Pricing 101 for Government Contracts: Build to Win

In this course, you'll learn the fundamentals of pricing, including how to analyze cost structures, calculate overhead and profit, and build pricing models that support your value proposition. You'll also explore how buyers think, how price impacts evaluation, and how to position your pricing to align with market expectations and procurement goals.

In this foundational lesson, we break down one of the most critical—but often misunderstood—concepts in federal pricing: the difference between cost and price.

You’ll learn:

• What counts as a cost in federal contracts (direct, indirect, fringe, G&A)

• How price builds on cost to reflect value and profitability

• Why getting this right matters for compliance, credibility, and contract sustainability

Whether you’re building your first proposal or refining your current strategy, understanding this distinction is essential to avoid underpricing, ensure cost realism, and craft winning bids.

This lesson includes real-world examples, common pitfalls, and key takeaways you can apply immediately. You’ll also get access to a downloadable recap guide that simplifies the relationship between your internal costs and your external price.

By the end, you'll be able to confidently answer the question every contracting officer asks: “How did you get to this price?”

In this lesson, we break down the essential building blocks of a compliant, credible cost proposal for federal contracts. Whether you're new to government pricing or need a refresher, this module clarifies what goes into the numbers behind your price.

You'll learn:

• What a cost proposal is and how it differs from commercial pricing

• The five core components: direct costs, indirect costs, other direct costs (ODCs), profit/fee, and the all-important cost narrative

• The critical differences between cost vs. price, and why that matters when building trust and compliance with federal buyers

We’ll explore real examples—like labor rates, fringe benefits, G&A expenses, travel, consultant fees, and pricing narratives—to show how every cost ties back to your scope, risk, and value proposition.

You’ll also walk away understanding the “Triple Check” for every dollar: cost reasonableness, realism, and allowability under FAR regulations.

By the end of this lesson, you’ll know how to construct a cost proposal that tells a compelling story, aligns with compliance requirements, and sets the foundation for a winning price strategy.

Not all costs are created equal—especially in the eyes of the federal government. In this essential compliance-focused lesson, you’ll learn to identify which costs are reimbursable under federal contracts and which ones will get your proposal flagged or rejected.

We’ll walk through the rules defined under FAR Part 31, demystify the three-part test for allowability—reasonableness, allocability, and compliance—and give you clear examples of both “safe” and “risky” costs. From project-specific expenses to questionable add-ons (hello, first-class upgrades and holiday parties), you’ll gain the clarity needed to confidently separate what's fundable from what’s not.

This lesson includes:

• A practical breakdown of allowable vs. unallowable costs

• The Prudent Person Test to determine cost reasonableness

• Allocability guidance to assign costs correctly across contracts

• Interactive prompts and real-world examples to test your knowledge

• Compliance tips to help keep your proposals audit-ready

By the end of this lesson, you’ll know how to protect your proposals from costly mistakes, stay compliant with FAR regulations, and build budgets the government will trust.

Before you can build a winning price, you need a defensible foundation—and that foundation is the Basis of Estimate (BOE).

In this lesson, you'll learn how to create a BOE that not only justifies your cost estimates but also builds credibility, transparency, and compliance into your proposal. A strong BOE bridges the gap between the technical requirements in the Performance Work Statement (PWS) and your final pricing model.

You’ll learn:

• What a BOE is and why it matters in federal pricing

• The core components of a compliant BOE: work descriptions, assumptions, estimating methodology, and supporting data

• How to use estimating techniques such as parametric, analogy, engineering judgment, and bottom-up cost modeling

• How to document risks and assumptions that impact your numbers

• Tips to avoid common BOE pitfalls like missing data, unrealistic estimates, or vague justifications

This lesson will help you produce a clear, data-driven estimate that speaks directly to contracting officers, auditors, and evaluators—building trust and strengthening your proposal during negotiations.

By the end, you’ll know how to develop a BOE that’s accurate, review-ready, and fully aligned with FAR requirements.

Successful federal pricing isn’t just about theory—it’s about using the right tools, templates, and data sources to build pricing that’s accurate, defensible, and competitive.

In this lesson, we’ll explore the essential software, spreadsheets, templates, and market research platforms every pricing professional should have in their toolbox. Whether you’re estimating labor, calculating indirect rates, or tracking contract performance, you’ll discover practical resources that support compliance and decision-making at every stage.

You’ll learn about:

• Cost Estimation Tools: From labor rate and BOE templates to risk analysis and pricing summaries

• Compliance Checklists: Ensure your pricing aligns with FAR/DFARS and withstands audit scrutiny

• Market Research Platforms: Including SAM.gov, USAspending.gov, GSA Advantage, and Salary.com

• Historical and Benchmarking Resources: Tools that help you validate cost assumptions with real data

• Common Challenges: And how to overcome them when using tools for proposal pricing

By the end of this lesson, you’ll be equipped to price smarter using proven, professional-grade resources. You’ll also receive access to downloadable templates that you can start using immediately in your own pricing process.