Contracting Business on DLA / DIBBS

Chapter 05: Pricing and Profit Models for Micro RFQs

Contracting Book Chapter 05

Pricing and Profit Models for Micro RFQs

Micro-RFQs are like options trades: lots of small bets where the edge comes from consistency and disciplined risk control. You are not aiming for one giant home run—you are building a portfolio of modest, repeatable wins.

For each NSN, sketch a simple unit economics stack: landed cost from supplier, packaging and labels, shipping, indirect overhead, and a buffer for surprises. Only then add your target margin.

Because the government often cares more about on-time, on-spec performance than the last penny of price, you can price rationally—not as a race to zero. Keep a minimum dollar profit per order rule so you never do heroic work for lunch money.

Track metrics like: average profit per award, average cycle time from RFQ to cash, and hours spent per award. These will tell you when to raise your minimums or when a niche has matured enough to justify automation or delegation.

Mermaid Block — Business Workflow

graph TD Scan[Scan DIBBS RFQs] --> Filter[Apply Niche Filters] Filter --> Analyze[Analyze History & Competition] Analyze --> Decide[Bid / No Bid] Decide --> Exec[Execute Award] Exec --> Learn[Capture Lessons & Metrics]

Mermaid Block — Interaction Sequence

sequenceDiagram participant You as You / LLC participant DLA as DLA / DIBBS participant Supp as Supplier / Shop You->>DLA: Submit Quote (Ch 5) DLA-->>You: Award / No Award You->>Supp: Place PO Supp-->>You: Deliver Parts You->>DLA: Ship + Invoice

Action List