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getting your pricing right on a federal proposal is key to winning the award there are three things to remember when preparing proposal pricing these three factors can be easily remembered with the acronym bid budget is a detailed statement of work that is supported by an estimation of proposed expenses often called a basis of estimate this is supported Again by factual quotes and estimations the estimation needs to be broken down to segregate direct and indirect expenses the indirect billing rates will be calculated from those indirect expenses to support the total cost in pricing data and to support the companys position during negotiation of the contract this will affect the amount of fee or profit that you make on the award as well direct work is a function of the maximum available award and the companys indirect rates an indirect rate too high will affect the amount of direct work reducing it and an indirect rate too low will affect the amount of profits remember when youre pre
