Price To Win
Know what the floor is. How low to go to win!
We perform Price To Win (PTW) analysis by performing a basis of estimate (BOE) detailing the labor necessary to perform the Statement/Scope of Work (SOW), including travel and Other Direct Costs (ODC) if applicable. Finally an overall wrap rate, based on indirect rates of Fringe, Overhead (OH) and General and Administrative (G&A) and industry averages, along with the application of fee are added to develop an overall price. This allows companies to see what competitors are likely to price at allowing them to derive a potential lowest price and thus the price to beat or Price to Win (PTW).
This is often used by incumbent contractors to help avoid the potential to overprice due to what we call 'incumbentitous', or inflammation of the incumbent. This is where the incumbent prices what they know the work to be, rather than what the RFP requests.
DCG Pricing Consultants, Inc. can assist in assuring that your company is pricing what is required in the RFP and that salaries are not artificially inflated.