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RD Price To Win (PTW) Trending

Wrap Rate Low Level Decomposition (LLD): Price To Win Trending (PTWT)

ARDAK applied historical PTW pricing techniques for each procurement class listed below.

  • Priority (A priority win for an operating unit within the competitor cost center; some flexibility may exist regarding G&A, Fringe, but corporate flow-downs are fixed.)
  • Must Win (A must win for an operating unit within the competitor cost center; greater flexibility exists regarding G&A, Fringe, and corporate flow-downs)
  • Strategic (A strategic win for an operating unit within the competitor cost center; affects entire company)

KBR Government Solutions Pursuit Category Thresholds: Price To Win Trending (PTWT)

A $30M proposal pursuit would not garner any sympathy for rate reductions for a large defense contractor while it would for smaller firms. The table below shows the assumed proposal category thresholds as a function of target cost center.
KBRPTWThresholds 3.0

KBR Government Solutions Pursuit Category Summary: Price To Win Trending (PTWT)

In each category (Priority, Must Win and Strategic) there were further reductions from the previous category with a calculation as to how there would be, in essence, a zero sum game as justification to the hypothetical DCAA auditor. The contract pursuit rate reduction thresholds varies as a ratio of opportunity’s value to that of the cost center’s annual revenue as function of the cost center under analysis with pursuit values determined that would have the required financial impact. An example of this analysis is provided below:
KBRPTWValues 1.0
In each category (Priority, Must Win and Strategic) there can be further reductions from the previous category with a calculation as to how there would be, in essence, a zero sum game as justification to the hypothetical DCAA auditor, that is, the increase in base from the increased business would justify the rate reduction.

KBR Government Solutions (LLD) – Priority Win Pursuit (PTWT)

KBR Government Solutions (LLD) – Must Win Pursuit (PTWT)

KBR Government Solutions (LLD) – Strategic Pursuit (PTWT)