What criteria will be used to account for indirect costs?

Bid amounts for the lead item will be evaluated to ensure you can acquire the item at realistic and feasible costs based on the submitted documentation. To determine whether a bid is bona fide, the bid amount for each lead item will be evaluated and compared to all other bidders' bid amounts submitted for the same lead item throughout all competitive bidding areas. When calculating your bid amount for the lead item, you should consider any indirect costs, such as overhead.

If requested to substantiate your bid amount for the lead item, you should provide an explanation that describes how you arrived at the amount including factors such as anticipated costs (i.e., direct and indirect) for the lead and non-lead items, historic and anticipated utilization of the non-lead items, and desired profit. We encourage you to use the tools such as the Bid Preparation Worksheets, Utilization Report, and the Lead Item Pricing Calculator, to assist you with preparing your bid(s).