What is an acceptable wrap rate for small government contractors?

I have had this question from several clients lately because they are concerned;

  1. Their rate is too high to be competitive
  2. Their rate is too low
  3. They have no idea why they should be concerned…

I counsel them that the wrap rate (fully burdened rate) needs to fairly represent their indirect costs that they incur while staying competitive in the market; after all they are competing in a market where all other things being equal, the low price will win.

What are you seeing for rates in your clients and are you seeing any trends?

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