A dry run of our training revealed that, for targeted competitors, the client had a unique view of how Direct Labor costs should be transformed into competitive bid Labor Rates. PTW practitioners usually begin a study by identifying the competing prime bidders and their bid team composition. Then, for the opportunity's provided or developed suite of labor categories (LCATs):
- decide how each competitive bid team member is likely to participate, on an LCAT-by-LCAT basis; and
- develop, update, leverage and apply labor fringe and overhead element build-ups before adding in G&A and Fee.