Former_DCAA Posted May 11, 2021 Report Share Posted May 11, 2021 We're bidding on a T&M Contract that will be 90-95% labor and we're required to provide a breakdown of T&M rates - Salary, Fringe, OH, G&A and Profit Margin. We've historically bid 10% margin (nobody can point to why). That seems low to me but I can't find any benchmarking or guidance that would says either way. Does anyone have suggestions or data that provides "typical" T&M profit margins. Link to comment Share on other sites More sharing options...
here_2_help Posted May 12, 2021 Report Share Posted May 12, 2021 With respect to labor billed at the contract's hourly billing rates, the contract is effectively a fixed-price contract. Bid the same profit rate you would bid on a FFP. Link to comment Share on other sites More sharing options...
Former_DCAA Posted May 12, 2021 Author Report Share Posted May 12, 2021 2 hours ago, here_2_help said: With respect to labor billed at the contract's hourly billing rates, the contract is effectively a fixed-price contract. Bid the same profit rate you would bid on a FFP. Makes sense, thanks. Link to comment Share on other sites More sharing options...
Recommended Posts