Section B. Supplies or Services & Prices/Costs
Section B communicates the contract type, period of performance, and pricing structure of the procurement. The structure is represented as billable Contract Line Items (CLINs) and Subcontract Line Items (SLINs) that comprise the list of all products and/or services to be acquired. This is where the Government tells you how to format your pricing response, usually in tabular form. When completed, Section B represents a summary of your pricing and becomes part of your price proposal to the Government.
Examples of the types of products and services a contractor might provide on a government contract are endless, but here are a few examples:
Beyond the general information, Section B might also provide the following:
Examples of the types of products and services a contractor might provide on a government contract are endless, but here are a few examples:
- Program management and documentation
- Training, including management courses, user training, instructor training, course maintenance, revisions, reviews, and specialized training courses
- Hardware and software, including related warranties, maintenance, software licenses, spare parts, and documentation
- Contract Data Requirements List (CDRL) items might include program status reports, presentations, meeting notes, test descriptions, security plans. These deliverables are represented as the Data Item Descriptions (DIDs) included in Section J, Attachments
- Labor and travel supplied by both prime and subcontractors
- Other direct costs (ODCs), which include cost items that are required to perform the work and are not covered under another cost category
Beyond the general information, Section B might also provide the following:
- Base and option periods
- Award fee plan
- Contract minimum and maximum values
- Estimated levels of effort
- Labor category rate tables for both onsite and offsite with staffing level (key/non-key), and a description of required skills
- Material list tables for offerer to enter prices
- Description of work to be performed outside the continental United States (OCONUS)
- Ordering procedures and delivery requirements
- Incorporation of proposed pricing for task orders (for IDIQ contracts)
- Payment plan schedule tied to deliverables (may be a separate attachment embedded in Section G, or included as an attachment to Section J)
REVIEW ACTION
Section B is typically first section that the contracting officer prepares. It establishes the pricing response structure in terms of CLINs/SLINs. Pricing is usually requested to be supplied as a separate volume; however, it is important to review Section B in conjunction with Sections L and M to ensure alignment of the pricing structure to requirements and evaluation criteria. Also note any performance incentives and volume discounts, as they will affect pricing for some CLINs.
Again, pay careful attention to be sure there are no discrepancies across the other sections. You might find discussions of CLINs or SLINs in Sections C, E, F, H, L, and M. To be certain, do a separate search for both “CLIN” and “SLIN” and review all occurrences to verify that they are in agreement with Section B.
SUCCESS TIP
Realistic, competitive pricing is critical to submitting a winning proposal. If you’re not sure how to formulate competitive pricing, consult with a pricing professional. Small businesses can receive pricing support from their local Procurement Technical Assistance Center (PTAC).
SUBMISSION ACTION
Double-check all numbers, formulas, and totals to be sure your price volume is accurate and that you have haven’t under or over bid by mistake. Underbidding a government contract may lead to False Claims Act liability. Whether requested by the RFP or not, you should develop a Basis of Estimate (BOE) that is clearly written and easily understandable by anyone, including the Government evaluators. A BOE typically contains a task description, estimating methodology, solution detail (e.g., staffing, equipment/material, travel), deliverables, and work products. Keep BOEs within easy reach because you may need them during clarifications or discussions with the Government.
For commercial item procurements (indicated by the SF1449 cover page), you provide your pricing and if requested, economic quantity discounts. Use the Government’s form/template to enter unit prices and amounts for CLINs and sub-CLINs (SLINs) as indicated in the schedules.
WARNING
Section B identifies the Government’s desired option rights (e.g., the right to order additional quantities of items, additional periods of service). Desired option rights may have an impact on your pricing formulation and your firm’s services and/or production capacity should be in line with the Government’s requirements. Performance-based acquisitions may call for expanded labor category descriptions, so be prepared to invest extra development time for development.
Section B is typically first section that the contracting officer prepares. It establishes the pricing response structure in terms of CLINs/SLINs. Pricing is usually requested to be supplied as a separate volume; however, it is important to review Section B in conjunction with Sections L and M to ensure alignment of the pricing structure to requirements and evaluation criteria. Also note any performance incentives and volume discounts, as they will affect pricing for some CLINs.
Again, pay careful attention to be sure there are no discrepancies across the other sections. You might find discussions of CLINs or SLINs in Sections C, E, F, H, L, and M. To be certain, do a separate search for both “CLIN” and “SLIN” and review all occurrences to verify that they are in agreement with Section B.
SUCCESS TIP
Realistic, competitive pricing is critical to submitting a winning proposal. If you’re not sure how to formulate competitive pricing, consult with a pricing professional. Small businesses can receive pricing support from their local Procurement Technical Assistance Center (PTAC).
SUBMISSION ACTION
Double-check all numbers, formulas, and totals to be sure your price volume is accurate and that you have haven’t under or over bid by mistake. Underbidding a government contract may lead to False Claims Act liability. Whether requested by the RFP or not, you should develop a Basis of Estimate (BOE) that is clearly written and easily understandable by anyone, including the Government evaluators. A BOE typically contains a task description, estimating methodology, solution detail (e.g., staffing, equipment/material, travel), deliverables, and work products. Keep BOEs within easy reach because you may need them during clarifications or discussions with the Government.
For commercial item procurements (indicated by the SF1449 cover page), you provide your pricing and if requested, economic quantity discounts. Use the Government’s form/template to enter unit prices and amounts for CLINs and sub-CLINs (SLINs) as indicated in the schedules.
WARNING
Section B identifies the Government’s desired option rights (e.g., the right to order additional quantities of items, additional periods of service). Desired option rights may have an impact on your pricing formulation and your firm’s services and/or production capacity should be in line with the Government’s requirements. Performance-based acquisitions may call for expanded labor category descriptions, so be prepared to invest extra development time for development.
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