Contract value calculator (base + option years)

Price every year of a multi-year government contract: base year, option years and yearly wage escalation. See the total contract value and each year's price.

Your numbers

Base year price ($)
Number of option years
Yearly escalation (%)
Expected wage and cost increases. Wage determinations usually update when options are exercised.Include a 6-month extension (FAR 52.217-8)?

Result

Estimates for planning. Always price from the solicitation and your real costs.

Bidding a real government contract? We prepare the full bid package, pricing sheet included, from $495. You set the price and submit. See the contracts that fit you.

Why price every option year

Most federal service contracts run a base year plus up to four option years, and the solicitation asks for a price for each. The government evaluates the total, so a low base year with steep options can lose. Price each year with realistic increases: Service Contract Act wage determinations usually update when an option is exercised.

Many solicitations also include FAR 52.217-8, which lets the government extend services up to six months; some ask you to price it.

Questions

What are option years in a government contract?

Additional one-year periods the government may choose to exercise after the base year, each priced in your original offer.

How do I price option years?

Start from your base-year price and add expected yearly increases in wages and costs, then check the total against what similar contracts were awarded for.