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  • Question

    Does pricing data or a price model exist that gives estimated cost (overhead, source selection costs, administrative costs, etc) based on dollar value of the contract? Perhaps a study has been done addressing this question?


    Answer

    We were not able to find such a model in existence. If you were "bundling" smaller requirements into a larger one you must comply with FAR Part 7.107, to show the applicable cost savings. One cost savings could be the reduction in administrative costs involved in only having one contract - but that might be miniscule compared to the contract price savings and possible better terms and conditions. One advantage of splitting up the contract into smaller pieces could be to allow small businesses to compete for the work under a set-aside, which is why bundling is so scrutinized - by bundling you are taking these opportunities away and thus, must be justified.

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