Why the request for annual fee on government contract?
Anonymous
I have a contract I'm about to prepare with a gov't agency. I'm posting anonymously because our posts are apparently public on Google.
Their procurement officer asked me for the usual...hourly rate, travel costs, etc. But they asked me what my "Recurring Annual Fee" is. I typically contract with private firms and have never seen this for a project where I am billing hourly. What line item could this be for? I am managing a process improvement project for workflow and will then conduct some training. Saving Changes...
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Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
It reads as though you are in the process of setting up a standing offer. These offers are set up once and the government agency can access it when it needs to.
Often the rate for which you offer your service must cover all your costs--direct, indirect and overhead. The fact that they ask for your travel costs allows you to avoid building "freight" indirect costs into your rate.
Similarly, the annual fee would be the portion of your overhead costs that you incur to offer the service. Again, it allows you to keep a portion of your overhead out of the service rates. Saving Changes...
