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8a Transition – Pricing Strategies
Barbara English, President, English Solutions
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8a Transition – Pricing Strategies

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8a Transition – Pricing Strategies

President, English Solutions
31 W. Adams Street
Suite 102
Jacksonville, FL 32202
904.755.2554
barbara@benglishsolutions.com
www.benglishsolutions.com


 Lowest Price Technically Acceptable
 Best Value


• FINE TUNE YOUR INDIRECT RATES
• TEST IF THEY ARE COMPETITIVE
• RECONSIDER AN ACCEPTABLE PROFIT MARGIN

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•
•

•
•
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(40%)
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(5%)
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(10%)
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(10%)
•

Advanced Tank Technologies
Washington DC
Proposal Submitted in Response to RFP DAAH01-02-R-0001
Element of Cost
Engineering Labor
Manufacturing Labor
Direct Labor Overhead @ 56.7
Material
Material Handling Overhead @ 5.0%
Subtotal
G&A @ 8.0%
Estimated Cost
Profit @ 10%
Total Price
Amount Reference
$452,151 Schedule 1
26,412 Schedule 1
271,345 Schedule 2
113,175 Schedule 3
5,659 Schedule 4
868,742
69,499 Schedule 5
938,241
93,824
$1,032,065

SC HEDULE 1
Labor Category
Program Manager
Senior Engineer
Junior Engineer
Engineering Aide
T echnical Writer
Metallurgist
Draftsman
T otal Direct Labor - Engineering
Advance d Tank Te chnologie s
Washington DC
Proposal Submitted in Response to RFP DAAH01-02-R-0001
2010
Engineering Labor Cost
Rate/Hr. Hours
$33.93
683
26.39 1,200
22.12 1,800
14.50 1,800
16.00
0
18.85 1,900
T otal
$23,174
31,668
39,816
26,100
0
35,815
18.95 2,200 41,690
9,583 $198,263
Fabrication
Labor Category
Assembly
T otal Direct Labor - Manufacturing
2010
Manufacturing Labor Cost
Rate/Hr. Hours
$10.85
400
9.25
0
400
T otal
$4,340
0
$4,340
16.80
2011
Engineering Labor Cost
Rate/Hr. Hours T otal
$35.63
760 $27,079
27.71
900 24,939
23.23 1,500 34,845
15.23
550
0
9.71
200
8,377
0
19.79 1,200 23,748
19.90 1,500 29,850
6,410 $148,838
2011
Manufacturing Labor Cost
Rate/Hr. Hours T otal
$11.39
600 $6,834
1,942
800 $8,776
2012
Engineering Labor Cost
Rate/Hr. Hours T otal
$37.41
507 $18,967
29.10
700
24.39
900
20,370
21,951
15.99
50
17.64
900
20.78
700
800
15,876
14,546
20.90
600 12,540
4,357 $105,050
2012
Manufacturing Labor Cost
Rate/Hr. Hours T otal
$11.96
600
10.20
600
$7,176
6,120
1,200 $13,296
T otal Direct Labor
Direct Labor Overhead @ 56.7%
$202,603
$114,876
$157,614
$89,367
$118,346
$67,102
T otal
Engineering Labor Cost
Hours
1,950
2,800
4,200
T otal
$69,220
76,977
96,612
2,400
900
3,800
35,277
15,876
74,109
4,300 84,080
20,350 $452,151
T otal
Manufacturing Labor Cost
Hours
1,600
800
2,400
T otal
$18,350
8,062
$26,412
$478,563
$271,345
All hours proposed a re ba sed on historica l costs, reference DAAH01 -99-C-001, a ccount 9271.
The supporting data showing the historical hours and the development of the proposed hours are in file “DAAH -01-02-R-0001, Hours” a nd is a va ila ble immedia tely upon request.
The direct la bor ra tes a re ba sed on a ctua l a vera ge ra tes a s of October 31, 2009 a nd esca la ted 5 percent ea ch yea r. The suppo rting da ta and rate calculations are located in file “DAAH-01-02-R-0001, Direct Labor Rates” and is available immediately upon request.

SC HEDULE 2
Advance d Tank Te chnologie s
Washington DC
Proposal Submitted in Response to RFP DAAH01-02-R-0001
Budget for Fiscal Year 2010 Labor Overhead
Actual Overhead Expenses for Fiscal Years 2007 through 2009
(Note 1)
Account
Number Overhead Expenses (Note 2)
Indirect Payroll
Payroll T axes
Vacation
Holiday
Sick Leave
Pensions
Employee Morale
Entertainment
Office Equipment
Depreciation
Subscriptions
T ravel
Miscellaneous
Stationery
Reproduction
Maintenance
Rent
T elephone
Insurance
T otal Pool
Less Unallowable Costs
Entertainment
Net Allowable Expenses
Allocation Base
Direct Labor
Labor Overhead Rate
50,000
$1,324,500
$2,336,000
56.7%
Budget
2010
$260,000
228,000
120,000
110,000
50,000
171,000
5,000
50,000
7,000
5,000
1,500
22,000
2,000
6,000
17,000
5,000
202,000
11,000
102,000
1,374,500
Actual Expenses (Note 3)
2009 2008 2007 Notes
4
5
Explanatory Notes
1. Provide account numbers in this column.
2. The projected overhead expenses are based on the company’s operating budget for
2010. The operating budget supporting data is located in file “DAAH01-R-0001,
Overhead Operating Budget” and is immediately available upon request.
3. Provide the prior three years’ actual overhead expense and allocation base in the same format as the budget for 2010. For the year 2009, actuals to date are immediately available upon request.
4. Includes Bid and Proposal Labor of $5,000.
5. The same rate is estimated for fiscal years
2011 and 2012. We anticipate minimal inflation and a stable business base. The data and analysis supporting this assertion is located in file “DAAH-01-R-0001,
Overhead Forecast” and is immediately available upon request.

SCHEDULE 5
Advanced Tank Technologies
Washington DC
Proposal Submitted in Response to RFP DAAH01-02-R-0001
Budget for Fiscal Year 2010 G&A
Actual G&A Expenses for Fiscal Years 2007 through 2009
Explanatory Notes
1. Provide account numbers in this column.
2. The projected G&A expenses are based on the company's operating budget for 2010. The operating budget supporting data is located in file "DAAH01-02-R-0001, G&A Operating Budget" and is available immediately upon request.
3. Provide the prior three years’ actual G&A expenses and the allocation base in the same format as the 2010 budget. For the year
2009, actuals are provided to date.
4. Includes $665 B&P Travel ($5,000 + $2,835 + $665 = $8,500).
5. Total Pool, excluding $2,835 allocated to B&P Labor ($5,000 x .567) [$1,374,500 - $2,835].
6. The same rate is estimated for fiscal years 2011 and 2012. We anticipate minimal inflation and a stable business base.
The data and analysis supporting this assertion is included in file "DAAH01-02-R-0001, G&A" and is available immediately upon request.

Advan ce d Tan k Te ch n ol ogi e s
Washingt on DC
P roposal Submit t ed in Response t o RFP DAAH01-02-R-0001
Budget for Fiscal Year 2010 G&A
Act ual G&A Expenses for Fiscal Years 2007 t hrough 2009
(Not e 1)
Account
Number G&A Expenses (Not e 2)
P ayroll T axes
Officer's Salaries
Indirect Salaries
Int erest
Vacat ion
Holiday
Sick Leave
Cont ribut ions
P ensions
Office Equipment
Depreciat ion
T ravel
Miscellaneous
Legal Fees
Account ing Fees
Comput er
Rent
Advert ising
T elephone
Insurance
T ot al P ool
Bid & P roposal
T ot al G&A and B&P
10,000
2,000
7,000
7,000
17,500
15,000
8,500
3,000
7,000
341,500
8,500
Budget
2010
$16,000
165,000
21,000
14,000
11,000
9,000
5,000
8,000
12,000
1,000
2,500
Less Unallowables
$0
14,000
8,000
8,500
0
30,500
Net Allowable
Expenses
$16,000
165,000
21,000
0
11,000
9,000
5,000
0
12,000
1,000
2,500
10,000
2,000
7,000
7,000
17,500
15,000
0
3,000
7,000
311,000
8,500
$319,500 $350,000 $30,500
Allocat ion Base
Labor
Labor Overhead
Ot her Direct Cost s
Mat erials
Mat erial Overhead
T ot al Cost Input Base
G&A Rat e
$2,331,000
1,371,665
29,000
250,000
12,500
$3,994,165
8.0%
Act ual Expenses (Not e 3)
2009 2008 2007
S C HEDULE 5
Not es
4
5
6

Barbara English, President, English Solutions, Inc.
31 W. Adams Street
Suite 102
Jacksonville, FL 32202
904.755.2554
barbara@benglishsolutions.com
www.benglishsolutions.com

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Lstuart@wipp.org

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