Federal Contracting Glossary
Price-to-Win (PTW)
A capture analysis that estimates the price at which you can win an opportunity while still meeting the customer's evaluation and your own margin needs.
Definition
Price-to-win (PTW) is the analytical process of determining the price that gives you the best chance of winning a specific competition, given the customer's budget, the likely competitive field, and the evaluation approach. It blends competitor cost modeling, historical award data, the independent government cost estimate where known, and how Section M will weigh price against non-price factors.
PTW is not simply "bid low." On a best-value tradeoff the winning price may sit above the lowest bid if technical and past-performance scores justify it; on an LPTA buy, PTW converges on the lowest credible compliant price. Good PTW is done during capture, so the technical solution can be shaped to hit the target price.
How this affects your proposal
Run PTW during capture, not at the pink-team stage — it should shape your solution and staffing, not just validate a number.
Common questions about price-to-win (ptw)
Is price-to-win the same as your cost estimate?
No. Your cost estimate is what the work will cost you; PTW is what you must bid to win. The gap between them is your strategy.
When should price-to-win be done?
During capture, before proposal pricing begins — so it can drive the technical approach, teaming, and staffing that make the target price achievable.
Related terms
Pwin (Win Probability)
A capture team's estimate of the probability of winning a specific opportunity, used to…
Capture Management
The disciplined pre-RFP process of positioning to win a specific opportunity — intellig…
Independent Government Cost Estimate (IGCE)
The government's own internal estimate of what a requirement should cost, used to budge…
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