We encourage you to use the Lead Item Pricing Calculator, which is designed to help you
determine your bid amount for the lead item in the product category and its
impact on the non-lead items’ potential single payment amounts (SPAs).
Also, you may want to review the Utilization Report. The report indicates the ratios relative
to the lead item that will be used to calculate the SPAs for the non-lead
items. The Utilization Report also provides 2017 and 2018 allowed amounts for
the lead and non-lead items in each product category. Historic and anticipated
utilization of the non-lead items are also factors to consider when developing
your bid amount for the lead item.
If requested to substantiate your bid amount for the lead item, you should
provide an explanation that describes how you arrived at the amount, including
factors such as anticipated costs (i.e., direct and indirect) for the lead and
non-lead items and desired profit.