How You Calculate Cost Factors in Awards

When comparing competing supplier responses, any fixed-amount cost factors must be adjusted according to the quantity the supplier response is offering.

This results in a per-unit price that reflects both the offer price and the effects of all cost factors, allowing you to more effectively evaluate competing responses.

How You Calculate Cost Factors in Awards

Any fixed amount cost factor are added together and the total is divided by the number of units being offered by the supplier. That value is then added to the price being offered by the supplier together with other percentage of line and per-unit cost factors.

Equation: ( line price + (line price * % of line price cost factors) ) + per-unit cost factor) + (fixed amount cost factor / quantity offered by supplier)