Cost Volume Development

Expertise in pricing strategies and cost volume development for government contractors

OnPoint specializes helping clients write stronger Cost Narratives by aligning pricing strategies with compliance, competitiveness, and justification, ultimately increasing win rates. Here’s how they achieve this:

1. Aligning Cost Narratives with Proposal Strategy

• Defines key pricing themes that reinforce the value proposition of the proposal.

• Ensures consistency between the Cost Narrative and the Technical and Management volumes.

• Develops a persuasive pricing story that balances competitiveness with realistic execution.

2. Justifying Costs with Data and Market Benchmarks

• Conducts cost realism analysis to ensure prices reflect actual performance requirements.

• Benchmarks labor rates, indirect costs, and escalation factors against market data.

• Provides justification for direct and indirect costs using historical data, industry norms, and government expectations.

3. Structuring a Clear, Compliant Cost Narrative

• Explains cost elements in plain language, avoiding unnecessary complexity while meeting FAR/DFARS requirements.

• Breaks down cost categories (direct labor, fringe, overhead, G&A, fee) with clear methodologies.

• Highlights cost efficiencies and risk mitigation strategies to reassure contracting officers.

4. Strengthening Pricing Transparency and Audit Readiness

• Ensures compliance with cost principles (FAR Part 31, Cost Accounting Standards, etc.).

• Prepares clients for cost audits and discussions with DCAA/DCMA and agency evaluators.

• Supports development of backup documentation to substantiate cost assumptions.

5. Enhancing Persuasive Value-Based Pricing

• Demonstrates cost savings and innovations through operational efficiencies.

• Communicates the total cost of ownership (TCO) benefits to the government.

• Supports competitive pricing without underbidding, reducing the risk of post-award challenges.

By refining and strengthening Cost Narratives, OnPoint helps clients submit more compelling, compliant, and competitive proposals, ultimately driving higher win rates in federal contracting.