Competive Bids

Budget considerations to support bid process

You will need to compare your budget line items with past outside contracts for the same type of services to get an idea of what other items might need to be included for the particular bid or request for proposal you are responding to.

Salaries and Wages

• Direct labor (labor used in direct delivery of service, including full-time, part-time and seasonal employees)
• Other labor (clerical support, the cost of providing contract and department management)
• Overtime
• Outside assistance (e.g. consultants)
• Expected salary increases during contract term

Fringe Benefits

• Paid holidays, sick leave, vacation
• Pension contributions
• Longevity pay, incentives, bonuses, awards
• Social Security
• Workers’ Compensation insurance
• Health and life insurance
• Unemployment insurance
• Expected benefits increases during contract term

Materials, Supplies, Utilities

• Rent
• Utilities
• Operating materials and supplies
• Printing and related costs
• Postage
• Safety Equipment
• Uniforms
• Travel to meetings
• Recruitment

Office Equipment

• Equipment purchases and maintenance
• Computer hardware and software

Fleet Operations

• Operation, repair, and maintenance
• Vehicle depreciation
• Vehicle rental charges
• Vehicle insurance

Interdepartmental Charges

• Personnel
• Finance
• Data Processing
• Purchasing
• Custodial
• Liability insurance
  

Capital Expenses

• Facility construction
• Major renovations
• Fleet purchases, including finance charges

Source:  The cost components listed are drawn in part from John Tepper Marlin, Contracting Municipal Services (New York; John Wiley & Sons, 1984) and Joseph T. Kelley, Costing Government Services; A Guide for Decision Making (Washington, DC:  Government Finance Research Center, 1989).

See Related

Preparing bids proposals to keep services in-house