Pricing Strategy

Expertise in pricing strategies and cost volume development for government contractors

OnPoint specializes in helping clients develop more competitive pricing strategies and models by ensuring a deep understanding of RFP requirements, assessing the competition, and optimizing pricing structures to maximize both compliance and win probability. Here’s how OnPoint enhances clients’ market positioning and competitive pricing strategies:

1. Conducting RFP & Compliance Analysis

• Deciphers complex RFP pricing requirements to ensure full compliance with FAR, DFARS, and agency-specific rules.

• Identifies key evaluation criteria (e.g., LPTA, best-value trade-off) to align pricing with the government's selection priorities.

• Analyzes government cost realism expectations to ensure that pricing is both competitive and justifiable.

• Assesses proposal risks by flagging potential pitfalls in the cost volume and pricing methodology.

2. Conducting Competitive & Market Positioning Analysis

• Identifies key competitors bidding on similar contracts using procurement databases, FPDS, GSA schedules, and historical contract awards.

• Analyzes competitors' pricing trends to establish realistic price positioning relative to the market.

• Benchmarks direct and indirect cost structures using publicly available and proprietary pricing intelligence.

• Evaluates competitors' strengths and weaknesses to highlight differentiation opportunities in the cost proposal.

3. Developing Pricing Strategies to Strengthen Market Positioning

• Designs pricing models that balance cost realism with strategic competitiveness to maximize evaluation scores.

• Structures indirect costs (fringe, overhead, G&A, fee) effectively to enhance cost efficiency while maintaining profitability.

• Optimizes labor rate strategies using market intelligence, historical rates, and regional variations to maintain an edge over competitors.

• Identifies opportunities for discounts, value-added services, or incentives to create a compelling cost-benefit argument.

4. Creating Data-Driven Cost Models for Maximum Competitiveness

• Develops scenario-based cost models to test different pricing approaches before final submission.

• Leverages cost-volume modeling tools to validate price reasonableness and competitive advantage.

• Applies risk and contingency planning in pricing to avoid excessive cost-cutting that could impact performance.

• Aligns pricing strategies with technical and management volumes to ensure a holistic, unified proposal strategy.

5. Enhancing Cost Narrative & Justification for Higher Evaluation Scores

• Crafts compelling cost narratives that justify labor rates, indirect costs, escalation rates, and profit margins.

• Aligns cost strategies with value propositions to demonstrate efficiency, innovation, and reduced risk.

• Addresses government concerns proactively by detailing how pricing supports cost realism and risk mitigation.

• Prepares cost-volume responses for discussions and negotiations with government contracting officers.

6. Supporting Pricing Revisions & Final Proposal Adjustments

• Supports clients through the Best and Final Offer (BAFO) process, ensuring last-minute adjustments improve competitiveness.

• Develops pricing alternatives and trade-offs based on the government’s feedback and evolving competitive landscape.

• Provides pricing strategy workshops and internal training to enhance future cost proposal capabilities.

• Prepares for cost audits and post-award negotiations to solidify long-term contract profitability.

7. Long-Term Market Positioning & Capture Strategy

• Develops multi-year pricing roadmaps for clients targeting future recompetes or new opportunities.

• Advises on strategic teaming opportunities to enhance competitive positioning through subcontractor cost efficiencies.

• Builds internal pricing intelligence databases to improve historical cost tracking and benchmarking.

• Refines go-to-market pricing strategies to maintain a strong position in government contracting.

The Outcome: Higher Win Rates & Sustainable Growth

By helping clients understand RFP requirements, evaluate competition, and optimize pricing strategies, OnPoint enhances their ability to win federal contracts consistently. Through market intelligence, data-driven pricing models, and strategic cost narratives, clients gain a competitive edge that balances price, value, and compliance, ultimately leading to higher win rates and long-term federal market success.