Nail the Price, Win the Contract

In government contracting, price isn’t just a number, it’s a strategy. You can offer the perfect solution, but if your pricing doesn’t align with the agency’s expectations or evaluation model, your proposal won’t make the cut. Here’s how to make your pricing a winning advantage.

Every RFP has a pricing game plan. Some prioritize the Lowest Price Technically Acceptable (LPTA); others use a Best Value Trade-Off, where a higher price can win if the value is justified. Know the rules. If you’re aiming for LPTA, your costs need to be razor-sharp. If it’s Best Value, your narrative should prove why your higher price still makes you the better choice.

Price to win, not just to get noticed. Your numbers should reflect real costs: labor, materials, indirects, and profit. Avoid guessing. Use cost history, market research, and public data to find your competitive range. Cutting corners to look cheaper can lead to underperformance and losses down the line.

A slightly higher price can still win, if it’s backed by value. Use your technical narrative to show how your processes, innovations, or efficiencies reduce risk, shorten timelines, or improve quality. Make the agency feel confident they’re getting more than they’re paying for.

Underbidding may get attention, but not in a good way. It raises red flags. Evaluators want pricing that makes sense. If your bid comes in lower than expected, justify it with data or efficiencies. Unrealistic pricing can lead to poor performance scores and hurt your chances at future awards.

Pricing errors can be fatal. Missed line items, wrong formats, or miscalculations can get your proposal thrown out, no matter how good the rest is. Triple-check that your pricing matches the RFP’s instructions to the letter.

Remember, "Price with Purpose." Winning isn’t about being the cheapest, it’s about being the best value. Price smart, communicate clearly, and align your numbers with your narrative. That’s how you turn proposals into contracts.

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