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.
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.
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.
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
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.
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.
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
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.
@@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?
Not difficult, just a minor learning curve: Take a look at this video this may help let me know: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-gUbTyb2h7as.html
