Labor Wrap Rate Studies

Keeping labor wrap rates competitive in today's government services marketplace requires constant monitoring of pricing trends by customer agencies, geographies, and types and levels of work. CAI/SISCo's build-up approach to developing competitive labor wrap rates uses cadres of labor categories that are representative of broad functional service categories to produce accurate results that are affordable. We accomplish this using our in-house labor and wrap rate development model that supports our Price To Win (PTW) studies. Our model develops detailed views and build-ups of customer- and contractor-site labor rates that, in turn, build-up accurate, near future (i.e., the government's next fiscal year) wrap rates for price/complexity market segments within an agency's functional service categories.

To help calibrate your firm's competitiveness CAI/SISCo can tailor a labor wrap rate study covering a set of agencies of interest (AOIs) that are specific to your firm's present or desired business footprint. An AOI can be any government department (e.g., Army), a grouping of departments (e.g., all Civil agencies), or any agency (e.g., FBI). In addition, a specific geographic area - e.g., the National Capital Region (NCR) - can be specified.

The CAI/SISCo approach uses an instance of our labor rate development model to build-up each AOI's Functional Service Categories (FSC): IT Services, Engineering Services, and Professional Services. The model instance is structured to develop customer-site and contractor-site near future wrap rates for pre-defined sets of labor categories that are weighted to represent the defined market strata within each FSC: Very Price Competitive/Low Complexity, Price Competitive/Medium Complexity, and Not Price Competitive/High Complexity. Once an AOI has been ordered for a specific geographic area, an additional geographic area for the AOI can be added for a modest cost increment.

CAI/SISCo's study outputs provide breakdowns of the most prevalent contractor- and government-site wrap rates through G&A and then through fee for all FSC/market strata combinations within each AOI/geographic area combination ordered. Deliverables include a comprehensive management presentation in MS Powerpoint and detailed MS Excel spreadseet tables that can be used for further analysis. The management presentation includes: a detailed explanation of the study approach, the study results, and appendices that include labor category descriptions by FSC as well as detailed definitions of each AOI/FSC combination ordered.

Work products can be delivered and read out within 10 business days of receipt of authorization to proceed and identification of the agencies and geographies that are to be studied.

To receive a confidential no-obligation quotation for a set of agencies of interest (AOIs) or more information about this or any of our other CAI/SISCo services and products,please e-mail Tony Constable or call him at (301) 807-8171. Along with each proposal response we will include a complementary .pdf copy of a sample Labor Wrap Rate deliverable for a single AOI so that you can assess the quality and utility of our analysis results.