Five key components for determining what price you should bid are: Available funding: Determine ceiling price and confidence factor for the target pursuit; informs your bid/no bid decision and bid strategy development. Should cost: Analyze what the government believes the pursuit should cost based on past performance and future influencing factors. Provides you with a critical data point to make bid decisions and develop pricing strategy. Price competitiveness: Analyze your cost pool structure and cost elements, bidding practices related to these pools, and disclosure statement details to determine if you are competitive in a particular market. Financial analysis: Perform reverse engineering on contracts with available financial information to determine burdened labor rates, direct labor rates, average rate per hour and total contract value, as appropriate. Provides you with data to assist in determining whether to bid on a recompete or similar contract and if so, what the competition, including the incumbent(s), might bid. Wrap Rate analysis: Research GSA and other rate schedule, labor category, burdened labor rates for your specific service areas and target agencies; map these labor categories to various salary surveys; and calculate the burden to each labor category. Identify and discard gamed rates; and average remaining rates into competitive wrap rates. This analysis provides you with insight into the wrap rates of competitors and bidding strategies.