Episode Details

Pricing a federal services proposal correctly comes down to one document most new contractors never open, and in this clip, DOD contracting consultant Ryan Atencio walks through the mistake he made pricing his own proposal, and the fix.

Atencio, a 12-year Army special operations veteran and former DOD contracting officer representative, explains what the Service Contract Act wage determination is, why he priced a Puerto Rico exercise-support proposal nearly $20,000 too high, and the exact percentage he now adds to get a competitive but profitable number.

Key points discussed:

- The Service Contract Act attaches a wage determination document to many federal solicitations, setting the legal minimum pay for each labor category by location
- Atencio priced a DOD exercise-support proposal at $86,000 before referencing the wage determination, and brought it down to roughly $67,000 after
- A level three helicopter mechanic in Puerto Rico has a legal minimum wage of about $27 an hour, far below what most contractors would assume
- Atencio's rule of thumb: take the wage determination minimum and add roughly 35 percent to land on a fair and reasonable price
- If a subcontractor quote comes in well above that adjusted number, it is a signal to negotiate or get a second quote
- Never disqualify yourself from a small or short-notice opportunity, since low competition on these bids means an easy proposal can still win

CHAPTERS

0:00 - Why every business should bid on every opportunity in scope
1:45 - The $86,000 proposal that was priced too high
3:30 - What the Service Contract Act wage determination actually is
5:15 - A helicopter mechanic's legal minimum wage in Puerto Rico
6:45 - The 35 percent rule for pricing off the wage determination
8:00 - Using the wage floor to catch an inflated subcontractor quote

Mindy gives you the federal opportunities, agency signals, recompete intel, and pursuit briefs that tell you not just what contracts exist, but which ones to chase and how to win them.

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