Question 1

What is the price to win?

Accepted Answer

Price to win is an analysis of the customer requirements and what the competition might
be willing to propose measured against the strength of our technical, management and
past performance volumes.

Question 2

What can I do to improve my financial results?

Accepted Answer

To improve Financial results start with understanding gross margin (revenue less direct
cost). Analyze gross margin by project and by person to find the best strategy for your
business.

Question 3

What do we need to do to win prime contracts?

Accepted Answer

• Team with larger, prime contract holders as a subcontractor to gain past performance and build relationships with agency decision-makers
 • Position the company as a subject matter expert in an area of work and project management
 • Obtain professional certifications (ISO 9000, CMMI, etc.)
 • Annual budget to calculate indirect rates
 • Acceptable accounting system practices
 • Form a relationship with a lending institution

Question 4

Why would a project have difficulty making a profit?

Accepted Answer

• The project was bid at indirect rates that are lower than we are incurring on an
              actual basis or we staffed the project with salaries higher than we bid

• It’s a Fixed Price Contract and the level of effort required to gain acceptance on
              the milestone deliverables is greater than we bid

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FAQ'S

Frequently Asked Questions

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