How do people benchmark their labor rates before an RFP when GSA schedule prices are public?

Firms use publicly available GSA Multiple Award Schedule pricing as a benchmark by understanding that those rates represent a ceiling, not a floor, for task order pricing. A GSA Multiple Award Schedule contract is a five-year IDIQ with three five-year options, for up to 20 years, and the pricing on it is negotiated with GSA. When responding to a task order, especially in a full and open competition, contractors often offer discounts off their published schedule rates to increase their competitiveness. These discounts are typically based on the specific requirements of the task order, such as the volume of work, the length of the period of performance, or the urgency of the need. The amount of the discount will also reflect the firm's internal costs for the labor category requested and their strategy for winning that particular bid. It is common practice for a prime contractor to offer a lower rate on a task order than their GSA Schedule rate if the task order itself is attractive enough for reasons beyond the profit margin on that specific work.