How do I price labor rates for a government contract when I only know my commercial rates?

Priya, your state's procurement portal may have an archive of past procurements that includes bid tabulations or award notices, even if they are not immediately obvious. While Tom is correct that a public records request can be made, many state portals include this information in their search functions. For federal contracts, you can find award data on SAM.gov and USAspending, which list awarded prices and contractors. For state contracts, you must rely on the state's own transparency efforts. Government rates are driven by competition and the agency's budget, similar to commercial rates, but with additional regulatory considerations like prevailing wages for some services under the Service Contract Act. Escalation for option years should reflect documented economic indicators or your internal cost projections, which the contracting officer will evaluate for a fair and reasonable price.

You price labor rates for a government contract by understanding your direct costs, indirect costs, and profit, then comparing that to available market data. Government contracts do not inherently have lower or higher rates than commercial ones; the final price depends on the specific requirements, competition, and the contracting officer's determination of a fair and reasonable price. For state contracts, you will need to research state-specific resources. Look for public records requests for past contracts, or review bid opportunities on the state's procurement portal for similar services. You can also contact an APEX Accelerator (formerly PTAC) for guidance on state procurement. For federal contracts, you would use data from sources like the Department of Labor wage determinations for prevailing wages. Escalation for option years should account for anticipated increases in labor costs, such as inflation and potential wage increases. For federal contracts, a time-and-materials (T&M) contract pays direct labor hours at fixed hourly rates that include wages, overhead, G&A, and profit, plus actual cost for materials, but it is only used when the extent or duration of work cannot be estimated with reasonable confidence. Your internal cost structure drives your price, not what other people bid.