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Pricing Government Contracts Deep Dive / Cost Model Basics

Direct Costs

Lesson 6 of 14

Direct costs are tied to the contract: labor, materials, travel, subcontractors, equipment, shipping, and contract-specific tools. They should be tied to scope and assumptions.

Key Takeaways

  • Every cost needs a basis.
  • Use real quotes when possible.

Common Mistakes

  • Missing startup costs.
  • Not documenting assumptions.

Related Course Templates

Simple Cost BuildLoaded Labor RateOption-Year PricingSubcontractor Quote ReviewWalk-Away Price90-Day Cash Forecast

Disclaimer

This course library is educational. It does not replace legal, accounting, cybersecurity, labor, or contracting advice. Users should always verify current requirements in the actual solicitation, contract, agency instructions, and official sources.