If we’re going to buy something, we need to know how much it will cost. D’uh, right?
The contract defines the terms and conditions of the purchase, while the price determines the value and/or cost of the goods or services being bought. Easy. This is true in GovCon as much as it is in our personal lives.
In GovCon however, the pricing process is sometimes seen as a separate and often detached element of a proposal, and even of the contract. One reason for this potentially wide separation between the pricing process and the rest of contract is due to a lack of context on how these elements interact. It’s critical to understand how the pricing elements align with, and have an impact on, not just the delivering the requirement under Section C, but how the pricing impacts the entire contract.
In this episode, Kevin invited Heather Teed (a proposal pricing strategist who knows this area well) to help him explain how the pricing elements inter-relate with all the sections of a contract – not just sections B, C and L.
Side note: If you’re not familiar with the contract sections, check out the episode we did on the Uniform Contract Format (episode 041).