The development of wrap rates is a key component of any pricing model. Wrap rates are the indirect burdens covering fringe benefits, overhead, and general and administrative costs which are applied to direct labor costs to derive the true cost of labor.
At their most effective, wrap rate results reflect specific circumstances of an opportunity such as:
- the actual bidding unit (not just the company as a whole);
- work location (for both contractor and government site effort);
- and capture strategy (for example, whether the bidder plans to create a new cost center for the program or will use an existing pool).
When purchasing a wrapRATER deliverable, the purchaser will be responsible for providing this information to Richter & Company when purchased as a standalone product.