1) See if the pricing regime align to your business model |
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1) Firm Fixed Price (FFP): You submit a fixed price
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- Pro: Tends to be better for new contractors because there are lower accounting and administrative oversight requirements
- Con: You are stuck with the price you bid, even if your actual costs are hjigher than you expected
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2) Other than Firm Fixed Price (e.g. Cost+, T&M, other): You submit a formula for determining your price
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- Pro: The pricing can flex a bit more to account for unanticipated costs during execution
- Con: There are higher oversight and compliance requirements (DCAA) making them challenging for new contractors
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2) See if the evaluation regime align to your business model |
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1) Low Price Technically Acceptable (LPTA): The lowest priced offer, that is technically acceptable, wins.
- Pro: Small businesses tend to have lower overhead costs which gives them an advantage
- Con: You have to deliver the cheapest solution you can come up with
2) Best value (Best Val.): The government considers a basket of factors when deciding who wins (though price is still an important factor)
- Pro: You have the flexibility to come up with creative and higher value solutions
- Con: Big vendors with higher rates have a better chance of winning
3) Look at the tasks in the RFP to see if they align to your capabilities
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FedScout extracts the tasks out of opportunity documents so that you can quickly get a sense for the products and services that the government is looking for
As you review each task mark whether you can do it, can do it via a partner, or can't do it to help you see where your gaps are.