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Module 6: Price From the Documents. Written explanation, fictional example, and sources.
Educational content. Follow the applicable solicitation and contract. Official sources are provided below.
10 min · Progress tracking is not available yet
After this lesson you should be able to compare a supplier quote with the CLIN, unit, and specification in the files; add freight, packaging, and labor when those costs apply; and write down missing facts before anyone quotes. AsherGate does not obtain quotes and does not total those lines.
Commercial cost buildup is not a substitute for the pricing instructions in the solicitation.
Open the supplier quote next to Section B or the commercial schedule. Check part number, size, listing mark, quantity, and unit of measure. A lower price on a 4.5-pound unit does not satisfy a CLIN that says 5-pound. FAR 4.1005-1 expects a unit price that belongs to that line’s unit of measure.
Then read delivery and packing. FAR 47.303-6 f.o.b. destination means the contractor pays and bears charges to the specified delivery point and packs to contract specifications. FAR 47.303-1 f.o.b. origin generally delivers the shipment to the carrier at origin; the contractor still packs and marks as specified, and the Government often pays line-haul freight, but origin charges, packing, and improper packing remain the contractor’s problem. FAR 15.204-2 puts packaging and marking in Section D and deliveries in Section F. If the quote is ex-works and the CLIN is f.o.b. destination, the missing trucking is a cost assumption, not a Government error.
Labor is the same test. If the files require labeling, assembly, or on-site work, include that time. Service Contract Labor Standards or Wage Rate Requirements may apply on some contracts; those wage rules are in the clauses, not in AsherGate. Write every gap: “freight not in supplier quote,” “option CLIN 0002 not priced,” “pack size 10, CLIN is each.” Follow Section L or 52.212-1 addenda for how unit prices must appear. FAR 15.404-1(g) warns that unbalanced base and option prices can create risk for the Government and can cause rejection. Do not shift all profit onto the base year because an option might never order.
Keep this as a side note. Construction Wage Rate Requirements and Service Contract Labor Standards, when in the contract, set minimum labor dollars you cannot undercut with a commercial guess. Cost-reimbursement lines use estimated cost and fee under FAR 4.1005-1(a)(5)(ii), not a simple unit price. Some f.o.b. origin buys use a Government bill of lading; some destination buys still require tailgate rules in 47.303-6. Copy the clause that is in the files.
Using the Nightridge story below, CLIN 0001 is 50 each of 5-pound extinguishers, f.o.b. destination. The supplier PDF prices 50 each of a 4.5-pound unit at $32, which is $1,600 and the wrong item. The matching 5-pound unit is $40 each, which is 50 × $40 = $2,000. Destination freight is $200, Section D packaging is $100, and labeling labor is 4 hours × $25 = $100. Cost is $2,000 + $200 + $100 + $100 = $2,400.
If they offered $3,000 total, that is $60 each because 50 × $60 = $3,000. Markup on cost is $600 ÷ $2,400 = 0.25, or 25 percent. Margin on price is $600 ÷ $3,000 = 0.20, or 20 percent. Those percentages are a labeled illustration, not a recommended rate. Write the assumptions, store the files, and do not submit from AsherGate.
Fictional example
Nightridge Fire Extinguishers Co is a fictional extinguisher shop in Flagstaff, Arizona. It stores fictional RFQ AG-COST-26-0729 from a fictional Coconino Cache Desk. CLIN 0001 is 50 each, 5-pound ABC extinguishers, UL listed, f.o.b. destination, plus Section D fiberboard packing.
A supplier PDF quotes 50 each of a 4.5-pound unit at $32, totaling $1,600, shipped f.o.b. origin. Nightridge rejects that quote as the wrong size and the wrong delivery term. The matching 5-pound unit is $40 each, or $2,000. They add $200 destination freight, $100 packing, and $100 labeling labor, reaching $2,400 cost.
They write assumptions: wrong-size quote discarded; freight not in supplier PDF; option year not in this RFQ. They do not treat 25 percent markup as a rule. They do not ask AsherGate to total the bid. Nothing is submitted.
Each official source is listed with the teaching claim it supports. Product behavior is labeled separately. Review dates are when AsherGate last checked the page.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: Each fixed-price line item has its own unit of measure, quantity, unit price, and total price. A supplier quote must map to those elements.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: Section B holds supplies and prices. Section D holds packaging and marking. Section F holds deliveries. Missing costs often hide in D and F, not in the supplier’s unit price.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: F.o.b. origin delivers the shipment to the carrier at origin. The contractor still packs and marks as specified and is responsible for loss from improper packing or loading.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: F.o.b. destination means the contractor pays and bears charges to the specified delivery point and packs to contract specifications. A supplier origin quote is incomplete for that CLIN.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: Unbalanced pricing between base and option line items can create performance risk and may cause the Government to reject an offer. Follow the evaluation instructions rather than shifting cost onto a later year.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: Commercial packages require offers to show price and any discount terms, among other minimum contents, as specified in the solicitation.
AsherGate · AsherGate product · Reviewed 2026-09-27
Supports: Drafts can store the RFQ and a supplier PDF you upload. The product does not obtain quotes, add freight, or calculate a bid price.