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"Reasonable" Profit Margin in T&M Labor Rates


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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. 

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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.

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