to adjust to your region / competition and conditions of project
how do i sell a service to the govt (fed/state/county) that they need but don't know they need....?
I made a video for you on my last Q&A answering this question. Hope you saw it.
@@EricCoffie Link?
Can this 40% product mark-up considered "Defective Pricing" under FAR-15.407-1.....?
I don’t know that rule this was just an example scenario - we have many more videos on pricing
You should make another one of these videos. It’s good, but the guy on the phone makes this quite confusing as a video.
Dale thanks for the feedback. I will add that to the list of upcoming videos.
Awesome!
How is the exposure mathematically calculated?
More art than science.
Eric Coffie lol I hope this is covered in your book. Looking to grab it this week.
Sorry was realy looking for some numbers
Pricing is more than numbers .. but look up gsa calc
Hypothetically speaking, how much profit would you add to a bid that cost $800,000?
That’s a loaded question .. profit and overhead are different. The combination could be from 15% - 35% on services.
Eric, what do you think about FPDS since it was migrated/ruined by moving under SAM? Would appreciate your comments.
It was not migrated. It has not changed except reports that most of us never used.
Fpds is hard
I marked up my 1st bid 15% and got crushed!
There is more to a bid than marking it up. What if your competition priced it wrong? What if your supplier gave you the wrong price?
@@EricCoffie great point
$100,000 low😮🤦♂️
😬😬😔😔