Question 1

What is labor rate benchmarking?

Accepted Answer

Labor rate benchmarking compares the rate you bid for each labor category with what the market pays for that work. It draws on public wage data, GSA Schedule rates, and prices on comparable contracts. For award-value benchmarks on a whole pursuit, use the pricing benchmark workflow.

Question 2

What is an LCAT in government contracting?

Accepted Answer

An LCAT, or labor category, is a named role in a contract with minimum qualifications. Labor-hour, time-and-materials, and cost-plus-fixed-fee pricing tables set a rate per LCAT. The same title can carry different qualifications, so the agent maps each LCAT by its qualifications.

Question 3

What is a fully burdened labor rate?

Accepted Answer

A fully burdened labor rate is the direct hourly rate plus fringe, overhead, and G&A, each an indirect cost rate. The multiplier between the two is the wrap rate. A $50 direct rate at a 1.75 wrap is $87.50 fully burdened. To test the math, use the free wrap rate calculator.

Question 4

What are level of effort, BOE, and price to win?

Accepted Answer

Level of effort is the hours the work needs. A basis of estimate (BOE) shows how you derived each hour and rate. Price to win is the total that competes with the field and the government cost estimate. Evaluators test realism under FAR 15.404-1, so every rate gets a BOE note.

Question 5

Where does the agent get its market rate data?

Accepted Answer

From public sources, researched on each run: Bureau of Labor Statistics wage data by metro area, GSA Schedule rates, and award history in CLEATUS. It also reads the attached wage determination when the Service Contract Labor Standards apply. There is no proprietary salary database.

Question 6

Does it use our own rates, and is it audit-ready?

Accepted Answer

It reads your indirect rates from the Document Hub. It flags a missing rate and never invents it. The workbook shows every formula and source, but it is a pricing draft, not a DCAA review. For a similar cost build in your own AI agent, use the Bid Pricing and Price-to-Win agent skill.

Labor Rate Benchmarking for Every LCAT You Bid

A services bid lives or dies on its labor category rates, and most teams still build them from last year's spreadsheet. The Labor Rate Agent researches what the market pays for each LCAT, applies your wrap rate, and returns a fully burdened rate range with a price-to-win position.

Every Labor Category Priced Against the Market

Market Salary In, Fully Burdened Rate Out

Level of Effort, Price to Win, and the Workbook

Get a sourced, fully burdened rate range for every labor category before pricing review

Related Workflows

Automated Pricing Benchmarks for Government Contracts

Competitive Landscape Agent: GovCon Competitor Analysis

PWin Agent: Automated Probability of Win Scoring for GovCon

Frequently Asked Questions