In federal proposals, evaluators don’t just want to see your prices—they want to understand how you arrived at them. That’s where BOE writing comes into play. The Basis of Estimate (BOE) is a critical part of the cost volume, offering transparency and justification for labor hours, material costs, and other direct expenses. A clear, well-documented BOE can make the difference between a credible, competitive submission and one that gets flagged for unrealistic pricing.

This blog explores how to approach BOE writing strategically and effectively, ensuring your estimates align with agency expectations and solicitation requirements.

What Is BOE Writing?

BOE writing refers to the process of creating a narrative that explains the methodology, rationale, and assumptions behind a contractor’s proposed costs in response to a federal solicitation. A BOE typically accompanies the pricing volume and is required when the government wants insight into how estimates were developed—especially in cost-reimbursement, time-and-materials, or complex fixed-price proposals.

A strong BOE will explain the logic used to determine labor hours, historical data or benchmarks used, task-by-task or phase-by-phase breakdowns, source data for rates and escalation, subcontractor pricing assumptions, and any risks or caveats considered.

When done properly, BOE writing adds depth and credibility to your pricing submission.

Why BOE Writing Matters in Federal Proposals

Federal agencies use the BOE to evaluate cost realism, pricing consistency, and overall comprehension of the work. A well-written BOE can increase proposal scores, demonstrate understanding, reduce risk of rejection, and support audits and negotiations.

In short, your BOE is your chance to show evaluators that your pricing is not just competitive—but well-informed and executable.

What to Include in Your BOE

While the structure of a BOE can vary by contract type and agency, most will include the following key components:

Task-Level Labor Estimates: Break down hours by labor category and task or CLIN (Contract Line Item Number). This should align with your work breakdown structure (WBS) or performance work statement (PWS).

Rate Sources and Calculations: Explain how labor rates were developed, whether from internal payroll data, market benchmarks, or GSA schedules. Clarify if rates include fringe, overhead, and G&A.

Historical or Analogous Data: Reference past projects, industry benchmarks, or internal records to support estimates. Mention similarities in scope, customer type, or scale.

Escalation and Duration Assumptions: Describe assumptions used for pricing out multi-year performance periods, including wage growth, inflation, or contractual timing.

Subcontractor Inputs: If applicable, describe how you obtained and integrated subcontractor pricing. Include letters of commitment or assumptions around rate finalization.

Risk Factors and Contingencies: Highlight any potential cost drivers or variability in performance and how those were factored into the estimate.

By making these components clear, you’ll provide evaluators with a roadmap of your pricing logic.

BOE Writing and the Technical Proposal

A common mistake in federal proposals is disconnecting the cost and technical volumes. BOE writing helps reinforce the connection between what you’re proposing and how you’re pricing it.

Tips to ensure alignment include mirroring the staffing plan from the technical volume, referencing the same assumptions (e.g., level of effort, timelines), using consistent terminology for roles and deliverables, and cross-referencing section numbers or appendices when appropriate.

Consistency between volumes increases credibility and reduces the chance of compliance issues or evaluation concerns.

Common Pitfalls in BOE Writing

Even experienced contractors make avoidable mistakes when developing a BOE. Watch out for these issues:

Vague Justifications: Phrases like “based on experience” without specifics lack evaluative value.

Unsupported Assumptions: If you include escalation or efficiency assumptions, back them up with rationale or data.

Overly Technical Language: While your BOE is a technical document, keep it accessible to pricing evaluators.

Copy-Paste Errors: Reusing BOE language without tailoring it to the current opportunity can lead to inconsistencies.

Mismatch With Cost Tables: All estimates must tie directly to the figures in your pricing spreadsheet.

A strong internal review process can help catch these issues before submission.

Best Practices for BOE Writing

To write a compelling and compliant BOE, consider the following best practices:

Start Early: Begin writing the BOE as soon as the technical solution and pricing framework are developed.

Use a Template: Develop a standard structure for BOEs that can be tailored to different solicitations.

Collaborate With SMEs: Involve subject matter experts to verify labor assumptions and clarify scope.

Quantify When Possible: Use data and metrics to reinforce your estimates (e.g., “3 FTEs over 12 months at 1,920 hours/year”).

Tailor to the Evaluation Criteria: Align your narrative with cost realism or affordability criteria in Section M.

These practices will help you produce a BOE that stands up to government scrutiny.

When to Include a BOE

BOE writing is not required in every solicitation, but it’s commonly requested in cost-reimbursement or hybrid contracts, large IDIQ or GWAC proposals, competitive task order proposals under MACs, and RFPs requiring detailed pricing rationale or realism evaluations.

To determine if a BOE is needed, carefully review Section L of the RFP and look for requirements such as “narrative explanation of cost assumptions” or “basis of estimate for labor.”

For examples of federal solicitations that request BOEs, visit SAM.gov and search for RFPs in your target NAICS codes.

Need Help With BOE Writing?

If your team is short on time, resources, or cost narrative experience, consider partnering with experts. At Hinz Consulting, we provide tailored support for BOE writing, including BOE templates and formatting, staffed pricing strategy sessions, cross-volume consistency checks, and narrative reviews for clarity and compliance.

To get help with your next federal proposal, contact us and speak with a consultant about how we can support your pricing volume.