Cost volume / price volume
Also called: Price volume, Cost proposal, Business volume
Updated
What is Cost volume / price volume?
The cost volume, or price volume, is the part of a proposal that holds the offer's pricing and the support for it: prices per CLIN, labor categories and rates, the basis of estimate, assumptions, and any cost or pricing data the solicitation requires. Section L sets its content and format, and Section M says how price is evaluated.
What goes in a cost or price volume
A fixed-price competition may ask only for a price sheet by CLIN and a short narrative. A cost-reimbursement or large negotiated buy asks for much more: direct labor hours and rates by labor category, indirect rates, subcontractor pricing, other direct costs, a basis of estimate explaining how hours were built, and, above the statutory threshold, certified cost or pricing data (FAR 15.403 and 15.408).
Section L says what to include and often supplies a pricing template; follow it exactly. Section M says whether price is evaluated for reasonableness only, or also for realism, and how it trades against the other factors.
Keeping price and technical in step
The most common weakness is a mismatch: the technical volume promises a team the price does not staff, or the price includes labor the approach never mentions. Build the staffing plan once and use it for both volumes, and price every option year with stated escalation.
Many solicitations forbid price information in the technical volume, so keep numbers out of it. Assign the cost volume an owner early; it depends on decisions from every other volume.
Cost volume / price volume in ProposalWorkspace
ProposalWorkspace does not price proposals. It places the cost or price volume in the outline where Section L asks for it, and its Labor Categories tab lists every key and non-key position with public GSA CALC+ ceiling rates as a reference, matched on title, education and experience, with an Excel export of every labor category.
Cost volume / price volume: questions and answers
Is the cost volume evaluated separately?
Often yes. Many agencies have a separate team evaluate price, and Section L may require it in a separate file with no price data in the technical volume.
What is a basis of estimate?
The written reasoning behind proposed hours and costs, showing how the price was built from the work. Evaluators use it to judge whether the price is realistic for the approach.
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